EQ RESOURCES LIMITED — Capital/Financing Update 2007

Dec 19, 2007

20 December 2007

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ASX Announcement

Exploration Update

Icon Resources’ Board of Directors is pleased to provide shareholders with the following update on Icon’s recent activities.

Icon has completed 16 holes for 1665m as part of its due diligence on Azure’s WA Splinter Iron Ore project (3 month option from Azure Minerals). While intersecting a number of bands of magnetite mineralisation, the width of the bands and their discontinuous nature do not support the presence of a large scale magnetite deposit. Nevertheless, Icon is continuing to follow up some anomalous base metal intersections.

At Icon’s NSW gold projects, drilling at Grenfell has returned disappointing gold assays despite encouraging veining intersected in the drilling and occurring below old workings. The drill rig is now completing a five hole program below old workings at Hiawatha where grab samples grading up to 20g/t have been previously reported. Following the Christmas break, drilling will commence at Weabonga, whilst an IP Survey is also planned for Crow King on the Peel Fault.

At Foresthome (Qld), Icon is planning downhole EM early in 2008 to locate additional copper mineralisation as part of its program to double the existing 1.75Mt at 1.7% Cu + 2% Zn resource.

Managing Director Dr John Bishop commented that “whilst the Splinter results are disappointing, Icon continues to pursue its conveyor belt strategy with a number of new projects currently being reviewed.”

Icon Resources Ltd ACN 115 009 106

Suite 404, 25 Lime Street, Sydney NSW 2000. Telephone: +61 2 9279 1252 Facsimile: +61 2 9279 2727

Exploration Update

Icon Resources Ltd

Splinter Iron Ore Project, WA

In late October 2007 Icon acquired a three month option from Azure Minerals to explore their Splinter Project in SE WA for iron ore. Icon has just completed sixteen RC holes with a total drilled distance of 1665m to test three separate targets.

Whilst assays are pending, the visual results to date have been disappointing. At Splinter West, a traverse of eight holes ~2km south of Azure’s holes, intersected disseminated magnetite-bearing gneisses with the best hole, ISRC009, intersecting several thin (<1m) zones of semi-massive magnetite (>5%). Two more holes, testing the same horizon a further ~3km to the south, obtained similar results. The results would appear to adequately explain the observed magnetic and gravimetric responses. A three-hole traverse at Splinter Central intersected more gneissic rocks containing several thin (<1m) bands of semimassive magnetite within broader zones of minor disseminated magnetite. At Splinter East, a three hole traverse intersected a broad zone of minor disseminated magnetite.

These results have significantly downgraded the potential for a viable magnetite iron-ore project at Splinter. However, the samples have been sent for multi-element analysis since there is still potential for base and precious metal mineralisation.

Whilst the potential for high grade magnetite iron-ore at Splinter has been downgraded, the rocks intersected in this drilling campaign are considered prospective for base and precious metal mineralisation. Drill samples have been submitted for assay, with results expected in early 2008.

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Splinter Magnetite Project: Icon drill hole locations (white) on regional aeromagnetic image

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Exploration Update

Icon Resources Ltd

Grenfell Gold, NSW (III 100%)

Additional assays have now been received from the Grenfell drilling and the program has finished with seven holes (six diamond and one RC) drilled, totalling 1340m.

Hole IED003, which tested the Gillams workings returned background values and holes IED004 and IED005, which tested the Exhibition workings, also returned only weakly anomalous gold values. Results from holes IED006 and IED007 which tested chargeability and geochemical (Niton) responses on the western side of the licence are expected in early to mid January.

Hiawatha Gold, NSW (III 100%)

Five RC holes have recently been completed at Hiawatha. These targeted moderate chargeability responses from a recent 3D IP survey carried out for Icon plus associated elevated basemetal geochemistry from Niton surveying and rock chip sampling up to 20 g/t gold. Assay results are expected early in the new year.

2008 Exploration Program

Exploration activities for early 2008 include drilling for gold at Weabonga in NE NSW and an IP survey at Crow King on the Peel Fault (NSW) where mapping and geochemistry have revealed an area of extensive alteration in association with old gold workings.

At Fitzroy and Foresthome in central-east Queensland, an inferred resource of 1.75Mt at 1.7% Cu + 2% Zn has been estimated (see November 2007 ASX release). Icon believes that there is excellent potential to at least double this figure within the leases and thus define a potential economic resource. A variety of geophysical surveys are planned for 2008 to help achieve this goal. Down hole electromagnetic surveys are intended down old holes at the Scorpion and Sulphide City deposits to look for more mineralisation in the near-vicinity of the drillholes. A 3D IP survey is planned for the host horizon linking these two massive sulphide zones and Icon will also be looking at the potential (~40kms along-strike of interpreted host horizon) in the surrounding Fitzroy permit.

Glentanna in the SE of Queensland is a similar type of copper-zinc Volcanic-Hosted Massive Sulphide prospect, but with less defined mineralisation –and corresponding less exploration. Larger scale electromagnetic surveys are planned here over known massive sulphides; previously defined geophysical anomalies and old workings.

Geophysical surveys are also planned over the IOCGU target on the recently granted Burketown permit in NW Queensland at the onset of the dry season (late April – early March), to be followed by drilling.

Icon will continue to identify and peg large-scale conceptual targets such as Burketown and underexplored areas of previous mining and/or exploration activity.

For further information, contact John Bishop, Managing Director 02 9279 1252 or 0418 373 429 Digital copies of this and other reports are available on our website www.iconresources.com.au. To receive email copies of future releases, subscribe by email to info@iconresources.com.au

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