EQ RESOURCES LIMITED — Capital/Financing Update 2008

Mar 27, 2008

28 March 2008

==> picture [86 x 101] intentionally omitted <==

ASX Announcement

Icon Acquires Rights to the Mount Carbine Tungsten Mine

Icon Resources’ Board of Directors is pleased to announce that the company has secured the rights to explore and mine tungsten at the Mt Carbine tungsten mine in northern Queensland. The innovative agreement allows for the current owners to continue their quarry business while Icon can extract and process the tungsten mineralisation.

Key attributes of the project are:

• When the Mount Carbine tungsten mine closed in the mid 1980’s due to depressed tungsten prices, it was Australia’s largest tungsten mine.

• The very ‘nuggety’ nature of the mineralisation has meant that no JORC compliant resource has been determined, however there are significant remaining resources. For example, at closure a decline was well underway to start an underground operation in tandem with the existing open cut.

• Also, at the time of closure, the operators (a Poseidon-Roche Bros JV) considered that there was two years mine life in the open cut with another 6-10 years of underground mining.

• The exploration potential is high with the mineralisation open at depth and some previously identified but unquantified mineralisation to the north of the pit.

• Ore processing in the 1980s involved an ore sorting process which, while reducing the overall plant size, led to lower recoveries. This has three implications:

  • the resulting low recoveries have led to a sizeable tungsten resource in the tailings dams (non-JORC at present) capable of delivering early cash flow.

  • present day improved sorting techniques and a better handle on mineralisation controls is likely to lead to higher recoveries in a new processing plant.

  • with the ore sorting processes, the overall plant throughput is significantly reduced and is likely to lead to lower plant capital and operating costs.

• As part of the agreement, Icon will pay the owner 3.5M Icon shares and a 2.5% gross royalty on metal produced. There is also the reimbursement of some relocation costs, expected to be $75k. Icon holds pre-emptive rights, should the owner wish to later sell the mining leases or quarry business. The agreement and mining leases can extend beyond 20 years.

• Preliminary studies have indicated that revenue from reprocessing the tailings could fund a new plant as well as provide attractive early cash flow as part of a Stage 1 project development. Stage 2 would later focus on re-establishing open pit and later, underground operations. Icon will explore appropriate offtake funding arrangements with third parties for the Stage 1 project.

Managing Director, Dr John Bishop said that the company is excited by the opportunity to investigate restarting the Mt Carbine mine which was once a major world tungsten producer. Importantly, our Chairman, Dr Andy White was part of the management team when the mine was operating in the 1980s and he has a detailed understanding of the remaining resources and the potential to exploit them under the current tungsten pricing regime. Icon is also looking forward to a close working relationship with the owner Geoff Nicholson, which it believes will be mutually beneficial to both businesses .

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

Background

The Mount Carbine mine is located approximately 80km northwest of Cairns on a sealed road with adjacent powerlines. There are small townships at Mount Carbine and at Mount Molloy, 29km towards Cairns.

The Mt Carbine tungsten mine operated as an open cut mine from the early 1970s until 1986 when it closed due to the low tungsten price. At the height of open pit production over 2 million tonnes of ore were mined annually with a total extraction of 10,000 tonnes of WO3. At the time of closure the mine was well advanced with underground development for a major underground mining operation.

A recent review of the Mt Carbine mine by another listed explorer summarised the significant assets of the Mt Carbine mine as being: -

• Two granted mining leases covering all the former workings; both recently renewed until 2022 and 2023 respectively.

• The significant infrastructure advantages of the bitumen Peninsula Development Highway bisecting the project area with a new high voltage powerline paralleling the highway.

• Approximately 670,000 tonnes of mineralisation remaining in the open pit at the time of closure.

• A fully designed underground mine with two underground stopes defined in this design containing approximately 7M tonnes.

• Approximately 7M tonnes of stockpiled low grade crushed ore.

• A 6.0 x 4.5 metre decline approximately 400 metres long.

• Approximately 1M cubic metres of tailings on the No 4 tailings dam containing scheelite that is visible with UV light.

Icon, through Dr White’s previous close association with the mine, believes that these estimates are conservative and that additional resources of tungsten exist to the north of the pit and at depth.

Icon’s Initial Focus

The company’s initial focus will be on the potentially easily exploitable tailings and low-grade stockpile resources. This material is currently being processed for road and other construction materials and is readily amenable to extraction of tungsten prior to being used for these purposes,

Hence, Icon will focus on bulk assaying, mineral processing and plant design to establish an early operation, particularly given the mining leases have already been granted.

With regards to the open pit mineralisation and underground potential, the company will review past data to construct orebody modelling and conceptual mine design. The company will review the merits in upgrading the mineralisation to JORC compliant status although it is known to have a significant ‘nugget’ effect.

The mine has existing offices and local accommodation capable of supporting Icon’s project team.

For further information contact:

Dr John Bishop Dr Andy White Phone: 0418 373 429 0411 110 513 Email: jbishop@iconresources.com.au awhite@iconresources.com.au

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

==> picture [328 x 310] intentionally omitted <==

Plan view of the Mt Carbine open cut, tailings, reject stockpiles and mine lease boundaries. Icon’s initial focus will be on an early cash flow from the remaining ore (mainly scheelite) in the tailings plus the wolfram and scheelite in the low grade ore stockpiles. At the same time, the pit will be dewatered and the decline reopened with a view to restarting mining operations.

==> picture [385 x 143] intentionally omitted <==

View of the north face of the open cut showing the abundant quartz veining. Tungsten, in the form of wolframite and scheelite is associated with the quartz, The water, almost 200m deep, will be removed to allow continuation of the open cut mining. A 400m long decline will also be rehabilitated to assist evaluation of a previously planned underground operation.

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