EQ RESOURCES LIMITED — Interim / Quarterly Report 2006

Jul 27, 2006

Appendix 5B

$Rule 5.3$

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 Ltd

ABN

77 115 009 106

Quarter ended ("current quarter")

30 June 2006

Consolidated statement of cash flows

		Current quarter	Year to date
	Cash flows related to operating activities	30 June 2006	$(12$ months)
		\$A'000	30 June 2006
			\$A'000
1.1	Receipts from product sales and related debtors
1.2	Payments for (a) exploration and evaluation	(432)	(569)
	(b) development	0	♦
	(c) production	$\Omega$	♦
	(d) administration	(68)	(128)
1.3	Dividends received	€	0
1.4	Interest and other items of a similar nature received	34	34
1.5	Interest and other costs of finance paid	0	♦
1.6	Income taxes paid	0	♦
1.7	Other - tenement security deposits	(33)	(43)
	$-$ joint venture fees received	29	29.
	Net Operating Cash Flows	(470)	(677)
	Cash flows related to investing activities
1.8	Payment for purchases of: (a) prospects	0	♦
	(b) equity investments	0	♦
	(c) other fixed assets	0	♦
1.9	Proceeds from sale of: (a) prospects	0	0
	(b) equity investments	0	♦
	(c) other fixed assets	0	0
1.10	Loans to other entities	€	0.
1.11	Loans repaid by other entities	0	0
1.12	Other (provide details if material)	0	♦
	Net investing cash flows	$\theta$	♦
113	Total operating and investing cash flows (carried forward).	(470)	(677)

⁺ See chapter 19 for defined terms.

1.13	operating and investing eash flows (brought Total forward)	(470)	(677)
1.14 1.15 1.16 1.17	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	4,000 0 0 0	4,425 0 0
1.18 1.19	Dividends paid Other – share issue costs	0 (281)	0 (433)
	Net financing cash flows	3,719	3,992
	Net increase (decrease) in cash held	3,249	3,315
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	66 0	0 0
1.22	Cash at end of quarter	3.315	3.315

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
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

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	30	66
5.2	Deposits at call	785.
5.3	Bank overdraft
5.4	Other - Bank bills, bank term deposits	2,500	O
	Total: cash at end of quarter (item 1.22)	3,315	66

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	Professor Project Henty Rd EL47/2004 Amber Creek EL8/2005	Full ownership of tenements acquired in June quarter	67% 67%	100% 100%

⁺ 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	Nil
	(a) Increases
	through issues
	(b) Decreases
	through returns of capital, buy-backs,
	redemptions
7.3	+ Ordinary	40,000,000	20,000,000
	securities
7.4	Changes during
	quarter (a) Increases
	through issues	20,000,000	20,000,000	20	20
	(b) Decreases
	through returns of	Nil
	capital, buy-backs
$7.5\,$	+ Convertible debt	Nil
	securities (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	Nil
	quarter
7.11	Debentures (totals only)	Nil
7.12	Unsecured notes	Nil
	(totals only)

⁺ 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: 28 July 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.
• 5 Accounting Standards ASX will accept, for example, the use of International 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.