EQ RESOURCES LIMITED — Capital/Financing Update 2011

Aug 23, 2011

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ICON FINALISES THE PURCHASE OF THE MT CARBINE TAILINGS RETREATMENT PLANT

Summary:

• After a protracted negotiation period Icon has purchased most of the physical processing plant to retreat the Mt Carbine tailings for A$650,000.

• The purchase of the plant does not include the Motor Control Centre and some minor ancillary equipment as first anticipated.

• Plant relocation and reconditioning will commence immediately.

• Reconditioning and installation at Mt Carbine mine is anticipated to take three months.

• Start-up production is still anticipated to commence before the end of the calendar year 2011 with the intention of taking advantage of the present robust record-high and steady tungsten prices.

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Second Hand Processing Plant

The final negotiations with the seller have been concluded after the seller decided to retain, for their own use, the Motor Control Centre ( MCC ) attached to the Centrifugal Kelsey Jig Relocatable processing plant that was part of the initial agreement.

The negotiated price of $650,000 is considered exceptional value for a relocatable Kelsey Jig plant in such good condition.

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Relocatable Kelsey Jig Plant on Location in Western Australia

Icon, which has access to all the engineering drawings and specifications of the relocatable plant, has ordered a new MCC as part of the reconditioning of the plant. The MCC distributes power from the onsite generators (or installed power) to the various pieces of operating equipment and is also used to house the required variable speed drives ( VSD ) and programmable logic controllers ( PLC ). The remainder of the processing circuit, de-sliming cyclones and spirals have been sourced and will be on site to coincide with the arrival of the two relocatable processing plants.

Site inspection by the project managers has been completed and surveying of the site for location of the plant is underway.

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Tungsten Market and Selling Prices

The market for tungsten is remaining strong and steady and still at record high values.

The overall state of the world markets caused a slight softening in sales prices but the underlying tightness of the tungsten market has continued to support the sales prices and the significant shortage of tungsten concentrates in the market remains.

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----- Start of picture text ----- Moving 52 Week Price Chart for Tungsten APT (EU)(source Metals Pages)500.00450.00400.00350.00300.00250.00200.00Moving 52 Week Price Chart for TungstenConcentrates min 65% (CN)(source Metals Pages) (calculated US$/mtu)400.00350.00300.00250.00200.00150.00$/mtuUS$/mtu----- End of picture text -----

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Icon’s most recent financial modeling was done assuming a very conservative selling price of US$250/mtu and an A$ to US$ exchange rate of 1.044, and using these assumptions the tailings retreatment project has robust economics. This compares favorably with the present selling price of US$370/mtu and an A$ to US$ exchange rate of 1.0362.

The Board of Icon Resources is satisfied with the progress of the tailings retreatment project and remains committed to the anticipated commencement of production before the end of calendar year 2011, but the full implications of the loss of the MCC will to be fully evaluated in the coming weeks.

For further information regarding this announcement, contact:

Ian Sheffield-Parker Managing Director

Icon Resources Ltd Mobile +61 (0) 409 989 960 Telephone +61 (0) 7 4078 6290 Email: iansp@iconresources.com.au

24 August 2011

Further information relating to Icon and its projects can be found on the Company’s website at www.iconresources.com.au.

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