EQ RESOURCES LIMITED — Capital/Financing Update 2007

Jun 7, 2007

8 June 2007

Dear Shareholder

The enclosed documents are important and I urge you to give them your full consideration.

Invitation to Participate in the Icon Share Purchase Plan

I am pleased to advise that your Board of Directors has decided to make an issue under its Share Purchase Plan (SPP). The SPP entitles shareholders in the Company, irrespective of the size of their shareholding, to purchase up to \$5,000 worth of shares in Icon free of brokerage. An Application Form is also enclosed, should you wish to participate. In the unlikely event that the SPP Offer is fully subscribed it will raise \$2,795,000 through the issue of 6,211,111 shares.

The right to participate in this initial offer under the SPP is available exclusively to persons who are registered as holders of fully paid ordinary shares in Icon Resources Ltd at 5:00pm on the record date of 8 June 2007 and whose registered address is in Australia, New Zealand and any other jurisdiction in which it is lawful for the Company to offer shares under the SPP.

The purchase price of the new shares to be offered under the SPP has been set at 45 cents. This represents a price less than the last closing sale price prior to the date of this letter of 50 cents per share. It is an 8.1% discount to the weighted average market price of the ordinary shares sold during the course of trading on the Australian Securities Exchange (ASX) for the five trading days immediately preceding this announcement and a 10% discount to the weighted average market price of the ordinary shares sold during the course of trading on the ASX for the 30 trading days immediately preceding this announcement. The issue price compares with the 52 week high of 71 cents and 52 week low of 11 cents.

From a fundraising viewpoint, placements to large investors can be completed quickly and at a low cost. However, we are conscious that smaller shareholders do not get the opportunity to subscribe equity at the discounted placement price. It is for this reason that make this. offer follow the recently completed we to placement at 45 cents, which raised \$1,350,000.

Proposed Priority Entitlement to KUTh Energy IPO

A number of Icon Directors and senior consultants are closely associated with KUTh Energy Ltd which has permits and applications for enhanced geothermal power production in Tasmania and Queensland.

KUTh plans to issue a prospectus and list on the ASX in the September quarter of 2007 and intends to offer Icon shareholders a priority allocation of shares, which will be detailed in its prospectus.

Icon Resources Ltd ACN 115 009 106

Principal Office: 38 George Street, North Hobart TAS 7000 PO Box 2001, North Hobart, 7002 T: +61 3 6231 3948 F: +61 3 6234 3472

It is proposed that Shareholders holding at least 12,000 Icon shares over the period from 27 June to the offer period of KUTh's prospectus (expected to be in August 2007) will be entitled to at least 12,000 shares in KUTh Energy Ltd and every effort will be made to give each Icon qualifying shareholder the number of shares applied for. Applications for shares will only be accepted where Icon shareholders complete the application form which will form part of the KUTh prospectus.

Current and Forthcoming Company Activities

The SPP will afford shareholders the opportunity to acquire additional shares during an active period for the Company with drill programs targeting 3D-IP anomalies at Icon's Professor Zinc Project in western Tasmania and further testing the Tara Tin Project in NSW and with drilling planned at three gold prospects in NSW for later in the year. These and other projects are set out in the attached Exploration Update. Success for the Company in any one of these projects could see a positive re-rating of the Company's share price.

Whilst my fellow Directors and I have confidence in the future of the Company, it would be remiss of me if I did not also draw your attention to the fact that owning shares in an exploration company, like Icon, is considered a speculative form of investment and that the future price of the Company's shares can rise or fall depending on exploration success and fluctuations on the stock market generally. Shareholders should be aware that there is a risk that the market price of the shares may change between the date of this offer and the date when the new shares are issued to you under the SPP. The value of the shares you receive may rise or fall accordingly.

Additional information and key dates

If you would like to participate in the SPP, please return your completed application form, together with your cheque representing the purchase price by the 27 June 2007.

Please note that the maximum investment per shareholder is \$5,000 (representing 11,111 shares at a purchase price of 45 cents per share). The minimum number that can be applied for is 2,000 shares at a total cost of \$900. Shareholders may also apply for any number of shares between the maximum and the minimum. Shares allotted under the SPP are expected to be issued on 3 July 2007.

A full copy of the Terms of the Icon Resources Ltd Shareholder Share Purchase Plan is available on request from the Company. If you have any questions on the SPP, please call the Company's office on (02) 9279 1252 during business hours.

The rights attaching to the SPP Shares are identical in all respects to existing fully paid ordinary shares in the capital of the Company.

If fully subscribed, the Offer under the SPP could raise \$2,795,000. The intended use of the funds raised, pursuant to the issue of the SPP Shares, is to further advance the Company's exploration activities by providing additional working capital to support the programmes set out in the attached Exploration Update.

Yours Sincerely ICON RESOURCES LTD

what delite

Andrew White Chairman

A WA MCHARTEN Three Septients Profesis

Icon has three separate projects in NW Qld:

• Burketown (Ni, Cu, Au, U) (a)
• New Century (zinc/lead) $(b)$
• Leichhardt (base metals, Ni, U) $(C)$

The three Leichhardt permits are over an interpreted triple plate junction with the highly mineralised Mt Isa block to the south and the similarly fertile Murphy Inlier to the west. Two of the permits have been granted and the third is at an advanced stage.

Leichhardt is a conceptual play and an early part of Icon's program will be to determine the thickness of the overburden and to concentrate the exploration on areas with less than 250m cover. However, the targets sought will be 'world-class' orebodies which could well 'take' a greater depth of burial.

The Burketown permit is close to grant and was originally pegged for nickel using the very large Canadian Voisey's Bay deposit as an analogy. However re-processing of the data revealed a aravity anomaly coincident with a discrete northern magnetic anomaly: an association reminiscent of the Olympic Dam copper-gold-uranium deposit. Further processing indicates that Burketown has a similar structural setting to the nearby Westmoreland uranium deposit. Anomalously high mercury in soil support this contention as well as the prospectivity for nickel and other metals.

enhanced magnetic image.

Icon's 'New Century' leases superimposed on the cover of the Sep-Oct 2006 edition of 'Economic Geology' plus the Elizabeth Creek Zinifex JV (Zn, FeO) to the west and 'Burketown'(Ni, IOCG, U) in the north

The seven permits making up New Century have been pegged for sedimentary hosted (ie Century style) zinclead-silver deposits. Again, these are conceptual targets under cover, but their prospectivity is perhaps best demonstrated by superimposing the permits on the front cover of Economic Geology's recent special edition on Australia's Zn-Pb-Ag deposits.

feon Resources Nd ACN 115 009 106

KUTHENSCYLIN Enhanced Credit Sunal Power Production

Icon directors and senior personnel are closely associated with KUTh Energy Ltd which has permits and applications for enhanced geothermal power production in Tasmania and Queensland.

KUTh plans to issue a prospectus and list on the ASX in the September quarter 2007 and intends to offer Icon shareholders priority allocation.

KUTh Energy's Tasmanian Geothermal licence

• Icon Resources (III) is a diversified explorer with tenements in Eastern Australia
• lcon is seeking funds to:-
• (a) Further drill its promising Tara tin project in central NSW
• $(b)$ Accelerate the drilling of new 3D-IP anomalies identified at three NSW gold Prospects
• Drill test the newly discovered 3D-IP $(\mathbb{C})$ anomalies near Grieves. Tas
• Continue work on optimising the Grieves tdY zinc in peat metallurgy
• (e) Commence preliminary work on recently granted NW Old permits
• Develop exploration programs for new $(f)$ uranium tenements in SE Qld

Profiy-thotssozine WAS TESTIELLE

The Professor Project contains several zinc prospects including the Grieves Siding zinc deposit. This has an inferred resource of 0.4Mt at 3.9% Zn in peat overlying an historic estimate of ~0.75Mt of zinc oxides grading ~8% Zn_tcon is upgrading Grieves and exploring for other significant Zn/Pb occurrences.

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PO Box H116, Australia Square, 1215 1831 AWARD FRANKING

Icon has further sampled the zinc-in-peat with a œ. large diameter auger. A resource upgrade will be carried out after sampling and assaying have been completed.

Metallurgical testing of the zinc-in-peat is underway. Testing to date indicates that leaching and fuming are likely to be successful but cheaper alternatives are still being assessed.

700m of diamond drilling of the zinc oxides was carried out in summer '07. Metallurgical testing is planned.

A 3D-IP survey around Grieves has revealed several previously untested anomalies.

Exhiping Profell Managing Director: Dr. John Bishop: 0418 373 429 Exploration Manager: Darcy Milbum 0418 799 472 Web www.conescuces.com.cdf

Pallanti Polai NE NOW SOUth Wales

Icon has a sizeable tenement position along the Peel Fault in NE NSW covering areas which have had minimal exploration but which have historically produced significant amounts of gold as well as having potential for PGEs and Nickel. The region appears to have strong affinities with the 100+ Moz Californian Mother Lode.

Icon is carrying out a regional data compilation plus mapping and geochemical surveying program (covering several hundred kilometres of strike length) as well as conducting local geophysical surveys.

An aeromagnetics/radiometric survey has been carried out over the Weabonga and Niangala licences plus a 3D-IP survey on the former. Drilling is scheduled for 2H2007 to test coincident IP and geochemical anomalies.

SENGRESIN Andarie Amis

Icon has four separate permits and applications in south east Queensland.

(a) Warwick was originally explored for gold but is now in the process of being JV'd out for its molybdenum potential.

(b) Glentanna has known base metal prospects including 'Grieves Quarry' and 'Myrtle'. The Qld Mines Dept carried out exploratory drilling at Grieves Quarry in the 1970s and estimated a resource of 0.2Mt at 5% Zn. The style of mineralisation is a polymetallic volcanic massive sulphide (VMS) which would be expected to respond well to geophysical EM surveys. (A 1970s 'Input' survey produced a number of responses in the area, but there appears to have been little if anything done since that time.)

(c) and (d) are applications prospective for uranium. Fair Hill is a caldera (volcanic) style of deposit: Helidon, is based on very anomalous radon in ground water and may be a roll-front style of target.

Fair Hill radiometric image. Icon's prime target is the caldera style alteration on the southern boundary

Peel Fault Project tenements superimposed on an ennanced maanelle image

Glentanna prospects and structure superimposed on an enhanced magnetic image.

Niton subsoil surveys identified geochemical anomalies above the chargeability zones.

mineralisation.

Highly encouraging tin grades have been intersected at Tara. The source of the tin is interpreted to be a granite ~1.5km below surface. Significant zinc has also been intersected and analogues for Tara include the world's richest tin mine, San Rafael in Peru with its 5% head grade. Ongoing aircore drilling has intersected visible tin (confirmed by Niton). Diamond drilling is in progress 6 Approximately 25 line-km of Electrical Resistivity Imaging (ERI) surveys have carried out to map the basement topography Further geophysics planned to locate deep-Seated tin-bearing structures Line 1 Line Distance (m) Grenfell chargeability plan draped over magnetics with old gold workings superimposed Exploration drilling Central New South Wales $1, 5, 9, 8$