EQ RESOURCES LIMITED — Capital/Financing Update 2010

May 17, 2010

18[th] May, 2010

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ASX Announcement

Drilling Commences at Icon’s Peel Fault Gold Project

Icon Resources Ltd (ASX: III) is pleased to provide the following update on its 100% owned Peel Fault gold project in NE NSW.

Highlights

• Drilling has commenced within the ‘Crow King’ licence (EL6648), part of Icon’s Peel

• Fault Project.

• DDH ICK-001 is targeting a large chargeability anomaly beneath anomalous gold in

• soils, in an area of old workings which has received little modern exploration.

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Managing Director, Dr John Bishop, said: “Geological evidence that the Peel Fault is an analogue of the famous Mother Lode in California is compelling and the Crow King prospect certainly ticks all the boxes. It has old workings largely ignored for 100 years and Icon has defined a region of strongly anomalous gold in soils overlying 3D-IP chargeability responses, all located on an interesting ‘jog’ in the Peel Fault. We are planning to drill a number of 300m to 400m deep holes to properly test this area.”

Icon Resources Ltd

ACN 115 009 106

Suite 505, 35 Lime Street, Sydney NSW 2000. Telephone: +61 2 9279 1252 Facsimile: +61 2 9279 2727

Mt Carbine Update

Icon Resources Ltd

Peel Fault: Gold, NE NSW (III 100%)

Tenements: Exploration Licences EL6618, 6620, 6648, 6680-3 Target: Californian ‘Mother Lode’ and related orogenic vein gold systems

The Peel Fault is a mega-suture in the New England Fold Belt in NE NSW and has extensive old gold workings along its length as well as other mineralisation including copper, nickel, diamonds, platinum group minerals, etc. Geophysically and geologically the Peel Fault zone bears strong resemblance to the richly endowed Californian Mother Lode gold province in SW USA which has produced more than 130Moz.

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A same-scale comparison of the Californian Mother Lode (left) and Peel Fault magnetic signatures. Each is located beside (east) of a major magnetic ridge (a possible rift core) and marked by magnetic highs along an extensive shear fault. (The images were produced independently and the colours represent different magnetic intensity values in the two images.)

Icon holds several exploration licences along the Peel Fault (see image below) and has concentrated initially within the Crow King licence where it has conducted field mapping, soil geochemistry and geophysics including a 3D induced polarisation survey.

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Mt Carbine Update

Icon Resources Ltd

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Icon’s licences along the northern part of the Peel Fault. Three more licences lie to the south. Icon is currently drilling in the Crow King licence. Some of the priority prospects have been labelled.

The Crow Mountain gold deposits occur in clusters over a 6.5km long corridor adjacent to a large serpentinite body within the Peel Fault. The larger historical mines include the Eagle-Crow King, Red Flag, Princess, Flannigan’s Brothers and Dodger-Fletchers with recorded production of over 55kg at average grades of ~50 g/T. The known gold prospects are characterised by quartz-pyrite veins, often with calcite, and are usually associated with a series of chert beds subparallel to the Peel Fault.

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Mt Carbine Update

Icon Resources Ltd

Previous exploration has concentrated on the veins and been restricted to a very limited portion of the mineralised corridor with the potential for large concealed alteration systems within and adjacent to the ultramafics, essentially untested.

Icon’s approach has been to concentrate on the larger, albeit lower-grade, target and in particular the listwanite-hosted gold model which invokes carbonatisation of serpentinised ultramafic rocks and the development of gold-bearing veins in and above thrust, normal and/or reverse faults.

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Left: Schematic model of ‘listwanite’ hosted gold systems (modified from Ash and Arksey, 1989)

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Perspective image of the Magnesite Hill area, Crow King prospect, showing pseudocoloured gold soil geochemistry draped on the surface topography with the underlying structure and chargeability responses.

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Mt Carbine Update

Icon Resources Ltd

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Drillcore from the Magnesite Hill prospect Crow King, part of Icon’s Peel Fault Gold Project. Intense listwanite alteration intersected in ICK-001 has returned anomalous arsenic and base metals with locally elevated mercury and bismuth from hand-held XRF (Niton) analysis on uncut drillcore. These ‘pathfinder’ elements are encouraging and can indicate the presence of gold mineralisation which is not directly measurable by this technique. Sampling and laboratory fire assay gold analysis of mineralised intervals will be undertaken as drill testing of priority targets at the Magnesite Hill prospect progresses.’

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Cross-section of one of the proposed drillholes showing the buried chargeability target and results from previous shallow drilling.

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Mt Carbine Update

Icon Resources Ltd

Icon’s program at Crow King has defined several chargeable zones associated with the fault from a 3D induced polarisation survey. Follow up at Magnesite Hill with soil geochemistry has revealed high gold values (maximum of 559ppb) with associated arsenic, mercury and antimony which is consistent with the model. The images above show a perspective diagram of the Magnesite Hill drill targets plus a cross-section showing the target beneath some shallow drilling by a previous explorer.

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Dr John Bishop Managing Director m: 0418 373 429

Information in this announcement 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 announcement of the matters based on his information in the form and context in which it appears.

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