EQ RESOURCES LIMITED — Interim / Quarterly Report 2007

Jan 29, 2007

Quarterly Report for Period Ending 31 December 2006

Icon Resources Ltd ('Icon') is pleased to provide the following report on the Company's activities for the three month period ending 31 December 2006. Background information on the projects plus data on the Company's other activities are available on the website at www.iconresources.com.au. Figure 7, at the end of this report, shows the locations of Icon's current exploration licences and applications.

Highlights

• A rig has been secured for all of Icon's planned NSW and Old drilling programs, with the $\bullet$ first program commencing mid February 2007.
• $\bullet$ Work continues on the mineral process testing of the zinc in peat at the Grieves project, western Tasmania. Drilling for resource upgrade and extension of this mineralisation is scheduled to start 1 February, 2007 together with exploration drilling for an underlying primary source of zinc sulphides.
• Icon completed its first round of drilling at Tara in central NSW and produced very encouraging tin assays in two of the four holes. A second round of drilling is planned for mid February.
• Data processing of the 3D IP surveys recently carried out at Grenfell and at Weabonga has $\bullet$ been completed. A number of targets were defined at both sites and drilling is scheduled to follow on immediately after the Tara program.
• A 3D IP survey is in progress at the Hiawatha prospect, central NSW (late January, 2007). ٠

Professor Project, Western Tasmania

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

As part of the Grieves Scoping study, metallurgical testing of the peat ore comprising sphalerite with quartz and 'organics' (mainly as lignin), is ongoing. A long-reach (18m) excavator has been booked to upgrade the JORC rating of the existing near-surface zinc in peat resource as well as extend these resources which are open in most directions. (The present inferred resource is $\sim 0.3 \text{Mt}$ ) at ~4% Zn and is targeted to increase to +0.5 Mt at ~5% Zn. There is an expectation of a similar tonnage at the nearby Myrtle prospect.) The program is scheduled to commence on 1 February with testing of Myrtle and other identified prospects following Grieves. Figure 1 shows the locations of the collars of previous drilling on the Professor leases.

At the same time, a diamond drill rig has been booked to test for primary sulphides at depth beneath the Grieves peat and oxide mineralisation. Two new holes totalling 850m plus 700m of extensions are planned to test the footwall and middle mineralised zones for primary sphalerite. Figure 2 shows these holes projected onto a schematic cross-section of the Grieves mineralisation.

Figure 1. Locations of previously drilled holes on the Professor Leases. Most of these were sited to test for near-surface zinc in peat.

Figure 2. Cross-section of the zinc mineralisation at Grieves, Professor leases western Tasmania. The near-surface zinc-in-peat is Icon's prime target together with exploration for sphalerite at depth along the 'footwall' and 'middle' horizons. Metallurgical testing of the oxide resource is planned to start the second quarter of 2007.

The 'oxide' mineralisation at Grieves is likely to contain more zinc than the overlying peat (Figure 2) and some sampling (drilling and/or extraction) will be undertaken to provide fresh material for mineral process testing.

Central NSW Projects

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

Tara

Two of the recently drilled holes returned very prospective tin values (to $+1\%$ : see Tara Update ASX announcement. November 2006) in both the overburden and bedrock. Diamond core extensions are planned for holes T2 and T3 commencing mid-February. Icon's recently purchased hand-held XRF, which produces real time element analysis, will be used to help determine end-of-hole depths.

There are thirteen drillholes from previous exploration programs at Tara and these were only partially sampled. Of these, eight were not analysed for tin and anomalous values were recorded in the five holes which were. All of the drillholes will now be tested by XRF with selected samples checked by chemical assay. Figure 3 shows the locations of the previous holes plus Icon's recent drilling, superimposed on an image of the regional gravity.

Icon is basing its exploration model on the San Rafael (Peru) and Cornwall (UK) tin deposits.

The company has also applied for areas to the west and east of the original EL6532 to cover possible extensions of the Tara tin mineralisation (as ELA2953) (Figure 3).

Existing drillholes at Tara superimposed on the regional gravity which reflects an Figure 3. interpreted underlying granite -the assumed source of the tin mineralisation. (Gravity image from Ruszkowski, 2004: GS2004/067).

There is also good potential for a placer tin deposit at Tara and a trial multi-electrical resistivity imaging (ERI) survey is planned for February to test whether the basement topography can be usefully defined. If it can, an extended survey encompassing the known tin mineralisation will be carried out.

This alluvial potential will be tested within a possible third drilling program after the Grenfell and Weabonga drilling; ie, mid to late first half 2007.

Grenfell

A 3D IP geophysical survey was carried out in the second half of 2006 to detect any anomalies which could represent bulk mineable gold targets containing sulphides. Discrete chargeability responses of moderate amplitude were recorded at the western and eastern ends of the survey (see Figure 4) with very high resistivities in the central section (not shown).

The chargeable zones are interpreted to reflect areas of sulphides which may have associated gold mineralisation and the high resistivities may indicate areas of silicification which may also be gold bearing. A drill program to test these targets is planned to follow the second Tara drill program.

Figure 4. Plan view of the chargeabilities obtained from the recent 3D IP survey superimposed on an image of the topography. The yellow dots denote old gold workings. Drilling, following on from Tara (ie late February), will test the high chargeability zones at the eastern and western ends plus a very resistive area (not shown) in the centre.

Hiawatha

A 3D IP survey is close to completion and assuming that some prospective anomalies are identified, drilling is planned after the third round of drilling at Tara.

Peel Fault Project, NSW

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

The Peel Fault on the western margin of the New England Foldbelt is a Palaeozoic greenstone belt with numerous old gold occurrences associated along its length. The zone has received little attention and remains remarkably under-explored in comparison to similar settings in Western Australia. As well as gold, the project has potential for platinum group minerals, nickel, chrome and diamonds.

Icon has now consolidated its position with eight separate tenements distributed along the belt after a period of active pegging. Data review along with a proposed exploration program and budget is currently being formulated and the future program is likely to involve a major explorer.

Weabonga and Niangala

As previously reported, Icon commissioned a detailed aeromagnetic/radiometric survey over Weabonga and Niangala. The final results have been received and incorporated into the exploration programs. Figure 5 shows the total magnetic intensity for the two areas and the location of old gold workings.

Figure 5. Weabonga (northwestern EL) and Niangala (southeastern EL) aeromagnetic image with old gold occurrences.

The results from the Weabonga 3D IP have been received and Figure 6 shows a plan view of the chargeabilities superimposed on the topography together with the most prominent of the old workings.

Assaying of a 1960s drillhole at Weabonga has also been completed and provided maximum gold values of less than 0.3 $g/t$ . However the new data highlights that it did not intersect any zones of higher chargeability. (not evident in Figure 6 which shows a compressed plan view).

A field trip was made to assess sites for the drilling program at Weabonga which is anticipated to start after the Grenfell drilling program mentioned above.

Figure 6. Chargeabilities from the 3D IP survey at Weabonga superimposed on the digital terrain model. The old gold workings are shown as yellow dots and the one previous drillhole is also indicated.

Stanthorpe Projects, SE Qld

EPM15401 (Glentanna),

Glentanna

The surveys at Glentanna, flagged in our September report, were postponed following the decision to purchase a Niton XRF unit which will allow a fast and cost effective soil sampling program. The unit will be beneficial across most lcon projects.

North Queensland Projects

EPM14589 (Elizabeth Creek), EPMA15368 (Burketown), EPMAs 15386-15388 (Leichhardt), EPMAs 15866, 15867 and 15904 ('New Century').

No new work was carried out on these licences during this period.

John Bishop Managing Director 30 January, 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 7. Icon tenement locations

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 25 January 2007 Icon had 580 shareholders.

Major Shareholders

The share register records the following as major shareholders at 30 December 2006

Shareholder	$\frac{0}{n}$
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
Mandel P/L	1.69
Gage Resources P/L	1.57
St Jude Exploration P/L	1.57

Cash Balance

At 25 January 2007 Icon's cash balance was approximately \$2.5 million.

ASX Listing Code

The Company's ASX listing code is III.

Issued Capital

At 25 January 2007 Icon's issued capital was 40,000,000 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:

Name .................................... E-mail address ...................................

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