year while aligning capital with near-term execution priorities at site and creating new commercial pathways for medium-term downstream sales. European Debt Repayment and Credit Facilities In parallel with the equity program, EQR continued to strengthen the European balance sheet associated with its Spanish operations at Saloro S.L.U. (Barruecopardo Mine, Spain). In June 2025, the Company repaid €5 million of debt, materially deleveraging the subsidiary and improving its financial resilience following the ramp-up in operating performance through late 2024 and early 2025. This repayment results in a 25% reduction of Saloro’s debt facilities with Santander bank. See ASX Announcement 16th June 2025: ‘Saloro Debt Repayment of EUR5M Completed’ To support ongoing banking arrangements, Oaktree Capital Management—EQR’s major shareholder and former owner of Saloro—confirmed in May 2025 the extension of €20 million of the €25 million Letters of Credit that underpin Saloro’s facilities with Banco Santander S.A. and CaixaBank S.A. through to the end of 2025. As at 31st December 2024, the balance of these facilities stood at A$41.4 million. The extension reflects strengthening operating metrics at Barruecopardo (including record production late in CY2024 and unaudited positive EBITDA of €4.4 million across Q4 CY2024 and Q1 CY2025) and provides the runway to progress discussions with Spanish lenders on converting the short-dated lines into longer-tenor structures. The objective is to reduce reliance on shareholder guarantees over time and to enhance Saloro’s stand-alone credit profile as the operation generates stable cash flow. See ASX Announcement 15th may 2025: ‘Saloro Credit Facilities in Process of Extension’ International Financing Support for Mt Carbine Expansion At the close of the financial year, EQR received an important endorsement of its Australian growth program. In June 2025, the Export-Import Bank of the United States (US EXIM) issued a Letter of Interest (LOI) under its Supply Chain Resiliency Initiative (SCRI), outlining its willingness to consider a 10-year debt facility of up to US$34 million (A$52 Million) to support the Mt Carbine expansion. The contemplated facility would underpin the planned doubling of processing capacity, including additional lines to treat the historic ~10 Mt low-grade stockpile and support future underground ore, thereby enhancing throughput, recovery, and unit-cost performance. Engagement with US EXIM also recognises tungsten’s strategic importance to global supply chains and Mt Carbine’s role as a long-life supplier outside China. See ASX Announcement 27th June 2025: ‘US EXIM Issue Letter of Interest for Mt Carbine’ Long-Term Offtake Contract and Strategic Collaboration with Elmet Technologies LLC During FY2025, EQR strengthened its global tungsten supply chain position through the execution of a Strategic Collaboration and Long-Term Offtake Agreement with Elmet Technologies LLC (“Elmet”), a leading US-owned and fully integrated tungsten manufacturer. The arrangement, first announced in September 2024 and finalised in November 2024, provides for the supply of tungsten concentrate to Elmet over a five-year term, with an estimated contract value of A$30 million at prevailing market prices. To secure offtake allocations, Elmet committed to an advance payment of A$2.0 million, underlining the strength of the partnership and confidence in EQR’s long-term production base. In recognition of the strategic nature of the collaboration, EQR granted Elmet 20,000,000 options, exercisable at A$0.10 per share with a twoyear expiry. The Agreement extends beyond a traditional offtake arrangement, establishing a strategic platform for collaboration across the US tungsten supply chain. Key elements include: − A framework for joint engagement on US Government funding opportunities, particularly those aimed at enhancing the resilience of critical minerals supply chains; − The submission of a joint white paper under the DIBC grant program, open to strategic partners in Australia, Canada, and the UK, with outcomes expected in FY2026; and − A pathway for greater downstream integration of EQR’s tungsten concentrate into the US market, strengthening alignment with long-term demand growth outside of China. Operationally, EQR’s commitments under this offtake agreement are supported by the ongoing expansion of production at its Barruecopardo Operations in Spain, which delivered record quarterly output in FY2025. This ensures both security of supply to Elmet and the ability for EQR to diversify its offtake channels while capturing favourable margins in the US market. EQ Resources Limited Annual Report 2025 7
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