EQ RESOURCES LIMITED — Interim / Quarterly Report 2007

Mar 15, 2007

Half-Year Financial Report

31 DECEMBER 2006

CORPORATE DIRECTORY

ICON RESOURCES LTD

ABN 77 115 009 106

DIRECTORS

Andrew White John Bishop Steve Bartrop

SECRETARY

Robert Waring

REGISTERED AND PRINCIPAL OFFICE

Suite 404, 25 Lime Street Sydney, NSW 2000 Telephone: +61 2 9279 1252 Facsimile: +61 2 9279 2727 E-mail: info@iconresources.com.au Website: www.iconresources.com.au

SHARE REGISTRY

Computershare Investor Services Pty Ltd Level 2, 45 St George Terrace Perth, WA 6000 Telephone: 1300 557 010

AUDITORS

Barnes Dowell James

BANKERS

Commonwealth Bank of Australia

STOCK EXCHANGE LISTING

Listed on Australian Stock Exchange Limited ASX Code: III

CONTENTS

Directors' Report
Auditor's Independence Declaration3
Income Statement
Balance Sheet
Statement of Cash Flows
Statement of Changes in Equity
Notes to the Financial Statements8
Directors' Declaration
Independent Review Report 11

$D_{\text{IRECTORS}}$ $R_{\text{FPORT}}$

Your directors submit their report for the half-year ended 31 December 2006.

DIRECTORS

The names of the Company's directors in office during the half-year and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated.

Dr Andrew H White (Chairman)

Dr John R Bishop (Managing Director)

Stephen B Bartrop (Director)

REVIEW AND RESULTS OF OPERATIONS

The net result of operations after applicable income tax expense for the half-year was a loss of \$118,538 $(2005 - $3.790)$ .

Operational Review

During the period under review, Icon continued exploration on a number of projects as outlined below.

Professor Project (Tas) (III 100%)

Icon's major project for the half year was the Professor Project in western Tasmania. Following Zinifex's decision at the end of September 2006 not to exercise its option. Icon has commenced a series of tests to establish whether it could develop a process to extract the zinc from sphalerite bearing peat. The first series of tests indicate that the material can be usefully disaggregated with a series of high speed attritioners.

Tara (NSW) (III 100%)

Drilling by Icon at Tara in central NSW during the period revealed some prospective tin mineralisation, both in the overburden and bedrock. Many of the previous holes had either not been assayed for tin or only partially assayed and Icon is assaying relevant parts of the earlier drill core. A trial survey has indicated that the bedrock topography and alluvial channels within the cover can be mapped geophysically and this will be used to help target the next round of drilling which is now scheduled to start late March.

Hiawatha (NSW) (III 100%)

A 3D IP survey was completed at the Hiawatha prospect, central NSW (late January, 2007).

Grenfell (NSW) (III 100%)

A 3D IP survey was completed at the Grenfell prospect, central NSW.

Weabonga/Niangala, (NSW) (III 100%)

Icon flew airborne magnetic and radiometric surveys over Weabonga and Niangala in north-eastern NSW and carried out a 3D IP survey at Weabonga.

Following the Tara drilling program, the drill rig is scheduled for drill programs at Grenfell, Hiawatha and Weabonga respectively. The 3D IP geophysical surveys have defined chargeability responses potentially reflecting zones of sulphide mineralisation on all three properties and portable XRF geochemical surveys over these zones are underway to better define the drill targets.

New applications were made for sediment-hosted zinc mineralisation in north-west Queensland, based on conceptual modelling of existing geophysical datasets.

FINANCIAL

Icon completed its IPO capital raising in May/June 2006. The IPO raised just under \$4 million before expenses. The funds raised are being used to provide working capital for exploration, project generation and project enhancement as set out in the Company's IPO Prospectus dated April 2006.

Directors' Report (continued)

SUBSEQUENT EVENTS

The directors are not aware of any significant changes in the state of affairs of the Company occurring since the end of the half-year.

AUDITOR'S INDEPENDENCE DECLARATION

The auditor's independence declaration as required under Section 307C of the Corporations Act 2001 is attached to this report.

Signed at Sydney this 16^th day of March 2007 in accordance with a resolution of the directors.

cholinkohite

A H WHITE Chairman

BARNES DOWELL JAMES

CHARTERED ACCOUNTANTS

Partners CH Barnes FCA A J Dowell CA M W James CA B Kolevski (Affiliate ICAA)

Associate M A Nakkan CA North Sydney Level 13, 122 Arthur St North Sydney NSW 2060

Manly Level 5, 22 Central Ave Manly National Building
Manly NSW 2095

Correspondence PO Box 1664 North Sydney NSW 2059

Telephone
(02) 9956 8500 .
Farsimile (02) 9929 7428 email: bdj@bdj.com.au

14 March, 2007

The Directors Icon Resources Ltd Suite 401 25 Lime Street SYDNEY NSW 2000

Dear Sirs.

AUDITOR'S INDEPENDENCE DECLARATION TO THE DIRECTORS OF ICON RESOURCES LTD

In relation to our half year review as at 31 December 2006 of the financial report of Icon Resources Ltd, to the best of our knowledge and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct.

Yours faithfully BARNES DOWELL JAMES

well

A.J. DOWELL Partner

GACeedata\deta\v0070219401108315.doc

Liability limited by a scheme approved under Professional Standards Legislation

Website: www.bdj.com.au

INCOME STATEMENT

Half-year ended 31 December 2006

	Note	2006	2005
		\$	\$
REVENUE FROM ORDINARY ACTIVITIES	2	98,242	20,000
Administration expenses		(35, 042)
Audit services		(5,000)
Depreciation expense		(2,606)
Directors' fees		(8,044)
Employee benefits expense		(88, 550)
Exploration expenditure written-off		(38, 367)
Legal fees		(459)
Occupancy expenses		(25,086)
Other expenses from ordinary activities		(13, 626)	(23,790)
LOSS FROM ORDINARY ACTIVITIES BEFORE INCOME TAX EXPENSE		(118, 538)	(3,790)
INCOME TAX EXPENSE RELATING TO ORDINARY ACTIVITIES
LOSS FROM ORDINARY ACTIVITIES AFTER INCOME TAX EXPENSE		(118, 538)	(3,790)
NET LOSS ATTRIBUTABLE TO MEMBERS OF ICON RESOURCES LTD		(118, 538)	(3,790)
TOTAL REVENUES, EXPENSES AND VALUATION ADJUSTMENTS ATTRIBUTABLE TO MEMBERS OF ICON RESOURCES LTD AND RECOGNISED DIRECTLY IN EQUITY
TOTAL CHANGES IN EQUITY OTHER THAN THOSE RESULTING FROM TRANSACTIONS WITH OWNERS AS OWNERS ATTRIBUTABLE TO MEMBERS OF ICON RESOURCES LTD		(118, 538)	(3,790)
Basic loss per share (cents per share)		0.30
Diluted loss per share (cents per share)		0.30

BALANCE SHEET

at 31 December 2006

	Note	31 Dec 06	30 Jun 06
		\$	\$
CURRENT ASSETS
Cash and cash equivalents		2,562,398	3,319,515
Receivables	3	39,851	80,371
TOTAL CURRENT ASSETS		2,602,249	3,399,886
NON-CURRENT ASSETS
Tenement security deposits		131,500	56,500
Plant and equipment		25,376	2,357
Deferred exploration and evaluation expenditure	4	1,114,192	572,187
TOTAL NON-CURRENT ASSETS		1,271,068	631,044
TOTAL ASSETS		3,873,317	4,030,930
CURRENT LIABILITIES
Payables		74,701	90,707
Other - Ioan
TOTAL CURRENT LIABILITIES		74,701	90,707
TOTAL LIABILITIES		74,701	90,707
NET ASSETS		3,798,616	3,940,223
EQUITY
Issued capital	5	4,299,747	4,322,816
Reserves		2,358	2,358
Accumulated losses		(503, 489)	(384, 951)
TOTAL EQUITY		3,798,616	3,940,223

STATEMENT OF CASH FLOWS

Half-year ended 31 December 2006

	2006	2005
	\$	\$
CASH FLOWS FROM OPERATING ACTIVITIES
Payment to suppliers and employees	(240, 584)	12,399
Other income	72,241
Interest received	94,052
NET CASH FLOWS (USED IN) OPERATING ACTIVITIES	(74, 291)	12,399
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of plant and equipment	(25, 626)
Expenditure on mining interests (exploration)	(587, 200)	(16, 504)
Tenement security deposits	(70,000)	(6,000)
NET CASH FLOWS (USED IN) INVESTING ACTIVITIES	(682, 826)	(22, 504)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares		70,000
Equity raising expenses		(38, 971)
Repayment of borrowings
NET CASH FLOWS FROM FINANCING ACTIVITIES		31,029
NET INCREASE (DECREASE) IN CASH HELD	(757, 117)	20,924
Add opening cash brought forward	3,319,515	0
CLOSING CASH CARRIED FORWARD	2,562,398	20,924

STATEMENT OF CHANGES IN EQUITY

Half-year ended 31 December 2006

	Attributable to the shareholders of Icon Resources Ltd
	Issued Capital 5	Accumulated Losses \$	Reserves \$	Total Equity S
AT 1 JULY 2005
Loss for the period		(3,790)		(3,790)
Issue of share capital	30,682			30,682
AT 31 DECEMBER 2005	30,682	(3,790)		26,892
Loss for the period		(381, 161)		(381, 161)
Cost of share based payments taken directly to equity			2,358	2,358
Issue of share capital, net of transaction costs	4,292,134			4,292,134
AT 30 JUNE 2006	4,322,816	(384, 951)	2,358	3,940,223
AT 1 JULY 2006	4,322,816	(384, 951)	2,358	3,940,223
Loss for the period		(118, 538)		(118, 538)
Issue of share capital, net of transaction costs	(23,069)			(23,069)
AT 31 DECEMBER 2006	4,299,747	(503, 489)	2,358	3,798,616

NOTES TO THE HALE-YEAR FINANCIAL STATEMENTS

31 December 2006

BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT $\blacksquare$

The half-year financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the Company as the full financial report.

The half-year financial report should be read in conjunction with the annual financial report of Icon Resources Ltd as at 30 June 2006.

It is also recommended that the half-vear financial report be considered together with any public announcements made by Icon Resources Ltd during the half-year ended 31 December 2006 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001.

Statement of Compliance $(a)$

The half-vear financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, applicable Accounting Standards including AASB 134 "Interim Financial Reporting" and other mandatory professional reporting requirements.

The half-year financial report has been prepared on a historical cost basis and available-for-sale financial assets that have been measured at fair value.

For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting period.

The half-year financial report complies with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards ('AIFRS'). Compliance with AIFRS ensures that the half-year financial report, comprising the financial statements and notes thereto, complies with International Financial Reporting Standards ('IFRS').

Basis of consolidation $(b)$

The consolidated financial statements comprise the financial statements of Icon Resources Ltd (Icon or the "Company") and its subsidiaries ("the Group") as at 31 December each year.

The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.

Adjustments are made to bring into line any dissimilar accounting policies that may exist.

All inter-company balances and transactions, including unrealised profits arising from intra-group transactions, have been eliminated in full.

Subsidiaries are fully consolidated from date on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred out of the Group.

Significant Accounting Policies $(c)$

The half-year financial statements have been prepared using the same accounting policies as used in the annual financial statements for the year ended 30 June 2006.

$\overline{2}$ . REVENUE FROM ORDINARY ACTIVITIES

	31 Dec 06	31 Dec 05 \$
Interest received - other persons/corporations	98,242
3. RECEIVABLES - CURRENT
	31 Dec 06	30 Jun 06
Other receivables	39,851	80,371

$\overline{4}$ . NON-CURRENT ASSETS

Deferred exploration and evaluation expenditure

Costs brought forward	572.187
Costs incurred during the half-year	580,372	842,639
Expenditure written off during the half-year	(38, 367)	(270,452)
Costs carried forward	1,114,192	572,187
5. ISSUED CAPITAL
Share capital
40,000,000 ordinary shares fully paid (June 2006 - 40,000,000)	4,322,816	4,322,816
Additional costs of IPO share issue on 28 September 2006	(23,069)
	4,299,747	4,322,816

Following the closure of the IPO in June 2006, no further shares or options have been issued in the half year to 31 December 2006.

CONTINGENT ASSETS AND LIABILITIES 6.

Since the last annual reporting date, there has been no change in any contingent liabilities or contingent assets.

$\overline{7}$ . SEGMENT INFORMATION

The Company operates predominantly in the one business segment and in one geographical area, namely Australian mineral exploration and evaluation.

$8.$ SUBSEQUENT EVENTS

No event has occurred subsequent to 31 December 2006 requiring disclosure in, or amendment to, these financial statements.

DIRECTORS' DECLARATION

In accordance with a resolution of the directors of Icon Resources Ltd, I state that:

In the opinion of the directors:

• the financial statements and notes of the Company: a)
• i) give a true and fair view of the Company's financial position as at 31 December 2006 and the performance for the half-year ended on that date; and
• comply with Accounting Standard AASB 134 "Interim Financial Reporting" and the Corporations ii) Regulations 2001; and
• there are reasonable grounds to believe that the Company will be able to pay its debts as and when b) they become due and payable.

On behalf of the Board

chol delite

A H WHITE Chairman of Directors Sydney, 16 March 2007

BARNES DOWELL JAMES

CHARTERED ACCOUNTANTS

Partners C H Barnes FCA A J Dowell CA M W James CA B. Koleyski (Affiliate (CAA)

Associate

M A Nakkan CA

North Sydney Level 13, 122 Arthur St North Sydney NSW 2060

Level 5, 22 Central Ave Manly National Building Manly NSW 2095

Manly

Correspondence PO Box 1664 North Sydney NSW 2059

Talenhone $(02)$ 9956 8500 .
Facsimila (02) 9929 7428 .
email: bdj@bdj.com.au

Scope

The financial report and directors' responsibility

To the members of Icon Resources Ltd

The financial report comprises the balance sheet, income statement, cash flow statement, statement of changes in equity and accompanying notes to the financial statements for Icon Resources Ltd during the half year, and the directors' declaration for the company, for the half-year ended 31 December, 2006.

INDEPENDENT REVIEW REPORT

The directors of the company are responsible for preparing a financial report that gives a true and fair view of the financial position and performance of the entity, and that complies with Accounting Standard AASB 134 "Interim Financial Reporting", in accordance with the Corporations Act 2001. This includes responsibility for the maintenance of adequate records and internal controls that are deigned to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report.

Review approach

We conducted an independent review of the financial report in order to make a statement about it to the members of the company, and in order for the company to lodge the financial report with the Australian Stock Exchange and the Australian Securities and Investments Commission.

Our review was conducted in accordance with Australian Auditing Standards applicable to review engagements, in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report is not presented fairly in accordance with the Corporations Act 2001, Accounting Standard AASB 134 "Interim Financial Reporting" and other mandatory financial reporting requirements in Australia. so as to present a view which is consistent with our understanding of the entity's financial position, and of its performance as represented by the results of its operations and cash flows.

A review is limited primarily to inquiries of company personnel and analytical procedures applied to the financial data. These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance is

Liability limited by a scheme approved under Professional Standards Legislation

Website: www.bdi.com.au

BARNES DOWELL JAMES

CHARTERED ACCOUNTANTS

less than given in an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

Independence

We are independent of the company, and have met the independence requirements of Australian professional ethical pronouncements and the Corporations Act 2001. We have given to the directors of the company a written Auditor's Independence Declaration, a copy of which is included in the Directors' Report.

Statement

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the financial report of Icon Resources Ltd during the half-year is not in accordance with:

(a) The Corporations Act 2001, including

• giving a true and fair view of the financial position of the $(i)$ entity at 31 December, 2006 and of its performance for the half-year ended on that date; and
• Complying with Accounting Standards AASB 134 "Interim $(ii)$ Financial Reporting" and the Corporations Regulations 2001; and:

(b) other mandatory financial reporting requirements in Australia.

BARNES DOWELL JAMES Chartered Accountants

truell

Anthony Dowell Partner

15 March 2007.

G:\Ceedata\dataty0\070314\01189316.doc

ICON RESOURCES LTD

ABN 77 115 009 106

ASX CODE: III

Suite 404, 25 Lime Street, Sydney, NSW, 2000, Australia Telephone: +61 2 9279 1252 Facsimile: +61 2 9279 2727 Email: info@iconresources.com.au