EQ RESOURCES LIMITED — Interim / Quarterly Report 2007

Apr 29, 2007

Quarterly Report for Period Ending 31 March 2007

Icon Resources Ltd ('Icon') is pleased to provide the following report on the Company's activities for the three month period ending 31 March 2007. Background information on the projects reported here along with information on the Company's other activities are available on the website at www.iconresources.com.au. The locations of fcon's current exploration licences and applications are presented in Figure 9 at the end of this report.

Highlights

• Drilling has just recommenced at the Tara tin prospect in central NSW. Targets will include secondary shallow tin-bearing palaeochannels as well as primary mineralisation in the basement. Further geophysical surveys are also planned for early May.
• Mineral processing test work on the zinc in peat at the Professor project in western $\bullet$ Tasmania is continuing to provide encouragement, with successful liberation of zinc sulphides achieved through high-velocity attritioning.
• A large-diameter auger bulk sampling of the zinc in peat resource at Grieves within the $\bullet$ Professor project has been completed with potentially mineralised zones intersected outside the currently defined resource boundary. Four diamond holes also tested the underlying oxide mineralisation.
• Exciting results have been received from a 3D-IP survey over the prospective $\bullet$ carbonate host sequence surrounding the Grieves zinc deposit.
• $\bullet$ In NW Qld, Icon has lodged additional exploration permit applications (EPMAs) for Century-style zinc mineralisation. There are now a total of seven 'New Century' EPMAs totalling approximately 1900km². Two of the three Leichhardt EPMAs have been granted with the third expected shortly. The granting of the the nearby Burketown application is also expected shortly.

Managing Director Dr John Bishop comments that Icon is entering a period of high activity where drilling is now underway at Tara and with back to back programs including Grenfell, Hiawatha and Weabonga, a second rig is being sourced. The recent IP anomalies discovered at Grieves also requires testing as a matter of priority while the metallurgical work is onging. As a diversified explorer Icon has applied for a number of new tenements in Queensland including one targeting uranium and will highlight the prospectivity of this tenement along with the rest of its Oueensland portfolio in a separate announcement to be released shortly.

Professor Project. Western Tasmania (III 100%)

EL47/2004 (Henty Rd) and EL8/2005 (Amber Ck)

Four diamond holes were drilled in the Grieves area. IPD001 (End of Hole at 315m) was sited to test for primary sulphide mineralisation down dip of the existing oxide resource. However, the hole intersected oxidised mineralisation around 150m down dip from the previous deepest intersection before passing into the underlying Moina Sandstone. As Drillhole IPD001 experienced extremely difficult drilling conditions, the drilling program was modified. Follow up drill holes IPD002 (EOH at 91m), IPD003 (144m) and IPD004 (172m) targeted oxidised mineralised zones adjacent to the Grieves Fault and above the IPD001 intersection

Preliminary Niton scans of the drillcore indicate stacked zinc-bearing zones associated with anomalous Pb-Ni-As and intense siderite-ankerite alteration within the host carbonates. The core is currently being logged and sampled to establish metal distribution within the oxide intercepts, and to provide material for initial ore characterisation / metallurgical test work.

An auger program was undertaken to sample the zinc in peat at Grieves to extend and upgrade the resource. A 750mm diameter excavator-mounted auger with a depth capability of 9m was used to successfully sample fifty sites. Samples of $\sim$ 25kg were taken at one metre intervals down the hole. These samples have been bagged and are awaiting assay. Figure 1 shows the auger in action: Figure 2 presents locations of the diamond drillhole collars, the auger sampling and earlier sampling.

A 3D-IP survey of the prospective carbonate horizons within the Professor leases was commenced during the quarter. Recently received preliminary results indicate the presence of a large chargeable body to the north of the current drilling program. These data were released in our 27 April, 2007 ASX announcement.

Figure 1. A 750mm auger was used to sample the zinc in peat at Grieves on the Professor Project. western Tasmania. 25kg samples were taken at one metre intervals to a maximum of 9m.

Location of Icon's diamond drill hole collars which tested the underlying zinc oxide Figure 2. mineralisation as well as the location of the auger holes which sampled the overlying zinc in peat on the Professor Project, Tasmania.

The metallurgical test work program for the zinc-in-peat is ongoing. It has demonstrated that the organic component of the zinc-in-peat can be separated by an attrition process and that the separated material will readily dissolve in acid. The next step will be to establish whether a commercial grade concentrate can be produced using conventional processes applied to the attritioned products.

Central NSW Projects

EL6532 (Tara), ELA2953 (Tara Extended), EL6559 (Grenfell), EL6291 (Hiawatha),

Tara (III 100%)

Following the discovery of highly anomalous tin values in the overburden in two of four holes drilled by Icon last year at Tara, a trial resistivity survey was carried out to help map the bedrock topography. The two lines of multi-electrode resistivity were highly successful in depicting overburden stratigraphy and correlation with the drilling data has outlined an interpreted palaeochannel which may contain economic tin grades in the basal portions.

The resistivity survey also defined the overburden/basement contact (see Figure 3). Re-sampling of previous drill core by Icon has confirmed primary tin mineralisation in altered basement rocks intersected in this earlier drilling.

Figure 3. Resistivity cross-sections from a trial survey at Tara (warm colours are more resistive; cool colours are less resistive). The results show a fairly flat basement at $\sim$ 70m with resistive palaeochannels within the overburden. One of these was intersected by Icon hole T3 with potentially economic tin grades at the base of the channel (see ASX release 24 April 2007).

A drill rig has now arrived on site and commenced the next drilling program. Drill holes are designed to sample the overburden for alluvial tin with reverse circulation followed by core drilling of the underlying metasediments to test for primary tin mineralisation.

If the drilling confirms the presence of tin at the base of the palaeochannels, then it implies that a nearby shallow primary tin source may occur. (Cassiterite, which is the tin mineral found in the drilling so far, is a chemically stable, heavy mineral that behaves much as gold does in the surface weathering environment; i.e. it tends to be enriched by fluvial processes and concentrates at the base of stream and river channels. Furthermore, cassiterite is so heavy that once released from its primary depositional site by weathering, it is rarely transported very far from its source.)

Trial geophysical surveys will be carried out to determine the most effective way of mapping the basement topography to locate any tin-bearing 'basement highs' concealed beneath the present

cover. The resistivity coverage will also be extended to gain more information on the palaeochannel system and to map the basement surface.

Grenfell (III 100%)

Encouraging chargeable zones have been defined by the 3D-IP survey over Grenfell. These zones have now been covered by a soil sampling program using Icon's portable XRF (Niton) and this found coincident multi-element anomalies with the IP defined structures (Figure 4). A drill rig is being sought for immediate drilling of these targets.

$(a)$

Figure 4. (a) Chargeabilities recorded at the eastern end of the Grenfell 3D IP survey. (b) Lead values determined by Niton survey. (c) Arsenic values determined by Niton $'$ +' symbols indicate locations of old workings survey.

Hiawatha (III 100%)

The 3D-IP survey has been completed with an anomalous chargeable zone defined in the central part of the licence. This will be covered by a geochemical soil survey using Icon's Niton and drill targets will be selected from the integrated data sets. Drilling is scheduled to follow on from the Grenfell drilling program. Figure 5 shows a plan view of the chargeability with the locations of the old gold workings and previous drilling superimposed.

Figure 5. Plan view of the Hiawatha 3D-IP chargeability results with the locations of the old gold workings and previous drilling superimposed. (Red colours are high chargeability: blue colours are $low.$

Peel Fault Project, NE NSW (III 100%)

EL6618 (Upper Hunter), EL6619 (Golden Crystal), EL6620 (Weabonga), EL6648 (Crow King), ELA2805 (Trilby), ELA2806 (Bingara), ELA2807 (Baldwin), ELA2827 (Niangala).

A significant body of geophysical and geochemical data exists for the areas covered by Icon's Peel Fault licences. A compilation and interpretation of this data is nearing completion and it is evident that the licences contain several gold and nickel anomalies that have not been drill tested.

Niton-based geochemical sampling of the soils above the chargeability responses defined by the Weabonga 3D-IP survey is underway and the results will be used to help target drilling planned to follow on from the Grenfell and Hiawatha campaigns.

Southeast Oueensland Projects

EPM15401 (Glentanna)

No field work has yet been carried out at Glentanna. Geophysical techniques are being considered to determine the best way to define the extent of the mineralisation at Grieves Ouarry and the nearby Myrtle prospects. Further information will be included in the forthcoming update on Icon's Queensland exploration program.

North Queensland Projects

EPM14589 (Elizabeth Creek), EPMA15368 (Burketown), EPMA 15386 and EPMs 15387-15388 (Leichhardt), EPMAs 15866, 15867, 15904, 16228, 16229, 16230 and 16232 ('New Century').

Four more 'New Century' applications have been made for sediment-hosted zinc mineralisation (Figure 6) and an information memorandum is being prepared to assist in the search for a joint venture partner.

Two of the three Leichhardt licences have been granted and granting of the third plus Burketown is expected shortly. Further information will be included in the forthcoming update on Icon's Queensland exploration program.

Figure 6. Location of granted and applied for Exploration Permits, NW Qld. Elizabeth Creek is in JV with Zinifex.

New Applications:

ELA26/2007 (Sandy Cape, W. Tas.)

An application has been made over an area near Sandy Cape in western Tasmania. It covers a number of magnetic responses interpreted to lie along the edge of the Sandy Cape Granite (Figure 7). At least one of the responses has associated anomalous tin from previous soil sampling. Drill testing by earlier explorers failed to locate either tin or the source of the magnetic anomaly.

Figure 7. Sandy Cape application (ELA26/2007), western Tasmania. When granted, this area will be explored for tin mineralisation associated with the Devonian Sandy Cape Granite.

EPMA 16285 (Fair Hill, SE Qld)

An application has been made over the Fair Hill area to look for uranium mineralisation in SE Qld (Figure 8). Further detail will be given in the forthcoming announcement on Icon's Qld exploration programs.

Figure 8. EPMA16285 (Fair Hill) superimposed on 'Uranium' spectrometric data. The prime target is caldera style mineralisation in the response on the southern boundary.

John Bishop Managing Director 30 April, 2007

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. Dr Bishop 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.

Figure 9. Locations of Icon's exploration licences and applications.

Icon at a Glance

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

Company Secretary

Mr Rob Waring

Registered Office

Suite 404, 25 Lime St, Sydney, NSW 2000 Ph +612 9279 1252 Fax +612 9279 2727

Hobart Office

38 George St, North Hobart, Tas., 7000. Ph +613 6231 3948 Fax +613 6234 3472

Email info@iconresources.com.au

Number of Shareholders

At 30 March 2007 Icon had 559 shareholders.

Major Shareholders

The share register records the following as major shareholders at 30 March 2007

Shareholder	$\frac{0}{6}$
Troppo Resources P/L	13.05
Fallon Nominees P/L	10.86
Golden Reef Enterprises P/L	7.71
John Richard Bishop	3.86
Sarah Victoria Bishop	3.86
Roger James Gollan Lewis	3.66
Amelia Barbara Lewis	3.47
ANZ Nominees Ltd Cash A/C	3.18
Mandel P/L	1.75
Gage Resources P/L	1.57
St Jude Exploration P/L	1.57
Pathold no 107 P/L	1.52

Cash Balance

At 30 March 2007 Icon's eash balance was approximately \$1.8 million.

ASX Listing Code

The Company's ASX listing code is III.

Issued Capital

At 25 January 2007 Icon's issued capital was 40,370,286 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:

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

Proposed Flowsheet for Mineral Processing Test Work of the Zinc in Peat at the Professor Project, Western Tasmania.