EQ RESOURCES LIMITED — Capital/Financing Update 2007

Nov 27, 2007

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Exploration Update

Icon Resources Ltd (‘Icon’) is pleased to provide the following update on currently active projects.

Highlights

• Drilling will commence next Monday 3 December 2007 on the Splinter Magnetite Iron Ore Project (WA) and involve thirteen 100-150m RC holes targeting an 8km long zone of magnetic anomalism under shallow cover extending southwards from Azure’s previously reported magnetite intersections. An additional 10-15 holes are planned along two similar but previously untested magnetic structures to the south-east.

• Re-estimation of the copper-zinc resource at Foresthome (Qld) to meet JORC compliance has lead to a significant upgrade in tonnage at similar grades. Total inferred resources are estimated at 1.75Mt at 2.6% Cu Equivalent. An exploration program designed to extend this resource has been defined.

• Grenfell (NSW) drilling is ongoing and assays are pending. The drilling has intersected a number of quartz veining systems below historical gold workings.

• Initial grab samples from historical gold workings at Hiawatha (NSW) have yielded high grade assays (up to 20g/t Au), elevating the project status. Drilling is planned upon completion of the current Grenfell program.

• Icon has been awarded a $40k grant from the Queensland Department of Mines and Energy as part of the Department's Industry Network Initiative of the Smart State Future Prosperity Program to help fund an innovative geophysical program covering the Burketown IOCGU target - coincident gravity and magnetic anomaly. Icon's proposed geophysical survey is expected to commence as soon as access is possible after the coming wet season and cultural heritage clearance has been finalised.

Dr John Bishop notes that Icon has entered a period of high activity with an expectation of strong news flow. Both Grenfell and Hiawatha have been upgraded with recent exploration activity while the resource increase at Foresthome now creates a material base for ongoing brownfields exploration. An accelerated drilling program at Splinter is expected to quickly identify opportunities at this project.

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 – (Option to acquire 100%) Esperance WA Tenements – E63 / 853 / 868 / 869 / 870

Target – Near surface magnetite-bearing horizons amenable to low-cost mining and beneficiation.

Since finalising an option arrangement over the Splinter magnetite project near Esperance in WA, Icon has compiled and assessed the available geophysical data and planned a focussed drilling program to test strike extensions to the known mineralisation and potential additional horizons within the tenement package.

A suitable large-capacity drilling rig has been sourced and the program is scheduled to commence in the first week of December.

The drilling will comprise approximately thirteen 100-150m RC holes targeting an 8km long zone of magnetic and gravity anomalism under shallow cover extending southwards from Azure’s previously reported magnetite intersections, An additional 10-12 holes are planned along two similar but previously untested semi-coincident magnetic and gravity targets to the south-east. The program is designed to test continuity and grade of the magnetite-bearing horizons over sufficient strike length to confirm the presence of one or more potentially economic iron resources.

In addition to assessing the potential to source high-grade magnetite concentrates from the known horizons, the prospectivity of the tenements for additional primary and secondary iron accumulations, and gold and base metal mineralisation is being evaluated.

This initial drilling program is designed to confirm the style of magnetite mineralisation, and determine if follow-up is warranted in early 2008 to delineate the global resource potential.

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Splinter Magnetite Project – Planned drill hole locations (white) on processed regional aeromagnetic image

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Exploration Update

Icon Resources Ltd

FITZROY: Copper-Zinc, Central QLD (III 100%) Tenements: EPM 13961 (Foresthome) and EPMA 16665 (Fitzroy)

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

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

The revised Inferred Resource estimate for the three main mineralized 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 attached JORC compliant 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 subeconomic, Icon considers that the system 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.

Icon will also evaluate the potential for similar systems throughout the under-explored host volcanic terrane within the surrounding EPMA 16665 (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 are not included in the current resource estimate).

• Distal bedded sulphide horizons extending down-dip from the Scorpion sulphide breccia and Sulphide City massive sulphide lenses.

• 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 effectively tested at Scorpion 500m to the west).

• Concealed mineralisation under extensive cover (existing electrical geophysical coverage terminates approximately 300m to the west of Window-Scorpion)

• 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 down-hole electromagnetic (DHEM) surveying of previous drillholes on the flanks of both Sulphide City and Scorpion to detect potential off-hole mineralisation.

Follow-up surface EM and/or 3D IP surveys are planned to search for satellite mineralisation under cover.

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Exploration Update

Icon Resources Ltd

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Sulphide City, Scorpion and Window Cu-Zn bodies (red) beneath Tertiary cover (green) at the Develin Creek Prospect, EPM 13961 (Foresthome) Qld.

DEVELIN CREEK RESOURCE STATEMENT

(Above 1% CuEq* cut-off)

SULPHIDE CITY INFERRED RESOURCE

**Tonnage **	CuEq%*	Cu%	Zn%	**Ag ppm **	**Auppm **
1,110,000	2.6	1.6	2.4	7.0	0.2

SCORPION INFERRED RESOURCE

**Tonnage **	CuEq%*	Cu%	Zn%	**Ag ppm **	**Auppm **
485,000	2.7	2.0	1.9	13.9	0.4
	WINDOW INFERRED RESOURCE
**Tonnage **	CuEq%*	Cu%	Zn%	**Ag ppm **	**Auppm **
155,000	1.5	1.5	0.0	1.0	0.0
	TOTAL INFERRED RESOURCE @ 1% Cu Equivalent*
**Tonnage **	CuEq%*	Cu%	Zn%	**Ag ppm **	**Auppm **
1,750,000	**2.5 **	**1.7 **	2.0	**8.5 **	**0.2 **

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Exploration Update

Icon Resources Ltd

(Above 2% CuEq* cut-off)

SULPHIDE CITY INFERRED RESOURCE

**Tonnage **	CuEq%*	Cu%	Zn%	**Ag ppm **	**Auppm **
830,000	2.9	1.8	2.7	7.6	0.2

SCORPION INFERRED RESOURCE

**Tonnage **	CuEq%*	Cu%	Zn%	**Ag ppm **	**Auppm **
395,000	2.9	2.2	1.8	14.3	0.4

WINDOW INFERRED RESOURCE

**Tonnage **	CuEq%*	Cu%	Zn%	**Ag ppm **	**Auppm **
4,000	2.1	2.1	0.0	0.3	0.0

TOTAL INFERRED RESOURCE @ 2% Cu Equivalent

**Tonnage **	CuEq%*	Cu%	Zn%	**Ag ppm **	**Auppm **
1,230,000	2.9	2.0	**2.4 **	**9.7 **	0.3

• 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% + 0.385Zn%) It is the Company’s opinion that the elements (Cu and Zn) included in the metal equivalents calculation have good potential to be recovered if the project proceeds to mining.

See Appendix for Resource Estimation Methodology

GRENFELL PROJECT – GOLD- Central NSW

Tenement – (EL 6559)

Target –Concealed “Porphyry-related gold” linked to extensive historical hard-rock and alluvial gold workings.

Drilling a series of geophysical and geochemical anomalies associated with extensive historical gold workings within Icon’s Grenfell EL 6559 is progressing, although difficult ground conditions have been encountered at the Exhibition workings in the central part of the licence.

Two drillholes targeting depth extensions of a series of sub-parallel lode structures at Exhibition have intersected zones of ferruginous quartz veining (eg ~105-117m in DDH IED004, and 7483m and ~103-117m in DDH IED005) but both holes have terminated without fully traversing the prospective zone due to hole deviations.

The vein intercept samples have been sent for analysis to determine whether further drilling is warranted as part of the current program. Analytical results for the previous hole IED003 drilled beneath the Gillams workings to the east are awaited

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Exploration Update

Icon Resources Ltd

Results from the first two drillholes which targeted 3D IP resistivity and chargeability anomalies have been received with only weakly anomalous geochemistry associated with altered lithologies and minor elevated gold associated with narrow quartz veining (eg 0.5g/t Au at 68m in pre-collar of IED002 ).

Drilling has commenced at the Zig-Zag prospect in the western section of the licence where a broad zone of anomalous Niton soil geochemistry is associated with a basement magnetic jog to the east of historical workings.

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Grenfell – Historical gold workings and Icon Drilling (assays awaited for IED003, 004,005). Drillholes IED001 and 002 targeted anomalous zones defined by a 3DIP survey with no significant gold assays.

HIAWATHA PROJECT – GOLD- Central NSW

Tenement – (EL 6291)

Target –Concealed “Porphyry-related gold” similar to Grenfell, or a variant of the nearby Lake Cowal system.

The Hiawatha gold workings occur in the centre of EL 6670 and are defined by several shafts, the deepest to 53m. Mineralisation consists of thin east-west trending and steeply dipping quartz veins, hosting gold and galena. There is limited outcrop, which is highly weathered, but the area of interest is thought to be underlain by a medium grained Biotite-rich granodiorite (I type West Wyalong Granodiorite).

Rock chip samples were recently collected from a series of linear structures delineated by Niton soil geochemistry associated with small-scale historical gold workings. Results showed encouraging gold values (up to 21.6 ppm Au) with consistent pathfinder geochemistry (elevated Ag, As, Sb, Bi, Pb and Ba).

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Exploration Update

Icon Resources Ltd

Although outcrop in the area is poor, the structures appear to be associated with extensive alteration of the host granodiorite. These zones may extend beneath shallow cover where previous 3D IP has mapped a broad zone of low-order chargeability anomalism.

Infill Niton soil sampling has been completed to map the extent of anomalism and assist targeting of proposed drillholes along these auriferous structures.

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Hiawatha - Golden Lounge prospect – Sample 854381 - 14.6ppm Au, 3870 ppm As (similar grades were returned from nearby mineralised structures, eg Sample 854380 – 21.6 ppm Au, 5480 As and 1.45% Pb from the Homestead prospect).

BURKETOWN: COPPER GOLD URANIUM NICKEL, NW QLD Tenement: EPM 15368

Targets: Iron oxide copper gold uranium; (ie Olympic Dam style mineralisation); nickel.

Icon Resources is pleased to announce that the Queensland Department of Mines and Energy has approved the grant of $40,000 in the initial round of the Department’s Industry Network Initiative to help fund the development of innovative geophysical techniques and associated data processing at the prospect in 2008.

Icon considers the tenement to be highly prospective for concealed mineralisation associated with a coincident basement magnetic and gravity feature.

If methodologies can be developed to map any sulphide mineralisation at depth in this terrane the probability of discovery can be significantly enhanced. By working with the leading Brisbane-based geophysical consultancy, Geophysical Resources and Services Pty Ltd, Icon is confident that the resolution of concealed targets can be advanced, and the techniques applied in similar terranes throughout Queensland.

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Exploration Update

Icon Resources Ltd

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----- Start of picture text -----

Burketown Project
Coincident magnetic & gravity
anomalies under 300-400m cover.
Olympic Dam-style IOCGU target
Extensive system of altered mafic
dykes with similarities to Canada’s
large Voisey Bay nickel deposit
Gravity
Magnetics 1
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Burketown Gravity-Magnetic Anomaly

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 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.

Icon’s preferred approach will be to trial the MIMDAS system at Burketown. It is considered that innovative electrode locations, plus other recent MIMDAS enhancements including telluric cancellation will be required to penetrate the 300m+ of potentially very conductive cover.

By developing geophysical tools to map sulphide accumulations at depth, mineralisation not related to the primary (IOCGU) target could also be detected during this program. 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)

The acquisition of ground geophysical data is expected to commence as soon as access is possible after the coming wet season and cultural heritage clearance has been finalised.

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Exploration Update

Icon Resources Ltd

Appendix

Resource Estimation Methodology

The Resource Estimate has been conducted according to the standards, recommendations and guidelines contained in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code, 2004)

The Develin Creek deposits are interpreted to comprise two discrete mineralising systems, the Window / Scorpion and Sulphide City zones. The Window / Scorpion system has undergone a period of erosion prior to the deposition of Tertiary sediments. Sulphide City, on the other hand, is almost wholly preserved and consists of a complex zone of massive sulphide mineralisation which occurs stratigraphically above a zone of disseminated and stockwork sulphide mineralisation. The deposit lies beneath approximately 100m of volcanic and Tertiary cover.

Mineralisation styles include massive and banded sea-floor sulphide deposits; reworked, polymict breccia deposits; distal, graded sedimentary sulphide deposits; massive, sub-seafloor replacement deposits and stringer zone quartzsulphide vein deposits.

These styles of mineralisation are characteristic of Volcanic-Hosted Massive Sulphide (VHMS) deposits. VHMS deposits typically recover the contained Cu and Zn and other minor elements such as Pb, Ag and Au (subject to metallurgical characteristics and prevailing metal prices).

The deposits were discovered and drilled by Queensland Metals Corporation in the early to mid 1990’s with a combination of diamond and percussion drilling. The identified resources have been drilled out on a minimum spacing of 50m with some infill to 25m spacing.

Original drilling and assay records have been validated and incorporated into a geological model using Gemcom software. Sampling of the mineralized zones was generally completed over one meter intervals. Half cores have been assayed for base metals using AAS and gold using fire assay. All grade intervals (> 1% base metals) were re-assayed by higher precision techniques and industry standard QA/QC procedures were implemented.

The densities of the resource bodies for tonnage estimation has been determined by averaging specific gravity determinations completed on 1m composite samples matching the analysed intervals. The densities utilized are: Sulphide City (massive sulphides) 3.93, Scorpion (sulphide breccias) 3.3 and Window (supergene clay-altererd footwall) 2.4.

The modelled resources are classed as Inferred with infill drilling required to resolve the resource boundaries and grade distributions.

The Inferred Resource at Develin Creek was estimated by Fleur Muller B.Sci (Hons) MAusIMM, a fulltime employee of Geostat Services Pty Ltd, under the supervision of Darcy. Milburn (Exploration Manager of Icon Resources Ltd) using Gemcom geological modelling software. Ms Muller has sufficient experience in the estimation of resources over a wide variety of commodities and mineralisation styles and as such, meets the formal requirements as defined in the JORC Code (Joint Ore Reserves Committee, 2004) to be a Competent Person for the estimation of the Develin Creek Mineral Resources.

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