EQ RESOURCES LIMITED — Interim / Quarterly Report 2007

Oct 23, 2007

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Quarterly Report for Period Ending 30 September 2007

Icon Resources Ltd (‘Icon’) is pleased to provide the following report on the Company’s activities for the three month period ending 30 September 2007. Background information on the projects is available on the website at www.iconresources.com.au. The locations of Icon’s current exploration licences and applications are presented in Figure 1.

Highlights

• Test work by Rogers Chemical Engineering on the zinc-in-peat mineralisation from the Grieves Siding Prospect, Western Tasmania continues to be positive. A decision to proceed to a pilot plant is expected to be made in the December quarter.

• Drilling has commenced at Grenfell in Central NSW, targeting concealed goldbearing porphyry mineralisation associated with untested historical workings.

• Icon acquired the Foresthome copper-zinc prospect in central Queensland, where geological modelling is currently in progress to confirm the previously estimated inferred resource of 0.9Mt @ 2.3% Cu + 3.3% Zn. Icon has also lodged a tenement application covering the adjacent prospective terrain and plans to seek extensions to the known mineralisation.

• The Burketown permit with its remarkable near-coincident gravity-magnetic anomaly has now been granted. Negotiations with the traditional owners have commenced to expedite exploration for large Olympic Dam – IOCGU style targets..

• Icon’s ‘New Century’ group of tenement applications, also located in this highly prospective mineral province of NW Qld, are proceeding towards grant and conceptual sediment-hosted (SEDEX) zinc-lead targets are being refined.

• Icon has been granted two permits to explore for uranium in a new province in SE Queensland and has applied for a group of under-explored porphyry copper style prospects in SE NSW.

• At the Tara prospect in NSW, the completion of high resolution 3D IP and ground magnetic surveys will assist the ongoing evaluation of a potentially significant concealed tin-base metal system.

Dr John Bishop commented that it is pleasing that the momentum is increasing on a number of fronts, particularly with exploration assays eagerly awaited on Grenfell while the geological structure of Tara is steadily being revealed. Meanwhile, we will move forward on Foresthome to target a doubling of the current resource while to-date we continue to be encouraged by the metallurgical testwork on Grieves. Strategically, Icon is also reviewing a number of options to realise value from its large diversified portfolio while at the same time structuring the portfolio to provide a greater balance between grass-roots, advanced and development projects.

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Figure 1. Location plan of Icon’s tenements and applications.

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Professor Project: Zinc, W. Tas. (III 100%) EL47/2004 (Henty Road)and EL8/2005 (Amber Creek)

Target: ‘Irish-style’ carbonate hosted zinc-lead associated with shallow secondary zinc-inpeat resources and deeply weathered oxide-zinc potential.

Icon is progressing development of the Grieves Siding zinc mineralisation through a recently established agreement with Rogers Chemical Engineering P/L. (RCE). This agreement is primarily focused on the near-surface zinc-in-peat but a parallel ore characterisation and metallurgical program will be commenced on the underlying zinc oxide mineralisation to determine the viability of processing this additional resource. RCE has the right to earn up to 50% in the processing operation.

The program aims to demonstrate profitable treatment of the zinc-in-peat with a costed flowsheet for a mining operation by mid 2008. The process is expected to have global applications and Icon has already identified possible targets overseas where the technology might be usefully applied.

If economic processing options are established, additional drilling and bulk sampling will be undertaken at Grieves to define mineable reserves, and to identify additional resources along the ~25km of potentially mineralised horizon within the Professor project area.

During the quarter, drill testing of three IP chargeability targets peripheral to previously defined zinc mineralisation within the host carbonate sequence was completed. The first hole of this program (IPD005) intersected minor zinc-bearing siderite alteration and clay pug adjacent to the basal contact, with the IP response interpreted to relate to fine disseminated pyrite within the host carbonates. This also appears to be the case in the two anomalies tested further to the west of Grieves. Final analytical results are awaited, however the anomalies tested to date are not considered to be associated with significant primary zinc mineralisation.

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Professor Project leases with key prospects and drill hole locations

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Tara Tin Project (III 100%)

EL6532 (Tara), ELA2953 (Tara Extended)

Target: Concealed intrusion-related tin-tungsten veins/stockworks and breccia pipes.

Initial shallow drilling of a series of conceptual targets flanking the previously identified discrete magnetic anomaly highlighted the potential for a laterally extensive tin system associated with a deeply buried mineralising intrusive. This completely concealed system has the potential to host significant polymetallic mineralisation, and Icon is utilising geophysics to resolve targets for drill testing.

During the quarter, a second diamond drillhole was completed to the west of the central magnetic anomaly targeting anomalous IP chargeability beneath previously intersected tin mineralisation.

Both holes completed in the current 540m program intersected a complex network of polymetallic veining including fluorite / cassiterite / sphalerite veins, pyrite-chalcopyrite veins, brecciated arsenopyrite veins with elevated silver and bismuth, and some tungsten mineralisation (wolframite and scheelite). Analysis of the orientations and paragenesis of the predominantly sub-vertical veining is continuing to refine potential structural controls on mineralisation.

Drillcore assays have confirmed elevated tin (up to 0.16% Sn from 195-196m in ITD001), tungsten and base metal contents, but no ore-grade intervals have been reported as individual mineralised veins are diluted by intervening largely unmineralised altered wall rocks. The presence of increasing fluorite contents and minor widespread tungsten associated with the tin-base metal veining may indicate proximity to a mineralising intrusive, but at this stage vectors to more intensely mineralised parts of the system are unclear.

3DIP and detailed ground magnetic surveys completed during the quarter have highlighted potentially mineralised structures across the prospect area, including satellite chargeable bodies to the NW and SW of a previously defined chargeable region coincident with the central magnetic feature partially tested to date. Interpretation of the high-resolution magnetic data has also identified a series of major crosscutting structures which could host significant mineralisation. Icon is in the process of integrating the geophysical and geochemical data to enhance the geological model for the project and develop targets for the next phase of evaluation.

Shallow air-core sampling has been relatively effective in mapping tin anomalism within the basement and it is likely that target areas defined by the geophysics will be “firmed-up” with additional geochemistry prior to further diamond drilling.

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Tara – high resolution ground magnetics with preliminary structural interpretation.

Central NSW Gold Projects (III 100%) EL6291 (Hiawatha), EL6559 (Grenfell)

Grenfell Gold

Target: Concealed gold-bearing porphyry systems associated with extensive historical vein-gold workings.

Icon’s 3D IP survey identified several chargeability anomalies which may relate to pyritic mineralisation adjacent to historical gold workings and mapped a large resistive body in the central portion of the grid. Niton soil geochemistry has highlighted coherent multi-element anomalies associated with many of the known mineralised structures, and defined additional mineralised corridors.

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Drilling the first of five planned drillholes at Grenfell.

Drill testing has commenced with two holes completed to date. The first hole targeted the central resistivity feature and intersected a 20m thick zone of alteration from ~220m. This is considered encouraging, but analytical results are awaited to confirm any gold association. The second hole tested a chargeability high adjacent to old workings and the third, current hole is targeted at depth beneath old gold workings. Two more holes are planned, although a recent re-evaluation has highlighted a series of potentially mineralised structures which may warrant additional testing.

Hiawatha Gold

Target: Concealed ‘Porphyry-related gold’ similar to Grenfell, or a variant of the nearby Lake Cowal system.

During the quarter, processing and interpretation of the 3D IP completed earlier in the year, has identified low tenor broad chargeable zones which may relate to pyritic alteration adjacent to historical gold workings.

Recent Niton soil geochemical results are currently being compiled, with coincident multielement anomalism (Zn, Cu, Pb, As, Mn) potentially mapping concealed alteration.

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Hiawatha: Chargeability anomalies and historical gold workings superimposed on an image of the magnetics

Drilling of two diamond holes (total ~400m) to test coincident IP (chargeability), Niton geochemical and previous soil (up to 78ppb Au) and rockchip (up to 10.2g/t Au) anomalism at Hiawatha is scheduled to follow on from the current Grenfell program.

NE NSW Peel Fault Project, Gold, Nickel, PGEs; (III 100%)

EL6681 (Bingara), EL6648 (Crow King), EL6680 (Trilby), EL6682 (Baldwin), EL6620 (Weabonga), EL6683 (Niangala), EL6618 (Upper Hunter), EL6619 (Golden Crystal),

Target : “Mother Lode” style gold mineralisation related to deep crustal structures, and associated ultramafic –hosted nickel and platinum group metals.

Icon’s extensive tenement holdings prospective for gold, base metals and PGEs along the regionally significant Peel Fault Structure in NE NSW are being advanced towards drill testing following the completion of the current programs at Grenfell and Hiawatha.

During the quarter, ground geological reconnaissance and Niton soil geochemical surveys at Crow King have delineated extensive zones of distinctive alteration in ultramafic rocks immediately to the west of historical gold workings. To date Niton sampling has been completed over two areas (Try Again and West Dodger) mapping a series of northwest trending zones anomalous in As, Cr, Cu, Mn, Ni and Zn.

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The geological context of these alteration systems will be incorporated in detailed mapping and sampling programs scheduled in the December quarter. Follow-up penetrative geophysical surveys to map sulphide accumulations associated with the alteration of the ultramafic host rocks, splay structures linked to the Peel Fault and depth extensions of the known gold workings are also being progressed.

Geological mapping and re-interpretation of the regional geophysical data sets will further enhance the prospectivity of the structural corridor traversing the project area. In addition to gold, Icon will also be evaluating nickel, chrome and PGE potential in the associated serpentinites and other ultramafics rocks occurring along the fault zone.

Within ELs 6620 which covers the Weabonga goldfield, soil Niton geochemistry has been completed over a cluster of IP chargeability anomalies associated with extensive historical gold workings.

Detailed geological and structural mapping is scheduled to be completed in November to assist final targeting of drilling aimed to test both the depth extensions of old workings (which have remarkably remained essentially untested) and priority geochemical / chargeability targets that may be associated with concealed mineralisation.

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3DIP chargeability anomalies and historical gold workings at Weabonga superimposed on a digital model of the topography

ADAMINABY: Copper/Gold, SE NSW (III 100%)

ELA 3261 (Kyloe) and ELA 3262 (Jindabyne)

Target: Porphyry style copper/gold

Icon has lodged exploration licence applications covering a group of under-explored mineral occurrences in southern NSW which have been described by the NSW Mines Dept as

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‘porphyry coppers’ including one, Kyloe, described as a ‘large porphyry copper’ which closed in 1913 and appears never to have been covered by an exploration licence.

Foresthome/Fitzroy Copper-Zinc, Central Qld (III: 100%)

EPM13961 (Foresthome), EPMA16665 (Fitzroy)

Target: Volcanic-hosted style polymetallic mineralisation

During the quarter Icon acquired the Foresthome permit (EPM13961) which contains the Develin Ck copper-zinc deposits to the north west of Rockhampton in central Qld. Icon has also applied for a large area of prospective ground surrounding Foresthome (EPMA16665, “Fitzroy”).

The Develin Ck prospect comprises two separate deposits: Sulphide City and Window/Scorpion, which are thought to form part of a concealed volcanic hosted massive sulphide (VHMS) mineralizing system. Following an initial exploration by Queensland Metals the area was incorporated in a regional joint venture with Outokumpu Mining in the mid-1990’s targeting VHMS-style base metal deposits.

Outokumpu estimated a total (non-JORC) inferred resource of 0.9Mt at 2.3% Cu + 3.3% Zn at Develin Ck, but focused on evaluating the regional potential of the host volcanic sequence rather than exploring for extensions to the known mineralization.

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The Sulphide City massive sulphide lens is a gently dipping body more than 100 m below the surface, overlain by the small Sulphide Heights lens. These two bodies were estimated to contain 0.6 Mt grading 2.3% Cu and 4% Zn while the Scorpion body 500m southwest is a

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reworked breccia mineralisation with 0.3 Mt grading 2.5% Cu and 1.8% Zn. The Scorpion lens is dipping steeply, and has a gossanous outcrop.

Icon is in the process of verifying this estimate and have engaged Geostat Services to remodel the existing drillhole data to facilitate the estimation of a JORC compliant resource. Icon's exploration program will focus on delineating potential extensions to the known deposits as well as exploring further in the immediate region.

A series of down-hole geophysical surveys are planned for the December quarter, possibly in conjunction with surface EM, to map the sub-surface extent of the currently defined bodies, prior to an accelerated program aimed at locating mineralisation beneath extensive cover to the west.

Icon’s Fitzroy application covers both outcropping and concealed extensions of the Permian Rookwood Volcanics hosting mineralisation within Foresthome. A number of VHMS targets have been previously identified in this belt and warrant further exploration, including copperzinc mineralisation identified by QMC and Outokumpu at Comanche approximately 40km to the south.

Icon plans to re-evaluate the extensive regional geochemical and geophysical datasets in conjunction with the search for extensions to the known mineralisation.

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EPM 13961 ‘Foresthome’ and enclosing EPMA 16665 ‘Fitzroy’ with previously identified base metal prospects (background radiometric image mapping basement lithologies).

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SE Qld, Copper, Lead, Zinc, Gold, Uranium; (III 100%) EPM15401 (Glentanna), EPM16285 (Fair Hill), EPM16454 (Helidon)

Target : Volcanic-hosted base metal sulphides (Glentana) and conceptual uraniumenrichment settings (Fair Hill/Helidon)

Geological reconnaissance at Glentanna has resulted in a reinterpretation of the Grieves Quarry structure with the possibility of massive sulphides occurring to the east of the known mineralisation. Further work is required to see if historic EM (Input) anomalies occupy these stratigraphic positions, and a modern airborne EM survey is planned over the Grieves Quarry-Myrtle-Silverwood mineralised horizon which will provide better definition of concealed conductive bodies.

Priority targets will be drilled in 2008 in conjunction with the evaluation of additional geochemical / geophysical anomalies associated with the prospective horizon.

The Fair Hill and Helidon permits covering conceptual uranium targets were formally granted during the quarter and initial ground reconnaissance and geochemical sampling is planned in the coming months.

EPM 16285 “Fair Hill” prospective for caldera-related uranium.

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North West Queensland Projects (III 100%)

EPM14589 (Elizabeth Ck); EPM15368 (Burketown); EPMA15386, EPMs 15387,15388 (Leichhardt), EPMAs 15866, 15867, 15904, 16228-30, 16232 (New Century).

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Icon’s strategic tenement holdings covering concealed targets flanking NW QLD mineral province.

Elizabeth Ck

Elizabeth Ck is prospective for Century-style lead-zinc deposits as well as containing a significant horizons of iron ore mineralisation. The latter were extensively drilled by BHP in the late 1950s – early 1960s, but were never assayed for base metals. This is currently being carried out by Icon’s partner, Zinifex, who manage the JV in conjunction with an expanding regional exploration program targeting Century-style SEDEX zinc mineralisation.

Burketown

The Burketown permit has been granted and is in the process of being assigned to Icon from the applicant Golden Reef. The primary target is for iron oxide copper gold uranium (IOCGU) style mineralisation associated with major near-coincident gravity and magnetic anomalies.

Similar geophysical signatures are associated with the known world-class IOCG deposits and recent discoveries beneath significant cover in South Australia.

Icon is progressing negotiations with local traditional landholders to facilitate an initial penetrative electrical geophysical survey over the main target area to detect any associated sulphides.

Drill testing potentially significant concealed mineralisation at Burketown will be a priority during the 2008 dry season.

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Recently granted EPM 15368 ’Burketown‘ covering coincident basement gravity-magnetic feature.

New Century

Icon’s strategic group of tenement applications covering in excess of 1900 km[2 ] to the NE of the Zinifex Century Zinc deposit are progressing towards grant, and conceptual targets for sediment-hosted (SEDEX) zinc-lead mineralisation are being developed to the stage where partners can be sought to systematically evaluate this highly prospective but essentially unexplored terrain.

Leichhardt

The Leichhardt project comprises two granted exploration permits and a third progressing towards grant. As with New Century, priority targets are being developed as a precursor to the establishment of Joint Venture programs to explore for concealed mineralisation in a highly prospective setting.

Dr John Bishop Managing Director

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

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Icon at a Glance

Cash Balance

Directors

Dr Andrew White, Chairman Dr John Bishop, Managing Director Mr Steve Bartrop, Director

Company Secretary Mr Rob Waring

At 30 September 2007 Icon’s cash balance was approximately $2.3 million.

ASX Listing Code

The Company’s ASX listing code is III.

Issued Capital

Registered Office

Suite 404, 25 Lime St Sydney, NSW 2000 Australia Ph +612 9279 1252 Fax +612 9279 2727 Email info@iconresources.com.au

At 30 September, 2007 Icon’s issued capital was 44,893,248 ordinary shares and 1,200,0000 unlisted options exercisable at 30 cents by 8 March 2011.

Shareholder Enquiries

Matters relating to shares held and change of address should be directed to the share registry:

Number of Shareholders

At 19 October 2007 Icon had 685 shareholders.

Major Shareholders

The share register records the following as major shareholders at 19 October 2007

Shareholder	%
Troppo Resources P/L	13.02
Fallon Nominees P/L	9,68
Golden Reef Enterprises P/L	6.90
John Richard Bishop	6.88
Roger James Gollan Lewis	6.38
ANZ Nominees	5.0
Pathold No 107 P/L	1.40
Gage Resources P/L	1.4
St Jude Exploration P/L	1.4
Mandel P/L	1.14

Computershare Investor Services P/L Level 2, 45 St Georges Tce Perth WA 6000 Ph: +1300 557 010

To receive Icon’s announcements by email, write down your e-mail address & fax to 02 9279 2727 or email to info@iconresources.com.au

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Website

Please visit Icon’s website for the latest announcements and news: www.iconresources.com.au

General Enquiries

Contact John Bishop on 0418 373 429