Notes to the Consolidated Financial Statements continued ANNUAL Report June 2025 Notes to the Consolidated Financial Statements 28 The above amounts represent costs of areas of interest carried forward as an asset in accordance with the accounting policy set out in Note 1. The ultimate recoupment of deferred exploration and evaluation expenditure in respect of an area of interest carried forward is dependent upon the discovery of commercially viable reserves and the successful development and exploitation of the respective areas or alternatively sale of the underlying areas of interest for at least their carrying value. Amortisation, concerning the relevant area of interest, is not charged until a mining operation has commenced. The Directors reassess the carrying value of the Group’s tenements at each half year or at a period other than that, should there be any indication of impairment. Farm-In and Joint Venture Agreement – NSW Projects On 22 March 2025 the Company entered into a Tenement Purchase Agreement with Sozo Resources Pty Ltd (“Sozo”) for EQR’s 100% owned NSW Projects Crow Mountain (EL6648) and Panama Hat (EL8024). The key terms of the agreement were: - Sozo to pay $1.00 and reimburse EQR the two cash security deposits totalling $20,000; and - EQR to receive a royalty equal to 1% of net smelter returns from each of the royalty tenements with Sozo having a royalty buy-back option, at any time, to buy back 100% of the applicable royalty for $250,000 for one royalty tenement or $500,000 for both. As at 30 June 2025 the Company impaired the capitalised exploration and evaluation expenditure associated with these tenements along with Mt Carbine EPM 27394 due to this tenement being relinquished due to its lack of exploration potential. 12. TRADE AND OTHER PAYABLES 2025 $ 2024 $ PAYABLES Trade payables 35,379,768 31,992,515 Other taxation 951,263 497,830 Unearned revenue 17,640,816 805,920 Accrued expenses 2,450,849 2,403,296 Other Payables - other persons/corporation 2,063,703 5,443,290 Other payables – related entities - 1,504,263 58,486,399 42,647,114 Payables from related entities represent the Company’s 50% portion of loans payable to the unincorporated joint venture since its inception. These loans were unsecured and non-interest bearing and were recorded as a current asset pending the acquisition by EQR of CR Australia’s joint venture interest in the Mt Carbine Retreatment Joint Venture (refer ASX Announcement “EQR Executes Definitive Agreement to Acquire Mt Carbine Retreatment Joint Venture Interest from Cronimet” dated 5 July 2024). Upon acquisition on 1 July 2024 these amounts have been eliminated upon consolidation. 13. DEBT FORGIVNESS During the financial year ended 30 June 2025, the Company received formal forgiveness of a financial liability amounting to $1,691,128 from Hogan Lovells International LLP. The liability was derecognised in accordance with IFRS 9, resulting in a gain of $1,691,128 recognised. The gain is presented under “Other Comprehensive Income” in the Comprehensive Statement of Profit or Loss and other Comprehensive Income. The Group assessed that the creditor does not meet the definition of a related party under IAS 2, and therefore the transaction is not disclosed as a related party transaction. 94 EQ Resources Limited Annual Report 2025
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