Strong BFS Update Delivers 59% Increase in NPV

EQ Resources Limited (“EQR” or “the Company”) is pleased to announce positive results from the November 2022 Update of its Bankable Feasibility Study (“BFS Update”) for the Mt Carbine Expansion Project (“Project”).

• BFS Update enhanced by recently announced 29% Open Pit Ore Reserves upgrade resulting in a 15% higher tungsten concentrate (50% WO3 content) output over an expanded 14 years production schedule.
• Project delivers strong Pre-Tax Economics* including:
  • NPV8** of $209.6 million*** (59% increase compared to initial BFS, December 2021);
  • IRR of 397%;
  • Payback period of 1.5 years; and
  • Life of Mine EBITDA of $324 million.
• Initial low capital cost of $22.9 million has been further optimised to $21.4 million as an effect of scope changes and defined costing, out of which approximately $5 million has been expensed and installed by October 2022.
• Successful implementation of the Phase 1 Scope provided invaluable data for further expansion works, with the process plant already achieving target recoveries.
• Tungsten concentrate production C1 Cash Cost**** remains amongst lowest in industry with an equivalent of US$118/mtu.
• Upcoming infill drilling around Western Extension as upside opportunity and to provide continuity in further resource development at and near Mt Carbine.

The BFS Update now contemplates a 14-year production schedule with the Project delivering impressive economics including a NPV8 of $210 million and an IRR of 397%. The BFS Update covers total concentrate production of approximately 31,000 tonnes (50% WO3 content), an increase of 15% over the initial BFS output.

The Project implementation was split into two phases, with the Company having successfully completed Phase 1 Scope as per the initial BFS. The BFS Update highlights that scope changes and cost updates have resulted in a positive net effect of approximately $1.5 million in total Capex savings. Of the revised Capex of $21.4 million approximately $5 million has been expensed and installed by end of October 2022.

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