Ann: Investor Update / Webinar, page-8

Updated research from Morgans Chris Brown

.13ps In production

QIC commits AM to EQR’s operating Mt Carbine tungsten mine

“QIC’s QCMBTF investment will allow EQR to kickstart plans to reopen historic underground mining operations and explore a dormant tungsten deposit with considerable potential for additional mineralisation.”

Note that this is to reopenthe underground workings which were accessed by a decline from the existing open pit when Mt Carbine shut down in 1987, after 15 years of operation. The drilling is designed to convert Inferred Resources to Indicated or Measured under the JORC Code (2012) standards. Once this is achieved the resource can be upgraded to Reserve status, and incorporated into mining plans and financial analysis – including the Valuation and Target Price. There’s a lot of exploration upside, beyond conversion of the Inferred Resources to higher categories. In this market for junior resource companies- even those in production – debt funding makes commercial sense, rather than diluting equity holders.

“The A million debt facility provides a pathway to extend the life of Mt Carbine by up to six years and create up to 100 local jobs by accelerating EQR’s processing expansion and underground development programs. “

1		EQ Resources – ASX:EQR Mkt Cap. @ A4.9cps: A.1M Valuation & TP - A
2	EQ Resources – ASX:EQR Mkt Cap. @ A4.9cps: A$91.1M Valuation & TP - A$0.13ps In production QIC commits A$20M to EQR’s operating Mt Carbine tungsten mine “QIC’s QCMBTF investment will allow EQR to kickstart plans to reopen historic underground mining operations and explore a dormant tungsten deposit with considerable potential for additional mineralisation.” Note that this is to reopenthe underground workings which were accessed by a decline from the existing open pit when Mt Carbine shut down in 1987, after 15 years of operation. The drilling is designed to convert Inferred Resources to Indicated or Measured under the JORC Code (2012) standards. Once this is achieved the resource can be upgraded to Reserve status, and incorporated into mining plans and financial analysis – including the Valuation and Target Price. There’s a lot of exploration upside, beyond conversion of the Inferred Resources to higher categories. In this market for junior resource companies- even those in production – debt funding makes commercial sense, rather than diluting equity holders. “The A$20 million debt facility provides a pathway to extend the life of Mt Carbine by up to six years and create up to 100 local jobs by accelerating EQR’s processing expansion and underground development programs. “
3	From: https://www.qic.com/News-and-Insights/Unlocking-exploration-potential-for-Australias-largest-tungsten-mine
4	Disclosure: The analyst responsible for this Research Flash holds shares in EQ Resources (ASX:EQR).