Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-3

Update from Pacpartners

Tungsten pricing: Positive outlook for 2023
Positive start to 2023 as tungsten price has ticked up to $335/mtu and manufacturers have seen stockpiles fall. Market outlook strong for 2023 particularly in defence, construction, mining and energy. Supply constraints within the industry remain.

1. EQ Resources:Generating sales from its smaller start, diverse funding available: BUY 12c

Process plant improvements continuing to result inramp up of monthly production, $2m in tungsten concentrate sales, $11m in streamingand critical minerals grants expected to be received in coming months as theyapproach commencement of mining in Q2 2023 (after Environmental ApprovalAmendment is approved).

Keyinfo from the quarterly:

1. Generating sales revenue: $2m in tungsten concentrate sales plus additional revenue from rock quarry.

2. Funds covered: $2.7m in available funding at 31-December but another $11m expected to be received in coming months from additional streaming funding (Regal) and Govt Critical Mineral Grants.

3. Diverse funding sources evident: Convertible notes, shareholder loans, Regal Resource Fund streaming deal, Critical Minerals Accelorator Initiative, small equity raise in October 2022.

4. Production ramp up has been a bit slower than anticipated but on track to meet overall production targets.

5. Resource extensions: Important for EQ is to devote available cashflow to extend its very limited resource life (4-6 years of mining ore, plus tailings processing). Drilling commenced late November and a resource and reserve updated should be availble in coming 4-6 months.

Newsflow due early 2023

1. 1. January - Qld Govt regulatory approval to clear the way for open cut mining in April

   2. April/May - Open cut mining from April and significant life in concentrate output

   3. Mid 2023 - Reserve increase within 6 months to add more mine life

   4. 2H 2023 - Ramp up to produce significant FCF by 2H 2023 (PAC estimate FY24 FCF yield 40%)

View:

1. The upside is yet to be defined as EQR focuses on small start incremental value add strategy ahead of ramp up in 2023.