EQ RESOURCES LIMITED — Interim / Quarterly Report 2006

Oct 24, 2006

Appendix 5B

$Rule 5.3$

٦

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

Icon Resources Limited

ABN

77 115 009 106

Quarter ended ("current quarter")

30 September 2006

Consolidated statement of cash flows

		Current quarter	Year to date
	Cash flows related to operating activities	30 September	$(3$ months)
		2006	30 September
		\$A'000	2006
			\$A'000
1.1	Receipts from product sales and related debtors	$\theta$	0
1.2	Payments for (a) exploration and evaluation	(274)	(274)
	(b) development	0	0
	(c) production	0	$\theta$
	(d) administration	(68)	(68)
1.3	Dividends received	♦	0.
1.4	Interest and other items of a similar nature received	50	50
1.5	Interest and other costs of finance paid	0	0
1.6	Income taxes paid	0	♦
1.7	tenement security deposits Other $-$	0	0
	joint venture fees received $\cdots$	$\Omega$	♦
	BAS GST refund	49	49
	Net Operating Cash Flows	(243)	(243)
	Cash flows related to investing activities
1.8	Payment for purchases of: (a) prospects	$\theta$	♦
	(b) equity investments	0	$\theta$
	(c) other fixed assets	(11)	(11)
1.9	Proceeds from sale of: (a) prospects	0	0
	(b) equity investments	0	0
	(c) other fixed assets	0	♦
1.10	Loans to other entities	0	0
1.11	Loans repaid by other entities	♦	0
1.12	Other (provide details if material)	$\boldsymbol{0}$	♦
	Net investing cash flows	(11)	(11)
1.13	Total operating and investing cash flows (carried forward)	(254)	(254)

⁺ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	(254)	(254)
1.14 1.15 1.16 1.17 1.18 1.19	Cash flows related to financing activities Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings Repayment of borrowings Dividends paid Other – share issue costs	0 0 0 0 0 0	0 0 0 0 0 0
	Net financing cash flows	0	0
	Net increase (decrease) in cash held	(254)	(254)
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	3,315 0	3,315 0
1.22	Cash at end of quarter	3.061	3.061

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter SA'000
1.23	Aggregate amount of payments to the parties included in item 1.2	38)
1.24	Aggregate amount of loans to the parties included in item 1.10	0

1.25 Explanation necessary for an understanding of the transactions

1.23 - payments to Executive Managing Director

Non-cash financing and investing activities

$2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

Nil

$2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

$N/A$

⁺ See chapter 19 for defined terms.

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available \$A'000	Amount used \$A'000
3.1	Loan facilities	Nil	Nil
3.2	Credit standby arrangements	Nil	Nil

Estimated cash outflows for next quarter

-4.1	Exploration and evaluation	\$A'000 250
4.2	Development	U
	Total	250

Reconciliation of cash

	Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter SA'000	Previous quarter SA'000
5.1	Cash on hand and at bank	80	30
5.2	Deposits at call	481	785
5.3	Bank overdraft	ß	€
5.4	Other – Bank bills, bank term deposits	2,500	2.500
	Total: cash at end of quarter (item 1.22)	3,061	3,315

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed	No changes
6.2	Interests in mining tenements acquired or increased	EL6618 EL6619 EL6620	100% 100% 100%	Appln Appln Appln	Granted Granted Granted

6.3 A full list of Icon Resources Ltd tenements is included as an attachment to this report.

⁺ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	price Issue per security (see note 3) (cents)	Amount paid up per security (see note $3)$ (cents)
7.1	Preference
	*securities	Nil
	(description)
7.2	Changes during
	quarter (a) Increases	Nil
	through issues
	(b) Decreases
	through returns of
	capital, buy-backs, redemptions
7.3	+ Ordinary	40,000,000	20,000,000	Fully Paid	Fully Paid
	securities
7.4	Changes during
	quarter
	(a) Increases through issues	Nil
	(b) Decreases
	through returns of	Nil
	capital, buy-backs
$7.5\,$	+ Convertible debt securities	Nil
	(description)
7.6	Changes during	Nil
	quarter
	(a) Increases through issues
	(b) Decreases
	through securities
	matured, converted			Exercise price	Expiry date
7.7	Options	1,200,000	$\theta$	30	8 March 2011
7.8	Issued during quarter	Nil
7.9	Exercised during	Nil
	quarter
7.10	Expired during quarter	Nil
7.11	Debentures (totals only)	Nil
7.12	Unsecured notes (totals only)	Nil

⁺ See chapter 19 for defined terms.

Compliance statement

• $\mathbf{I}$ This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
• $\mathfrak{I}$ This statement does give a true and fair view of the matters disclosed.

Sign here:	Robert J Waring	Date: 24 October 2006
	(Director/Company Secretary)

Print name: Robert J Waring

Notes

• $\mathbf{I}$ The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• $\overline{2}$ The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
• $\overline{3}$ Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
• The definitions in, and provisions of, AASB 1022: Accounting for Extractive 4 Industries and AASB 1026: Statement of Cash Flows apply to this report.
• Accounting Standards ASX will accept, for example, the use of International 5 Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

$\frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{$

⁺ See chapter 19 for defined terms.

Tenement name	Number	Holder	Expiry	Comment
New South Wales
Bingara	ELA2806	Icon
Crow King	ELA2786	Icon		Repegged over Tackle Resources' EL6297
Trilby	ELA2805	Icon
Baldwin	ELA2807	Icon
Weabonga	EL6620	Icon	29 Aug 2008
Niangala	ELA2827	Icon
Upper Hunter	EL6618	Icon	29 Aug 2008
Golden Crystal	EL6619	Icon	29 Aug 2008
Tara	EL6532	Icon	14 Mar 2008
Hiawatha	ELA2785	Icon
Grenfell	EL6559	DJ Perkin (being	12 Apr 2008
		ransferred to Icon)
Queensland
Elizabeth Creek	EPM14589	Cast Resources	4 Aug 2010	\$5m JV with Zinifex
"New Century"	EPMA15866 EMPA15867 EMPA15904	Troutstone
Burketown	EPMA15368	Golden Reef, being transferred to Troutstone
Leichhardt	EPMA15386 EPMA15387 EPMA15388	Troutstone
Warwick	EPM15007	Icon	26 Sep 2007	to be relinquished
Glentanna	EPM15401	Icon	28 June 2008
Tasmania
Henty Rd	EL47/2004	South Eastern Resources	10 Feb 2010
Amber Ck	EL8/2005	South Eastern Resources	29 Mar 2011

$EL$ $=$ exploration licence

$ELA$ $=$ exploration licence application

$=$ exploration permit EPM

$=$ exploration permit application EPMA

⁺ See chapter 19 for defined terms.