EQ RESOURCES LIMITED — Capital/Financing Update 2008

Sep 10, 2008

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ASX Release 11 September 2008

Mt Carbine Tungsten Project Moving Forward

The Board of Directors of Icon is pleased to announce the following developments with its Mt Carbine tungsten project.

• Icon has now signed a formal binding contract with Mt Carbine Quarries Pty Ltd for Icon’s sub-leasing arrangement to mine (‘Mining Sublease Agreement’). The allocation of 3.5 million Icon shares to the vendor will occur over the next few days.

• Assays of random samples from Mt Carbine tailings have confirmed the historical overall grade of ~0.1% tungsten oxide (WO3). At current tungsten prices, the tailings have an insitu value of $30M-$40M and Icon expects to process the tailings over a 12 to 18 month period prior to restarting the current open pit mine.

• Comprehensive tests are underway to determine the optimum treatment process for the tailings. Tableland Analytical Pty Ltd has been retained to conduct a series of trial processes at its own metallurgical facility and to oversee additional tests to be carried out in other laboratories. It is envisaged that the final process chosen will form the basis of the ‘fines’ plant when the hard rock mining operation commences.

Managing Director, Dr John Bishop, noted that the sublease agreement with Mt Carbine Quarries Pty Ltd formalises the close relationship between the two parties.”Icon has been moving the tailings project forward with the finalising of the metallurgical process route expected shortly. Work is also focused on reducing the capital requirements through the sourcing of second hand equipment while it is also progressing the appointment of contractors to construct the plant.”

Icon Resources Ltd ACN 115 009 106

Principal Office:

Registered Office: Suite 404, 25 Lime Street, Sydney NSW 2000 PO Box H116, Australia Square, 1215 T:+61 2 9279 1252 F: +61 2 9279 2727

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

Mt Carbine Tungsten Project

Icon Resources Ltd

Mining Sublease Agreement

This agreement allows for the existing quarrying and new mining operations to co-exist on the same Mt Carbine Mine Leases. MCQ will continue its quarrying operation with Icon’s waste rock adding to the quarry stockpile. Both Icon and MCQ view this as a synergistic association which will help ensure supply of crushed stone of all sizes to North Queensland’s construction industry for many years to come.

Mt Carbine Tailings

A 104 hole drilling program of the tailings was reported by Queensland Wolfram Pty Ltd (Gamage, 1987) who concluded that Tailings Dam no 3 contained ~0.3Mt @ 0.13% WO3 and Tailings Dam no 4 contained ~2.04Mt @ 0.1% WO3. Since that period, some 0.3-0.4Mt has been extracted from no 4 tailings for the quarrying operation and an undetermined amount from no 3. Random sampling by Icon confirmed the overall grade and Icon has previously reported the no 4 Tailings Dam as a JORC compliant resource of 1.6Mt at an estimated grade of 0.11% WO3 with a contained 0.4Mt of minus 75 micron material with an estimated grade of 0.3% WO3. Icon is now undertaking a bulk sampling program to (a) create a homogeneous source material for testing and (b) further confirm the grade distribution reported by Gamage. The image below gives the grade times thickness distribution superimposed on an aerial photograph.

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Aerial photograph of the no 4 Tailings Dam at the Mt Carbine Tungsten Mine with an image of the grade x thickness distribution superimposed. The black area to the south is water which may cover un-tested tungsten-bearing waste from the previous operations. (The grid labels on the bottom edge of the photo are 500m apart; ie the approximate diameter of the circle in the image.)

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Mt Carbine Tungsten Project

Icon Resources Ltd

Tailings Process Tests

There have been several improvements in the extraction of tungsten minerals in the twenty two years since Mt Carbine was operating. For example, flotation of scheelite was rarely carried out but is now a routine process in China where most of the world’s tungsten occurs.

Esker Milling and Processing Pty Ltd is very experienced in gravity processing of oxides and the principal, Nick Moony, has devised several tests to determine what size fraction of the Mt Carbine tailings should be treated and how best to produce wolframite and scheelite concentrates from the process.

The previously announced tests of the Wave Table have been completed. Although tungsten and scheelite were segregated, at this stage it seems unlikely that the device will be used in the final process for the tailings.

Tony King of Tableland Analytical Pty Ltd will be undertaking most of this work at Tableland’s laboratory and will supervise tests to be carried out at laboratories with some specialised equipment. Flotation tests of Mt Carbine tailings presently being carried out in China are being overseen by Esker.

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From left to right: Nick Moony of Esker; Icon’s Managing Director John Bishop and Tableland Analytical’s Tony King looking at Mt Carbine tailings concentrating on Tableland’s Scott Table.

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Mt Carbine Tungsten Project

Icon Resources Ltd

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Dr John Bishop Managing Director

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. John 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.

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