ANNUAL Report June 2025 Notes to the Consolidated Financial Statements 31 The following table illustrates outstanding options that have vested and are exercisable at year end: Number outstanding Number vested and exercisable Exercise price Expiry Date Remaining Contractual Life (Years) Issue EQRAL 19,751,674 19,751,674 0.0650 7/11/2025 0.36 Issue EQRAM 16,400,000 16,400,000 0.1000 3/07/2026 1.01 Issue EQRAN 1,250,000 1,250,000 0.0650 31/01/2026 0.59 Issue EQRAO 78,000,000 78,000,000 0.1000 18/01/2026 0.55 Issue EQRAP 103,452,002 103,452,002 0.0675 29/05/2027 1.91 Issue EQRAQ 142,500,000 142,500,000 0.0675 29/05/2027 1.91 Issue EQRAR 20,000,000 20,000,000 0.1000 22/11/2026 1.91 Issue EQRAS 72,400,000 56,900,000 0.0700 29/11/2027 2.42 Issue EQRAT 28,087,501 28,087,501 0.0675 29/05/2027 1.91 Outstanding at 30 June 2025 481,841,177 466,341,177 (c) Movements in Performance Rights No performance rights were issued nor outstanding at the end of the reporting period. 15. CONVERTIBLE NOTES On 6 November 2023, the Company issued 750,000 convertible notes with an aggregate principal value of $750,000. The notes are convertible at the option of the noteholders into ordinary shares at a conversion price of $0.100 per share at any time after issuance and up to the close of business on the date of maturity. Noteholders have an option to redeem the notes at the end of 2 years at face value plus any accrued interest. Any convertible notes not converted will be redeemed on 8 November 2025 at the principal amount together with accrued but unpaid interest thereon. The notes carry interest at a coupon rate of 9.00% per annum (effective interest rate of 0.86% per month based on a 2-year amortisation period on estimated cashflow timing in line with the 2-year redemption option), which is payable annually in arrears. A further issuance of 3,000,000 convertible notes occurred on 29 November 2024 with an aggregate principal value of $3,000,000. The notes are convertible at the option of the noteholder into ordinary shares at a conversion price of $0.075 per share at any time after issuance and up to the close of business on the maturity date. The noteholder has an option to redeem the notes at the end of 1 year at face value plus any accrued interest. Any convertible notes not converted will be redeemed on 28 November 2024 at the principal amount together with accrued but unpaid interest thereon. The notes carry interest at a coupon rate of 9.00% per annum (effective interest rate of 0.86% per month based on a 2-year amortisation period on estimated cashflow timing in line with the 1-year redemption option), which is payable annually in arrears. The fair value of the liability component was estimated at the issuance date using an “Interest Rate Differential” methodology, which discounts the convertible notes’ cash flows at a commercial discount (interest) rate to a present value. The residual amount is assigned as the equity component and is included in reserves. The convertible notes issued and converted during the period have been split into liability and equity components as follows: Debt ($) Equity ($) Number Opening balance at 1 July 2024 525,000 225,000 750,000 Nominal value of convertible notes issued 2,100,000 900,000 3,000,000 Notes converted during the period - - - Balance as at 30 June 2025 2,625,000 1,125,000 3,750,000 EQ Resources Limited Annual Report 2025 97
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