EQ RESOURCES LIMITED — Capital/Financing Update 2009

Dec 1, 2009

2[nd] December, 2009

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ASX Announcement

Mt Carbine Activities Update and Capital Raising

Icon Resources Ltd (‘Icon’) is pleased to provide the following update on the Company’s activities.

Key Points

Mt Carbine Tungsten Project

• Assaying of mineralised core from the upper portion of legacy drillhole CB18 has been completed. This is the only drillhole intersecting the Iron Duke mineralisation and the results indicate significant widths of relatively high grade mineralisation including 8m @ 0.36% WO3 within 27m averaging 0.14% WO3 from 105m and 18m @ 0.37% WO3 within 47m averaging 0.23% WO3 from 163m.

• Drilling is scheduled to commence at Iron Duke in December.

• This drilling together with further assaying of the legacy drillcore will be used to update the resource model for Mt Carbine in 1H10.

Capital Raising

• The company is finalising a capital raising of approximately $1.5M. The terms of the placement are $0.09 per share with an attaching $0.15c option expiring on 30 June 2011.

Managing Director Dr John Bishop said: “The assaying of CB18 has highlighted the potential for relatively high grade scheelite-rich mineralisation adjacent to the open cut. Given the generally persistent and consistent nature of the Mt Carbine mineralisation, we are hopeful that our forthcoming drill program will add depth and strike length to this historic drillhole. Most of the recently raised funds will go towards advancing Mt Carbine, but a small proportion will be spent on drilling our Tara Tin and Peel Fault Gold projects early in the new year.”

Icon Resources Ltd

ACN 115 009 106

Suite 404, 25 Lime Street, Sydney NSW 2000. Telephone: +61 2 9279 1252 Facsimile: +61 2 9279 2727

Exploration Update

Icon Resources Ltd

MT CARBINE: Tungsten, North QLD (III 100% ownership of mineral rights) Tenements: Granted Mining Leases MLs 4867, 4919 Target: Bulk tonnage wolframite-scheelite in sheeted quartz veining.

Most of the core from drilling before and during the previous mining operation at Mt Carbine is still preserved on site. The grades of the mineralised sections were originally only visually estimated* and Icon is now in the process of assaying selected core by laboratory X-Ray Fluorescence (XRF).

Assaying of the first batch of core, including the upper portion of drillhole CB18, which intersected the scheelite-rich Iron Duke Lode, has been completed. CB18 was visually estimated to contain two zones of low grade mineralisation averaging 0.10% WO3 (see appended Table). XRF assaying has produced much higher values, with the upper chert horizon returning 8m at 0.36% WO3 within 27m averaging 0.14% WO3 from 105m, and the lower metabasalt 18m @ 0.37% WO3 within 47m averaging 0.23% WO3 from 163m.

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Mt Carbine Tungsten Project. Coarse scheelite mineralisation in core from drillhole CB18 under ultraviolet light.

These grades are significantly higher than the assumed overall grade of mineralisation at Mt Carbine which is estimated to be around 0.2% WO3. Historical mapping of the Mt Carbine lodes (next Figure) show the Iron Duke workings having a strike length of the order of 400m and the CB18 intercept suggests that mineralisation may extend over widths exceeding 50m.

Given that the mineralisation at Mt Carbine mined to date has been remarkably spatially persistent and consistent in grade, this previously under-estimated lode will be given first priority in Icon’s drilling campaign.

• Queensland Wolfram P/L, operators of the mine in the 1970s and ‘80s, used visual estimation of grade for their diamond core rather than laboratory assay in the belief that using all of the surface area would be more effective than assaying half of the volume. This approach appears to have provided reasonably adequate estimates of grade in those parts of the deposit dominated by wolframite, but not where scheelite dominated.

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Exploration Update

Icon Resources Ltd

Google image of the Mt Carbine open pit (oriented to local grid north) with plan projections of the historic drilling (black lines) and the mineralised lodes (blue hatching). Also shown are the Southern and Central Faults (red lines) and the aplite dyke (in orange). The Iron Duke is the northernmost zone and has only been effectively tested by CB18. This hole was visually estimated as intersecting low grade mineralisation but recent assaying by Icon indicates significant widths of relatively high grade mineralisation.

TARA: Tin, Central NSW (III 100%)

Tenements: Exploration Licence 6532

Target: Placer tin recently recognised in river channels incised into mineralised bedrock and hidden beneath the present cover.

Recent re-logging and interpretation of drill-logs indicates that the Tertiary/Quaternary cover at Tara consists of a surface laterite profile up to 15m thick overlying a river channel fill system of sands, clays and silts. The river channels are incised into weathered bedrock to a depth of up to 80m below surface.

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Tara Tin Project. Resistivity cross-section Line 1. Scales are in metres, resistances in ohm-m. The sandy lenses are clearly more resistive (yellow, orange and red) and clays and clayey sands generally less so. Sandy clays and silts in the river channels are conductive (greens and blues). The silts and saprolite (dark red and purple) are comparatively very resistive.

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Exploration Update

Icon Resources Ltd

A multi-electrode resistivity survey was carried out by Icon in 2007 to map the basement topography. There is a very strong correlation between resistivity and the sediment type encountered in drilling, enabling a high-precision interpretation of the subsurface over the area covered by the resistivity survey down to the top of the highly weathered saprolite or overlying silt where it is present. Resistivity line 1 (above) illustrates the sequence very well.

None of the existing drillholes have tested the deepest sections of the interpreted river channels. Icon hole T3 which returned 1m at 1% Tin (Sn), reached gravels within the river system and a number of other holes recorded elevated values (0.1% to 0.25% Sn) from shallower channel sediments. The planned drilling is designed to test the deepest sections and is scheduled to commence as soon as suitable equipment can be secured.

Capital Raising

Approximately $1.5M is being raised in a two-tranche placement through broker Martin Place Securities Limited and several private investors. The terms of the placement are $0.09 per share with an attaching $0.15c option expiring on 30 June 2011. The first tranche will be completed this week to raise $1,006,251 by issuing 11,180,570 shares in accordance with ASX listing rule 7 (15% rule). A further $546,249 will be raised, and all of the options issued, following shareholder approval at a General Meeting scheduled for 12[th] January, 2010.

The funds raised will be primarily used to progress the Mt Carbine pre-feasibility study, including an initial drilling program of around 5000m and testing of bulk samples through the process flow sheet. This program has already commenced with the first batch of ore samples having been sent for testing in multi-parameter oresorters.

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Dr John Bishop Managing Director

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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Exploration Update

Icon Resources Ltd

DDH CB18 Assays

	Drillhole ID: CB18					Assays presented for upper section of CB18 (the Iron Duke Zone).
	Downhole survey in Iron Duke Zone:					The hole also intersected quartz-wolframite veining at depth.
		50o-55o declination				The previous operators (Queensland Wolfram P/L) visually
		225o-235o azimuth (mag)				estimated grades of mineralised sections.
	Collar: 22,748.4mE, 26,717.2mN (located; local grid)					EOH: 700m
					Icon Laboratory XRF Assaying				QWPL Visual Estimation
Hole ID metres from metres to Interval (metres) LITHOLOGY					XRF WO3(%) COMP		OSITED		Vis Est WO3 % COMPOSITED
CB18	105	107	2 Chert 0.293 2 Chert/Andesite 0.032 3 Chert/Andesite 0.014 3 Chert 0.003						0.101 0.000 0.006 0.000
CB18	107	109
CB18	109	112
CB18	112	115
CB18	115	118	3 Metased 3 Metased		0.088 27m @ 0.14% 0.008 WO3from 105m				0.028 27m @ 0.09% 0.000 WO3from 105m
CB18	118	121
CB18	121	123	2 Metased		0.097				0.002
CB18	123	125	2 Chert 2 Chert 2 Chert		0.172 0.714 0.445		8m @ 0.36% WO3from 121m		0.019 0.650 0.166
CB18	125	127
CB18	127	129
CB18	129	130	1 Chert 2 Chert		0.002 0.009				0.000 0.169
CB18	130	132
CB18	163	165	2 Metabasalt 2 Metabasalt 2 Metabasalt 2 Metabasalt 2 Metabasalt 2 Metabasalt		0.228 0.075 0.002 0.647 0.007 1.508				0.194 0.006 0.000 0.190 0.000 0.553 47
CB18	165	167
CB18	167	169
CB18	169	171
CB18	171	173
CB18	173	175
CB18	175	177	2 Metabasalt 2 Metabasalt		0.037 0.023		18m @ 0.37% WO3from 163m		0.000 0 0.000
CB18	177	179
CB18	179	181	2 Metabasalt		0.766				0.397
CB18	181	183	2 Metabasalt 2 Metabasalt 2 Metabasalt 2 Metabasalt 2 Metabasalt 2 Metabasalt 2 Metabasalt 1 Metabasalt 2 Metabasalt 2 Metabasalt 2 Metabasalt 2 Metabasalt 2 Metabasalt 2 Metabasalt		0.001 47m @ 0.23% 0.001 WO3from 163m 0.021 0.212 0.071 1.180 0.048 0.402 0.029 0.006 0.113 0.030 0.073 0.023				0.006 47m @ 0.10% 0.000 WO3from 163m 0.003 0.000 0.010 0.626 0.000 0.148 0.000 0.000 0.001 0.000 0.005 0.000
CB18	183	185
CB18	185	187
CB18	187	189
CB18	189	191
CB18	191	193
CB18	193	195
CB18	195	196
CB18	196	198
CB18	198	200
CB18	200	202
CB18	202	204
CB18	204	206
CB18	206	208
CB18	208	210	2 Metased		0.016				0.235
	Notes:
		Intercepts are downhole, not true width
		Core size is NQ with core recovery>98%
		Half core submitted for assay over 1m to 3m intervals
		Tungsten assayed by fused disk XRF (detection limit 0.001% W)
		Assays converted to WO3bymultiplyingby1.2611

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