Update from Pacpartners. They also compare against Almonty...

Update from Pacpartners. They also compare against Almonty saying we are trading at 20% to 33% of their market cap. They are saying we are SUPER CHEAP.

Flashnote - Highlights of the MarQ 2025 Report below.

• EQR super-cheap relative to Almonty
• Valuation impacts are under review.

	INTERIM FLASH NOTE
Company		EQ Resources | EQR
Capitalisation Recommendation		MCap $106.2m Price $0.045/share Speculative Buy $0.07/share Price Target – under review	Date: 1ST MAY 2025
EVENT / THEME		March Quarter 2025 Report – Profitable Spain offset as Mt Carbine transitions
Author		Lawrence Grech – Resource Analyst
Link to this note: Previous reports: EQR_PAC_19Mar2025(3-pages); EQR_PAC_RR_11Feb2025(13-pages); Tungsten & peers report: Tungsten_PAC_Report_6Feb2025(27-pages);
MarQ 2025 – Mt Carbine’s weather interrupted ramp up Saloro’s output was just below its recent record rate still enabling operating profit. Mt Carbine’s strong mined materials movement wasn’t enough to access high-grade ore resulting in 25% fall in output and a cash loss. Production of Tungsten trioxide was down 13.2% to 36,710 mtu (metric tonne units = 10 kg of WO₃) in MarQ 2025 on DecQ 2024 for the group. While group ore mined was up 4.5% QoQ, feed processed through the gravity plants fell 3.8% to 277.6kt and input grade fell 16% to 0.226% leading to the lower produced WO₃. Saloro operation generated a positive $2.1m cashflow from strong production though was 9.8% QoQ decrease to 29,993 mtu WO₃. Ore mined was 10% lower with 13% lower WO₃ in gravity feed processed. Mt Carbine posted a negative $3.3m cashflow on 25.7% fall QoQ to just 6,717 mtu WO₃ production. Mt Carbine overcame wet weather interruptions to record 22.6% and 47.8% lift respectively in mined material extracted and ore mined. However, the delay in accessing higher grade zones led to 9.9% fall in gravity feed processed combined with 17.6% fall in grade to 0.196% WO₃. Cash balance at 31 Mar 2025 was $1.9m, down a marginal $0.1m on end Dec 2024. Operating loss was $1.2m, capital spend $1.6m and lease & borrowings repaid were $1.6m. These outgoings were balanced by $4.48m in offtake prepayments. Outlook – Mt Carbine progressively accessing hi-grade; Spain more optimization and added cashflow Mt Carbine is now mining intermediate grade 345-335 level that will boost current WO₃ output. Strong blasting/mining rate assists stripping effort to enable mining high-grade 335-325 RL level in south-east part of Pit 2. This will see progressive quarterly WO₃ output rise and strongly rising cashflow generation. Saloro’s has been boosting crushing and concentrator capacity utilization with improving WO₃ recoveries to over 60%. Further optimization could see recoveries at ~70%. Addition of 3rd XRT sorter and wet screen could add a significant 90kt per quarter capacity to the 116kt sorted in MarQ 2025. Debt funding options for Mt Carbine’s doubling plant capacity are advanced. Plant is onsite and quick to connect. Added capital may be sourced from the US Defense Production Act. EQR’s marketing and due diligence advances Offtake agreements were concluded with five counterparties 470,000 metric tonne units of WO₃ (mtu = 10kg of tungsten trioxide concentrate) worth ~US$124m over the next 2 years into Asia, US and EU. For scale the agreements are worth ~US$31m per half year versus EQR’s DecH’2024 revenue of US$23m. In addition, EQR intend to also supply concentrate to ferrotungsten producer Tungsten Metals Group in Vietnam. A successful melt run by TMG has advanced EQR’s due diligence on acquiring the firm. EQR Leadership Team strengthened for its growth phase Craig Bradshaw was appointed as Non-Executive Director on to the EQR Board during April. Oliver Kleinhempel, EQR’s chairman has moved into a full-time executive role. Kevin MacNeill, EQR’s Managing Director is transitioning to Chief Technical Officer to optimize plants. David Laulau has been appointed General Manager of Mt Carbine mining operations.
EQ Resources is super-cheap relative to Almonty Industries On a unit Reserves basis EQ is valued at only ~20% to 33% of Almonty’s implied capitalisation and implied Enterprise Value. This implies EQ has 3 times or more upside relative to Almonty. We note that Almonty also has > 50m in-money Warrants and Options outstanding that would dilute Almonty a further ~$80m or ~9%. Relative share price move Almonti versus EQR massive outperformance of AII since Dec 2025 EQR primed to re-rate as production ramps up at Mt Carbine and Saloro efficiencies drive higher profitability
FOR INVESTMENT RISKS – see link above for full report on Page 8 of EQR_PAC_RR_11Feb2025. EQR is a minerals exploration development and production company. At this stage it has yet to establish enough cash generating capacity to sustain all its efficiency and expansion capital programs. Please view disclaimers below and in the full report.

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Recommendation Criteria
Investment View PAC Partners Investment View is based on an absolute one-year total return equal to capital appreciation plus yield. A Speculative recommendation is when a company has limited experience or early project stage from which to derive a fundamental investment view. Speculative buy = We expect the stock’s total return (nominal yield plus capital appreciation) to exceed 20% over 12 months. The investment may have strong capital appreciation but also has a high degree of risk and there is a significant risk of capital loss. Speculative Buy >20% Buy Hold Sell >20% 20% – 5% <5%		Risk Rating PAC Partners has a four tier Risk Rating System consisting of: Very High, High, Medium, and Low. The Risk Rating is a subjective rating based on: Management Track Record, Forecasting Risk, Industry Risk and Financial Risk including cash flow analysis. Disclosure of Economic Interests The views expressed in this research report accurately reflect the personal views ofabout the subject issuer and its securities. No part of the analyst's compensation was, is or will be directly or indirectly related to any recommendation or view expressed in this report. The following person(s) does hold an economic interest in the securities covered in this report or other securities issued by the subject issuer which may influence this report. The author of this report – Lawrence Grech. A member of the immediate family of the author of this report
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