EQ RESOURCES LIMITED — Capital/Financing Update 2008

May 14, 2008

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ASX Release

Mt Carbine Tailings Project – Tungsten Production in 2009

Icon has acquired the rights to 100% of the Mt Carbine tungsten mine near Cairns in north Queensland, as previously announced in Icon’s March 2008 Quarterly Report. Prior to its closure in the mid 1980s, Mt Carbine was Australia’s largest tungsten producer with a partially completed decline to start an underground operation.

Icon has a staged development program for the re-development of Mt Carbine; namely:

• Stage 1 retreatment of the tailings;

• Stage 2 re-opening of the open pit, and

• Stage 3 re-opening of the underground mine.

The staged program allows for Stages 2 and 3 to be largely funded from ongoing cash flows from Stage 1. The overall mine life is expected to be greater than 10 years, subject to positive feasibility results for each development stage.

Icon has just received current independent preliminary capital and operating cost estimates for the Stage 1 retreatment of around ~2.5Mt of tailings. The average tailings grade is expected to be relatively high at around 0.11% WO3 due to historically low recoveries in the mill that operated until 1986. Recent sampling by the Company as reported in the March quarterly confirms this grade expectation.

Esker Milling and Processing Pty Ltd has designed and costed a flow sheet for Stage 1, principally involving gravity separation and flotation of the tailings, which can later be used as the ‘fines recovery end’ of a fully developed plant to treat primary open pit and underground ore as part of the Stage 2 and 3 projects.

An initial scoping capital estimate is $6.2M plus working capital. The presence of an existing quarry operation on site within a granted mining lease along with the availability of power and water onsite will enable fast tracking of the Stage 1 tailings project. Construction could be underway in the 2H 2008 and first tailings treatment and tungsten production targeted for early 2009.

The current plan for Stage 1 envisages a 2.5 year project life processing 1Mt pa of tailings which is expected to be treated by gravity separation and flotation. This is expected to produce ~750t pa of tungsten in concentrate with annual revenue in the order of $20M and a pre-tax operating surplus of at least $8M at current tungsten prices (see chart below).

Icon Resources Ltd ACN 115 009 106

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

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

The Company is currently focused on further sampling the tailings to increase confidence in estimated grades as well as confirming the tonnages available, and conducting flotation tests and securing the services of an engineering company to design and construct the plant.

Tungsten Prices

Tungsten prices have increased significantly over the last few years due to emerging strong Asian demand. China has been the world’s largest supplier but recently declared tungsten as a strategic metal, effectively preventing its export (China has ~66% of the world’s tungsten reserves.)

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----- Start of picture text ----- Tungsten APT United States $ per short ton unit----- End of picture text -----

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----- Start of picture text ----- US $ per short ton unit350One short ton = 2000lb vs metric tonne = 2,204.6lb;300 APT = Ammonium Paratungstate which is a morerefined product hence will receive a higher price thantungsten concentrate250200Mount Carbine minecloses1501005001989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Source: Metal Bulletin/Bloomberg----- End of picture text -----

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Funding

Icon is currently finalising the details of a renounceable rights issue which will address all of the Company's short term funding requirements as well as providing shareholders with the opportunity to participate in the equity funding component of the tailings project.

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Managing Director, Dr John Bishop, standing at a face of No 4 tailings dam at Mt Carbine. As well as this dump, some of which has been removed for construction material, there are older (smaller) dumps which may be expected to contain higher grade tungsten.

Icon Resources Ltd ACN 115 009 106

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

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

Exploration Update

Icon Resources Ltd

Exploration Projects: Drilling Imminent

Crow King, Peel Fault Project: Gold, NE NSW

Tenement: EL6648

Target: ‘Mother Lode’ style gold mineralisation related to deep crustal structures, orogenic gold veins associated with ‘splay’ structures.

A 3D IP survey over old and largely un-explored gold workings at Crow King in northeast NSW has defined a number of zones suggestive of disseminated sulphide mineralisation. Extensive ‘Niton’ surveying has shown several of these zones have associated anomalous levels of arsenic. Sampling of sulphide-bearing metasediments and metabasalts with minor veining, returned values up to 0.75g/t, suggesting that the gold is not restricted to the quartz veins.

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A 3D perspective image showing pseudocoloured (red high) arsenic levels (from Niton surveying) as a ‘surface layer’ with underlying chargeable bodies from a recent 3D IP survey of Crow King (north). Main historic gold workings labelled. Rock chip sampling has shown that the gold is not restricted to the quartz veins but also occurs within altered (pyritic) ‘country’ rock. Similar results were obtained over Crow King (south) which covered the old ‘Fletchers’ workings.

A drilling program of reversed circulation collars with diamond tails, scheduled to start in late May – early June, has been designed to test several of the coincident chargeability-arsenic-gold targets.

Icon Resources Ltd ACN 115 009 106

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

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

Exploration Update

Icon Resources Ltd

TARA: Tin/tungsten, Central NSW Tenements: EL6532, EL2953

Target: Concealed intrusion-related bonanza polymetallic-tin veins and stockworks

The Tara prospect in central NSW is a large (~4km x 2km) concealed mineralised system with tin and base metal veining associated with a deeply buried intrusive. Icon has been utilising geophysics to resolve targets for drill testing and four areas are scheduled to be tested with a 60 hole (1500m) aircore program to test at least to the lower saprolite (weathered country rock). Drilling is scheduled to commence in late May – early June.

The targets are:

• Interpreted deeper basement structures to be tested for tin mineralisation by several ‘fences’ of holes across the features 200m apart;

• Testing of a subtle circular magnetic feature close to the (interpreted) edge of the buried intrusive that may indicate intense alteration associated with mineralisation;

• Testing of two small resistive ‘fingers’ defined by the 3D IP/resistivity survey (eg, they may indicate zones of silicification, again associated with tin mineralisation);

• Testing of two small resistive ‘fingers’ defined by the 3D IP/resistivity survey (eg, they may indicate zones of silicification); and

• Testing of an isolated and discrete chargeability high with no associated magnetic response.

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John Bishop Managing Director

15 May 2008

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.

Icon Resources Ltd ACN 115 009 106

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

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