Ann: EQR Signs 5 Long-term Offtake Agreements for next 24 Months, page-29

EQR headlines this morning's Austex newletter. Rob Murdoch is a highly regarded in the resources sector.

AUSTEX STANDOUT PROJECT–Offtakes with Leading End Users as EQR targets supplying 50% of Western WorldTungsten

EQ RESOURCES EQR Five long term Offtake Agreements covering next 24 months production from EQR’s Tungsten Mines Mt Carbine NQ & Barruecopoardo Spain. Estimated Value of Offtake US$124M. 9400Kt 50% WO3 Conc. Offtakes are leading international Tungsten Consumers in Nth America and Europe

EQR Restarted the Mt Carbine Tungsten Mine NW of CairnsFNQ in 2021 initially re-processing low grade stockpiles and tailings &since June 2023 ore from extensions to the Open Cut. The current Open PitOre Reserves are 5.9Mt @ 0.28% WO3 for 1.66Mmtu WO3. The Resource 28.7Mt @ 0.4%WO3 for 8.6Mmtu WO3 contained, with the old stockpiles containing a further13.7mt @ 0.07%WO3 for 0.99Mmtu WO3. Of recent time mining has transitioned toowner operated which resulted in an increase in the tonnes mined by 4% in Q4 The Company is now exploring its underground potential withhigh grade opportunities at iron Duke and Western Extension. EQR acquiredthe Saloro Tungsten mine at Barruecopoardo Spain in Jan 24 & since then hasconsiderably improved the throughput. Q4 24 Production was a record of33,249mtu in concentrate up 44% on what was achieved in Q1 24t. The OreReserves are 10.5Mt @ 0.156% WO3 for 1.6Mmtu WO3 Contained Resource24.4Mt @ 0.195% WO3 for 4.74Mmtu WO3 Contained. In Nov 24 the Company acquireda producer of high- quality ferrotungsten in Vietnam which produces 4000tpaFeW. Completion of this deal is expected over H1 25. The Companyalso holds the Wolfram Camp deposit with a Resource of 2.4Mt @ 0.29% WO3. The Company’s FY 25 Guidance is 3000t of WO3 Metal Contained in concentrates.

Overall EQR is now producing 31% more Tungsten comparedto the monthly level in Q2 24.The secret to the success has been theintroduction of operational efficiencies and fine tuning of Ore Sortingtechnology to increase head grades and reduce plant volumes. The Companyis targeting 5000t WO3 pa by FY 27 which will be about 50% of the WesternWorld’s production. To support that Goal EQR has now entered into 5 long termOfftake Agreements covering the next 24 months production from both itsOperations. Based on the current pricing for Tungsten, the total value of theAgreements is estimated by EQR to be US$124M. The Total Offtake comprises 470containers each holding 20 metric tonnes of 50% WO3 Concentrate. TheAgreements have been executed with leading international Tungsten Consumers inNth America and Europe.

The counterparties to the Agreements include the top 3producers in their respective markets, covering the production of AmmoniumParatungsten (APT) Tungsten Oxide and Tungsten Carbide material all of whichare recent export restrictions from China. The Company will supply 25% of itsOfftake into Nth America, 25% into Europe & 50% to Asia. EQR’s globaloperations represent a significant part of the western supply of Tungstenconcentrates. The Offtakes were negotiated on rising prices the past 12months saw a 13% increase. Global demand is growing and the restrictions out ofChina are providing opportunity.

Great story – the strategy no doubt all worked outdoodling in the sands of exotic Port Douglas just down the big hill from MtCarbine – Keep doodling guys!

REGARDS ROB

ROB MURDOCH - FAusIMM (CP - Geology &Management) FAIG

PRINCIPAL CONSULTANT - PHONE 0418712011