BADONDO DRILLING RESULTS INCREASE SIZE AND GRADE OF EXPLORATION - PDF document

ASX: EQX | 30 OCTOBER 2013 | ASX RELEASE BADONDO DRILLING RESULTS INCREASE SIZE AND GRADE OF EXPLORATION TARGET REGIONAL SIGNIFICANCE CONFIRMED HIGHLIGHTS  Drilling results received from the initial drilling program at Badondo have been used to remodel the Exploration Targets for the Project.  All holes drilled intersected high grade hematite mineralisation above 50% Fe. Significant near surface downhole intersections include: o 41.9m at 62.9% Fe in BADDD0001; o 40.4m at 65.6% Fe in BADDD0002; o 26.4m at 61.9% Fe in BADDD0003; and o 13.5m at 61.5% Fe in BADDD0004.  Exploration Targets have been independently prepared by Core Geophysics who have generated new models based on results from the completed initial drilling program, geological mapping conducted by SRK, and the original geophysical data.  The updated models have increased the Hematite Exploration Target to between 370 and 620 million tonnes at a grade of between 58% and 67% Fe. The updated Total Exploration Target for Badondo has increased by more than 100% and is now 2.8 to 4.6 billion tonnes at a grade of between 35% and 67% Fe. The potential quantity and grade of the Exploration Target is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if further exploration will result in the estimation of a Mineral Resource.  Drilling to date has covered only 3km of more than 22km of identified magnetic strike at Badondo and Equatorial is now progressing with preparations for a large scale resource definition drilling program.  Discussions with regional stakeholders including governments, other mining companies, international commodity traders, and potential infrastructure financiers are continuing over the development of regional infrastructure to unlock the significant potential of this emerging iron ore cluster. Equatorial Resources Limited (“Equatorial” or “the Company”) is pleased to announce a revised Exploration Target for the Company’s 100% owned Badondo Iron Project (“Badondo” or “the Project”) in the Republic of Congo (“ROC”). The updated Exploration Target has been independently estimated by Core Geophysics based on remodelling following recent on-ground work including results from the completed initial drilling program. EQUATORIAL RESOURCES LIMITED | ABN 50 009 188 694 www.equatorialresources.com.au Level 2, BGC Centre, 28 The Esplanade, Perth, WA, Australia 6000 | Phone: +61 8 9466 5030 | Fax: +61 8 9466 5029

ASX: EQX | 30 October 2013 | ASX RELEASE Mr John Welborn, Managing Director & CEO, said: “The revised Exploration Target demonstrates Badondo has an integral role to play in the development of the Northern-Congo region. Badondo is among a limited number of regional projects in the north-eastern Gabon, southern Cameroon, and northern Republic of Congo which have the scale and grade potential to emerge as DSO producers. We continue to be delighted with the results from our work at Badondo. The results from holes completed in our initial drilling program have consistently demonstrated grades of above 60% Fe with no concern of deleterious elements. These grades, and the revised modelling, indicate Badondo is a major regional iron asset. We remain convinced that development of the region will be driven by co-operation and amalgamation of the high grade large scale deposits to form a Tier 1, globally significant, iron ore producing province.” The Total Exploration Target for the Project is made up of individually modelled Exploration Targets for three identified prospect areas: the Badondo Prospect, the Belinga North Prospect, and the Belinga North Extension Prospect. At each prospect a target estimate has been calculated for potential primary magnetite material (“Primary Itabirite”) and also for potential enriched hematite material (“Enriched Hematite”). The results from the initial drilling program, when combined with the geological mapping program conducted by SRK Consulting (Perth) Limited (“SRK”), have allowed for more accurate magnetic modelling to be conducted of the Badondo Prospect. No changes have been made to the size of the targets for the Belinga North Prospect, and the Belinga North Extension Prospect. Given the impact the drilling results and geological mapping has had on the Exploration Target over the Badondo prospect, it is conceivable that additional upgrades to the global Exploration Target could be achieved by completing similar programs at the Belinga North and Belinga North Extension prospects within the Badondo Project. Updated Badondo Exploration Targets Enriched Hematite Primary Itabirite Total Exploration Project Target (58 to 67% Fe) Target (35 to 54% Fe) Target (35 to 67% Fe) Badondo 270 – 450 Mt 1,770 – 2,950 Mt 2,040 – 3,400 Belinga North 40 – 70 Mt 460 – 770 Mt 500 – 840 Belinga North Ext 60 – 100 Mt 170 – 290 Mt 230 – 390 Total 370 - 620 Mt 2,370 – 3,950 Mt 2,770 – 4,630 Mt Table 1: Updated Exploration Targets for Badondo Figure 1: Cross section of drilling at Badondo for holes BADD0001 & BADD0002 2

ASX: EQX | 30 October 2013 | ASX RELEASE The remodelling of the Badondo Prospect has resulted in a 370% upgrade to the Exploration Target for primary magnetite and hematite banded iron formation (“BIF”) at that prospect. The Exploration Target for Enriched Hematite has been upgraded to between 270 and 450 million tonnes and the grade range has been increased to between 58% and 67% Fe. This represents a significant target of potentially high grade Direct Shipping Ore (“DSO”) material. The Exploration Target for Primary Itabirite has been upgraded to between 2,370 and 3,950 million tonnes at a grade of 35% to 54% Fe. This, combined with the previous Exploration Target at the Belinga North and Belinga North Extension Prospects (see ASX announcement dated 28 March 2011), provides an updated total Exploration Target for the project which has increased by more than 100% and is now 2,770 to 4,630 million tonnes at a grade range of 35% to 67% Fe. The total Exploration Target for enriched hematite is now between 375 and 625 million tonnes at a grade range of between 58% and 67% Fe. The Exploration Target estimates are based on a number of assumptions and limitations. The potential quantities and grades are conceptual in nature and should be considered broadly indicative at best. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. The drilling at the Badondo Prospect which has enabled the remodelling of the Exploration Targets was conducted using a specially constructed helicopter portable diamond drill rig and consisted of 14 drill holes for a total of 1,092m. All 14 holes were drilled at the Badondo Prospect and all holes intersected high grade iron mineralisation above 50% Fe. The results demonstrate the potential for the Project to host significant quantities of high grade DSO iron mineralisation similar to other world class iron projects in the region. Initial Badondo Drilling Program high grade intercepts From To Fe SiO 2 Al 2 O 3 P S LOI Hole_ID Interval Metres Metres % % % % % % BADDD0001 0 41.9 41.9 62.9 2.6 2.97 0.163 0.021 3.9 BADDD0002 1.9 12.2 10.3 63.2 4.79 2.85 0.044 0.004 1.7 BADDD0002 40.8 96 55.25 63.4 5.71 2.06 0.05 0.002 1 Including 52 92.4 40.4 65.6 2.61 2.01 0.06 0.002 1 BADDD0003 0 26.4 26.4 61.9 5.82 3.32 0.028 0.014 2 BADDD0003 35 43.6 8.6 60.5 11.28 1.24 0.025 0.008 0.7 BADDD0004 2.9 16.4 13.5 61.5 2.12 3.76 0.113 0.058 5.6 BADDD0005 3.97 13.87 9.9 60.8 3.09 3.39 0.246 0.039 5.7 BADDD0008 5.9 11.65 5.75 62.3 3.56 3.71 0.048 0.022 3.3 BADDD0009 6.1 12 5.9 64.1 2.79 2.71 0.054 0.017 2.6 Table 2: Selected results from initial Badondo Drilling Program Equatorial is preparing for a larger scale drilling program at Badondo. The primary purpose of this drilling program will be to define a maiden Mineral Resource at the Badondo Prospect as well as conduct initial drilling at Belinga North and Belinga North Extension. The program will require road access, local infrastructure support, and the development of a permanent camp. Equatorial is discussing opportunities to leverage the existing infrastructure in the region and further information will be provided in due course. 3

ASX: EQX | 30 October 2013 | ASX RELEASE Badondo is located among a cluster of very large iron projects including Sundance Resource Ltd’s Mbalam-Nabeba project, Core Mining’s Avima project, and the Gabonese Belinga project. Individually these projects would typically be classified as potential Tier 2 assets (the 80% of iron deposits that contribute 20% of global iron ore production). Equatorial believes that when combined these regional deposits have the potential to form a Tier 1, globally significant, iron ore producing province. The Company’s strategy for Badondo is to continue to progress geological exploration and resource definition while simultaneously working with regional stakeholders to progress an infrastructure solution that will unlock the value of the region. Figure 2: Badondo Project location plan Figure 3: The iron mountains of the Congo Craton 4