EQ RESOURCES LIMITED — Capital/Financing Update 2009

Feb 11, 2009

12 February 2009

Press Release

ASX Announcement Sale of Subsidiary Company

Metals X Limited (“ Metals X ”) advises that it has today reached agreement to sell its wholly owned subsidiary, Bluestone Nominees Pty Ltd, the owner of its Collingwood Tin project to Icon Resources Ltd (“ Icon ”).

Icon is the owner of the Mt Carbine Tungsten Mine in Far North Queensland with an evolving business plan to develop the project in three stages:

Stage 1 - Re-treatment of tailings plus exploration drilling;

Stage 2 - Open pit mining and processing;

Stage 3 - Underground mining.

Icon has advised they have significantly advanced the Mt Carbine project and the next step is to acquire a processing plant. Icon believes the idle Collingwood Tin Concentrator will significantly advance that requirement and has reached agreement with Metals X to acquire it with Metals X providing significant backing for them to do so.

Icon will acquire all the shares and assets of Bluestone Nominees from Metals X which include the Collingwood Tin Project, significant remaining undeveloped tin resources and the remaining Collingwood tin project plant and infrastructure.

The terms of the heads of agreement are:

1. An upfront payment of $250,000.

2. Icon issues a 3 year term Convertible Note to Metals X for a sum of $3.75M at a coupon rate of 7.5%. Conversion of the note can take place any time after 12 months has elapsed by giving one month’s notice. Conversion can be at the higher of 5 cents per share or the volume weighted average price (VWAP) of Icon’s shares in the 3 months prior to conversion.

3. Metals X agrees to make a loan of $896,200 to Icon at a rate of 7.5% for a term of thirteen months to enable Icon time to repay/cover environmental performance bonds on BNPL mining assets. Metals X has the election on maturity to elect to have the debt settled by equity in Icon at the higher of 5 cents per share or 80% of VWAP in the month the loan falls due.

4. Metals X will hold a first-ranking, fixed and floating charge over Icon’s assets, but will not object to any second-ranking charges.

Level 3 Hyatt Centre, 123 Adelaide Terrace, East Perth WA 6004 ● GPO Box 2606 Perth WA 6001 Telephone: +61 8 9220 5700 ● Facsimile: +61 8 9220 5757 ● Email: reception@metalsx.com.au ● Web: www.metalsx.com.au

ASX Announcement Sale of Subsidiary Company & Backin g of Icon Resources Ltd

1. Metals X will take a placement of 5 million shares at 5 cents per share in Icon.

2. That the conditions precedent be achieved before May 29, 2009.

The Conditions Precedent include the following:

1. Icon completing an additional minimum raising of $500,000.

2. Shareholder approval for the terms of the convertible note and loan.

3. Satisfactory completion of due diligence.

Metals X believes the agreement provides them with exciting exposure to Icon’s Mt Carbide tungsten project and a sound outcome in the disposal of its Far North Queensland tin assets.

Enquiries: Peter Cook Managing Director

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