EQ RESOURCES LIMITED — Interim / Quarterly Report 2007

Jul 25, 2007

==> picture [115 x 133] intentionally omitted <==

Quarterly Report for Period Ending 30 June 2007

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

Highlights

• Icon continues to achieve encouraging results from its metallurgical testwork on the zinc in peat at Grieves Siding. As a consequence, the Company has contracted Rogers Chemical Engineering P/L to continue the testwork, and work towards constructing a Pilot Plant and if successful, developing and operating the final production plant.

• Drilling commenced on the 3D-IP chargeability anomalies at the Professor Zinc project, Tasmania, with two of the three holes completed to-date and the third in progress. Large pyrites zones with potentially low zinc grades were encountered in the first two holes which may explain the anomalies.

• Drilling continues at the Tara Tin Project, central NSW with encouraging mineralisation over large intersections. To more tightly constrain drilling targets, Icon has commenced a 3D-IP survey with detailed magnetics to follow.

• Drilling will commence on Grenfell (late July), Hiawatha (late August) and Weabonga/Niangala targets (Sept/Oct) after the current Tara drilling campaign is completed. Icon is seeking to source an additional rig to resume Tara drilling in mid August.

• Re-interpretation of geology at Glentanna (SE Qld) has upgraded a previously identified EM anomaly near to the Grieves Quarry massive sulphide deposit. Icon will now fly high resolution airborne EM to refine the characteristics of the anomaly before drilling.

• In the Elizabeth Ck Joint Venture, Zinifex is commencing analysis for base metals on drill core from the Constance Range ‘I’ iron ore deposit. The ‘I’ and ‘J’ iron ore deposits were drilled by BHP in the early 1960’s before the discovery of the nearby Century zinc deposit.

• In early July, Icon successfully raised $2 million with a placement through ABN AMRO Morgans at 45 cents ($1.35M) and a share purchase plan at the same price ($0.685M). Kuth Energy Limited’s IPO is expected to open early August with Icon shareholders having a priority allocation as per the announcement dated 22 June 07.

Managing Director Dr John Bishop commented that an agreement with highly respected Rogers Chemical Engineering to start working towards processing zinc at Grieves Siding was an exciting step for the company. He also stated that the results coming from the drilling at the Tara Tin Project were most encouraging and that Icon would be executing a third drill campaign at Tara as soon as the current geophysical surveys had helped refine the targeting.

==> picture [416 x 25] intentionally omitted <==

==> picture [79 x 91] intentionally omitted <==

==> picture [387 x 578] intentionally omitted <==

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

==> picture [79 x 91] intentionally omitted <==

Professor Project: Zinc, W. Tas. (III 100%)

EL47/2004 (Henty Road)and EL8/2005 (Amber Creek)

Processing Pilot Plant Study

As announced late in 2006, Icon has been conducting metallurgical testwork to extract zinc in sphalerite from a near surface peat resource at Grieves Siding. This incorporated a variety of approaches and demonstrated that the zinc could be readily dissolved and/or fumed.

With these encouraging developments, Icon commenced negotiations with Tasmanian-based Rogers Chemical Engineering Pty Ltd to continue the metallurgical test work and to start planning for an onsite pilot plant at Grieves Siding.

Depending on permitting approvals, a 12month period is envisaged for completion of the plant and the commencement of mining and processing. The initial focus will be on the zinc in peat but processing of the underlying zinc oxides will be an integral part of the project.

Peat and Oxide Assaying

Assays of core samples from the four-hole zinc oxide diamond drilling campaign undertaken earlier in the year confirmed continuity of mineralisation but no high grade zones (eg, 1.7m @1.24% Zn from 283.3m in IPD001). Further sampling of anomalous zones identified by the Niton XRF will be sent for assay.

The extra oxide samples plus assaying of the peat auger sampling will be carried out following completion of the present drill testing of the 3D-IP targets.

3D-IP Follow-up Drilling

Following the 3D-IP survey over the Grieves area earlier this year, a three hole follow-up drilling campaign was started in June. Figure 2 shows a perspective NE view of the three planned holes (IPD005-7) with the +35msec chargeability zones defined by the IP survey.

The first hole, IPD005, tested an extensive chargeability high to the north of Grieves Siding. This vertical hole intersected a thin zone of pyrite-siderite alteration at 353.8m above a thick ferruginous clay-pug zone extending to the end of the hole at 376m. The upper portion of the hole intersected a limestone sequence with widespread carbonaceous fracture-fill and banding with associated ultrafine pyrite, which is interpreted to be the source of the broad IP anomaly. Preliminary Niton scans of the altered zone and the deep clay intercept recorded anomalous zinc, lead, arsenic and manganese values suggesting that mineralisation associated with the basal contact of the limestones at Grieves extends northwards into this section of the prospect. This section of the hole plus other selected intervals will be sampled and sent for assay.

The second hole, IPD006, tested a chargeability high in the Grieves South region. This hole was drilled to a depth of 254.6m. Again fine grained pyrite was observed through most of the core. No large zones of zinc mineralisation were observed, but selected zones will be sent for assay.

The third hole is currently in progress and testing the most southwesterly chargeability high. This also corresponds to a fold closure in the Gordon limestone.

==> picture [79 x 91] intentionally omitted <==

==> picture [392 x 260] intentionally omitted <==

Figure 2. Perspective image of the Grieves Siding area of the Professor Project showing the zones of +35msec chargeability and the proposed drill holes. Holes IPD005 and IPD 006 have been completed and IPD007 is underway.

==> picture [395 x 296] intentionally omitted <==

Figure 3. Professor Project, 3D-IP follow up drilling June 2007. Looking WSW towards the StrahanZeehan road with IPD005 near centre. Grieves Siding is to the left, just out the field of view.

==> picture [79 x 91] intentionally omitted <==

Sandy Cape: Tin, W. Tas. (III 100%)

Application has been made for an area prospective for tin in the Sandy Cape region of Tasmania’s west coast. ELA26/2007 covers an area of Devonian granite with numerous adjacent magnetic anomalies.

When granted, a field program of Niton sampling over the magnetic anomalies will be undertaken with tin and tungsten the prime targets.

Central NSW Projects Tin, Gold (III 100%) EL6532 (Tara), ELA2953 (Tara Extended), EL6291 (Hiawatha), EL6559 (Grenfell)

Tara Tin

During the quarter, a number of shallow reconnaissance air-core holes and the first of two planned diamond drillholes completed at the prospect have provided further confirmation of an extensive concealed polymetallic stockwork system, including the recognition of tungsten mineralisation.

Analytical results for 20 air-core holes completed to date include some elevated tin values associated with quartz veining in weathered basement beneath 20-30m of alluvial cover, and the multi-element data will now be compiled to map bedrock geochemistry across the currently defined 1.5km x 2.5km prospect area.

==> picture [385 x 258] intentionally omitted <==

Figure 4. Diamond drilling ITD001, Tara Tin Project, June 2007.

The first diamond hole (ITD-001) has been completed to 276m beneath elevated tin values intersected in Icon’s aircore T3 hole to the south of the large aeromagnetic anomaly which has been the focus of previous drilling at Tara. This hole intersected several zones of complex polymetallic veining, with the intensity of veining increasing from 190m to near the end of the hole at 276m (Figure 5).

==> picture [79 x 91] intentionally omitted <==

Minor cassiterite (confirmed by Niton analysis) occurs in veins from 141-275m associated with sphalerite, minor chalcopyrite, and increasing fluorite from about 190m. The host metasediments appear more altered / hornfelsed from this depth, possibly indicating proximity to a mineralising intrusive body. Visible scheelite and minor wolframite is also present in some veins.

Sampling of the core will be completed following detailed paragenetic logging and orientation of the veining, but the nature of the veining and presence of tungsten associated with tin-zinc-copper mineralisation is considered encouraging.

A second diamond hole targeting an IP anomaly from an earlier, 2D, survey beneath Icon’s aircore T2 hole towards the western end of the prospect has commenced and has already intersected elevated tungsten, tin, lead, and bismuth (Niton) values within the weathered basement.

==> picture [280 x 187] intentionally omitted <==

==> picture [281 x 188] intentionally omitted <==

Figure 5. Core from Tara drillholeITD-001 showing Quartz-Fluorite-Pyrite-Sphalerite-CassiteriteScheelite veining.

==> picture [79 x 91] intentionally omitted <==

The extent of mineralisation at Tara is being mapped by additional geophysical surveys, including 21 line-km of detailed resistivity completed in May and a large 3D IP survey commenced in early July. These surveys and potentially detailed ground magnetics will be incorporated in the evolving geological model for the prospect to assist in targeting the next phase of drilling.

Grenfell Gold

Drill testing a series of geochemical and geophysical targets associated with historical gold workings at Grenfell is scheduled to commence in late July, upon completion of the current Tara program.

Re-interpretation of Icon’s detailed 3D IP coverage and Niton soil geochemical traverses has refined the immediate drilling targets, and highlighted a series of potentially mineralised structures which may warrant additional testing.

==> picture [377 x 249] intentionally omitted <==

Figure 6. Visualisation of Grenfell exploration: geochemistry (arsenic as ‘topography’) with underlying chargeable zones plus proposed drillholes.

Hiawatha Gold

Drill testing a chargeability target defined by a 3D-IP survey over historic gold workings at Hiawatha is scheduled to commence in late August – early September, upon completion of the proposed Grenfell program.

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

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

Following the planned drilling at Hiawatha and Grenfell, Icon’s attention will focus on the Peel Fault Project where historical gold workings are associated with an extensive and deep-seated fault zone on the western margin of the New England Foldbelt. Deep seismic imaging across the Fault in the

==> picture [79 x 91] intentionally omitted <==

vicinity of Icon’s tenements indicates a crustal architecture dominated by west-dipping structures interpreted to extend to the Moho beneath the Tamworth Belt.

Icon has conducted aeromagnetic/radiometric surveys over the Weabonga and Niangala tenements with 3D-IP and Niton over the former. Drilling is planned here after the Grenfell and Hiawatha campaigns.

The next licence to receive detailed attention will be the Crow King tenement where the known gold prospects are characterised by quartz-pyrite veins, often with calcite, and are usually associated with a series of chert beds sub-parallel to the Peel Fault.

In common with most of the Peel Fault, Crow King has experienced only limited exploration. Nevertheless, an interesting shallow RAB hole drilled by a previous explorer intersected 6m @4.9g/t gold from 49m, and was never followed up. A 3D-IP survey is planned for 2H07 following further mapping.

Reconnaissance mapping indicates that the Peel Fault serpentinite belt consists of partly serpentinised layered ultramafic rocks that are known to host chromite. Icon will also be looking for nickel and PGE mineralisation in these rocks along the fault zone.

SE Qld, Copper, Lead, Zinc, Molybdenum, Gold, Uranium; (III 100%)

EPM15007 (Warwick), EPM15401 (Glentanna), EPMA16285 (Fair Hill), EPMA16454 (Helidon)

The Logan Creek molybdenum prospect at the northern end of EPM15007 will be further mapped to better define the area of alteration. Consideration will be given to carrying out a 3D-IP survey to determine the areal and depth extents.

A recent field visit to 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 positions, but a modern airborne EM survey is planned over the Grieves Quarry-Myrtle-Silverwood mineralised horizon which will provide better penetration with positional accuracy.

The Fair Hill and Helidon permits will be geochemically sampled for uranium and associated (daughter) products when granted.

North Queensland Project

EPM14589 (Elizabeth Creek), EPMA15368 (Burketown), EPMA15386, EPMAs 15387-15388 (Leichhardt), EPMAs 15866, 15867, 15904, 16228-30, 16232 (New Century.

Elizabeth Creek

Elizabeth Creek is prospective for Century-style lead-zinc deposits as well as containing a significant area of iron ore mineralisation. The latter was extensively drilled by BHP in the late 1950s – early 1960s, but has never been assayed for base metals. This is currently being carried out by Icon’s partner, Zinifex, who manage the JV.

==> picture [79 x 91] intentionally omitted <==

Burketown

Burketown is progressing towards grant. The prime target is for iron oxide copper gold uranium (IOCGU) style mineralisation and once granted, Icon intends to carry out a 3D-IP survey over the near-coincident magnetic and gravity highs to detect any associated sulphides.

Corporate

Icon made a 7% placement (3 million shares) at 45 cents per share through broking firm ABN AMRO Morgans in late June, which raised $1.35m; followed by a share purchase plan to Icon shareholders at the same price, and which raised a further $0.685M, thus adding approximately $2M to Icon’s cash reserves. (Cash was $3.23m at 30 June 2007.)

On the 22 June 07, Icon also announced that Icon shareholders holding 12,000 Icon shares or more from the 27 June 2007 through to opening of the KUTh Energy Limited IPO will be offered a minimum of 12,000 KUTh Energy shares. In the case where Icon shareholders have more than 12,000 shares and want a higher allocation of KUTh shares, every effort will be made to give each qualifying Icon shareholder the number of shares applied for but this will be at the absolute discretion of the KUTh directors.

==> picture [91 x 50] intentionally omitted <==

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.

==> picture [79 x 91] intentionally omitted <==

Icon at a Glance

Directors

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

Company Secretary Mr Rob Waring

Cash Balance

At 30 June 2007 Icon’s cash balance was approximately $ 3.23 million.

ASX Listing Code

The Company’s ASX listing code is III.

Registered Office

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

Issued Capital

At 20 July 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.

Number of Shareholders

At 20 July 2007 Icon had 674 shareholders.

Major Shareholders

The share register records the following as major shareholders at 20 July 2007

Shareholder Troppo Resources P/L	% 12.12
Fallon Nominees P/L	10.02
Golden Reef Enterprises P/L	7.11
ANZ Nominees Ltd Cash A/C	4.93
John Richard Bishop	3.56
Sarah Victoria Bishop	3.56
Roger James Gollan Lewis	3.38
Amelia Barbara Lewis	3.20
Mandel P/L	1.61
Gage Resources P/L	1.45
St Jude Exploration P/L	1.45
Pathold No10 P/L	1.43

Shareholder Enquiries

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

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, please request by emailing to: info@iconresources.com.au

Website

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

General Enquiries

Contact Jane Capp on 03 6231 3948