EQ RESOURCES LIMITED — Interim / Quarterly Report 2009

Apr 22, 2009

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Quarterly Report for Period Ended 31 March 2009

Icon Resources Ltd (‘Icon’) is pleased to provide the following report on the Company’s activities for the three month period ended 31March 2009. 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

• In February Icon announced a proposal to purchase the Collingwood Tin Project from Metals X Limited. This acquisition provides an effective low-cost option to source a modern gravity processing plant for future use at Mt Carbine, and also includes the potential for later exploration and extension of the significant undeveloped tin mineralisation at Collingwood.

• Icon has been progressing discussions with several groups to jointly develop the tungsten tailings resources at Mt Carbine and in late March a non-binding Memorandum of Understanding was signed with Polymetals Group Pty Ltd whereby following due diligence, Polymetals can elect to participate in the Mt Carbine Tailings Project. Polymetals is also reviewing participating in the open pit project as the value of existing open pit mineralisation is estimated by Icon to potentially justify the relocation of the Collingwood mill to Mt Carbine with the restarting of the open pit operation providing a short term payback period. Exploration extending the resource from the open pit northwards into the hill can be ongoing and funded from operating cash flow. Potential overseas offtakers visited Mt Carbine in early April with more scheduled in late April. The company expects to secure offtake arrangements for the tungsten derived from its tailing project this financial year.

• The Share Purchase Plan (SPP) raised a total of $354,760 through the issue of 7,095,200 ordinary shares at 5 cents per share to 118 Icon shareholders.

Managing Director Dr John Bishop said “The Mt Carbine Tungsten Project is progressing on a number of fronts with possible partners for the tailings; significant interest from potential purchasers of concentrates; the purchase of a processing plant as part of the Collingwood Tin Project plus some initial discussions with parties interested in participating in the mining of the primary ore. Lastly, the SPP raised in excess of $350,000 which was encouraging in the current economic climate and provided Icon’s shareholders with an opportunity to take advantage of the low share price.”

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, which produced over 16,000 tonnes of high-grade tungsten concentrates.

Icon has been assessing the significant tailings resources at Mt Carbine as a rapid and low-cost entry into production. This work is now essentially complete and has confirmed a viable project, with enhanced recovery of saleable concentrates.

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Mt Carbine Tungsten Project – Aerial View of Mining Leases showing the open cut, #3 and #4 tailings and waste dumps. Icon’s strategy is to start by re-treating the tailings and, at the same time, prove up a viable primary ore resource in an expanded open cut.

During the quarter discussions were held with a number of potential partners to jointly develop the tailings to enable Icon to focus on the delineation of primary tungsten resources adjacent to and beneath the existing open cut.

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On 30 March 2009 Icon announced that a Memorandum of Understanding (MOU) had been signed with Polymetals Group Pty Ltd whereby following due diligence, Polymetals will decide whether to participate in the development and operation of the Mt Carbine Tailings Project.

The Key points of the MOU are:

• Polymetals will complete a due diligence study before 30 April 2009.

• Following a positive outcome, Polymetals will acquire a 50% interest in the Tailings Project for a purchase price of up to $2M.

• Polymetals will then match the acquisition cost to provide total funds of up to $4M to meet project capital expenditure.

• With Polymetals as developers and operators of the Tailings Project, Icon can focus on the Mt Carbine primary ore to confirm sufficient resource for an extended open pit operation.

• At Icon’s election, $0.25M of the $4M funding may be in the form of a share placement in Icon, at 5cps.

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Tungsten-bearing tailings – Mt Carbine #4 Tailings

As previously announced (see ASX Announcement 12 February), Icon is in the process of acquiring the Collingwood Tin Project from Metals X Limited. The prime reason for the purchase is to provide a processing plant, at less cost in time and money, for Mt Carbine. (Collingwood is located less than 200km north of Mt Carbine, mostly by sealed road.)

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The Key points of the Collingwood acquisition are:

• An upfront payment of $250,000.

• Icon issues a 3 year term Convertible Note to Metals X for a sum of $3.75M at a coupon rate of 7.5%. Conversion of the note can take place any time after 12 months has elapsed by giving one month’s notice. Conversion can be at the higher of 5 cents per share or the volume weighted average price (VWAP) of Icon’s shares in the 3 months prior to conversion.

• Metals X agrees to make a loan of $896,200 to Icon at a rate of 7.5% for a term of 13 months to enable Icon time to repay/cover environmental performance bonds on BNPL mining assets. Metals X has the election on maturity to elect to have the debt settled by equity in Icon at the higher of 5 cents per share or 80% of VWAP in the month the loan falls due.

• Metals X will hold a first-ranking, fixed and floating charge over Icon’s assets, but will not object to any second-ranking charges.

• Metals X will take a placement of 5 million shares at 5 cents per share in Icon.

• That the conditions precedent be achieved before 29 May 2009.

The benefits of the deal are:

• Icon continues to fast track development of the Mt Carbine Project with access to the Collingwood plant saving considerable time and capital expenditure.

• The purchase price of Collingwood is potentially ‘future dated’ scrip and is therefore less dilutive to shareholders given the current soft market conditions.

• The transaction includes significant undeveloped tin resources (both underground and tailings) and future exploration potential within extensive granted mining and exploration tenements.

• Metals X with its considerable experience in mining and project development becomes a substantial shareholder in Icon.

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Collingwood Processing Plant – March 2009

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.

• Completion of due diligence associated with the proposed acquisition of the Collingwood Tin Project.

• Finalisation of tailings process flow sheet.

• Ongoing negotiations with tungsten off takers and strategic partners.

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

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ICON’S MINERAL EXPLORATION PORTFOLIO

In addition to the NE-Qld tin-tungsten developments, Icon has established an extensive portfolio of multi-commodity mineral exploration projects throughout Eastern Australia, including large tenement holdings in the Mt Isa mineral province, prospective base metal terrain in central Queensland, and gold, tin and base metal targets throughout NSW.

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

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While the Company’s current focus continues to be the generation of cash flow through the treatment of tailings at Mt Carbine, Icon intends to progress these other projects by establishing joint ventures with less prospective areas progressively relinquished to minimise expenditure commitments. During the quarter this strategy has been advanced as follows:

• In North-West Queensland, Icon is progressing negotiations to jointly evaluate the development of significant iron ore potential at Constance Range, and base metal targets within the adjoining New Century Project area. At Burketown, renewed support from the Qld government’s INI Grant initiative has recently been granted to partly fund planned geophysical surveys over concealed basement targets considered prospective for large mineralising systems.

• In NSW, a comprehensive data package has been compiled over highly prospective ultramafichosted gold systems along the Peel Fault, and joint venture partners are being sought to evaluate a series of priority targets which have been prepared for immediate drill-testing.

• Data compilation and limited reconnaissance across other projects is continuing to facilitate the ongoing rationalisation of the company’s exploration portfolio.

Capital Raising

The Company initiated a capital raising via a Share Purchase Plan (SPP) during the quarter for ongoing working capital. Shareholders in Icon on the Record Date (11 February) were invited to subscribe for shares at a cost of 5 cents per share. The minimum investment was $500 (representing 10,000 shares) and the maximum $10,000 (representing 200,000 shares). The SPP raised a total of $354,760, through the issue of 7,095,200 ordinary shares at 5 cents per share to 118 Icon shareholders.

Given the challenging financial market conditions and Icon’s modest cash reserves, management will continue to focus on the Mt Carbine project, and has advanced discussions with a number of tungsten companies to assist financing development of the project.

Extraordinary General Meeting (EGM)

The Company is preparing notice of an EGM to be held prior to 31 May 2009 (Shareholders to be given at least 28 days notice). Resolutions to be put to the EGM include approval of the purchase of the Collingwood Tin Project and approvals in connection with the 5 cents per share Placement.

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Dr John Bishop Managing Director

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

ASX Listing Code

The Company’s ASX listing code is III

Cash Balance

At 22 April 2009 Icon’s cash balance was approximately $418,000 and the Company had approximately $62,000 of accounts payable.

Issued Capital

At 22 April 2009 Icon’s issued capital was 68,213,677 ordinary shares, 2,962,554 quoted options (exercise price 35 cents; expiry date 30 June 2009) and 2,860,870 unlisted options exercisable at 30 to 45 cents.

Number of Shareholders

At 31 March 2009 Icon had 644 shareholders

Major Shareholders

The share register records the following as major shareholders at 21 April 2009:

Shareholder	%
S Bartrop and associates	11.05
Metals X Limited	7.33
G Fallon and associates	6.37
J Bishop and associates	5.07
R Lewis and associates	4.87
A White and associates	4.87
L Pretorius	4.40
G Nicholson	4.36
JP Morgan Nominees	2.93
D Milburn	2.51

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

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