EQ RESOURCES LIMITED — Capital/Financing Update 2011

Jul 24, 2011

==> picture [125 x 133] intentionally omitted <==

ICON BOARD APPROVES THE PURCHASE OF THE PROCESSING PLANT FOR MT CARBINE TAILINGS RETREATMENT

Summary

• Following its well-supported Rights Issue to raise capital, Icon’s Board has given the “goahead” to purchase the necessary second hand plant and equipment for the reprocessing of the tailings at Mt Carbine.

• Plant relocation and reconditioning will commence immediately following a satisfactory third party mechanical inspection and condition report with the intention of taking advantage of record tungsten prices.

• A “Letter of Intent” to purchase has been signed subject to the satisfactory mechanical inspection and condition report to be completed during the week of 25 July 2011. Icon Board members have inspected the plant and are satisfied with its condition.

• 90% of the required processing plant is being purchased for less than A$1.1 million.

• One week will be required to dismantle the processing plant.

• Ten days will then be required to transport it to Far North Queensland.

• Three months to recondition the Kelsey Jigs and ancillary equipment and install at Mt Carbine.

• Production is planned to commence before the end of the calendar year 2011.

==> picture [76 x 80] intentionally omitted <==

Second Hand Processing Plant

Icon has secured two second hand mobile Kelsey Centrifugal Jig processing plants located in Western Australia available for immediate transportation on road trains to Mt Carbine in Far North Queensland.

The relocatable plants will be used as part of the Roughing Circuit and also the Cleaner circuits and eventually as part of the fines recovery circuit for the hard-rock processing plant in future years.

Each of the Kelsey Jig Relocatable Processing Plants consists of one Kelsey Jig J1800 and all the ancillary equipment that is required to process the tailings. The ancillary equipment consist of one Derrick 4-deck Vibrating Screen for feed preparation and ragging recovery; de-sliming cyclones and all pumps; sump pumps; pump boxes; and, feed bins required to run the plants. This also includes sump pumps, pipe work and structural steel.

A further two second hand J1300 Kelsey Jigs are being purchased and reconditioned and one will be placed in the Cleaner Mobile Plant whereas one J1800 will remain in the Rougher Mobile Plant. This will leave Icon with two spare Kelsey Jigs, one J1300 and one J1800, reconditioned and in stock in the unlikely event that there is a failure during production from the tailings.

Quotes have been obtained for the decommissioning of the relocatable plants and the transportation to Far North Queensland. The dismantling of the two plants will take less than one week and the 6,500 kms transportation to North Queensland will take less than 10 days on road trains on sealed roads.

Quotes for reconditioning the plants have been received and the final details are being completed and are expected to be finalised in the next 14 days.

The remainder of the processing circuit, shaking tables, de-sliming cyclones and spirals have also been sourced and will be on site to coincide with the arrival of the two relocatable processing plants.

2

==> picture [76 x 80] intentionally omitted <==

==> picture [440 x 295] intentionally omitted <==

==> picture [440 x 294] intentionally omitted <==

Relocatable Kelsey Jig Plant on Location in Western Australia

3

==> picture [76 x 80] intentionally omitted <==

==> picture [440 x 294] intentionally omitted <==

==> picture [440 x 294] intentionally omitted <==

Derrick 4 – Deck Vibrating Screen used for feed preparation and Ragging Recovery

4

==> picture [76 x 80] intentionally omitted <==

==> picture [440 x 294] intentionally omitted <==

Reconditioned J1300 Kelsey Jig Located in Perth Western Australia

==> picture [440 x 294] intentionally omitted <==

Second Hand Spirals Located in Western Australia

5

==> picture [76 x 80] intentionally omitted <==

The Board of Icon is very satisfied with the progress of realising the Company’s ambitions to be the first new producer of tungsten concentrates through the tailings retreatment project and anticipates production commencing before the end of the 2011 calendar year.

For further information regarding this announcement, contact:

Ian Sheffield-Parker Managing Director

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

25 July 2011

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

6