Ann: June 2014 Quarterly Report, page-29

Hi Matt747.

I think it could be a quite a few problems. from what I have been reading from EQX announcements and people like Exarro, SP Angel and a couple of other sites.
Even EQX as of December 11th 2013 say they have been trying to negotiate with Potential Strategic Partners, Off-Take Parties and Financiers for Funding, but no binding agreements have been concluded with any party nor has any opportunity sufficiently progressed to be announced to the market. There is no guarantee that any agreement or transaction will eventuate from the Company's current discussions.

Another sticking point now that Exarro have called a halt . Exarro and Equatorial were to pay for the Rail up-grade work, like passing loops, plus installation of a Rail loop at Mayoko. The understanding was that Equatorial and Exarro were to pay for the required upgrade but this will be treated as a pre-payment by the Rail Operator CFCO.
Looks like Equatorial will have to pay for all the Up-Grade Rail work and loop at Mayoko.

SP Angel go on to say that Equatorial Project is small and we can see partnership arrangements with Exarro as important in improving the Commercial viability of the Project against a weakening backdrop for iron ore prices.

SP Angel thoughts are that Exarro are right to put their foot down about anymore expenditure on their project.

Regards
Westcott.