Drilling Targeting New Discoveries And Potential Western Pit Expansion

EQ Resources Limited (“EQR” or “the Company”) is pleased to announce the awarding of a drilling contract to DDH1 Drilling Pty Ltd for the Phase 2 2022 drilling program with field works commencing at the end of November.

Highlights:

• Phase 2 2022 drilling campaign for 3,015m locked in with completion slated for end February ’23, with a strong value-add focus on life of mine, area definition and orebody extension.
• Resource extension and Reserve conversion drilling with additional exploration covering:
  • Completion of the Western Extension drill out, to confirm economics of the potential Phase III Pit Extension*
  • Orientation determination of the high-grade zone found in Hole EQ026 of Phase 1 2022 drilling campaign** (i.e. 95m@0.94% WO3)
  • Drilling in the Iron Duke System will investigate the outcropping Ruby Vein and the newly discovered high-grade Crown Vein outcrops, located from soil anomalies***
• Upside potential exists to add several further years of open pit mining to the mine plan under the Bankable Feasibility Study Update.

This drilling campaign is primarily targeting the potential for the Phase III Pit Extension. The program will build on the Phase 1 2022 drilling in the Dyke West Zone (see ASX announcement ‘Further High- Grade Tungsten Intercepts in Near-Pit Drilling’ dated 20 May 2022) and has 23 holes planned for 3,015m with the following targets (details see Appendix 1):

(1) Western Pit Extension (Phase III Pit) & In-Fill within Pit Shell (as per BFS Update)

Sixteen (16) holes will quantify if a 15 million tonne Western Pit Extension (blue shape in Figure 1 below), called the Phase III Pit, will be economically feasible. No drilling has been done near surface in this area and any new Resources discovered would add to the Company’s existing Indicated Resources for Mt Carbine. Currently, the updated BFS (Pit Shell shown in green) highlighted 4.5 years of Open Pit Reserves and 10 years of Low Grade Stockpile Reserves for a total 14.5-year mine life.

(2) Resource drilling / Exploration for new discoveries

A single deep hole planned to investigate the orientation of the high-grade zone located in Hole EQ026, (i.e. 5.95m@0.94% WO3). It is thought, this high-grade zone plunges westward and has potential to add significantly to the future underground assessment.

Two holes targeting the surface expression of the historical named Ruby Vein, which is in the southern part of the Iron Duke Zone. The Iron Duke System is a large system immediately north of Mt Carbine Open Pit that has three known individual vein packages including Ruby/Dazzler, Talis & Crown Vein Packages. Given close proximity to the open pit, any resources found in the Ruby Vein would encourage continued pit expansion.

A single exploratory hole into the Crown Zone is planned. High-grade tungsten in soil results in this area identified outcropping scheelite vein structures that represent the surface expression of the Crown system. This system is the northern extension of the Iron Duke Zone and has excellent results at depth (>150m depth).

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