ANNUAL Report June 2025 Directors’ Report 5 (g) Updated Ore Reserve Statement released for the Barruecopardo Mine in Spain indicating the potential for sustained mine life over at least the next 7 years. Refer ASX Announcement “EQR Releases Barruecopardo Ore Reserve Update” dated 29 October 2024 and “Updated Announcement of Barruecopardo Ore Reserves” dated 4 November 2024. (h) The execution of a binding Heads of Agreement (HoA) to acquire 100% of the shares in Tungsten Metals Group Limited (a public listed company) and its subsidiaries, and separately Mr George Chen’s interest (being any and all shares) in Asia Tungsten Productions Co Ltd. The TMG Group is the owner and operator of the largest and most advanced ferrotunsten (FeW) plant outside of China, with the potential to produce 4,000 tpa of FeW. The facility is located in Vinh Bao, Haiphong Province. (Refer ASX Announcement “EQR to Acquire 100% interest in Tungsten Metals Group” dated 18 November 2024. Under the HoA, the parties agreed to an exclusivity period, ending 31 January 2025, for each party to complete due diligence and enter into definitive agreements. Whilst the parties have undergone a detailed due diligence process, the definitive agreements are yet to be executed. Accordingly, the exclusivity period has expired, however discussions are continuing. Refer ASX Announcement “EQR Provides Update to Ferrotungsten Producer Acquisition” dated 14 February 2025. (i) Leading US-owned and fully integrated tungsten manufacturer, Elmet Technologies LLC, and EQR have agreed to a strategic collaboration involving a multi-year offtake contract. As part of this arrangement, a basic framework was agreed under which Elmet will purchase tungsten concentrate from EQR with an estimated value of $30 million (at current market prices) over a 5-year period. Elmet secured this offtake allocation through an advance payment of $2 million to EQR. Refer ASX Announcement “Strategic Collaboration agreed with Elmet Technologies” dated 2 September 2024 and “Elmet Agreement Executed / Saloro Record Monthly Production” dated 12 November 2024 for details on the execution of the definitive supply agreement. (i) The securing of a $3 million investment by Brisbane based global energy and steelmaking commodity trader, Square Resources Holding Pty Ltd, through the issue of 3,000,000 convertible notes at a face value of $1, 1-year term and 9% interest being payable in cash upon redemption or in shares upon conversion of the notes. The conversion price of the notes is $0.075 per ordinary share, a 47% premium to the last close on 27 November 2024. Refer ASX Announcement “EQR Secures $3M Investment from Square Resources” dated 29 November 2024. (j) The decision not to accept the revised terms of an extension of the loan facility with Queensland Investment Corporation for a three-year interest-bearing $20 million funding facility. Refer ASX Announcements “QIC approves $20M funding for Mt Carbine Tungsten Mine Expansion” dated 8 May 2024 and “EQR revises funding approach for Mt Carbine expansion” dated 2 December 2024. (k) Increase in contributed equity of $31,280,135 (before share issue costs): Date Number of Shares Issue Price $ Issue of 127,323,657 shares @ $0.0900 per share to Cronimet Asia Pty Lte as consideration to acquire the Mt Carbine Retreatment Joint Venture Interest under a voluntary escrow restriction for 12 months (refer ASX Announcement dated 5 July 2024 and 29 July 2024) 29/07/2024 127,323,657 $0.0900 11,459,129 Issue of 39,304,733 shares @ $0.045 to Director ZP Yeo as approved by shareholders at the EGM on 29 July 2024 (refer ASX announcement dated 14 August 2024) 14/08/2024 39,304,733 $0.0458 1,798,570 Issue of 5,111,111 shares @ $0.0450 per share to Directors as approved at the Company's EGM on 29 July 2024 (refer ASX announcement dated 14 August 2024) 14/08/2024 5,111,111 $0.0450 230,000 Issue of 542,384 shares @ $0.0496 per share for Senior Financial Advisor Service Fees (refer ASX announcement dated 5 November 2024) 05/11/2024 504,485 $0.0496 25,022 Issue of 97,500,000 shares @ $0.0400 per share to sophisticated investors (refer ASX announcement dated 13 December 2024 and 24 December 2024) 24/12/2024 97,500,000 $0.0400 3,900,000 Issue of 25,000,000 shares @ $0.04000 per share to sophisticated investors (refer ASX announcement dated 7 February 2025) 07/02/2025 25,000,000 $0.0400 1,000,000 EQ Resources Limited Annual Report 2025 61
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