EQ RESOURCES LIMITED — Capital/Financing Update 2007

May 3, 2007

$I.C.P.M$

4 May 2007

ASX Announcement

New Uranium Project and Granting of Key NW Old Tenements

Icon Resources' Board of Directors is pleased to provide shareholders with the following update on the Company's activities in Queensland.

Summary

• Icon has lodged an application (Fair Hill) covering a significant uranium anomaly on the margin of a caldera structure in SE Oueensland. The style of mineralisation is potentially similar to the Ben Lomond and Maureen uranium deposits, also in Queensland.
• Imminent granting of Icon's Burketown exploration application is expected. This covers a coincident gravity/magnetic anomaly which is prospective for copper-gold (IOCG) and nickel (Voisey's Bay style) orebodies and is a high priority target. Recent interpretation of this data also suggests a similar structural setting to the nearby Westmoreland uranium deposits.
• Also in NW Queensland, two of the three Leichhardt leases have been granted with the third expected shortly. These tenements cover a triple plate junction with structural features prospective for IOCG targets.
• Icon has applied for seven exploration permits (collectively referred to as 'New Century') which cover prospective stratigraphy for Century style zinc deposits. A number of companies have expressed interest in a joint venture over these tenements.

Managing Director Dr John Bishop commented that Icon's acquisition of the 100% owned Fair Hill uranium project reinforces Icon's skill at identifying new projects in a highly competitive market. Elsewhere, the Burketown gravity/magnetic anomaly represents a high impact exploration project and Icon is seeking Old Government funding for drilling which will enable Icon to retain a 100% interest in this key copper/nickel/uranium prospect. Both of these projects will be advanced as a matter of priority. Meanwhile Icon is continuing to build a significant land holding in this prospective part of Old.

Fair Hill, EPMA16285: Uranium (III 100%)

In SE Queensland, Icon has identified a prominent uranium anomaly in airborne radiometric survey data in the Nutgrove Rhyolite (siliceous volcanic) member of the Main Range Volcanics (Figure 1). Satellite imagery shows that the anomaly sits on the margin of a well defined caldera structure. The Fair Hill EPM application covers this anomaly and surrounding ground (see Figure 4 for broad locations of Old tenements).

Target types at Fair Hill include hydrothermal mineralisation within the caldera setting as well as 'rollfront' deposits where uranium has dissolved from the uraniferous volcanics at Fair Hill, and re-deposited at shallow depths below the surface in organic-rich stream sediments. Roll front uranium deposits occur at the interface between oxygen-bearing ground water and oxygen deficient (reducing) ground water. They can be large and high grade and are the main source of uranium production in the USA.

The exploration program at Fair Hill will include soil and stream sediment geochemical and geophysical 3D-IP surveys to define drill targets (both hydrothermal and roll front deposits have associated sulphide minerals that can be identified with IP) and drilling.

Figure 1. Fair Hill EPMA16285 superimposed on 'uranium' channel radiometrics. 'Warm' colours indicate high uranium values; 'cool' colours, low values. Icon's prime target will be for uranium associated with the uranium-bearing felsic volcanics on the southern boundary.

Northwest Oueensland

The location of Icon's tenements and applications are presented on the following magnetic image, Figure 2.

Figure 2. Enhanced magnetic image of Icon's tenements in NW Old. Burketown and Leichhardt projects are based on structural features evident in the magnetics.

Burketown (EPMA 15368) Ni, Cu, Au, U (III 100%)

Icon has been notified of an imminent granting of its Burketown application (EPMA 15368). It has now completed a review of the exploration data on the project. In summary, the permit contains a late, ultramafic intrusive centre including strongly altered gabbro, under ~300m cover, confirmed by a 1980 drill hole. The prospect has the following highly encouraging attributes:

• Coincident anomalous magnetic and gravity highs
• Previously intersected ultramafics with single drillhole testing
• Overlying mercury anomaly which is commonly associated with nickel and uranium targets
• Located on the same fault and in a similar structural setting to the Westmoreland U deposits

Icon is targeting Nickel-PGEs, Uranium and Iron oxide-copper-gold (IOCG) and the exploration program will include deep-penetrating 3D-IP and soil geochemistry surveys to firm up key targets before drilling.

Leichhardt (EPMA15386, EPM15387 and EPM15388) Au, Cu, U, Ni (III 100%)

The Leichhardt project focuses on structural targets identified by Icon through geophysics. A triple plate junction is interpreted at the join of the north-south Mt Isa Rift and the east-west Murphy Inlier, marked by a continental-scale suture. There are numerous associated magnetic (Figure 2) and gravity anomalies within the Icon tenements and exploration targets include iron oxide-copper-gold at intersections of major crosscutting structures where fluid flow is likely to have been concentrated. Other uranium targets at Leichardt include mineralisation at unconformities between the Mid Proterozoic and Westmoreland Conglomerate equivalents and between the Jurassic and Mid Proterozoic units.

Exploration programs will include soil geochemistry to identify indicator metals leaking from mineralisation through the cover to the surface (especially radon and mercury). Deep-seeking geophysical techniques such as Controlled Source Audio Magnetotellurics (CSAMT) will be used to locate conductors related to mineralisation with follow up drilling of identified targets.

New Century (EPMAs 15866, 15867, 15904, 16228, 16229, 16230 and 16232). (III 100%)

The Century zinc mine provides the geological model for the area and recent research concludes that this style of deposit results from drainage of metal-bearing brines from deeply buried sedimentary/volcanic source rocks depositing in rift basins. Century is adjacent to the Termite Range Fault, one of the large rift boundary faults and certainly one of the structures responsible for Century's location. Interaction with other faults and migration pathways up basement highs may also be possible factors.

Interpretation of the magnetic and gravity data indicate a northwest trending structure through Icon's north western group of permits (EPMAs 15904, 5866, 15867, 16228) which is probably associated with mineralisation at Shadforth Plain and Bluebush (Figure 3). Previous exploration at the former has established that the mineralisation is associated with dolomites and black shales and that the rocks appear hydraulically fractured: a promising combination.

EPMA16230 contains the Steiglitz zinc occurrence (Figure 3) where interpretation of the geophysical data suggests that the mineralisation lies some distance off a north east trending basement ridge and fault which may provide a locus for fluid flow.

The south eastern group of permits (EPMs 16232 and 16229) are considered prospective as they contain the continuation of the major northwest structure through Shadforth Plain and Bluebush together with magnetic features interpreted as basement rifts whose edges may be favoured fluid flow locations.

The exploration program is planned to include geochemical sampling in areas over structural targets followed by 3D IP surveys and drilling. As mentioned, there are a number of parties interested in joint venturing these projects.

Figure 3. Plan map of Icon's NW Old permits and applications

Figure 4. Location plan of Icon's Old permits and applications.

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