EQ RESOURCES LIMITED — Interim / Quarterly Report 2008

Jul 30, 2008

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Quarterly Report for Period Ending 30 June 2008

Icon Resources Ltd (‘Icon’) is pleased to provide the following report on the Company’s activities for the three month period ending 30 June 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

• Encouraging results have been obtained from preliminary testwork on the Mt Carbine tungsten tailings using an innovative Wave concentrating table. Bulk testing is planned for the next 2-3 weeks. This has the potential to fast track tungsten production from tailings and significantly lower capex through a simplified treatment process.

• Project Manager appointed for Mt Carbine with scoping studies and flowsheet development underway.

• Preparations finalised for drilling high priority gold targets within the Peel Project in northern NSW.

• Reconnaissance basement geochemical sampling completed at Tara tin project, central NSW.

• Geophysical surveys planned for Burketown and Fitzroy in the coming Quarter to define drill targets.

• The company’s Rights Issue to shareholders raised approx $1.2M in Entitlements and Icon, in conjunction with its broker ABN AMRO Morgans is working to place the shortfall.

Managing Director Dr John Bishop said “We’re quite excited about the possibilities presented by the Wave Table concentrating process. If this is successful, then Icon should be able to produce a saleable concentrate from Mt Carbine in a shorter time and at a lower capital cost than originally estimated.”

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

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 acquiring 100% mineral rights)

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

Icon has acquired the rights to 100% of the Mt Carbine tungsten mine near Cairns in north Queensland, as previously announced in Icon’s March 2008 Quarterly Report. Prior to its closure in the mid 1980s, Mt Carbine was Australia’s largest tungsten producer with a partially completed decline to start an underground operation.

Icon has a staged development 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.

The staged program allows for Stages 2 and 3 to be largely funded from ongoing cash flows from Stage 1. The overall mine life is expected to be greater than 10 years, subject to positive feasibility results for each development stage.

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Known mineralised zones (in yellow) at Mt Carbine extending below the existing open cut and adjacent Carbine Hill (extracted from 1980’s Underground Feasibility Study).

Icon has just received current independent preliminary capital and operating cost estimates for the Stage 1 retreatment of around 2Mt of tailings. The average tailings grade is expected to be relatively high at around 0.11% WO3 due to historically low recoveries in the mill that operated until 1986. Ongoing sampling by the Company confirms this grade expectation and preliminary metallurgical testwork indicates that tungsten concentrates can be recovered from the fines fraction.

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Systematic metallurgical evaluation of the tailings is currently progressing to confirm recoveries and concentrate grades.

Esker Milling and Processing Pty Ltd has designed and costed a flow sheet for Stage 1, principally involving gravity separation and flotation of the tailings, which can later be used as the ‘fines recovery end’ of a fully developed plant to treat primary open pit and underground ore as part of the Stage 2 and 3 projects.

An initial scoping capital estimate is $6.2M plus working capital. The present existing quarry operations within the granted mining lease, along with the availability of a mobile fleet, power and water will enable fast tracking of the Stage 1 tailings project.

The current plan for Stage 1 envisages a 2 year project life processing 1Mt pa of tailings which is expected to be treated by gravity separation and flotation. This is expected to produce ~750t pa of WO3 concentrate with annual revenue in the order of $13M.

However, recent investigations with Wave Table technology suggests Icon can treat the tailings with a significantly lower capex and fast track production, although there will be a lower recovery. The company is conducting bulk testing of the Wave Table technology next week.

Icon has also recently appointed Dr Ian MacLeod-Carey as project manager to the Mt Carbine project. Ian is a mining engineer with over 40 years experience in the mining industry including several years in senior managerial and technical roles in Queensland-based coal and base-metal operations.

In the coming quarter Icon intends to advance both the near-term and broader potential of reestablishing Mt Carbine as a major tungsten producer:

• Existing data on the extensive tailings resource will be validated.

• Ore characterisation and metallurgical programs will be incorporated in a definitive process flowsheet.

• Project costings and approvals will be progressed.

• Low capital options to fast-track concentrate production evaluated.

• Exploration targets associated with known mineralised zones adjacent to the existing open cut and within Carbine Hill to the north will be developed with drilling planned for the December quarter.

The Company firmly believes that the undeveloped tungsten resource potential at Mt Carbine presents Icon with an excellent opportunity to move rapidly from mineral explorer to producer.

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Mt Carbine open cut with tungsten mineralisation extending into CarbineHill to the north.

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PEEL FAULT PROJECT: Gold, Nickel, PGEs; NE NSW

Tenements: EL6681 (Bingara), EL6648 (Crow King), EL6680 (Trilby), EL6682 (Baldwin), EL6620 (Weabonga), EL6683 (Niangala), EL6618 (Upper Hunter), EL6619(Golden Crystal) Target: ‘Mother Lode’ style gold mineralisation related to deep crustal structures, orogenic gold veins associated with ‘splay’ structures, and ultramafic –hosted nickel and PGEs

Icon’s Peel Project includes a number of under-explored historical gold workings which are being progressively evaluated using modern geophysical and geochemical techniques.

Within the Crow King licence, detailed geological mapping and recent petrological studies have confirmed extensive zones of ‘listwanite’ (carbonate-quartz-chlorite-sulphide) alteration spatially associated with historical gold occurrences and lamprophyric intrusive(s). Ongoing soil geochemical surveys have continued to define significant gold-arsenic-antimony-mercury anomalies within these altered rocks associated with coincident 3D IP chargeability anomalies identified in the March quarter.

High-priority gold drill targets have been defined at Magnesite Hill, Good Friday, Fletchers and Crow King Prospects.

The Magnesite Hill prospect is characterized by a large (>1,000m x 100m) gold-arsenic-antimonymercury in soil geochemical anomaly (>50ppb Au) associated with quartz veined & pervasive ‘listwanite’ altered ultramafic rocks. A semi-coincident 3D IP chargeability anomaly occurs at depth, which is considered to represent disseminated sulphides. Importantly shallow drilling by a previous explorer returned anomalous gold, including 12m @ 0.8g/t Au from 15m but failed to test the 3D IP chargeability anomaly at depth.

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Geology, geochemistry and geophysics from the Magnesite Hill Prospect, Crow King, Peel Fault Project, NE NSW.

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Drill sites have been prepared and these highly prospective targets are scheduled to be drilled in the coming quarter, with additional holes planned to test similar coincident geochemical–geophysical features to the south.

At Weabonga (EL6620), portable XRF (Niton) soil geochemical surveys completed during the quarter have delineated several discrete arsenic ± base-metal pathfinder anomalies often coincident with previously defined 3D IP chargeability anomalies, gold in rock-chip samples and historic gold workings.

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Geology, geochemistry and geophysics from the Rainbow Prospect, Weabonga, Peel Fault Project, NE NSW.

Sulphide bearing rock-chip samples from the historic Rainbow gold workings have returned high grade ‘bonanza’ gold results (including 50g/t & 32g/t Au) and petrographic studies have identified fine grained native gold associated with disseminated arsenopyrite.

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Native gold within arsenopyrite – Weabonga Rainbow Workings.

High priority drill targets, consisting of semi-coincident 3D IP chargeability/resistivity & geochemical anomalies have now been defined at the historic Highland Mary, Rainbow and Sunlight gold workings, and drilling at Weabonga is currently scheduled to follow-on from the Crow King program.

TARA: Tin/tungsten, Central NSW

Tenements: EL6532 (Tara), EL6729 (Tara Extended) Target: Concealed intrusion-related polymetallic-tin veins and stockworks

During June, a 46 hole shallow aircore drilling program was completed to test basement geochemical anomalism associated with potentially mineralised structures interpreted from earlier ground magnetic and resistivity surveys.

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Tara aircore drilling – June 2008.

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Flowing sands within the alluvial cover sequence precluded effective sampling of the weathered basement in many of the holes, however Niton analysis has defined an area of arsenic, cobalt and lead anomalism adjacent to an interpreted structural intersection north of the main concealed magnetic anomaly.

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Tara aircore drillhole locations (background image processed ground magnetics).

Analytical results from the drilling are awaited and alternative sampling strategies are being evaluated to progress target development within this large polymetallic mineralising system.

FITZROY: Copper-Zinc, Central QLD

Tenements: EPM 13961 (Foresthome) and EPM 16665 (Fitzroy) Target: Volcanic-hosted style polymetallic (Cu/Zn) massive sulphide lenses

In conjunction with the development of regional base metal targets within EPM 16665, preparations are advanced for extensive down-hole electromagnetic (DHEM) surveying of previous exploration drill-holes flanking massive sulphide mineralisation with the Foresthome EPM.

Many of these holes were cased at the time of drilling but not surveyed, and modern DHEM techniques can potentially define off-hole mineralisation that may represent significant additions to the known mineralised lenses.

In addition, lithogeochemical analysis of the host volcanics is being used to enhance the geological model and develop targets under cover.

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Icon’s Managing Director Dr John Bishop and Exploration Manager Darcy Milburn locating sealed and cased exploration drill-holes for DHEM surveying – EPM 13961 ‘Foresthome’

SE QLD: Copper, Lead, Zinc, Gold, Uranium

Tenements: EPM15401 (Glentanna), EPM 17071 (Iron Pot Creek), EPM16285 (Fair Hill), EPM16454 (Helidon) Target: Volcanic-hosted base metal sulphides (Glentanna), Deep-seated intrusive-related porphyry gold (Iron Pot Creek) and conceptual uranium-enrichment settings (Fair Hill/Helidon)

Partners are being sought to test the potential deep intrusive-related mineralisation within the recently granted Iron Pot Creek EPM, and definition of conductive targets adjacent to known mineralisation at Glentanna will be progressed through either ground or airborne EM surveys.

NSW Porphyries: Gold-Copper - Southern NSW

Tenements: EL 6291 (Hiawatha), EL 6559 (Grenfell), ELAs 3261, 3262 (Adaminaby)

Target: Concealed ‘Porphyry-related gold – copper’ systems

Grant of the Adaminaby licences over a series of underexplored intrusive-related prospects is anticipated in the September quarter, with initial reconnaissance planned to characterise alteration styles and validate regional stream geochemical anomalism.

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PROFESSOR: (Grieves) Zinc, Western Tasmania

Tenements: EL47/2004 (Henty Road) and EL8/2005 (Amber Creek) Target: Zinc (as sphalerite) in near-surface peaty clays and zinc (as ‘oxides’) in underlying carbonates.

The latest metallurgical testwork (July ’08) on the economic extraction of zinc from the peaty clays produced disappointing results. Further testing of the peaty clays will be put on hold pending a review which will include options for treatment of the underlying zinc oxides.

NORTH WEST QUEENSLAND PROJECTS

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Icon’s strategic tenement position on the northern flank of the NW-Qld Mineral Province: EPM14589 (Elizabeth Creek); EPM15368 (Burketown); EPMs 15386-8 (Leichhardt); EPMA’s 15866, 15904, 16228-30, 16232, EPM15867 (New Century)

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Burketown

Tenement: EPM 15368 (Burketown) Target: Iron oxide copper gold uranium; (“Olympic Dam” style IOCGU)

Icon is planning to complete penetrative electrical geophysics (MIMDAS) over the remarkable near-coincident basement gravity and magnetic feature within EPM 15368 to delineate potentially mineralised targets for subsequent drill-testing.

The geophysical program is scheduled to be completed in the current dry season following cultural heritage clearance of the survey area in early August.

The data acquisition and modelling will be partly funded by a Qld Government INI grant and Icon has also been successful in obtaining funding under the Collaborative Drilling initiative to complete two deep drill holes to test concealed basement targets.

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Elizabeth Ck

Tenement: EPM15489 (Elizabeth Creek) Target: Iron ore and “Century-style” SEDEX zinc-lead

Under the terms of the Elizabeth Creek JV Zinifex are continuing to evaluate geochemical anomalies in the eastern portion of the tenement which are considered prospective for concealed SEDEX mineralisation.

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The western portion of the EPM contains a number of potentially significant sedimentary iron ore horizons which were previously defined by BHP in the early 1960’s and form part of the Constance Range Iron Ore mineralisation which is being re-evaluated by several groups in adjoining tenements.

Icon is compiling existing data on the known historical resources within the permit, and assessing development opportunities in the current global iron ore market.

New Century

Tenements: EPMAs 15866, 15904, 16228-30, 16232, EPM15867 (New Century) Target: ’Century-style‘ SEDEX zinc-lead

Icon’s strategic tenement holding over ~1900 km[2] to the north of the world-class Century mine is progressing towards grant, and JV partners will be sought to explore priority targets associated with major structures cross-cutting the largely unexplored prospective stratigraphy.

Leichhardt

Tenements: EPMs 15386-8 (Leichhardt) Target: IOCGU systems

Concealed conceptual targets within the three granted Leichhardt EPMs are being evaluated utilising existing geophysical datasets prior to seeking partners to progress to the next stage of exploration.

Completion of Renounceable Rights Issue

The Company’s one for three renounceable Rights Issue to shareholders of 1 new share at $0.20 for every 3 shares held plus 1 attaching option (exercisable at $0.35 by 30 June 2009) to raise approximately $3.1 million closed on 4 July 2008. 5,912,229 shares and 2,956,115 options were issued under the Entitlements Section to existing shareholders raising $1,182,446.

In accordance with the Prospectus, the Company is now working with the Broker to the Issue, ABN AMRO Morgans, to place the shortfall and finalise the raising.

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.

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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 25 July 2008 Icon had 661 shareholders

Major Shareholders

The share register records the following as major shareholders at 25 July 2008:

Shareholder	%
S Bartrop and associates	13.15
G Fallon and associates	8.29
A White and associates	6.96
J Bishop and associates	6.78
R Lewis and associates	6.83
JP Morgan Nominees	3.82
L Pretorius	5.72
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 June 2008 Icon’s cash balance was approximately $161,000. In July 2008 there were 5,912,229 fully paid ordinary shares issued under the Company’s rights issue at a price of $0.20 for an amount of $1,182,446 and 2,956,115 attaching free options.

Issued Capital

At 25 July 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 Ph: +1300 557 010

To receive Icon’s announcements by email, fax to: 02 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

Contact John Bishop on 0418 373 429

ASX Listing Code

The Company’s ASX listing code is III