EQ Resources (EQR) Investor Update summary

Tungsten market and supply dynamics

• Tungsten prices have surged from $330/MTU in early 2025 to over $700/MTU, driven by a persistent global supply deficit and strong demand across industries like aerospace and defense.

• China supplies 85% of global tungsten, with the rest of the world facing limited access and growing strategic interest in non-Chinese sources.

• Imports of tungsten concentrate into China reached record levels in 2024, further tightening the market.

• Western producers with scale are well-positioned to benefit from supply chain security concerns.

• Tungsten's critical status in the US, EU, and Australia is due to its essential role in technology, defense, and industrial applications.

Operational updates: Australia and Spain

• Mt Carbine in Queensland is ramping up waste movement and expects to access high-grade ore by early 2026, aiming for 80% recovery rates.

• Transition to in-house operations at Carbine is reducing costs and improving accountability, with a new management structure being implemented.

• Barruecopardo in Spain achieved record production in October 2025, benefiting from process improvements and a return to mining fresh ore.

• Both sites are leveraging technical expertise to optimize recoveries, with Spain targeting 65-71% recovery rates for scheelite.

• Operational contingencies and proactive management are in place to maintain production consistency.

Financial and corporate developments

• The company has focused on resolving working capital issues, reducing debt, and reviewing capital structure for future growth.

• Refinancing of Saloro debt facilities is in advanced stages, with ongoing discussions with Oaktree and other parties.

• Engagement with US Exim Bank and the US Department of Defense continues for a $34 million letter of interest, though timelines depend on external processes.

• The business is confident in achieving a stronger balance sheet and will keep the market updated on progress.