EQ RESOURCES LIMITED - Annual Report 2008

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2008

Icon Resources Ltd

ABN 77 115 009 106

Directors

Andrew H White Chairman

John R Bishop Managing Director Stephen B Bartrop Non-executive Director

Company Secretary

Robert J Waring

Registered and Principal Office

Suite 404, 25 Lime St, Sydney, NSW, 2000 Telephone: 02 9279 1252 Facsimile: 02 9279 2727 Website: www.iconresources.com.au Email: [email protected]

Share Registrar

Computershare Investor Services Pty Ltd Level 2, 45 St George Terrace, Perth, WA, 6000 Telephone: 1300 557 010

Auditors

Barnes Dowell James Listed on the Australian Stock Exchange

ASX Code : III ABN : 77 115 009 106

Chairman’s Report ................................................. 1 Review of Operations ............................................ 4 Directors’ Report .................................................. 27 Income Statement ................................................ 37 Balance Sheet .................................................... 38 Statement of Cash Flows ................................... 39 Statement of Changes in Equity .......................... 40 Notes to the Accounts ......................................... 41 Directors’ Declaration ......................................... 62 Auditor’s Independence Declaration ................... 63 Independent Auditor’s Report ............................. 64

CHAIRMAN’S REPORT

In the past twelve months Icon Resources Ltd has enhanced the prospectivity of its gold, tin and base metal exploration properties in eastern Australia. However the most significant achievement for the Company was to acquire the sole rights to the Mount Carbine tungsten mine in north Queensland.

Mount Carbine was one of Australia’s largest tungsten producers prior to its closure in the mid 1980s when Chinese flooding of the tungsten market resulted in the closure of most western tungsten producing mines. Prior to closure, significant underground development was carried out at Mount Carbine with the intention of extracting an underground resource. The tungsten price exhibited a dramatic recovery in 2005 to around a US$200/mtu and is maintaining this level. Most forecasts are ‘bullish’ on tungsten due to the strength of global steel markets and the fact that China has declared tungsten a strategic metal which carries a tax on any exports.

Icon’s strategy is to start development of Mt Carbine by re-treating the tailings. This will minimise the initial capital expenditure and is expected to generate significant cash flows in the short term. Within 18 months to two years, Icon expects to have completed the feasibility studies to re-open hard rock mining at Mt Carbine. Apart from the inferred underground resource, there is excellent exploration potential for further economic mineralisation to the north of the open pit in areas of previously unexplored historic workings. This would offer the opportunity of extending the current open pit to the north and delay the necessity to commence underground mining.

Icon is investigating a number of options to finance the re-starting of Mt Carbine. These include negotiations with both European and Asian tungsten off-takers. With Icon’s main focus on the redevelopment of Mt Carbine, the company is negotiating a number of joint ventures for its New Century base metals properties and the Elizabeth Creek iron ore prospects in NW Queensland. The Queensland Government has awarded grants to Icon to test its Burketown prospect where Native Title agreement with the Garrawa and Gangalidda peoples has been negotiated and a cultural heritage clearance completed.

Exploration carried out at Icon's Tara tin prospect in central NSW, and at the Crow King gold prospect on the Peel Fault in NE NSW have further advanced these prospects, and Icon will continue exploration on these exciting projects. At Foresthome in central Queensland, old drill holes have been re-located and are ready for proposed down-hole geophysical surveys. A review of the historic resource at Foresthome resulted in an increase of the inferred resource to 1.75 million tonnes at 1.7% copper and 2% zinc.

Our work at the Grieves zinc prospect has not yet produced acceptable zinc recoveries at present zinc prices, and this project is now going forward with a low-cost study of alternative methods for extracting the zinc. Elsewhere, the results from drilling our Grenfell and Hiawatha gold projects in central NSW were disappointing and these tenements will either be joint ventured or relinquished. A number of little explored porphyry copper occurrences have recently been granted within two tenements in SE NSW. Data compilation and evaluation has commenced on these large scale porphyry copper targets.

Once again, on behalf of our shareholders, it is my pleasure to thank the staff, management and Board of Icon Resources Ltd for their great efforts for the Company through the year.

Dr A.H. White

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Mt Carbine Tungsten Project – Aerial View of Mining Leases and Open Cut

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Figure 1. Icon Project Locations.

REVIEW OF OPERATIONS

During the current year Icon has continued to evaluate priority targets in a range of mineral commodities. In early 2008 the company recognised the opportunity to develop the Mt Carbine tungsten mine in North Queensland.

This project has the potential to rapidly move Icon to producer status, initially through the recovery of tungsten concentrates from tailings, followed by the re-development of one of Australia’s leading tungsten operations.

Icon’s strategic tenement holdings in the NW Queensland mineral province are being progressively evaluated, with potentially large IOCGU and nickel targets concealed under cover in the Burketown and Leichhardt projects, ‘Century-style’ lead-zinc within seven permits and applications comprising the New Century project, and iron ore and base metals within the granted Elizabeth Creek EPM.

In Central Queensland, significant copper-zinc mineralisation at Fitzroy has been remodelled to define existing Inferred Resources, and geophysics is being used to locate potential extensions.

In New South Wales, evaluation of Icon’s extensive concealed polymetallic-tin mineralisation at Tara is continuing, and gold targets were drilled at Grenfell and Hiawatha. Systematic geological, geochemical and geophysical programs along the Peel Fault have defined a number of high priority drilling targets for gold associated with highly altered ultramafic rocks. The recent granting of exploration licences at Adaminaby provides the opportunity to evaluate essentially unexplored porphyry copper-gold systems.

At Grieves in Western Tasmania, investigation of zinc processing options for the near-surface resources are continuing, with significant potential for primary mineralisation remaining to be tested.

A brief description of operational activities over the past year is presented below, with Figure 1 showing the locations of Icon’s current exploration projects.

REVIEW OF OPERATIONS

MT CARBINE: Tungsten, NE QLD

Tenements : ML’s 4867 and 4919

Target: Re-development of the Mt Carbine Vein and Stockwork-hosted tungsten orebodies

In March 2008 Icon acquired the rights to operate and extract tungsten from the Mt Carbine mine in northern Queensland. The mine closed prematurely in 1987 as a result of depressed metal prices but at that time it was Australia’s largest tungsten producer.

Tungsten, also known as wolfram (chemical symbol W), has several exceptional properties: including very high density (comparable to gold); the highest melting point of any metal; the lowest coefficient of thermal expansion and the highest tensile strength.

Applications as metal and alloy include light bulb filaments; turbine blades; and recently catalysts, but the most widespread use is as tungsten carbide for wear-resistant cutting tools such as drill bits, saw blades, etc.

Most tungsten is mined in China with significant production in Canada and Portugal. In the mid 1980s the Chinese flooded the market causing world-wide closure of many mines, including Mt Carbine. Prices increased fourfold in 2005 and have remained high. The metal is expected to remain in demand with China recently declaring tungsten a strategic metal which carries a tax on any exports.

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Mt Carbine open cut – March 2008

Geological summary

Mt Carbine is a tungsten deposit hosted by a sheeted quartz vein system up to 100m wide and potentially 400-500m long, contained in Siluro-Devonian greenstones. The southern boundary and footwall of the mineralisation is the ’Southwall Fault’.

Mineralisation consists of wolframite (Fe, Mn) WO4 in quartz veins extending up to 100m from the fault, and extending at least to 600m deep, with minor scheelite (CaWO4) imprinted over the wolframite mineralisation. Wolframite crystals ranging from <0.5mm to 1000mm occur in the quartz

REVIEW OF OPERATIONS

veins. There is evidence that wolframite mineralisation is replaced by scheelite mineralisation with increasing distance from the Southwall Fault. There is no record of exploration for scheelite north of the wolframite zone, and this potential remains to be explored.

Location

The mine is at the northern end of the Atherton Tableland, about 120km by sealed highway from the port and major centre of Cairns and 45 minutes from Port Douglas. A sealed road and a 132KV power line both pass through the mine lease.

Mining history

Small scale mining from about 1900 to 1920 produced a total of approximately 260t W, from the larger quartz veins. Exploration in the early 1960s formed the basis for commencement of a new open pit mine operation in 1974, using visual estimates of quartz content in broken rock to distinguish ’ore’ from ’waste’. In 1978 the mine operator introduced the first photometric ore sorter used in Australia to the process, to enhance the separation of ore from waste and commissioned a plant capable of processing 1.5Mt ore per year.

A total of 13Mt of tungsten ore was extracted until mine closure in 1987, producing about 1200 tonnes of relatively high grade (72% WO3) concentrate per year. Grade was always reported as "recovered grade" and averaged at around 0.11% WO3 but ranged from 0.08% to 0.13% WO3.

There was no circuit in the mill to recover fines from the <75 micron fraction of tailings, which meant that a significant percentage of tungsten mineral mined was lost to the tailings stream.

In 1985 Chinese producers started flooding the market for tungsten concentrates with production from small scale surface mining. As a consequence the price for tungsten dropped from around US$125/mtu to ~US$85/mtu. Around that time, Poseidon Ltd and mine owners Queensland Wolfram Pty Ltd (QWL) entered a joint venture in which Poseidon undertook to finance the capital cost of underground development to access 10 million tonnes of ore by sub level caving.

Underground development commenced and the decline progressed approximately half way to the first production level before the mine was closed when the tungsten price fell further to US$45/mtu. Subsequently, the mill was sold and removed from the site.

The Mining Leases are now held by Mt Carbine Quarries Pty Ltd (MCQ), who crush rock from the mine waste stockpile to make different grades of road metal and construction material.

In September 2008 Icon signed a Sub-lease Agreement with MCQ whereby Icon obtains the right to mine and produce tungsten (and any other metals) from the deposit, and the intention is that Icon and MCQ will work together to optimise extraction of metal and production of construction and road aggregate.

The agreement covers two granted Mining Leases, ML 4867 and 4919, totalling approximately 366.39 ha, that have approximately 14 years to run before expiry.

REVIEW OF OPERATIONS

Ore resources and exploration potential

Considerable work was carried out before the Mt Carbine mine shut down in 1987 to estimate resources to provide a basis for ongoing tungsten production. This included sampling and surveying of the No. 4 tailings dam and a review of the underground mine plan.

Taking data from the 1985-1987 reports to the Joint Venture Management Committee, Dr A.H. White reports the following JORC compliant inferred resources: (Refer June 2008 Prospectus)

1.6 million tonnes in tailings dam No 4 with an estimated grade of 0.11% WO3, including an estimate that the tailings dam contained 400,000 tonnes of minus 75 micron material with an estimated grade of 0.3% WO3 . (additional tailings in dams No 2 and 3 will potentially add to this resource)
1.05 million tonnes in the open pit with a recovered grade estimated to be 0.1% WO3
9.6 million tonnes beneath the open pit at an estimated grade of 0.2% WO3

Significant exploration potential exists north of the present open pit based on scheelite mineralisation in the pit wall and extensive old workings on Carbine Hill. A program to develop drill targets associated with these untested zones has commenced.

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Mt Carbine – historical tungsten mineralisation (pink) drilling intersections adjacent to and beneath the current open cut.

REVIEW OF OPERATIONS

Icon's plan for development

Icon's plan for sequential development of the Mt Carbine deposit is as follows:

Sampling tailings and waste dumps. (commenced in August 2008)
Detailed metallurgical testwork to establish optimal concentrate recovery (in progress).
Design and costing of tailings retreatment, open pit mining and underground mining.
Drilling to sample ore body extensions north of the open pit
Feasibility study of open pit/underground mining and milling.

Approvals and permitting for mining, concentrating ore and environmental management will be part of this sequential program of development.

The proposed tailings retreatment may enable generation of a cash flow relatively early in the project, with preliminary financial modelling based on present information on grades, capital and operating costs indicating a positive cash flow and net present value.

The detailed feasibility studies are intended to substantiate the present positive indications for the tailings retreatment and hard rock mining and milling.

Apart from the positive indications from the preliminary financial modelling, the following factors make this opportunity worthy of full assessment:

The existence of reserves for a 15 year operation at the time of closure in 1987 (potentially increased through successful exploration).
The potential to lower operating costs with improved grade control, ore sorting and bulk mining methods.
Potential for tailings re-treatment to provide an early cash flow, enhancing the economics of the project.

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Tungsten grade distribution within #4 Tailings dam (derived from 1980’s auger drilling), and current bulk sampling

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NORTH WEST QUEENSLAND

Icon through its 100% owned subsidiaries holds granted tenements and applications over large areas along the NW margin of the highly prospective Mt Isa block in NW Qld. These project areas cover both outcropping and concealed targets with potential for world-class sediment-hosted exhalative (SEDEX) ‘Century-style’ zinc mineralisation and iron oxide copper-gold-uranium (IOCGU) deposits, and may host significant iron, nickel, platinum group element (PGE) and unconformity – related uranium mineralisation.

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Icon’s strategic tenement position on the northern flank of the NW-Qld Mineral Province: EPM14589 (Elizabeth Creek); EPM15368 (Burketown); EPMs 15386-8 (Leichhardt); EPMAs 15866, 15904, 16228-30, 16232, EPM15867 (New Century)

REVIEW OF OPERATIONS

BURKETOWN: IOCGU, Nickel, Tenement: EPM 15368

Target: Iron oxide copper gold uranium (IOCGU), Mafic-ultramafic hosted nickel

Overview:

Within the Burketown tenement, the primary exploration target is a large iron oxide copper-gold mineralising system, possibly with associated uranium and rare earth elements, similar to known world-class deposits and recent discoveries under cover in South Australia.

These deposits typically contain large accumulations of hematite, with or without magnetite and can be associated with discrete positive gravity and magnetic anomalies. The large (km) scale of these systems can make targeting associated copper-gold mineralisation difficult, particularly beneath moderate cover. Sulphide distribution can be used as a direct targeting tool as evidenced by the extensive use of the Queensland-developed MIMDAS system at Olympic Dam, the world’s largest IOCGU deposit.

The near-coincident gravity – magnetic feature within the Burketown tenement is of a similar order of magnitude to the significant Carrapateena IOCG discovery on the eastern margin of the Gawler Craton in South Australia. With the assistance of the Queensland Government’s initial round of Innovative Network Initiative (INI) funding, Icon will trial the MIMDAS system at Burketown.

By developing geophysical tools to map sulphide accumulations at depth, mineralisation not related to the primary (IOCG) target could also be detected. Icon’s analysis of government regional datasets suggests that basement in the area may include significant mafic-ultramafic rocks with potential for associated nickel sulphide and platinum group elements (PGE).

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Burketown basement gravity-magnetic anomaly

REVIEW OF OPERATIONS

Forward Program:

Icon is planning to complete penetrative electrical geophysics (MIMDAS) over the remarkable near-coincident basement gravity and magnetic feature within the Burketown Permit to delineate potentially mineralised targets for subsequent drill-testing.

The geophysical program is scheduled to be completed following cultural heritage clearance of the survey area.

The data acquisition and modelling will be partly funded by a Queensland Government INI grant and Icon has also been successful in obtaining funding under the Collaborative Drilling initiative to complete two deep drillholes to test concealed basement targets during 2008-09.

ELIZABETH CREEK: Iron, base metals, Tenement: EPM 14589

Target: Iron ore within the Constance Range and sediment-hosted Zn/Pb/Ag similar to the nearby Century deposit

Overview:

Under the terms of the Elizabeth Creek JV Zinifex (now OZ Minerals) is continuing to evaluate geochemical anomalies in the eastern portion of the tenement which are considered prospective for concealed SEDEX mineralisation.

The western portion of the permit contains a number of potentially significant sedimentary iron ore horizons which were defined by BHP in the early 1960’s and form part of the Constance Range Iron Ore mineralisation.

Forward Program:

Icon is compiling existing data on the known historical iron ore resources within the tenement, and assessing development opportunities in the current global iron ore market.

NEW CENTURY: Zinc, Tenements : EPM 15867 (Desert Ck) and EPMA’s 15866 (Argyle Ck), 15904 (Bannockburn), 16228 (Shadforth), 16229 (Sandy Ck), 16230 (Steiglitz) and 16232 (Almora)

Target: Sediment-hosted Zn/Pb/Ag similar to the nearby Century deposit

Overview:

Icon (through its 100% owned subsidiary Troutstone Ltd) has lodged 7 semi-contiguous permit applications covering over 1900 km[2 ] to the NW of the Century Zinc Mine. The region hosts a number of world-class base metal deposits and represents one of the world’s most productive zinc provinces and is highly prospective for further sediment-hosted (SEDEX) zinc-lead mineralisation. Work to date has consisted of a compilation of the previous exploration data, and processing, integration and interpretation of regional datasets.

REVIEW OF OPERATIONS

Forward program:

Recent research indicates that Century-style deposits are associated with the drainage of metalbearing brines derived from deeply buried sedimentary - volcanic source rocks deposited in rift basins.

The basins covered by the Icon tenements contain large volumes of potential source rocks, and the seismic data suggest that prospective sediments along the northern boundary are faulted close to the surface.

Icon is advancing the definition of the basin architecture by re-processing and re-interpretation of the available seismic surveys, together with structural interpretation of the aeromagnetic, radiometric and satellite data. Prospective corridors will be explored with soil geochemistry to detect lead-zinc and associated pathfinder anomalism due to leakage, particularly along faults from potential deposits to the surface. Modern 3D induced polarisation techniques will be employed to resolve drilling targets.

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New Century tenements – previous reconnaissance drilling and prospects on processed magnetics background.

REVIEW OF OPERATIONS

LEICHHARDT: IOCGU, Nickel, Tenements: EPM 15386 (North) 15387 (Central) and 15388 (South)

Targets: Iron oxide copper gold uranium (IOCGU), Mafic-ultramafic hosted nickel

Overview:

The Leichhardt permits lie on the east side of the northern termination of the Isa Rift under cover. The tenements are interpreted to cover a triple plate junction containing large volumes of mafic/ultramafic rocks where the western plate meets the highly mineralised southern plate (Mt Isa copper, etc) under a variable thickness of cover.

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Leichhardt Project - Potentially mineralised basement structures

Forward Program:

Integration and interpretation of the regional geophysical data is progressing, with magnetic and seismic data being utilised to determine the topography of the younger cover. Innovative geophysical methods being developed within the Burketown Permit to the west will be trialled in areas where basement is shallowest.

REVIEW OF OPERATIONS

FITZROY: Copper-Zinc, Central QLD: Tenements: EPM 13961 (Foresthome) and EPM 16665 (Fitzroy)

Target: Volcanic-hosted style polymetallic (Cu/Zn) massive sulphide lenses

Overview:

Compilation and validation of previous drilling completed at the Develin Creek copper-zinc volcanic hosted massive sulphide (VHMS) deposit in central Queensland were completed during late 2007 and incorporated in a revised geological resource model by Geostat Services Pty Ltd.

The revised Inferred Resource estimate for the three main mineralised bodies currently defined by drilling (Sulphide City, Scorpion and Window) is 1.75Mt grading 1.7% Cu and 2% Zn at a 1% CuEq* cutoff. (refer to Nov 2007 Resource Statement).

This estimate builds upon an earlier (non-JORC) resource estimate compiled by Outokumpu for Sulphide City and Scorpion in the mid-1990’s. While the current resource remains sub-economic, Icon believes that the area warrants further evaluation to identify extensions to the known mineralisation, and to locate additional concealed bodies that may form part of a localised VHMS cluster.

Forward Program:

Icon plans to evaluate the potential for similar systems throughout the under-explored host volcanic terrane within the surrounding EPM16665 ‘Fitzroy’, which contains a number of previously identified geochemical and geophysical targets.

At the Develin Creek prospect, significant potential exists to extend the currently defined bodies including:

Delineation of near–surface supergene mineralisation above the Scorpion and upper Sulphide City lens (these zones are essentially untested and not included in the current resource estimate)
Testing distal bedded sulphide horizons extending down-dip from the Scorpion sulphide breccia and Sulphide City massive sulphide lenses.
Drilling untested prospective stratigraphic intervals forming part of a complex stacked system. (At least two mineralised horizons have been intersected at Sulphide City, but only the upper interval was effectively tested at Scorpion 500m to the west)
Delineating concealed mineralisation under extensive cover (existing electrical geophysical coverage terminates approximately 300m to the west of Window-Scorpion)
Testing concealed mineralisation to the east of Sulphide City (untested IP chargeability anomalies)

The initial phase of generating prospective targets adjacent to the currently defined resources will involve modern downhole electromagnetic (DHEM) surveying of previous drillholes on the flanks of both Sulphide City and Scorpion to detect potential off-hole mineralised bodies. Follow-up surface EM and/or 3D IP surveys are also being planned to search for satellite mineralisation under cover.

REVIEW OF OPERATIONS

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Fitzroy Project – Currently defined extent of the Sulphide City, Scorpion and Window Cu-Zn bodies beneath Tertiary cover.

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Banded massive sulphides (Sulphide City) and footwall stockwork veining (Window)

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DEVELIN CREEK RESOURCE STATEMENT

(Above 1% CuEq* cut-off)

SULPHIDE CITY INFERRED RESOURCE

Tonnage	CuEq%*	Cu%	Zn%	Ag ppm	Au ppm
1,110,000	2.60	1.60	2.40	7.0	0.20
*SCORPION INFERRED RESOURCE*
Tonnage	CuEq%*	Cu%	Zn%	Ag ppm	Au ppm
485,000	2.70	2.00	1.90	13.9	0.40
*WINDOW INFERRED RESOURCE*
Tonnage	CuEq%*	Cu%	Zn%	Ag ppm	Au ppm
155,000	1.50	1.50	0.003	1.0	0.02
**TOTAL INFERRED RESOURCE @ 1% CuEq Cut-off***
Tonnage	CuEq%*	Cu%	Zn%	Ag ppm	Au ppm
1,750,000	2.50	1.70	2.00	8.5	0.20

CuEq% formula is based on closing metal prices of US$3.12/lb Cu and US$1.20/lb Zn as at 14/11/2007 and assuming 100% recovery of Cu and Zn in the absence of detailed metallurgy (CuEq = Cu% + 0.385 Zn%).The Inferred Resource tonnages and grades are extracted from remodelled Nov 2007 resource estimates.

SOUTH- EAST QUEENSLAND

GLENTANNA: Copper-Zinc, Tenement: EPM 15401

Target: Volcanic-hosted style polymetallic (Cu/Zn) massive sulphide lenses

Overview:

Previous drilling by the Geological Survey of Queensland at the Grieves Quarry prospect defined a (non-JORC) inferred resource of 0.2Mt at 5% zinc, associated with limestones and altered volcanic stratigraphy to the south of historical copper workings at Silverwood.

A number of earlier geophysical anomalies are essentially untested and modern geophysical methods may resolve extensions to the known mineralisation.

Forward program:

Following the compilation of previous drilling and geophysical data, Icon is planning to conduct either ground or airborne EM geophysical surveys to identify new zones of mineralisation.

REVIEW OF OPERATIONS

IRON POT CREEK: Gold (+ Molybdenum),Tenement: EPM 17071

Target: Concealed Porphyry-style gold +/ - molybdenum

Overview:

Extensive outcropping breccias and alteration zones previously evaluated at Crystal Mountain to the SW of Warwick are now considered to represent a barren alteration cap located above a possible concealed intrusive-related gold system at depth. Other mineralised systems within the tenement, including the Logan Creek molybdenum prospect, also warrant further analysis.

Forward program:

Alteration mapping of the Crystal Mountain system will be completed to develop the geological model, and partners sought to drill test the potential for significant mineralisation at depth.

HELIDON and FAIR HILL: URANIUM, Tenements: EPM 16454 (Helidon) and 16285 (Fair Hill)

Target: Sediment –hosted uranium at Helidon; caldera-style uranium at Fair Hill

Overview:

The tenements cover conceptual uranium targets and Icon would seek to JV the permits with specialist uranium explorers if the compilation of regional datasets and initial geological reconnaissance indicate that further evaluation is warranted.

NORTHERN NEW SOUTH WALES

PEEL FAULT PROJECT: GOLD, Tenements: EL6618 (Upper Hunter), EL6620 (Weabonga), EL6648 (Crow King), EL6680 (Trilby), EL6681 (Bingara), EL6681 (Baldwin), EL6683 (Niangala).

Target: The Peel Fault on the western margin of the New England Foldbelt is a Palaeozoic greenstone belt with extensive historical gold occurrences along its length. The zone has received little attention and remains remarkably under-explored. The belt is considered prospective for Californian ‘Mother-lode’ and related vein gold systems, and has potential for platinum group minerals, nickel, chrome and diamonds.

Overview:

Exploration during 2007-08 has focused on the Crow King tenement where potential exists for bulk tonnage and high grade gold deposits. Work completed includes; detailed geological mapping, extensive portable XRF (‘Niton’) & conventional soil geochemical surveys, rock-chip sampling, petrology and 3D IP chargeability and resistivity surveys.

To the east at Weabonga, potential exists for high-grade (‘bonanza’) gold deposits. Work completed includes detailed evaluation of the historic gold workings and previously defined 3D IP chargeability and resistivity anomalies with ‘Niton’ soil geochemical surveys, rock-chip sampling and petrology.

REVIEW OF OPERATIONS

Regional geological reconnaissance and data compilation was completed on the remaining licences, including further ‘Niton’ soil geochemical surveys, geological mapping and rock-chip sampling.

Within the Crow King licence (EL6648) detailed geological mapping and petrological studies have confirmed extensive zones of ‘listwanite’ (carbonate-quartz-fuchsite/chlorite-sulphide) altered ultramafic rocks, often spatially associated with historical gold occurrences and/or lamprophyric intrusive(s). Soil and rock-chip geochemical surveys have defined large coherent gold-arsenicantimony-mercury anomalies coincident with these altered rocks.

Detailed 3D IP surveys completed in March 2008 defined numerous chargeability and resistivity anomalies at depth, often semi-coincident with the listwanite altered rocks anomalous in gold and/or historic gold occurrences. The chargeability anomalies are considered to represent disseminated sulphides associated with these gold bearing alteration systems.

Integration of the geological, geochemical and geophysical data-sets has delineated high priority drill targets at Magnesite Hill, Good Friday, Fletchers, Crow King and Princess Prospects.

REVIEW OF OPERATIONS

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Icon’s tenement holdings and major prospects located along the Peel Fault.

Forward Program:

Drilling is planned at these prospects during the 2008-2009 year and will commence at Magnesite Hill. The Magnesite Hill prospect is characterised by a large (>1,000m x 100m) gold-arsenicantimony-mercury soil geochemical anomaly (>50ppb Au) associated with quartz veined and listwanite altered ultramafic rocks. A semi-coincident 3D IP chargeability anomaly occurs at depth, which is considered to represent disseminated sulphides. Importantly, shallow drilling by a previous explorer returned anomalous gold, including 12m @ 0.8g/t Au from 15m but failed to test the 3D IP chargeability anomaly at depth.

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Priority drilling targets at Magnesite Hill, Crow King EL6648

At Weabonga (EL6620) portable XRF (‘Niton’) soil geochemical surveys have delineated several discrete arsenic ± base-metal pathfinder anomalies often coincident with previously defined 3D IP chargeability anomalies and historic gold workings.

Sulphide bearing rock-chip samples from the historic Rainbow gold workings have returned highgrade ‘bonanza’ gold results (including 50g/t & 32g/t Au) and petrological studies have identified fine grained native gold associated with disseminated arsenopyrite.

High priority drill targets, consisting of semi-coincident 3D IP chargeability/resistivity & geochemical anomalies have been defined at Highland Mary, Rainbow and Sunlight gold workings. Drilling at these gold prospects is scheduled during the 2008-2009 year.

REVIEW OF OPERATIONS

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Weabonga – Rainbow Prospect: High grade gold in rock chips associated with extensive soil arsenic anomalies.

Regional geological reconnaissance and preliminary ‘Niton’ soil geochemical surveys conducted over the remaining tenements has defined extensive zones of listwanite alteration with anomalous arsenic along the Peel Fault within the Bingara, Trilby and Baldwin tenements.

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SOUTHERN – CENTRAL NSW

ADAMINABY: Copper/Gold, Tenements: EL 7178 (Kyloe) and EL 7179 (Jindabyne)

Target: Porphyry copper-gold.

Overview:

The Adaminaby Project is located in the Lachlan Fold Belt which hosts several world-class intrusive-related copper gold mines, including Newcrest’s Cadia Valley Operations, Rio Tinto’s North Parkes, and Barrick’s Lake Cowal deposits.

The Kyloe and Jindabyne tenements were granted in July 2008. Since the grant date a regional data compilation has commenced, which includes reviewing previous exploration data-sets, old workings, geological maps and processing of geophysical datasets.

The regional data compilation has confirmed that BHP in the 1970’s defined a large low-grade porphyry style copper system at the Jindabyne Dam Prospect. The porphyry copper style mineralisation is associated with a magnetic, potassic altered, massive granodiorite phase of the Siluro-Devonian Kosciusko Batholith. No exploration drilling has occurred at this prospect.

The review also highlighted the historic Kyloe copper mine which is described as a quartz-sulphide lode varying from 0.8-1.8m wide, grading 3 to 6% copper. The mine produced approximately 65,000 tonnes of copper ore of unknown grade. The mine closed in 1914 possibly due to flooding because of its close proximity to Lake Eucumbene, with the main shaft ~210m deep. No exploration work has been recorded since the mine closed.

Forward Program:

Geological reconnaissance is planned in late 2008 including assessing the type, distribution and grade of the mineral systems of the historic copper-gold workings. Further work may include geological mapping, soil and rock-chip geochemical surveys and 3D IP surveys to define concealed mineralisation.

REVIEW OF OPERATIONS

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Adaminaby copper-gold prospect locations

TARA PROJECT: Tin-Tungsten, Tenements: EL 6532 (Tara), EL 2953 (Tara Extended)

Target: Concealed intrusion-related tin-tungsten veins / stockworks and breccia pipes.

Overview:

Exploration to date at Tara has identified a large (2km x 1km) polymetallic system with widespread tin, tungsten and zinc mineralisation concealed beneath shallow alluvial cover.

REVIEW OF OPERATIONS

During the current year a basement aircore drilling program was completed to map pathfinder elements associated with shallow tin mineralisation within structures interpreted from detailed ground magnetics.

This 46 hole program completed in June encountered difficult drilling conditions within the alluvial cover, however some low-order arsenic and zinc values were intersected in the leached basement near the intersection of interpreted structures.

Forward Program:

The strategy of developing geochemical vectors to primary mineralised structures at Tara may require extensive basement drilling, and partners are being sought to progress the evaluation of these targets, as well as deeper features identified in Icon’s recent geophysical surveys.

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Aircore drilling at Tara in June 2008 to identify tin-bearing structures concealed beneath ~25m of alluvium

REVIEW OF OPERATIONS

GRENFELL: Gold, Tenement: EL 6559

Target: Concealed ‘Porphyry-related gold’ associated with extensive historical hard-rock and alluvial gold workings.

Overview:

A series of targets defined by geophysics, ‘Niton’ soil geochemistry and geological mapping adjacent to historical workings were drill tested in late 2007 with generally disappointing results. The drill targets included a central resistivity feature defined by the 3D IP survey, co-incident IP chargeability and ‘Niton’ arsenic anomalies, magnetic anomalies, and depth extensions to old workings. Six diamond holes with RC precollars and one RC hole were drilled.

The hole testing the central resistive zone (IED001) intersected a 15m thick zone of strongly silicified sediments, but no associated gold mineralisation. Pyritic zones within dolerite dykes were intersected in the hole testing the eastern chargeable zone (IED002) and an intercept of 2m @ 0.46g/t gold was returned from a quartz vein hosted by unaltered sediments. No anomalous results were returned from the holes drilled beneath the Gillams and Exhibition workings.

Forward Program:

Geological and ‘Niton’ geochemical reconnaissance traverses are planned in the southern portion of the tenement to assess the potential of altered ultramafic rocks and additional historical workings not evaluated to date. The potential to incorporate the licence in an on-going JV is also being investigated.

HIAWATHA: Gold: Tenement: EL 6291

Target: Concealed ‘Porphyry-related gold’ similar to Grenfell, or a variant of the nearby Lake Cowal system.

Overview:

Rock chip sampling of old gold workings, outcropping quartz veins and highly iron-stained and manganese-rich structures in the central area underlain by near-surface IP chargeable zones, returned high gold values (up to 21.6 g/t gold) and elevated silver, arsenic, antimony, bismuth and lead results. Soil XRF (‘Niton’) surveys also defined lead, arsenic and zinc anomalies in this area.

In late 2007 two targets from within this central zone, with anomalous surface geochemistry, old workings and co-incident weakly chargeable IP zones were tested with five RC holes.

The holes intersected undifferentiated granitoids and granodiorites with weak to moderate alteration (chlorite, sericite and epidote), associated with quartz veins. Gold assay results were only weakly elevated, with the exception of a 5m interval in one hole, of >0.5g/t gold values associated with manganese oxides and quartz veins and moderate chlorite-sericite-epidote alteration.

The lack of significant alteration, relatively low tenor geophysical responses and generally disappointing drilling results have downgraded prospectivity and suggest that further exploration is unwarranted.

REVIEW OF OPERATIONS

TASMANIA

PROFESSOR PROJECT: Zinc, Tenements: ELs 47/2005 (Henty Rd) and 8/2005 (Amber Ck)

Target: ‘Irish-style’ carbonate hosted zinc-lead associated with shallow secondary zinc-in-peat resources and deeply weathered oxide-zinc potential.

Overview:

Icon has increased the resource of the Grieves Siding zinc mineralisation with an augur-based bulk sampling program. However a profitable processing of this mineralisation (predominantly sphalerite in peaty-clay) has not yet been achieved. A low-cost investigation of the potentially more valuable underlying zinc oxide mineralisation to determine its viability is planned for the current financial year.

Forward Program:

If economic processing options are established, additional drilling and bulk sampling will be undertaken at Grieves to define mineable reserves, and to identify additional resources along the ~25km of potentially mineralised horizon within the Professor project area.

Discussions are also continuing with groups active in the region to progress additional exploration and development opportunities.

Icon intends to continue its strategy of acquiring potential world-class conceptual targets and under-explored historic mine fields; working them up –usually with modern geophysical techniques and rapidly assessing them. We have been very encouraged by the results to date at Mt Carbine and the other exploration projects throughout eastern Australia are progressing towards potential new mineral discoveries.

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(Dr) John Bishop

Managing Director

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Competent Person

The information in this report that relates to Exploration Results is based on information compiled by Dr John Bishop, who is a member of the Australian Institute of Geoscientists. Dr Bishop is a full‐time employee of Icon and has sufficient experience relevant to the styles of mineralisation and types of deposits under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Bishop consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

DIRECTORS’ REPORT

The directors of Icon Resources Ltd present their report on the consolidated entity (Group), consisting of Icon Resources Ltd and the entities it controlled at the end of, and during, the financial year ended 30 June 2008.

Directors

The following persons were directors of Icon Resources Ltd during the whole of the financial year and up to the date of this report, unless otherwise stated:

Dr Andrew H White, Non Executive Chairman

Dr John R Bishop , Managing Director

Stephen B Bartrop, Non Executive Director

Company Secretar y

Robert J Waring

Principal Activities

The continuing principal activity of the Group is the exploration for economic deposits of minerals. For the period of this report, the emphasis has been on tin, zinc and gold.

There has not been any significant changes in the nature of the Group’s activities that occurred during the year, however on 15 May 2008 the company announced that it has acquired the rights to 100% of the Mt Carbine Tungsten mine near Cairns in north Queensland and this will have an impact in the future years. There is a planned 3 stage development program for the re-development of Mt Carbine, being:

Stage 1 – retreatment of the tailings
Stage 2 – re-opening of the open pit, and
Stage 3 – re-opening of the underground mine

This program is now underway and further developments will be announced as they occur. This change, if implemented as announced, will impact in the 2008-2009 financial year, and beyond. Additional information has been provided in a number of ASX releases and the company’s June 2008 Quarterly Activities report. Refer Review of Operations report for further detailed information.

Results

The net result of operations for the consolidated entity after applicable income tax expense was a loss of $2,532,903.

Dividends

No dividends were paid or proposed during the period.

Review of Operations

Information on the operations and financial position of the Group and its business strategies and prospects for future financial years is set out on pages 4 to 26 to this annual report.

Corporate Structure

Icon Resources Ltd is a limited company that is incorporated and domiciled in Australia.

Employees

The Company had eight employees as at 30 June 2008. The Company also uses contract geologists and other consultants as required.

Significant Changes

Significant changes in the state of affairs of the Group for the financial year were as follows:

DIRECTORS’ REPORT

(a) Increase in contributed equity of $1,448,863 resulting from:

	$
Issue of 1,500,000 shares to acquire tenements	375,000
Issue of 100,000 shares in lieu of directors fees	40,000
Rights issue of 5,912,229 fully paid ordinaryshares at$0.20per share*	1,033,863
	1,448,863

The Rights Issue was open over the financial year end and closed on 4 July 2008 and the shares were allotted on the 9 July 2008.
(b) ASX Announcement on 15 May 2008 regarding the acquiring of rights to 100% of the Mt Carbine Tungsten mine near Cairns in north Queensland.

The Directors are not aware of any other significant changes in the state of affairs of the Company occurring during the financial period, other than as disclosed in this report.

Matters Subsequent to the End of the Financial Year

At the date of this directors’ report, the directors are not aware of any matter of circumstance that has arisen that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations or the state of affairs of the Group in the financial year subsequent to 30 June 2008 other than the issue of shares and options under the Renounceable Rights Issue as set in the Prospectus dated 5 June 2008. This issue closed on 4 July 2008 and in accordance with the Prospectus, the Company is working with the Broker to the issue, ABN AMRO Morgans, to place the shortfall from the issue which will close on 3 October 2008. Further details are provided in Notes 12 and 14.

Likely Developments

As the Company’s areas of interest are still at an early stage of exploration, it is not possible to postulate likely developments and any expected results. The Company is hoping to identify other precious and base metal exploration and evaluation targets and redevelop the Mt Carbine Tungsten mine.

Environmental Regulation

Icon holds exploration licences issued by the Mines Departments of three state governments which specify guidelines for environmental impacts in relation to exploration activities. The licence conditions provide for the full rehabilitation of the areas of exploration in accordance with the various Mines Departments’ guidelines and standards. There have been no significant known breaches of the licence conditions.

Information on Directors

Dr Andrew H White, Non Executive Chairman

Andy White has been a director of Icon since 8 November 2005. Andy is a geologist with more than 42 years experience in the industry. He has been exploration minerals manager for exploration and mining companies and has been an independent consultant since 1983. Andy is the author of the text ‘Management of Mineral Exploration’ and has for many years conducted courses on exploration and financial evaluation of mining projects for senior industry personnel.

Dr John R Bishop , Managing Director

John Bishop has been a director since 18 October 2005. John formed the geophysical consulting company Mitre Geophysics in 1980 and has provided exploration advice, often leading to increased resources and/or reserves, for a variety of commodities in several countries. Prior to Mitre, John had government, industry and academic experience. John has had a long interest in developing innovative techniques to improve the effectiveness of mineral exploration and has published more than twenty five papers on geophysical applications to exploration. He is a director of KUTh Energy Limited.

Stephen B Bartrop, Non Executive Director

Steve Bartrop has been a director since 28 June 2005. Steve is a principal of Stock Resource and has been a top rated resource analyst working for Macquarie Bank, Bankers Trust, Ord Minnett and J P Morgan. Prior to entering the financial markets, Steve worked with Ashton Mining for five years and then for MIM for a similar period. Steve is currently completing a PhD in mineral economics at Curtin University of Technology. He is a director of KUTh Energy Limited.

DIRECTORS’ REPORT

Directors' Interests in Shares and Options

Directors’ interests in shares and options as at 30 June 2008 are set out in the table below. Between the end of the financial year and the date of this report, Andrew White has subscribed for 145,500 shares and 62,500 options, John Bishop for 308,500 shares 125,000 options and Stephen Bartrop for 297,792 shares and 131,668 options, either directly or indirectly.

At 30 June 2008

Director	Shares Directly and Indirectly Held	Options
Stephen Bartrop	6,954,481	131,668
John Bishop	3,643,514	1,125,000
Andrew White	3,647,159	62,500

Robert J Waring, Company Secretary

Robert Waring’s experience has been gained over 37 years in financial and corporate roles including 17 years in company secretarial roles for ASX listed companies and 13 years as a Director of an ASX listed company. He is a Director of Oakhill Hamilton Pty Ltd, a company which provides secretarial and corporate advisory services to a range of listed and unlisted companies.

Meetings of Directors

Director’s attendance at Directors meetings are shown in the following table:

Director	Meetings Eligible to Attend	Meetings Attended
Dr A H White	8	8
Dr J Bishop	8	8
Mr S Bartrop	8	8

Non-Executive Directors, Dr White and Mr Bartrop are members of the Company’s Audit and Risk Management Committee. The Committee reviews the Company’s corporate risks, financial systems, accounting policies, half-year and annual financial statements. There were two Audit Committee meeting during the year. Dr White and Mr Bartrop are also members of the Remuneration and Nomination Committee, which held one meeting during the year.

Share Options

Unissued ordinary shares of Icon Resources Ltd under option at the date of this report are as follows:

Date options granted	Expiry date	Issue price of shares	Number under option
3 March 2006	8 March 2011	$0.30	1,200,000
21 December 2007	30 November 2012	$0.45	500,000
18 January2008	30 November 2012	$0.45	760,870
18 January2008	30 November 2012	$0.30	400,000
Balance as at 30 June 2008			2,860,870

The holders of these options do not have any rights under the options to participate in any share issue of the company or of any other entity.

DIRECTORS’ REPORT

During or since the end of the financial year, 900,000 options were granted by Icon Resources Ltd to the following directors and executives of the Group as part of their remuneration:

	Number of options granted	Number of ordinary shares under option
S B Bartrop	-	-
J R Bishop	500,000	1,000,000
A H White	-	-
D Milburn	400,000	400,000
	900,000	1,400,000

Remuneration Report - Audited

The remuneration report is set out under the following main headings:

(a) Policy used to determine the nature and amount of remuneration
(b) Key management personnel
(c) Details of remuneration
(d) Cash bonuses
(e) Share-based payment bonuses
(f) Option and rights granted as remuneration
(g) Equity instruments issued on exercise of remuneration options
(h) Value of options to key management personnel and executives
(i) Service agreements
(a) Policy used to determine the nature and amount of remuneration

The objective of the Company’s remuneration framework is to ensure reward for performance is competitive and appropriate for the results delivered. The framework aligns executive reward with achievement of strategic objectives and the creation of value for shareholders. The Board believes that executive remuneration satisfies the following key criteria:

competitiveness and reasonableness
acceptability to shareholders
performance linkage / alignment of executive compensation
transparency
capital management.

These criteria result in a framework which can be used to provide a mix of fixed and variable remuneration, and a blend of short and long-term incentives in line with the Company’s limited financial resources.

Key Management Personnel’s remuneration is not generally linked to the Company’s performance due to the nature of the Consolidated entity’s activities.

Fees and payments to the non-executive directors and key management personnel reflect the demands which are made on, and the responsibilities of, the directors and the senior management. Such fees and payments are reviewed annually by the Board. The executive and non-executive directors, senior executives and officers are entitled to receive options under the Company’s employee share option scheme.

DIRECTORS’ REPORT

(b) Key management personnel

The following persons were key management personnel of Icon Resources Ltd Group during the financial year:

Name	Position held
A H White	Non Executive Chairman
S B Bartrop	Non Executive Director
J R Bishop	ManagingDirector
Senior executives of the consolidated entity
D Milburn	Exploration Manager

(c) Details of remuneration

Directors are entitled to remuneration out of the funds of the Company but the remuneration of the Non-Executive Directors may not exceed in any year the amount fixed by the Company in general meeting for that purpose. The aggregate remuneration of the Non-Executive Directors has been fixed at a maximum of $200,000 per annum to be apportioned among the non-executive directors in such a manner as they determine. Directors are also entitled to be paid reasonable travelling, accommodation and other expenses incurred in consequence of their attendance at Board meetings and otherwise in the execution of their duties as directors.

The Directors have resolved that 100,000 shares at a deemed value of $0.40 per share were to be issued in lieu of nonexecutive Directors fees for the 2008 financial year.

Details of the nature and amount of each element of the remuneration of each of the directors of Icon Resources Ltd and each of the five key management personnel of the Company and the consolidated entity who received the highest emoluments during the year ended 30 June 2008 are set out in the following tables.

2008	Short-term employee benefits	Short-term employee benefits	Short-term employee benefits	Post- employment benefits	Long- term benefits		Share based payments
	Salary and Consulting fees $	Cash bonus $	Non monetary benefits $	Super- annuation $	Long service leave $	Termi- nation benefits $	Shares and or Options $	Total $	Proportion of remun- eration that is perform- ance based %	% of Value of remun- eration that consists of options %
SB Bartrop	75,000	-	-	-	-	-	10,000*	85,000	-	-
JR Bishop	183,486	-	-	16,514	-	-	106,728	306,728	-	35%
A H White	45,250	-	-	-	-	-	30,000*	75,250	-	-
Other key management personnel
D Milburn	137,615	-	-	12,385	-	-	87,560	237,560	-	37%
Total key management personnel compensation	441,351	-	-	28,899	-		234,288	704,538	-	-
Other executives
Nil	-	-	-	-	-	-	-	-	-	-
	441,351	-	-	28,899	-	-	234,288	704,538	-	-

shares issued in lieu of directors fees

DIRECTORS’ REPORT

2007	Short-term employee benefits	Short-term employee benefits	Short-term employee benefits	Post- employment benefits	Long- term benefits		Share based payments
	Salary and Consulting fees $	Cash bonus $	Non monetary benefits $	Super- annuation $	Long service leave $	Termination benefits $	Shares and or Options $	Total $	Proportion of remun- eration that is perform- ance based %	% of Value of remun- eration that consists of options %
S B Bartrop J R Bishop A H White	6,500 161,549 57,782	- - -	- - -	- 14,539 -	- - -	- - -	- - -	6.500 176,088 57,782	- - -	- - -
Other key management personnel
D Milburn	52,834	-	-	4,755	-	-	-	57,589	-	-
Total key management personnel compensation	278,665	-	-	19,294	-			297,959
Other executives
Nil	-	-	-	-	-	-	-	-	-	-
	278,665	-	-	19,294	-	-	-	297,959	-	-

Options and shares do not represent cash payments to directors or senior executives and share options granted may or may not be exercised by the directors or executives

Shares issued to directors are in lieu of directors fees. There were 100,000 Shares issued to directors as part remuneration during the financial year to 30 June 2008.

The value of any shares granted are recognised as expenses in the financial statements and are expensed, resulting in an increase in employee benefits expense for the relative financial year.

During the financial year to 30 June 2008, 500,000 options were granted Dr J R Bishop and 400,000 options were granted to D Milburn as equity compensation benefits.

The value of the shares and options granted are recognised as expenses in the financial statements and are expensed, resulting in an increase in employee benefits for that year.

Any Options granted as a part of a director and executive remuneration are valued using a Black and Scholes optionpricing model, which takes account of factors including the option exercise price, the share price at time of grant, volatility of the underlying share price, the risk-free interest rate and the expected life of the option.

Fair value of options

The fair value of each option is estimated on the date of grant using a Black & Scholes option-pricing model with the relative weighted average assumptions applicable to each grant made.

(d) Cash bonuses

No cash bonuses were paid to directors or key management personnel during the 2007-2008 financial year.

DIRECTORS’ REPORT

(e) Share-based payment bonuses

No options or shares for payment of bonuses were issued to directors or key management personnel during the 20072008 financial year.

(f) Options and rights granted as remuneration

Details of the terms and conditions of options and rights granted to key management personnel and executives as compensation during the 2007-2008 financial year are as follows:

2008	No. options/ rights granted	No. options/ rights vested	Fair value per option/right at grant date $	Exercise price $	Amount paid or payable	Expiry date	Date exercisable
S B Bartrop	-	-	-	-	-	-	-
J R Bishop	500,000	500,000	0.2135	0.45	-	30 Nov 2012	30 Nov 2007
A H White	-	-	-	-	-	-	-
Other key management personnel
D Milburn	400,000	400,000	0.2189	0.30	-	30 Nov.2012	18 Jan 2007
	900,000	900,000

Options are vested on issue date and available to be exercised until expiry.

(g) Equity Instruments issued on exercise of remuneration options

No equity instruments were issued to directors or key management personnel as a result of options being exercised that had previously been granted as compensation during the 2007-2008 financial year.

(h) Value of options to key management personnel and executives

Details of the value of options granted, exercised and lapsed during the 2007-2008 financial year to key management personnel and executives as part of their remuneration are summarised below:

2008 Name	Value of options at grant date $*	Value of options exercised at exercise date $**	Value of options lapsed at date of lapse *$
S B Bartrop	-	-	-
J R Bishop	106,750	-	-
A H White	-	-	-
Other key managementpersonnel
D Milburn	87,560	-	-

The value of options granted during the period differs to the expense recognised as part of each key management persons’ or executives remuneration in (c) above because this value is the grant date value calculated in accordance with AASB 2 Share-based Payment .

** The value of options exercised at exercise date has been determined as the intrinsic value of the options at exercise date, i.e. the excess of the market value at exercise date over the strike price of the option.

DIRECTORS’ REPORT

*** Options lapsed due to vesting conditions not being satisfied. The value of options at date of lapse is determined assuming that the vesting condition has been satisfied.

(i) Service agreements

Remuneration and other terms of employment for the directors and executives are formalised in Service/Appointment agreements.

All contracts with executives may be terminated early by either party with the stipulated number of months notice, subject to termination payments as detailed below.

Stephen B Bartrop

There is no written contract with Mr Bartrop, who received payments and benefits totalling $85,000 in his role as a director of the company.

Dr John Bishop

There is an employment agreement dated 27 February 2006 between Icon Resources Ltd and Dr John Bishop, whereby Dr Bishop will provide services to the Company at an agreed salary of $165,000 per annum (inclusive of Director’s fees), subject to review on each 31 December during the term of the Agreement. This agreement was reviewed in December 2007 and the amount increased to $200,000 per annum (effective from 1 July 2007). Dr Bishop received salary and benefits totalling $306,728 during the financial year.

The employment agreement can be terminated by a minimum of 3 months notice.

Dr Andrew White

There is no written contract with Dr White, who received payments and benefits totalling $75,250 in his role as a director of the company.

Darcy Milburn

There is an agreement dated 13 January 2007 between Icon Resources Ltd and Darcy Milburn whereby the company employs Mr Milburn as an Exploration Manager at an annual salary of $150,000 pa (inclusive of super) with an annual review. An additional incentive of 400,000 options with an exercise price of 30 cents is also granted, subject to an annual review. He received payments and benefits totalling $237,560.

Directors’ Interests

The relevant interest of each Director (including their associates) in the share capital of the company as at 30 June 2008 are set out in note 16 to the financial statements.

Any Options included in directors’ and executives’ remuneration are treated as follows:

Fair values have been assessed using the Black and Scholes option valuation methodology which takes into account the exercise price, the term of the option, the vesting and performance criteria, the impact of dilution, the non-tradable nature of the options, the current price and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

Share Capital and Options

A detailed breakdown of the company’s capital, including options (unquoted options and employee options) and convertible instruments is contained in Note 12 to the Financial Statements.

Directors, Officers, Senior Employees and Consultants Share Option Plan

The Company has established the Icon Resources Ltd Employees and Officers Share Options Plan (“the Plan”) to assist in the attraction, retention and motivation of the Company’s directors, officers, employees and senior consultants. One issue of Options has been made under the Plan as at the date of this report.

A summary of the rules of the Plan is as follows. All Directors, officers, employees and senior consultants (whether fullor part-time) will be eligible to participate in the Plan after a qualifying period of 12 months employment by the Company or its subsidiaries (or, in the case of a senior consultant, having provided consulting services to the Company or its subsidiaries on a continuous basis for at least 12 months), although the Board may waive this requirement.

The allocation of options under the Plan is at the discretion of the Board.

DIRECTORS’ REPORT

If permitted by the Board, options may be issued to a nominee of a director, officer, employee or senior consultant (for example, to a spouse or family company).

Each option allows the option holder to subscribe for one fully paid ordinary share in the Company and will expire five years from its date of issue. Options will be issued free. The exercise price of options will be determined by the Board subject to a minimum price equal to the market value of the Company’s shares at the time the Board resolves to issue the options. The total number of shares the subject of options issued under the Plan, when aggregated with other options issued under the Plan during the previous five years must not exceed five percent of the Company’s issued share capital at the time.

The Board may amend the Plan rules at any time subject to the requirements of the ASX Listing Rules.

Indemnification and Insurance of Directors and Officers

During the financial year, the Company has paid premiums in respect of a contract insuring all the Directors against legal costs incurred in defending proceedings for conduct involving:

1) willful breach of duty; or
2) a contravention of sections 182 or 183 of the Corporations Act 2001, as permitted by section 199B of the Corporations Act 2001.

It is a term of the policy that the Company cannot disclose the premium paid for the cover.

Audit and Non–audit services

During the financial year, the following fees for non-audit services were paid or payable to the auditor, Barnes Dowell James:

	Consolidated 2008 $	Consolidated 2007 $
Audit-related services
Amounts paid or payable to Barnes Dowell James
-Audit of regulatory returns	16,370	11,250

Taxationservices
Amounts paid toBarnesDowellJames
- Taxcompliance services–tax returns	3,973	-
	20,343	11,250

The directors are satisfied that the provision of non-audit services during the year by the auditor is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001.

On the advice of the audit committee, the directors are satisfied that the provision of non-audit services by the auditor, as set out above, did not compromise the auditor independence requirements of the Corporations Act 2001 for the following reasons:

all non-audit services have been reviewed by the audit committee to ensure that they do not impact the integrity and objectivity of the auditor; and
none of the non-audit services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants.

Environmental Performance

DIRECTORS’ REPORT

Auditor’s Independence Declaration

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out and located after the Directors’ Declaration and forms part of this report.

Signed at Sydney this 29[th] day of September 2008 in accordance with a resolution of the Directors.

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A H WHITE Chairman

INCOME STATEMENT

YEAR ENDED 30 JUNE 2008

Note REVENUE 2 Administration expenses Consultant expenses Depreciation 8 General expenses Exploration written off Occupancy expenses Salaries and employee benefits expense Share-based compensation Travel and accommodation Other expenses from ordinary activities (LOSS) BEFORE INCOME TAX EXPENSE INCOME TAX EXPENSE 3 (LOSS) AFTER INCOME TAX EXPENSE 13 NET (LOSS) ATTRIBUTABLE TO MEMBERS OF ICON RESOURCES LTD Basic loss per share (cents per share) 14 Diluted loss per share (cents per share) 14	Consolidated Parent Entity
	2008 2007 2008 2007
	$ $ $ $
	150,490 162,751 150,490 162,751 (220,864) (139,028) (220,864) (139,028) (234,943) (142,900) (234,943) (142,900) (33,299) (15,351) (33,299) (15,351) (3,695) (17,086) (3,695) (17,086) (1,518,478) (107,584) (1,118,478) (107,584) (42,028) (38,959) (42,028) (38,959) (224,659) (37,005) (224,659) (37,005) (356,486) - (356,486) - (46,142) (47,633) (46,142) (47,633) (2,799) (6,339) (2,799) (6,339)
	(2,683,393) (551,885) (2,283,393) (551,885)
	(2,532,903) (389,134) (2,132,903) (389,134) - - - -
	(2,532,903) (389,134) (2,132,903) (389,134)
	(2,532,903) (389,134) (2,132,903) (389,134)
	(0.06) (0.01) (0.05) (0.01) (0.06) (0.01) (0.05) (0.01)

BALANCE SHEET

AT 30 JUNE 2008

Note CURRENT ASSETS Cash assets Receivables 5 Prepayments TOTAL CURRENT ASSETS NON-CURRENT ASSETS Shares in controlled entities 6 Tenement security deposits 7 Plant and equipment 8 Deferred exploration and evaluation expenditure 9 Loans to controlled entities 10 TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Payables 11 TOTAL CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 12 Accumulated losses 13 Reserves 13 Non-controlling interest TOTAL EQUITY	Consolidated Parent Entity
	2008 2007 2008 2007
	$ $ $ $
	161,047 3,230,608 161,047 3,230,608 70,053 74,641 70,036 74,637 22,727 - 22,727 -
	253,827 3,305,249 253,810 3,305,245
	- - 480,009 480,004 191,500 146,500 172,500 127,500 153,697 139,516 153,696 139,516 3,526,875 2,240,236 2,108,573 801,924 - - 1,362,559 982,566
	3,872,072 2,526,252 4,277,337 2,531,510
	4,125,899 5,831,501 4,531,147 5,836,755
	357,768 330,310 357,768 330,310
	357,768 330,310 357,768 330,310
	357,768 330,310 357,768 330,310
	3,768,131 5,501,191 4,173,379 5,506,445
	6,716,269 6,272,917 6,716,269 6,272,917 (3,306,987) (774,084) (2,901,734) (768,830) 358,844 2,358 358,844 2,358 5 - - -
	3,768,131 5,501,191 4,173,379 5,506,445

STATEMENT OF CASH FLOWS

YEAR ENDED 30 JUNE 2008

Note CASH FLOWS FROM OPERATING ACTIVITIES Payment to suppliers and employees Other income Interest received NET CASH FLOWS (USED IN) OPERATING ACTIVITIES 24 CASH FLOWS FROM INVESTING ACTIVITIES Investment in subsidiaries Purchase of shares in South Eastern Resources Purchase of plant and equipment Expenditure on mining interests (exploration) Tenement security deposits NET CASH FLOWS (USED IN) INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Advances to controlled entities Proceeds from issue of shares - net Equity raising expenses NET CASH FLOWS FROM FINANCING ACTIVITIES Net increase in cash held Add opening cash brought forward CLOSING CASH CARRIED FORWARD 24	Consolidated Parent Entity
	2008 2007 2008 2007
	$ $ $ $
	(789,311) (303,587) (789,311) (303,587) 53,021 4,370 53,021 4,370 97,469 158,381 97,469 158,381
	(638,821) (140,836) (638,821) (140,836)
	- - - - - - - - (47,479) (140,120) (47,479) (140,120) (2,425,126) (1,673,046) (2,425,126) (1,673,046) (45,000) (85,000) (45,000) (85,000)
	(2,517,605) (1,898,166) (2,517,605) (1,898,166)
	- - - - 86,865 2,035,333 86,865 2,035,333 - (85,231) - (85,231)
	86,865 1,950,102 86,865 1,950,102
	(3,069,561) (88,900) (3,069,561) (88,900) 3,230,608 3,319,508 3,230,608 3,319,508
	161,047 3,230,608 161,047 3,230,608

STATEMENT OF CHANGES IN EQUITY

YEAR ENDED 30 JUNE 2008

CONSOLIDATED AT 1 JULY 2006 Loss for the period Issue of share capital Share based payments reserve Non controlling interest (Minority interest) AT 30 JUNE 2007 AT 1 JULY 2007 Loss for the period Issue of share capital Share based payments reserve Non-controlling interest (Minority interest) AT 30 JUNE 2008	Attributable to the shareholders of Icon Resources Ltd
	Issued Capital $ Accumulated Losses $ Reserves $ Non- controlling interest $ Total Equity $ 4,322,816 (384,951) 2,358 - 3,940,223 - (389,134) - - (389,134) 1,950,102 - - - 1,950,102 - - - - - - - - - -
	6,272,918 (774,085) 2,358 - 5,501,191
	6,272,918 (774,084) 2,358 5,501,192 - (2,532,903) - (2,532,903) 443,351 - - 443,351 - - 356,486 356,486 - - - 5 5
	6,716,269 (3,306,987) 358,844 5 3,768,131

PARENT AT 1 JULY 2006 Loss for the period Issue of share capital AT 30 JUNE 2007 AT 1 JULY 2007 Loss for the period Issue of share capital Cost of share based payments taken directly to equity AT 30 JUNE 2008	Attributable to the shareholders of Icon Resources Ltd	Attributable to the shareholders of Icon Resources Ltd
	Issued Capital $ Accumulated Losses $ 4,322,816 (379,697) - (389,134) 1,950,102 -	Reserves $ Total Equity $ 2,358 3,945,477 - (389,134) - 1,950,102
	6,272,918 (768,831)	2,358 5,506,445
	6,272,918 (768,831) - (2,132,903) 443,351 - - -	2,358 5,506,445 - (2,132,903) - 443,351 356,486 356,486
	6,716,268 (2,901,734)	358,844 4,173,378

NOTES TO AND FORMING PART OF THE ACCOUNTS

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation

The financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standards.

The financial report has been prepared on a historical cost basis except for land and buildings, which have been measured at fair value.

(b) Statement of compliance

The financial report has been prepared and complies with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (“AIFRS”). Compliance with AIFRS ensures that the financial report, comprising the financial statements and notes thereto, complies with International Financial Reporting Standards (“IFRS”).

(c) Basis of consolidation

The consolidated financial statements comprise the financial statements of Icon Resources Ltd (Icon or the “Company”) and its subsidiaries (“the Group”) as at 30 June each year.

The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.

Adjustments are made to bring into line any dissimilar accounting policies that may exist.

All inter-company balances and transactions, including unrealised profits arising from intra-group transactions, have been eliminated in full.

Subsidiaries are fully consolidated from date on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred out of the Group.

(d) Property, plant and equipment

Plant and equipment is stated at cost less accumulated depreciation and any impairment in value. Land and buildings are measured at fair value less accumulated depreciation.

Depreciation is calculated on a straight-line basis over the estimated useful life of the asset as follows:

plant and equipment – 4 years

Impairment

The carrying values of plant and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

An item of plant and equipment is derecognised upon disposal.

Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in the income statement in the period the item is derecognised.

(e) Borrowing costs

Borrowing costs are recognised as an expense when incurred.

(f) Intangible assets

Acquired both separately and from a business combination

Intangible assets acquired separately are capitalised at cost and from a business combination are capitalised at fair value as at the date of acquisition. Following recognition, the cost model is applied to the class of intangible assets.

The useful lives of these intangible assets are assessed to be either finite or indefinite.

Where amortisation is charged on assets with finite lives, this expense is taken to the income statement through the “administrative expenses” line item.

Intangible assets, excluding development costs, created within the business are not capitalised and expenditure is charged against profits in the period in which the expenditure is incurred.

NOTES TO AND FORMING PART OF THE ACCOUNTS (continued)

Intangible assets are tested for impairment where an indicator of impairment exists, and in the case of indefinite life intangibles annually, either individually or at the cash generating unit level. Useful lives are also examined on an annual basis and adjustments, where applicable, are made on a prospective basis.

(g) Recoverable amount of assets

At each reporting date, the Group assesses whether there is any indication that an asset may be impaired. Where an indicator of impairment exists, the Group makes a formal estimate of recoverable amount. Where the carrying amount of an asset exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount.

Recoverable amount is the greater of fair value less costs to sell and value in use.

(h) Investments

All investments are initially recognised at cost, being the fair value of the consideration given and including acquisition charges associated with the investment.

After initial recognition, investments, which are classified as held for trading and available-for-sale, are measured at fair value. Gains or losses on investments held for trading are recognised in the income statement.

Gains or losses on available-for-sale investments are recognised as a separate component of equity until the investment is sold, collected or otherwise disposed of, or until the investment is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is included in the income statement.

Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as held-to-maturity when the Group has the positive intention and ability to hold to maturity. Investments intended to be held for an undefined period are not included in this classification.

Other long-term investments that are intended to be held-to-maturity, such as bonds, are subsequently measured at amortised cost using the effective interest method.

Amortised cost is calculated by taking into account any discount or premium on acquisition, over the period to maturity.

For investments carried at amortised cost, gains and losses are recognised in income when the investments are derecognised or impaired, as well as through the amortisation process.

For investments that are actively traded in organised financial markets, fair value is determined by reference to Stock Exchange quoted market bid prices at the close of business on the balance sheet date.

For investments where there is no quoted market price, fair value is determined by reference to the current market value of another instrument which is substantially the same or is calculated based on the expected cash flows of the underlying net asset base of the investment.

Purchases and sales of financial assets that require delivery of assets within the time frame generally established by regulation or convention in the market place are recognised on the trade date, being the date that the Group commits to purchase he asset.

(i) Exploration, evaluation, development and restoration costs

Exploration and evaluation

Exploration and evaluation expenditure incurred by or on behalf of the Company is accumulated separately for each area of interest. Such expenditure comprises net direct costs and an appropriate portion of related overhead expenditure, but does not include general overheads or administrative expenditure not having a specific connection with a particular area of interest.

Exploration and evaluation costs in relation to separate areas of interest for which rights of tenure are current are brought to account in the year in which they are incurred and carried forward provided that:

such costs are expected to be recouped through successful development and exploitation of the area, or alternatively through its sale; or
exploration and/or evaluation activities in the area have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves.

Once a development decision has been taken, all past and future exploration and evaluation expenditure in respect of the area interest is aggregated within costs of development.

NOTES TO AND FORMING PART OF THE ACCOUNTS (continued)

Exploration and evaluation – impairment

The Directors assess at each reporting date whether there is an indication that an asset has been impaired and for exploration and evaluation cost whether the above carry forward criteria are met.

Accumulated costs in respect of areas of interest are written off or a provision made in the Income Statement when the above criteria do not apply or when the Directors assess that the carrying value may exceed the recoverable amount. The costs of productive areas are amortised over the life of the area of interest to which such costs relate on the production output basis, provisions would be reviewed and if appropriate, written back.

Development

Development expenditure incurred by or on behalf of the Company is accumulated separately for each area of interest in which economically recoverable reserves have been identified to the satisfaction of the directors. Such expenditure comprises net direct costs and, in the same manner as for exploration and evaluation expenditure, an appropriate portion of related overhead expenditure having a specific connection with the development property.

All expenditure incurred prior to the commencement of commercial levels of production from each development property is carried forward to the extent to which recoupment out of revenue to be derived from the sale of production from the relevant development property, or from the sale of that property, is reasonably assured.

No amortisation is provided in respect of development properties until a decision has been made to commence mining. After this decision, the costs are amortised over the life of the area of interest to which such costs relate on a production output basis.

Restoration

Provisions for restoration costs are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, provisions are determined by discounting the expected cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Remaining mine life

In estimating the remaining life of the mine at each mine property for the purpose of amortisation and depreciation calculations, due regard is given not only to the volume of remaining economically recoverable reserves but also to limitations which could arise from the potential for changes in technology, demand, product substitution and other issues that are inherently difficult to estimate over a lengthy time frame.

(j) Mine property held for sale

Where the carrying amount of mine property and related assets will be recovered principally through a sale transaction rather than through continuing use, the assets are reclassified as Mine Property Held for Sale and carried at the lower of the assets’ carrying amount and fair value less costs to sell – where such fair value can be reasonably determined, and otherwise at its carrying amount. Liabilities and provisions related to mine property held for sale are similarly reclassified as Liabilities – Mine Property Held for Sale and, Provisions – Mine Property Held for sale, as applicable, and carried at the value at which the liability or provisions expected to be settled.

(k) Trade and other receivables

Trade receivables, which generally have 5-30 day terms, are recognised and carried at original invoice amount less an allowance for any uncollectible amounts.

An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off when identified.

(l) Cash and cash equivalents

Cash and short-term deposits in the balance sheet comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less.

For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of any outstanding bank overdrafts, if any.

NOTES TO AND FORMING PART OF THE ACCOUNTS (continued)

(m) Other provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Where the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the income statement net of any reimbursement.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

(n) Employee entitlements

Liabilities for wages and salaries are recognised and are measured as an amount unpaid at the reporting date at current pay rates in respect of employee’s services up to that date. Current employee contracts do not entitle them to annual leave and long service leave. A liability in respect of superannuation at the current superannuation guarantee rate has been accrued at the reporting date.

(o) Share-based payments

An employee share option scheme has been established where selected employees, consultants, contractors and Directors of the Company are issued with options over ordinary shares in Icon Resources Ltd. The options, issued for nil consideration, are issued in accordance with a performance review by the Directors. The options cannot be transferred and will not be quoted on the ASX. There were 1,200,000 options issued in March 2006 which expire on 8 March 2011, which are exercisable at 30 cents and which have vested. Options expire if not exercised 90 days after a participant resigns from the Company. The cost of these equity-settled transactions is determined by reference to the fair value at the date at which they are granted. The fair value of the options is determined by using the Black and Scholes option pricing model.

The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects (a) the extent to which the vesting period has expired and (b) the number of awards that, in the opinion of the Directors of the Company, will ultimately vest. This opinion is formed based on the best available information at balance date. No adjustment is made for the likelihood of market performance conditions being met as the effect of these conditions is included in the determination of fair value at grant date. Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the award is recognised immediately. The Company has applied the requirements of AASB 1 “First-time Adoption of Australian Equivalents to International Financial Reporting Standards” in respect of equity-settled awards and has applied AASB 2 “Share-Based Payments” only to equity instruments granted after 7 November 2002 that had not vested on or before 1 January 2005.

(p) Leases

Finance leases, which transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalised at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments.

Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income.

Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset or the lease term.

Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same bases as the lease income.

Operating lease payments are recognised as an expense in the income statement on a straight-line basis over the lease term.

(q) Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:

NOTES TO AND FORMING PART OF THE ACCOUNTS (continued)

Sale of goods

Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer and can be measured reliably. Risks and rewards are considered passed to the buyer at the time of delivery of the goods to the customer.

Interest

Revenue is recognised as the interest accrues (using the effective interest method, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument) to the net carrying amount of the financial asset.

Dividends

Revenue is recognised when the shareholders’ right to receive the payment is established.

(r) Income tax

Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the balance sheet date.

Deferred income tax is provided on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred income tax liabilities are recognised for all taxable temporary differences:

except where the deferred income tax liability arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and
in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, except where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry-forward of unused tax assets and unused tax losses can be utilised:

except where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and
in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are only recognised to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.

Income taxes relating to items recognised directly in equity are recognised in equity and not in the income statement.

(s) Other taxes

Revenues, expenses and assets are recognised net of the amount of GST except:

where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and
receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet.

NOTES TO AND FORMING PART OF THE ACCOUNTS (continued)

Cash flows are included in the Cash Flow Statement on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

(t) Currency

Both the functional and presentation currency is Australian dollars (A$).

(u) Comparatives

Where applicable, comparative figures have been adjusted to conform to any changes in presentation for the current financial year.

(v) Investment in Controlled Entities

The Company’s investment in its controlled entities is accounted for under the equity method of accounting in the Company’s financial statements.

	Consolidated	Parent
	2008 2007	2008 2007
	$ $	$ $
2. REVENUE FROM ORDINARY ACTIVITIES	97,469 158,381 53,021 4,370	97,469 158,381 53,021 4,370
Interest received – other persons/corporation Other income
	150,490 162,751	150,490 162,751
	- - - - - -	- - - - - -
3. INCOME TAX
(a) Income tax expense Current tax Deferred tax (Over) under provision in prior years Income tax expense is attributable to: Profit from continuing operations Aggregate income tax expense (b) Numerical reconciliation of income tax expense to prima facie tax payable Losses from continuing operations before income tax expense Tax at the Australian tax rate of 30% Tax effect of amounts which are not deductible (taxable) in calculating taxable income: Additional deductions (Over) under provision prior year Non-allowable deductions Other Income taxes not brought to account
	- -	- -
	- - - -	- - - -
	(2,532,903) (389,133) (759,871) (116,740) - - - - - - - -	(2,132,903) (389,133) (639,871) (116,740) - - - - - - - -
	759,871 116,740	639,871 116,740

NOTES TO AND FORMING PART OF THE ACCOUNTS (continued)

(c) Current tax liabilities Balance at beginning of year Income tax paid Current year’s income tax on profit Under (over) provided in prior year Balance at end of year	Consolidated Parent
	2008 2007 2008 2007
	$ $ $ $
	- - - - - - - - - - - - - - - -
	- - - -

No provision for income tax is considered necessary in respect of the Company for the period ended 30 June 2008.

No recognition has been given to any future income tax benefit which may arise from operating losses not claimed for tax purposes. The Company has estimated its losses not claimed of $759,871. These amounts have not been brought to account in calculating any future tax benefit.

A benefit of 30% of approximately $759,871 will only be obtained if:

the Parent and the Controlled Entities derive future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the losses to be realised,
the Parent and the Controlled Entities continue to comply with the conditions for deductibility imposed by the law, and
no changes in tax legislation adversely affect the Parent and the Controlled Entities in realising the benefit from the deductions for the losses, i.e. current tax legislation permits carried forward tax losses to be carried forward indefinitely.

No franking credits are available for subsequent years.

Tax consolidation

The Tax Consolidation scheme is applicable to the company. As at the date of this report the directors have not assessed the financial effect, if any, the scheme may have on the company and the consolidated entities, and accordingly the directors have not made a decision whether or not to be taxed as a single entity. The financial effect of the tax consolidation scheme on the Group has not been recognised in the financial statements.

	Consolidated Parent
	2008 2007 2008 2007
	$ $ $ $
4. AUDITORS’ REMUNERATION	16,370 11,250 16,370 11,250 3,973 - 3,973 -
Total amounts receivable by the current auditors of the Company for: Audit of the Company’s accounts Tax compliance services – tax returns
	20,343 11,250 20,343 11,250
	- 6,629 - 6,629 47,790 63,005 47,790 63,005 22,246 5,007 22,246 5,003
5. RECEIVABLES – CURRENT
Interest Refund for GST paid Other Other receivables
	70,036 74,641 70,036 74,637

NOTES TO AND FORMING PART OF THE ACCOUNTS (continued)

8. PLANT AND EQUIPMENT	8. PLANT AND EQUIPMENT
Plant and equipment – at cost Accumulated depreciation Reconciliation of the carrying amount of plant and equipment at the beginning and end of the current and previous financial year Carrying amount at beginning Additions Disposals Depreciation expense
	153,697 139,516 153,697 139,516
	139,516 2,357 139,516 2,357 47,480 153,744 47,480 153,744 - (1,234) - (1,234) (33,299) (15,351) (33,299) (15,351)
	153,697 139,516 153,697 139,516
	2,240,236 572,187 801,924 52,934 2,805,117 1,775,633 2,425,127 856,574 (1,518,478) (107,584) (1,118,478) (107,584)
9. DEFERRED EXPLORATION AND EVALUATION EXPENDITURE
Costs brought forward Costs incurred during the period Expenditure written off during period Costs carried forward Exploration expenditure costs carried forward are made up of: Expenditure on joint venture areas Expenditure on non joint venture areas Costs carried forward
	3,526,875 2,240,236 2,108,573 801,924
	27,239 26,405 - - 3,499,636 2,213,831 2,108,573 801,924
	3,526,875 2,240,236 2,108,573 801,924

The above amounts represent costs of areas of interest carried forward as an asset in accordance with the accounting policy set out in Note 1. The ultimate recoupment of deferred exploration and evaluation expenditure in respect of an area of interest carried forward is dependent upon the discovery of commercially viable reserves and the successful development and exploitation of the respective areas or alternatively sale of the underlying areas of interest for at least their carrying value. Amortisation, in respect of the relevant area of interest, is not charged until a mining operation has commenced.

NOTES TO AND FORMING PART OF THE ACCOUNTS (continued)

	Consolidated	Parent
	2008 2007	2008 2007
	$ $	$ $
10. LOANS TO CONTROLLED ENTITIES	- - 250,281 285,962 42,454 16,601 54,493 27,747	1,362,559 982,566 250,281 285,962 42,454 16,601 54,493 27,747
Unsecured loans to controlled entities (interest free) Loans represent exploration expenditure by controlled entities
11. CURRENT LIABILITIES – PAYABLES
Trade creditors Accrued expenses Other
	347,228 330,310	347,228 330,310
	6,716,269 6,272,917	6,716,269 6,272,917
12. CONTRIBUTED EQUITY
Share capital 46,493,248 ordinary shares fully paid

(a) Movements in ordinary share capital Date	Number of shares Issue price	$
1 July 2005 to 30 June 2006 Shares issued to initial Shareholders 23-01-06 Shares issued at a deemed price of 0.013 cents each 03-03-06 Shares issued to acquire tenements 03-03-06 Shares issued to directors in lieu of directors fees 03-03-06 Shares issued for cash in IPO 03-06-06 Costs of IPO share issue 03-06-06 Balance as at 30 June 2006 30-06-06 1 July 2006 to 30 June 2007 Balance b/fwd Additional costs of IPO share issue in June 2006 1-07-06 Shares issued to acquire tenements 28-02-07 Share issue 14-06-07 Costs of share issue as a result of placement of 3,000,000 shares at $0.45 14-06-07 Funds raised from Share Purchase Plan pending share allotment on 10 July 2007 30-06-07 Balance as at 30 June 2007	8,691,429 $0.00 10,491,429 $0.013 617,142 $0.00 200,000 $0.04 20,000,000 $0.20 - - 40,000,000 40,000,000 - - 370,286 $0.00 3,000,000 $0.45 - - 1,522,962 $0.45 44,893,248	613,218 136,388 - 8,000 4,000,000 (434,790)
		4,322,816
		4,322,816 (23,069) - 1,350,000 (62,162) 685,332
		6,272,917

NOTES TO AND FORMING PART OF THE ACCOUNTS (continued)

1 July 2007 to 30 June 2008
Balance b/fwd
Shares issued to acquire tenements	21-12-07	1,500,000	$0.25	375,000
Shares issued to directors in lieu of directors fees	21-12-07	100,000	$0.40	40,000
Part funds raised from Renounceable Rights Issue	30-06-08	-	$0.20	101,183
pending share allotment on 9 July 2008
Costs of Prospectus share offer	30-06-08	-	-	(72.832)
Balance as at 30 June 2008		46,493,248		6,716,268
Shares issued under Renounceable Rights Issue	9-7-08	5,912,229	$0.20	1,033,863
Balance as at 9 July 2008		52,405,477		7,750,131
Terms and conditions of contributed equity

Ordinary Shares

Ordinary shares have the right to receive dividends as declared and, in the event of winding up the Company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held.

Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company. Option holders have no voting rights until the options are exercised.

Options

The following options are outstanding at balance date.

(b) Movements in Options Date	Number of Options Exercise price Maturity
(i) ASX Listed Options (IIIO) 1 July 2007 to 30 June 2008 Options issued free as part of Renounceable Rights Issue (allotted after balance date) 9-07-08 Balance as at 9 July 2008	2,956,137 $0.35 30-06-2009 2,956,137

(ii) Unlisted Options
Options issued free pre listing IPO 03-03-06 Options issued free to John Richard Bishop 21-12-07 Options issued free under Company’s ESOP 18-01-08 Options issued free under Company’s ESOP 18-01-08 Balance as at 30 June 2008	1,200,000 $0.30 8-03-2011 500,000 $0.45 30-11-2012 760,870 $0.45 30-11-2012 400,000 $0.30 30-11-2012 2,860,870

NOTES TO AND FORMING PART OF THE ACCOUNTS (continued)

13. RESERVES	Consolidated	Parent
	2008 2007	2008 2007
	$ $	$ $
(a) Options expense reserve	2,358 2,358 356,486 -	2,358 2,358 356,486 -
Balance at 1 July 2007 Options transferred to reserve Balance as at 30 June 2008
	358,844 2,358	358,844 2,358
	(774,084) (384,951) (2,532,903) (389,133)	(768,830) (379,697) (2,132,903) (389,133)
(b) Accumulated losses
Balance at the beginning of period Operating profit (loss) after income tax expense Balance as at 30 June 2008
	(3,306,987) (774,084)	(2,901,733) (768,830)
	0.06 0.01 0.06 0.01 2,532,903 389,134	0.05 0.01 0.05 0.01 2,132,903 389,134
14. LOSS PER SHARE

		Number of
Movements in ordinary share capital	Date	shares	Issue price	$
Balance as at 30 June 2008		46,493,248
Shares issued under Renounceable Rights Issue*	9-07-08	5,912,229	$0.20	1,135,046
Balance as at 9 July 2008		52,405,477
The Company’s Renounceable Rights Issue was open
over the 30 June 2008 balance date, closing on 4 July
2008 and raising a total of $1,135,046 before costs. An
amount of $101,183 was received prior to end of
reporting period with the balance after the reporting
date. The relative shares and 2,956,137 free attaching
new Options were allotted on 9 July 2008.

Movements in Options Date	Number of Options Exercise price Maturity
ASX Listed Options (IIIO) Balance as at 1 July 2008 Options issued free as part of Renounceable Rights Issue on basis of one free option for every two shares subscribed for. 9-07-08 Balance as at 9 July 2008	- 2,956,137 $0.35 30-06-2009 2,956,137

NOTES TO AND FORMING PART OF THE ACCOUNTS (continued)

15. KEY MANAGEMENT PERSONNEL DISCLOSURES

(a) Key management personnel compensation

Short-term employee benefits Post-employment benefits Other long-term benefits Termination benefits Share based payments Balance at the end of period	Consolidated Parent
	2008 2007 2008 2007
	$ $ $ $
	487,222 278,665 487,222 278.665 28,899 19,294 28,899 19,294 - - - - - - - - 234,288 - 234,288 -
	750,409 297,959 750,409 297,959

Further information regarding the identity of key management personnel and their compensation can be found in the Audited Remuneration Report (contained in the directors’ report) located earlier in this annual report.

(b) Equity instruments

Options and Rights Holdings

Details of options and rights held directly, indirectly or beneficially by key management personnel and their related parties are as follows:

30 June 2008	Balance at 1 July 2007 Granted as compen- sation Options Exercised Other changes Balance at 30 June 2008 Total vested at 30 June 2008 Total vested and exercisable at 30 June 2008 Total vested and unexercis- able at 30 June 2008
Name
S B Bartrop J R Bishop A H White D Milburn	- - - - - - - - 500,000 500,000 - - 1,000,000 1,000,000 1,000,000 - - - - - - - - - - 400,000 - - 400,000 400,000 400,000 -
	500,000 900,000 - - 1,400,000 1,400,000 1,400,000 -
30 June 2007	Balance at 1 July 2006 Granted as compen- sation Options Exercised Other changes Balance at 30 June 2008 Total vested at 30 June 2007 Total vested and exercisable at 30 June 2007 Total vested and unexercis- able at 30 June 2007
Name
S B Bartrop J R Bishop A H White D Milburn	- - - - - - - - 500,000 - - - 500,000 500,000 - 500,000 - - - - - - - - - - - - - - - -
	500,000 - - - 500,000 500,000 - 500,000

NOTES TO AND FORMING PART OF THE ACCOUNTS (continued)

(c) Shareholdings

Details of equity instruments (other than options and rights) held directly, indirectly or beneficially by key management personnel and their related parties are as follows:

30 June 2008	Balance at 1 July 2007 Granted as compensation Received on exercise of options or rights Other changes Balance at 30 June 2008 Balance held nominally
Name
S B Bartrop J R Bishop A H White D Milburn	5,500,957 10,000 - 1,094,732 6.605,689 5,897,907 3,115,014 - - 185,000 3,300,014 1,757,157 3,295,714 30,000 - 176,445 3,502,159 3,191,048 - - - - - -
	11,911,685 40,000 - 1,456,177 13,407,862 10,846,112
30 June 2007	Balance at 1 July 2006 Granted as compensation Received on exercise of options or rights Other changes Balance at 30 June 2007 Balance held nominally
Name
S B Bartrop J R Bishop A H White D Milburn	4,435,714 - - 1,065,743 5,500,957 5,255,457 3,095,714 - - 19,300 3,115,014 1,572,157 3,275,714 - - 20,000 3,295,714 3,145,715 - - - - - -
	10,807,142 - - 1,104,543 11,911,685 9,973,329

(d) Loans to key management personnel

There are no loans made by the company to key management personnel or their related parties.

(e) Other transactions and balances

Consulting services

A director, Stephen Bartrop is a director and shareholder in Troppo Resources Pty Ltd, a director, John Bishop, is a director and shareholder of Mitre Geophysics Pty Ltd, and a director, Andrew White is a principal of Andrew White and Associates, each of these entities provided specialist consulting services to the group during the financial year. These services were based upon normal commercial terms and conditions.

Consulting services provided by director associated entities recognised as an expense during the year S B Bartrop (Troppo Resources Pty Ltd) J R Bishop (Mitre Geophysics Pty Ltd) A H White (Andrew White and Associates)	Consolidated
	2008 2007
	$ $
	75,000 6,500 10,635 - 45,250 57,782
	130,885 64,282

Aggregate amounts of liabilities at balance date relating to consulting services with directors of the group are as follows:

Current liabilities	Consolidated
	2008 2007
	$ $
	- -

NOTES TO AND FORMING PART OF THE ACCOUNTS (continued)

16. RELATED PARTY DISCLOSURES

The Directors in office during the period were A H White, J R Bishop and S B Bartrop.

Interests and movements in the shares and options of the Company held by Directors and their Director-related entities as at 30 June 2008:

Fully Paid Ordinary Shares

at 30 June 2008

Key management personnel	Balance 1.7.07 Net changes Number Balance 30.6.08 Balance held Nominally Number
S B Bartrop J R Bishop A H White D Milburn	5,500,957 1,104,732 6,605,689 5,897,907 3,115,014 185,000 3,300,014 1,757,157 3,295,714 206,445 3,502,159 3,191,048 - 1,510,000 1,510,000 -
	11,911,685 3,006,177 14,917,862 10,846,112

Options

at 30 June 2008

Key management personnel	Balance 1.7.07 Net changes Number Balance 30.6.08 Balance held Nominally Number
S B Bartrop J R Bishop A H White D Milburn	- - - - 500,000 500,000 1,000,000 1,000,000 - - - - - 400,000 400,000 -
	500,000 900,000 1,400,000 1,000,000

Key management personnel interests in shares and Options includes holdings in their names and in the names of director related entities.

Remuneration options: Granted and vested during the year

During the financial year to 30 June 2008, 500,000 options were granted Dr J R Bishop and 400,000 options were granted to D Milburn as equity compensation benefits.

Shares and options held by Directors included those held by the Directors and their Director-related entities, including the spouses of such Directors and relatives of such Directors. All shares and options, that have been granted were issued or granted on terms no more favourable than to other shareholders or option holders.

Dr Bishop is an employee and Director of and has a significant financial interest in Mitre Geophysics Pty Ltd, a company that provided technical services to the Company during the period. Services provided during the period ended 30 June 2008, which are referred to in the remuneration of Directors in Note 15, amounted to $10,635. Dr White is a Director and has a significant financial interest in Andrew White Associates, a partnership that provides geological and exploration management services to the Company. Services provided during the period ended 30 June 2008 amounted to $45,250. Steven Bartrop is a Director and has a significant financial interest in Troppo Resources Pty Ltd, a company that provides management and corporate services to the company. Services provided during the period ended 30 June 2008 amounted to $75,000.

Services provided by Director-related entities were under normal commercial terms and conditions. No other benefits have been received or are receivable by Directors, other than those already disclosed in the notes to the accounts.

NOTES TO AND FORMING PART OF THE ACCOUNTS (continued)

17. JOINT VENTURES

The Company is a party to one exploration joint venture agreements to explore for copper and gold. Under the terms of the agreements the Company will be required to contribute towards the exploration and other costs if it wishes to maintain or increase its percentage holdings. The joint ventures are not separate legal entities. There are contractual arrangements between the participants for sharing costs and future revenues in the event of exploration success. There are no assets and liabilities attributable to the Company at balance date resulting from these joint ventures, other than exploration expenditure costs carried forward as detailed in Note 9.

Percentage equity interests in joint ventures at 30 June 2008 were as follows:

	Percentage Interest
Queensland	2008
Elizabeth Creek NW Qld	100%

Zinifex Ltd can earn an equity in the project by funding and managing exploration and development of the project

18. FINANCIAL REPORT BY SEGMENT

The Company operates predominantly in the one business and in one geographical area, namely Australian mineral exploration and evaluation.

19. CONTINGENT LIABILITIES

The Group has provided guarantees totalling $191,500 in respect of mining tenements. These guarantees in respect of mining tenements are secured against deposits with the relative State Department of Mines. The Company does not expect to incur any material liability in respect of the guarantees.

20. EMPLOYEE ENTITLEMENTS

An employee share option plan has been established where selected officers and employees of the Company can be issued with options over ordinary shares in Icon Resources Ltd. The options, issued for nil consideration, will be issued in accordance with a performance review by the Directors. The options cannot be transferred and will not be quoted on the ASX. The Company has issued a number of options in the current financial year and details are shown in Note 12.

21. FINANCIAL INSTRUMENTS

Interest rate risk exposure

At balance date, the Company was exposed to a floating weighted average interest rate as follows:

	Consolidated	Consolidated		Parent
	2008	2007	2008	2007
Weighted average rate of cash balances	7.05%	6.14%	7.05%	6.14%
Cash balances	$161,047	$3,230,608	$161,047	$3,230,608

Bank negotiable certificates of deposit are normally invested for 30 days and other cash at bank balances are at call. All other financial assets and liabilities are non-interest bearing.

Net fair value of financial assets and liabilities, on balance sheet and credit risk

The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities of the Company approximates their carrying value. Credit risk is minimal at balance date.

NOTES TO AND FORMING PART OF THE ACCOUNTS (continued)

22. COMMITMENTS

Exploration licence expenditure requirements

In order to maintain the Company’s tenements in good standing with the various mines departments, the Company will be required to incur exploration expenditure under the terms of each licence. These expenditure requirements will diminish as the Company joint ventures projects to third parties. It is the Company’s exploration strategy to farm-out where appropriate to larger companies to fund drilling programmes. In addition, the Company has commitments to expend funds towards earning or retaining an interest under joint venture agreements.

Payable not later than one year Payable later than one year but not later than two years	Consolidated Parent
	2008 2007 2008 2007
	$ $ $ $
	950,000 660,000 950,000 660,000 1,235,000 950,000 1,235,000 950,000
	2,185,000 1,610,000 2,185,000 1,610,000

It is likely that the granting of new licences and changes in licence areas at renewal or expiry, will change the expenditure commitment to the Company from time to time.

23. SUBSEQUENT EVENTS

There have been no material events subsequent to 30 June 2008 that have not previously been reported, other than the issue of shares and options under the Renounceable Rights Issue as set in the Prospectus dated 5 June 2008. This issue closed on 4 July 2008 and in accordance with the Prospectus, the Company is working with the Broker to the issue, ABN AMRO Morgans, to place the shortfall from the issue which will close on 3 October 2008. Further details are provided in Notes 12 and 14.

24. STATEMENT OF CASH FLOWS

24. STATEMENT OF CASH FLOWS
Reconciliation of net cash outflow from operating activities to operating loss after income tax (a) Operating (loss) after income tax Depreciation Share/Option based payments for services Change in assets and liabilities: (Increase)/decrease in receivables (Decrease)/increase in trade and other creditors Exploration expenditure written off Management fee paid/received Loss on disposal of asset Net cash outflow from operating activities	(2,532,903) (389,134) (2,132,903) (389,134) 33,299 15,351 33,299 15,351 356,486 - 356,486 - (18,130) (5,967) (18,130) (5,967) 3,949 238,916 3,949 238,916 1,518,478 - 1,118,478 - - - - - - (2) - (2)
	(638,821) (140,836) (638,821) (140,836)

24.
STATEMENT OF CASH FLOWS

Reconciliation of net cash outflow from operating
activities to operating loss after income tax
(a)
Operating (loss) after income tax
Depreciation
Share/Option based payments for services
Change in assets and liabilities:
(Increase)/decrease in receivables
(Decrease)/increase in trade and other
creditors
Exploration expenditure written off
Management fee paid/received
Loss on disposal of asset
Net cash outflow from operating activities

(2,532,903)
(389,134)
(2,132,903)
(389,134)
33,299
15,351
33,299
15,351
356,486
-
356,486
-
(18,130)
(5,967)
(18,130)
(5,967)
3,949
238,916
3,949
238,916
1,518,478
-
1,118,478
-
-
-
-
-
-
(2)
-
(2)

(638,821)
(140,836)
(638,821)
(140,836)

NOTES TO AND FORMING PART OF THE ACCOUNTS (continued)

(c) For the purpose of the Statement of Cash Flows, cash includes cash on hand, at bank, deposits and bank bills used as part of the cash management function. The Company does not have any unused credit facilities.

facilities.
The balance at 30 June 2008 comprised: Cash assets Bank deposits Cash on hand	Consolidated Parent
	2008 2007 2008 2007
	$ $ $ $
	161,047 874,971 161,047 874,971 - 2,355,637 - 2,355,637
	161,047 3,230,608 161,047 3,230,608

25. CORPORATE INFORMATION

The financial report of the Group for the year ended 30 June 2008 was authorised for issue in accordance with a resolution of the Directors on 29 September 2008.

Icon Resources Ltd is a company limited by shares and incorporated in Australia. Its shares are publicly traded on the Australian Stock Exchange under the ticker code “III”.

26. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The company’s principal financial instruments comprise cash and short term deposits.

The main purpose of these financial instruments is to finance the company’s operations. The company has various other financial assets and liabilities such as trade receivable and trade payables, which arise directly from its operations. It is, and has been throughout the entire period under review, the company’s policy that no trading in financial instruments shall be undertaken.

The main risks arising from the company’s financial instruments are cash flow interest rate risk and equity price risk. Other minor risks are either summarised below. The Board reviews and agrees policies for managing each of these risks.

(a) Cash flow interest rate risk

The company’s exposure to the risks of changes in market interest rates relates primarily to the company’s short-term deposits with a floating interest rate. These financial assets with variable rates expose the company to cash flow interest rate risk. All other financial assets and liabilities in the form of receivables and payables are non-interest bearing. The consolidated entity does not engage in any hedging or derivative transactions to manage interest rate risk.

The following tables set out the carrying amount by maturity of the company’s exposure to interest rate risk and the effective weighted average interest rate for each class of these financial instruments. Also included is the effect on profit and equity after tax if interest rates at that date had been 10% higher or lower with all other variables held constant as a sensitivity analysis.

The company has not entered into any hedging activities to cover interest rate risk. In regard to its interest rate risk, the consolidated entity continuously analyses its exposure. Within this analysis consideration is given to potential renewals of existing positions, alternative investments and the mix of fixed and variable interest rates.

NOTES TO AND FORMING PART OF THE ACCOUNTS (continued)

Consolidated

	Notes	Floating Interest Rate	Floating Interest Rate	Non-Interest Bearing	Non-Interest Bearing	Total Carrying Amount	Total Carrying Amount	Interest Rate Risk Sensitivity 2008	Interest Rate Risk Sensitivity 2008	Interest Rate Risk Sensitivity 2008	Interest Rate Risk Sensitivity 2008
								-10%		+10%
		2008	2007	2008	2007	2008	2007	Profit	Equity	Profit	Equity
		$	$	$	$	$	$	$	$	$	$
Financial Assets:
Cash at bank		161,047	874,971			161,047	874,971	(1,095)	(1,095)	1,095	1,095
Short-term deposits		-	2,355,637			-	2,355,637	-	-	-	-
Trade and other receivables	6	-	-	70,053	74,641	70,053	74,641
Available for sale investments
Total		161,047	3,230,608	70,053	74,641	231,100	3,148,231
Weighted average Interestrate		7.05%
Financial Liabilities
Trade and other Payables	11	-	-	357,768	330,310	357,768	330,310	-	-	-	-
Total		-	-	357,768	330,310	357,768	330,310
Weighted average Interest rate				-	-	-	-
Net financial assets (liabilities)		161,047	3,230,608	(287,715)	(255,669)	(126,668)	2,817,921

NOTES TO AND FORMING PART OF THE ACCOUNTS (continued)

Parent

	Notes	Floating Interest Rate	Floating Interest Rate	Non-Interest Bearing	Non-Interest Bearing	Total Carrying Amount	Total Carrying Amount	Interest Rate Risk Sensitivity 2008	Interest Rate Risk Sensitivity 2008	Interest Rate Risk Sensitivity 2008	Interest Rate Risk Sensitivity 2008
								-10%		+10%
		2008	2007	2008	2007	2008	2007	Profit	Equity	Profit	Equity
		$	$	$	$	$	$	$	$	$	$
Financial Assets:
Cash at bank		161,047	874,971			161,047	874,971	(1,095)	(1,095)	1,095	1,095
Short-term deposits		-	2,355,637			-	2,355,637	-	-	-	-
Trade and other receivables	6	-	-	70,053	74,641	70,053	74,641
Available for sale investments
Total		161,047	3,230,608	70,053	74,641	231,100	3,148,231
Weighted average Interest rate		7.05%
Financial Liabilities
Trade and other Payables	11	-	-	357,768	330,310	357,768	330,310	-	-	-	-
Total		-	-	357,768	330,310	357,768	330,310
Weighted average Interest rate				-	-	-	-
Net financial assets (liabilities)		161,047	3,230,608	(287,715)	(255,669)	(126,668)	2,817,921

A sensitivity of 10% has been selected as this is considered reasonable given the current level of both short-term and long-term Australian dollar interest rates. A 10% sensitivity would move short-term interest rates at 30 June 2008 from around 6.75% to 6.07% representing a 68 basis points shift. This would represent two to three decreases which is reasonably possible in the current environment with the bias coming from the Reserve Bank of Australia and confirmed by market expectations that interest rates in Australia are more likely to go down than up in the coming period.

Based on the sensitivity analysis only interest revenue from variable rate deposits and cash balances is impacted resulting in a decrease or increase in overall income.

(b) Price Risk

The company is not exposed to equity securities price risk. The company has no investments held and classified on the balance sheet as available-for-sale.

(c) Liquidity Risk

The company manages liquidity risk by maintaining sufficient cash reserves and marketable securities, and through the continuous monitoring of budgeted and actual cash flows.

NOTES TO AND FORMING PART OF THE ACCOUNTS (continued)

	Consolidated	Consolidated	Parent	Parent
	2008	2007	2008	2007
	$	$	$	$
Contracted maturities of payables year ended 30 June 2008 Payable:
- less than6months	357,768	330,310	357,768	330,310
-6 to 12 months	-	-	-	-
-1 to 5 year	-	-	-	-
- laterthan5 year	-	-	-	-
Total	357,768	330,310	357,768	330,310

(d) Commodity Price Risk

The company is exposed to commodity price risk. This risk arises from its activities directed at exploration and development mineral commodities. If commodity prices fall, the market for companies exploring for these commodities is affected. The company does not hedge its exposures.

(e) Foreign Exchange Risk

Foreign exchange risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is not the entity’s functional currency. The company’s foreign transactions are immaterial and it is not exposed to foreign currency risk.

(f) Net Fair Values

For financial assets and liabilities, the net fair value approximates their carrying value. No financial assets and financial liabilities are readily traded on organised markets in standardised form, other than listed investments. The company has no financial assets where carrying amount exceeds net fair values at balance date.

The company’s receivables at balance date are detailed in Note 5 and comprise primarily GST input tax credits refundable by the ATO. The balance (if any) of receivables comprises prepayments (if any).

The credit risk on financial assets of the company which have been recognised on the Balance Sheet is generally the carrying amount.

27. PENDING APPLICATION OF ACCOUNTING STANDARDS AFFECTED

The following Australian Accounting Standards have been issued or amended and are applicable but are not yet effective. They have not been adopted in preparation of the financial statements at reporting date:

AASB Amendment	Title	Application date of Standard. Accounting periods commencing after:
AASB 2007-3 Amendment to Australian Accounting Standards; & AASB 8	AASB 6, 8, 107, 119,127, 114	01.01.2009
Effect The disclosure requirements of AASB 114: Segment Reporting have been replaced due to the issuing of AASB 8: Operating Segments in February 2007. These amendments mayinvolve changes to segment reportingdisclosures within

NOTES TO AND FORMING PART OF THE ACCOUNTS (continued)

the Financial Report.

AASB 2007-Amendments to Australian Accounting Standards; & AASB 123	AASB 101, 107, 111, 116, 138, 123	01.01.2009
Effect The revised AASB 123; Borrowing costs issued in June 2007 has removed the option to expense all borrowing costs. This amendment will require the capitalization of all borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset. Presently the Consolidated Entity has nor material borrowing costs.

AASB 2007-8 Amendments to Australian Accounting Standards; & AASB 101	AASB 101	01.01.2009
Effect The revised AASB 101: Presentation of Financial Statements issued in September 2007 requires the presentation of a Statement of Comprehensive Income. No known or reliably estimable information relevant to assessing the possible impact of these standards on the Consolidated Entity is presently available though it is anticipated that there will no direct impact on the recognition and measurement criteria of amounts included in the Financial Report.

DIRECTORS' DECLARATION

In accordance with a resolution of the Directors of Icon Resources Ltd, I state that:

(1) In the opinion of the Directors:
(a) financial statements and notes of the Company are in accordance with the Corporations Act 2001 , including:
- (i) giving a true and fair view of the Parent and the Consolidated Entity’s financial position as at 30 June 2008 and of their performance for the year ended on that date; and
- (ii) complying with Accounting Standards and the Corporations Regulations 2001; and
(b) there are reasonable grounds to believe that the Parent Entity will be able to pay its debts as and when they become due and payable.
(2) This declaration has been made after receiving the declarations required to be made to the Directors in accordance with section 295A of the Corporations Act 2001 for the financial year ended 30 June 2008.

On behalf of the Board

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J R Bishop Director

Sydney, 29 September 2008

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INDEPENDENT AUDITOR’S REPORT

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INDEPENDENT AUDITOR’S REPORT

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AI assistant

EQ RESOURCES LIMITED — Annual Report 2008

64867_rns_2008-09-29_aff48379-1c29-4b6e-9222-f0e2e738766a.pdf

Icon Resources Ltd

Directors

Company Secretary

Registered and Principal Office

Share Registrar

Auditors

TABLE OF CONTENTS

CHAIRMAN’S REPORT

REVIEW OF OPERATIONS

REVIEW OF OPERATIONS

MT CARBINE: Tungsten, NE QLD

Tenements : ML’s 4867 and 4919

Mt Carbine open cut – March 2008

Geological summary

REVIEW OF OPERATIONS

Location

Mining history

REVIEW OF OPERATIONS

Ore resources and exploration potential

REVIEW OF OPERATIONS

Icon's plan for development

REVIEW OF OPERATIONS

NORTH WEST QUEENSLAND

REVIEW OF OPERATIONS

BURKETOWN: IOCGU, Nickel, Tenement: EPM 15368

Overview:

REVIEW OF OPERATIONS

Forward Program:

ELIZABETH CREEK: Iron, base metals, Tenement: EPM 14589

Overview:

Forward Program:

NEW CENTURY: Zinc, Tenements : EPM 15867 (Desert Ck) and EPMA’s 15866 (Argyle Ck), 15904 (Bannockburn), 16228 (Shadforth), 16229 (Sandy Ck), 16230 (Steiglitz) and 16232 (Almora)

Overview:

REVIEW OF OPERATIONS

Forward program:

New Century tenements – previous reconnaissance drilling and prospects on processed magnetics background.

REVIEW OF OPERATIONS

LEICHHARDT: IOCGU, Nickel, Tenements: EPM 15386 (North) 15387 (Central) and 15388 (South)

Overview:

Leichhardt Project - Potentially mineralised basement structures

Forward Program:

REVIEW OF OPERATIONS

FITZROY: Copper-Zinc, Central QLD: Tenements: EPM 13961 (Foresthome) and EPM 16665 (Fitzroy)

Target: Volcanic-hosted style polymetallic (Cu/Zn) massive sulphide lenses

Overview:

Forward Program:

REVIEW OF OPERATIONS

REVIEW OF OPERATIONS

DEVELIN CREEK RESOURCE STATEMENT

SULPHIDE CITY INFERRED RESOURCE

SOUTH- EAST QUEENSLAND

GLENTANNA: Copper-Zinc, Tenement: EPM 15401

Overview:

Forward program:

REVIEW OF OPERATIONS

IRON POT CREEK: Gold (+ Molybdenum),Tenement: EPM 17071

Overview:

Forward program:

HELIDON and FAIR HILL: URANIUM, Tenements: EPM 16454 (Helidon) and 16285 (Fair Hill)

Overview:

NORTHERN NEW SOUTH WALES

PEEL FAULT PROJECT: GOLD, Tenements: EL6618 (Upper Hunter), EL6620 (Weabonga), EL6648 (Crow King), EL6680 (Trilby), EL6681 (Bingara), EL6681 (Baldwin), EL6683 (Niangala).

Overview:

REVIEW OF OPERATIONS

REVIEW OF OPERATIONS

Forward Program:

REVIEW OF OPERATIONS

REVIEW OF OPERATIONS

Weabonga – Rainbow Prospect: High grade gold in rock chips associated with extensive soil arsenic anomalies.

REVIEW OF OPERATIONS

SOUTHERN – CENTRAL NSW

ADAMINABY: Copper/Gold, Tenements: EL 7178 (Kyloe) and EL 7179 (Jindabyne)

Overview:

Forward Program:

REVIEW OF OPERATIONS

Adaminaby copper-gold prospect locations

TARA PROJECT: Tin-Tungsten, Tenements: EL 6532 (Tara), EL 2953 (Tara Extended)

EQ RESOURCES LIMITED Annual Report 2008