EQ RESOURCES LIMITED — Interim / Quarterly Report 2008

Oct 29, 2008

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Quarterly Report for Period Ended 30 September 2008

Icon Resources Ltd (‘Icon’) is pleased to provide the following report on the Company’s activities for the three-month period ended 30 September 2008. Background information on the projects reported here along with information on the Company’s other tenements are available on the website at www.iconresources.com.au.

Highlights

• The transaction to secure the Mt Carbine tungsten mine has been completed.

• Three campaigns of volume bulk sampling of Mt Carbine tailings have been completed to confirm recoveries, with encouraging results achieved by trial gravity separation.

• High-grade scheelite and wolframite concentrates have been produced for initial marketing trials with tungsten consumers.

• A geological program has commenced to delineate tungsten resources adjacent to and beneath the current pit envelope (mapping/nitoning/logging and sampling historical drillcore preserved on site).

• Strategic plan developed to maximise shareholder return from Icon’s extensive strategic mineral exploration and development assets in Eastern Australia.

Managing Director Dr John Bishop said “In these difficult times Icon is better positioned than many junior explorers through the acquisition of the Mt Carbine tungsten project, which has the potential to generate early cash flow from the retreatment of tailings, and resume its status as a major tungsten producer.”

Icon Resources Ltd ACN 115 009 106 Suite 404, 25 Lime Street, Sydney NSW 2000 Telephone: +61 2 9279 1252 Facsimile: +61 2 9279 2727

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MT CARBINE: Tungsten, NORTH QLD (III 100% ownership of mineral rights)

Tenements: Granted Mining Leases MLs 4867, 4919 Target: Bulk tonnage sheeted wolframite-scheelite veining.

As previously announced, Icon has acquired the rights to 100% of the Mt Carbine tungsten mine near Cairns in north Queensland. Prior to its closure in the mid 1980s, Mt Carbine was Australia’s largest tungsten producer with extensive mineralisation delineated beneath and adjacent to the existing open cut.

During the quarter Icon has focussed on progressing a staged program for the re-development of Mt Carbine; namely:

• Stage 1 retreatment of the tailings;

• Stage 2 re-opening of the open pit; and

• Stage 3 re-opening of the underground mine.

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Mt Carbine operations in 1978 developing mineralisation at the southern end of Carbine Hill

During the quarter the acquisition of mining rights at Mt Carbine was finalised with the current leaseholder and agreed sublease arrangements registered with the Queensland Department of Mines and Energy. This agreement will enable Icon to proceed with the processing of tailings and the

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development of open cut and underground tungsten resources in parallel with existing quarrying operations.

In addition to the compilation of historical sampling and metallurgical characterisation of tungstenbearing tailings, a series of bulk sampling programs have been undertaken to validate grade estimates and provide material for on-going testwork.

Trial processing of composite samples from the #4 tailings resource has successfully recovered a mixed scheelite-wolframite concentrate via conventional gravity separation, and work has commenced on evaluating a range of processing options for the recovery of fine-grained scheelite and wolframite in the ‘slimes’ fraction from the #3 tailings dam.

While some coarse-grained tungsten minerals are present in the tailings a large proportion of the tungsten content is reporting to the finer size fractions as fully liberated scheelite and wolframite confirming detailed investigations conducted in the mid 1980s. Gravity table concentrates generated from the #4 tailings have been magnetically separated to produce clean scheelite and wolframite concentrates.

Full analysis of these trial concentrates is awaited prior to dispatch of samples to potential offtakers in Europe and north Asia.

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Recent bulk sampling of the Mt Carbine #4 tailings stockpile has successfully produced high-grade scheelite and wolframite concentrates.

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In the coming quarter the following programs will be undertaken to progress the early development of the tailings and confirm the longer-term potential of Mt Carbine.

• Detailed characterisation of the distribution of tungsten minerals within the higher-grade fine fractions by QEMSCAN analysis.

• Additional gravity testwork to refine the process flowsheet.

• Trial flotation testwork to assess the recovery of ultrafine wolframite and scheelite.

• Refinement of the project financial model.

• Ongoing market analysis and development, with trial concentrates to be dispatched to targeted downstream consumers.

• Commencement of resource evaluation adjacent to the existing open cut utilising historical drillcore and pit exposures (drill testing of resource extensions planned in 2009).

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Mt Carbine – historical tungsten mineralisation (pink) drilling intersections adjacent to and beneath the current open cut.

Icon is also actively progressing negotiations with a number of groups to participate in the evaluation and planned re-development of Mt Carbine and remains confident that the project will be a profitable long-term operation.

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EASTERN AUSTRALIAN MINERAL EXPLORATION PORTFOLIO

Icon Resources has established a strategic portfolio of multi-commodity mineral exploration and development projects throughout Eastern Australia, including extensive tenement holdings in the Mt Isa mineral province, highly prospective terrain in central Queensland, and gold, tin and base metal targets throughout NSW.

While the current focus is on generating near-term cash flow through the treatment of tailings at Mt Carbine, Icon intends to continue evaluation of these projects by establishing joint ventures, with less prospective areas progressively relinquished to minimise expenditure commitments.

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Icon’s portfolio of exploration and mining interests in Eastern Australia

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NORTH WEST QUEENSLAND

Icon, through its 100% owned subsidiaries, holds granted tenements and applications over large areas along the NW margin of the highly prospective Mt Isa block in NW QLD. These project areas cover both outcropping and concealed targets with potential for world-class, sedimenthosted, exhalative (SEDEX), ‘Century-style’ zinc mineralisation and iron oxide copper-golduranium (IOCGU) deposits, and may host significant iron, nickel, platinum group element (PGE) and unconformity-related uranium mineralisation.

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Icon’s strategic tenement position on the northern flank of the NW-QLD Mineral Province: EPM 14589 (Elizabeth Creek); EPM 15368 (Burketown); EPMs 15386-8 (Leichhardt); EPMAs 15866, 15904, 16228-30, 16232, EPM 15867 (New Century)

During the quarter cultural heritage clearance surveys were completed over the large basement gravity-magnetic anomaly at Burketown to facilitate geophysical programs now scheduled to be completed in the 2009 field season, prior to drill testing with the support of the Queensland Government’s Collaborative Drilling Initiative.

The New Century project comprising over 1900 km[2] of prospective terrain to the north of the world-class Century zinc mine continued to progress through the Native Title and Environmental assessment process with an additional permit successfully granted. Discussions have commenced with potential JV partners to fund future exploration.

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Similar JV strategies are being progressed for evaluating the iron ore potential within the western portion of the Elizabeth Creek EPM and basement targets at Leichhardt.

EASTERN QUEENSLAND

Longer term tenure has been established over known copper-zinc massive sulphide resources and surrounding prospective ground within EPM 17604 Fitzroy, and during the quarter all historical drillcore from the project has been re-located to permit future geological assessment.

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Fitzroy Project – Currently defined extent of the Sulphide City, Scorpion and Window Cu-Zn bodies beneath Tertiary cover. Indicated JORC resource is 1.75Mt @ 1.7% Cu + 2% Zn

Low cost geological evaluation and re-modelling of extensive geophysical data from the property is planned to define extensions to the current inferred resources and generate additional targets.

Concealed gold-molybdenum targets within EPM 17071 Iron Pot Creek have been identified and JV partners will be sought in conjunction with the rationalisation of conceptual uranium targets in SE Queensland.

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NEW SOUTH WALES

Icon’s Peel Fault Project in NE NSW comprises seven granted exploration licences covering numerous historical gold workings and extensive zones of altered ultramafic rocks associated with deep crustal structures. Integrated geological, geophysical and geochemical programs have delineated high-priority drilling targets at Crow King and Weabonga.

Drilling of these targets has been deferred, with partners to be sought to continue evaluation of this highly prospective but under-explored terrain.

Exploration of the large concealed polymetallic-tin system at Tara has also been deferred, but initial geological reconnaissance of porphyry-style copper-gold prospects within the recently granted Adaminaby project in SE NSW will be completed in the coming months.

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

Directors

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

Company Secretary

Mr Robert Waring

Registered Office

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

Number of Shareholders

At 30 September 2008 Icon had 645 shareholders

Major Shareholders

The share register records the following as major shareholders at 30 September 2008:

Shareholder S Bartrop and associates 12.6 G Fallon and associates 8.29 J Bishop and associates 6.95 R Lewis and associates 6.35 A White and associates 6.15 L Pretorius 5.72 JP Morgan Nominees 3.82 D Milburn 2.88 St Jude Exploration Pty Ltd 1.30 Pathold No107 Pty Ltd 1.20 Gage Resources Pty Ltd 1.20

Cash Balance

At 30 September 2008 Icon’s cash balance was approximately $539,000.

Issued Capital

At 30 September 2008 Icon’s issued capital was 52,405,477 ordinary shares, 2,956,137 listed options (exercise price 35 cents; expiry date 30 June 2009) and 2,860,870 unlisted options exercisable at 30 to 45 cents.

Shareholder Enquiries

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

Computershare Investor Services Pty Ltd Level 2, 45 St Georges Terrace Perth WA 6000 Australia Ph: +1300 557 010

To receive Icon’s announcements by email, fax to: +612 9279 2727 or email to: info@iconresources.com.au

Website

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

General Enquiries

ASX Listing Code

Contact John Bishop on 0418 373 429

The Company’s ASX listing code is III

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