EQ RESOURCES LIMITED — Interim / Quarterly Report 2011

Jul 28, 2011

==> picture [96 x 112] intentionally omitted <==

Quarterly Activities Report for Period Ended 30 June 2011

Highlights

Icon Resources Ltd’s Board of Directors (Icon) continues to focus the Company on the commencement of tungsten production and development. During the June quarter the following activities moved it towards achieving this goal:

• Completion of a successful rights issue (allotment of the shares took place on 20 July 2011);

• The final feasibility metallurgical testwork on the Mt Carbine tungsten tailings retreatment has been completed and the second-hand processing plant has been sourced;

• Ore sorter trials on bulk samples from mineralised stockpiles were completed with excellent results and grade recovery curves have shown that an eight-times upgrade may be achieved;

• Icon’s gold prospects have been vended into a new company, Gossan Hill Gold Limited, with the intent of raising fresh capital in an IPO to enable drilling and further exploration of these exciting prospects. Prior to the IPO, Icon holds 16.5 million shares, and other vendors and seed capital providers will hold the remaining 17.1 million shares;

• Joint Venture partners are actively being sought for the remaining Icon prospects; and

• Icon’s name is to be changed to “Carbine Tungsten Limited” to reflect the Company’s focus on Tungsten production (subject to shareholder approval at the upcoming AGM).

Icon Resources Ltd ACN 115 009 106

Suite 505, 35 Lime Street, Sydney NSW 2000 Telephone: +61 2 9279 1252 Facsimile: +61 2 9279 2727

==> picture [55 x 63] intentionally omitted <==

Mt Carbine: Tungsten, North QLD (III 100% of mineral rights)

Mining Leases (MLs) 4867 and 4919, and EPMs 14871 and 14872.

==> picture [378 x 426] intentionally omitted <==

Plan view of Mt Carbine EPMs

Evaluation of the Mt Holmes prospect and extensive tin-tungsten anomalism associated with historical workings to the SE of Mt Carbine is intended to identify targets warranting drill testing in conjunction with ongoing resource definition programmes within the Mining Leases.

2

==> picture [55 x 63] intentionally omitted <==

Low Grade Stockpiles

Apart from the tailings (~2 million tonnes at 0.1% WO3), there are three low-grade stockpiles at the Mt Carbine Operations:

1. The low-grade, mineralisation waste stockpile from the historical open pit mining, which contains approximately 12 million tonnes (based on historical mine records) with an estimated grade based on bulk sampling by Icon of 0.07% WO3;

2. The reject stockpile (Optical Ore Sorter Rejects), which contains approximately 6 million tonnes, rejected by the optical ore sorter in the previous mining operation with an estimated grade based on bulk sampling by Icon of 0.059% WO3; and

3. The Run of Mine Ore (ROM), approximately 30,000 tonnes, which originated from the open pit and was left on the ROM pad, by the previous operators, after production ceased in 1986.

Bulk sampling of the Optical Ore Sorter Rejects and the ROM Ore stockpiles, by Icon was completed in December 2010, with the resulting 1,000 tonne samples being crushed to -100mm, -80+50mm, -50+20mm, -20+10mm and -10mm size fractions. The minus 10mm product will not be sorted but will be processed when the processing plant is in operation.

==> picture [468 x 313] intentionally omitted <==

Low-Grade Stockpiles at Mt Carbine

3

==> picture [55 x 63] intentionally omitted <==

Pre-concentration Metallurgical Testwork

Icon has completed the Ore Sorter Testwork using the Applied Sorting Technologies second generation X-ray ore sorting test machine at Mt Carbine. The testwork results are shown in the table below, for the Mineralised Waste Stockpile, Optical Ore Sorter Rejects and ROM Stockpiles.

	Mineralised Waste Stockpile	Optical Ore Sorter Rejects	ROM Stockpile (Preliminary Testwork)
Feed Grade (WO3%)	0.09	0.050	0.12
Rejects Grade (WO3%)	0.01	0.008	0.01
Accepts Grade (WO3%)	0.70	0.180	0.33
Upgrade Ratio	7.7 : 1	3.6 : 1	2.8 : 1
WO3Recovery	90%	89%	93%
Mass Rejection	88%	74%	67%

==> picture [447 x 298] intentionally omitted <==

Applied Sorting Technologies X-Ray Ore Sorter

The results above are highly significant because in the mineralised waste stockpile alone there is a historical estimate of 12 million tonnes of mineralised rock. The economics of re-treating this stockpile is enhanced by the fact that the rock has already been mined and only needs crushing before being fed to the ore sorters. The mass rejection is 88% and this results in considerable capital cost reduction when constructing the processing plant. Icon is very encouraged by the excellent results of the ore sorter trials (previous Stock Exchange release 23 March 2011).

4

==> picture [55 x 63] intentionally omitted <==

Tailings Retreatment Project

Metallurgical testwork on a bulk sample from the tailings was completed, and the final flow sheet design received (see ASX announcement 10 May 2011). The tests confirmed that tungsten concentrates can be made from a simple gravity plant with centrifuges being used to beneficiate the tungsten in the -200+10µm material. A letter of intent to buy a second-hand, modular relocatable processing plant was accepted by the vendors subject to finance and a mechanical engineering condition report (part of the plant has just been reconditioned, but the whole plant was fully reconditioned 2.5 years ago and switched off 18 months ago).

==> picture [414 x 313] intentionally omitted <==

Mt Carbine Tailings – the largest particle size is 8mm

Icon’s Mineral Exploration Portfolio

Icon is rationalising its portfolio of mineral exploration projects to focus on becoming a tungsten producer at Mt Carbine.

Gossan Hill Gold Limited

Icon is sponsoring a new, gold-focused IPO, Gossan Hill Gold Limited (Proposed ASX Code: GOS).

5

==> picture [55 x 63] intentionally omitted <==

Icon, Bright Star Resources Limited (ASX Code: BUT) and Robust Operations Pty Ltd (a subsidiary of Robust Resources Limited (ASX Code: ROL)) have entered into agreements to vend gold prospects to GOS, subject to certain conditions, in return for equity in GOS. It is anticipated that Icon will be the largest shareholder in GOS, with approximately 25% of the shares after the proposed capital raising and listing on ASX. Icon’s Board has resolved that its shareholding in GOS will be returned to Icon shareholders as an in-specie distribution, when the shares are out of ASX-imposed escrow.

GOS has applied for three new exploration licences; two on the Peel Fault and one surrounding EL 6414. The Board of Directors of GOS is made up of Executive Chairman Dr Andrew White (Director of Icon), Director and Company Secretary Mr Robert Waring (Company Secretary for Icon) and Director Dr Leon Pretorius (Chairman of Icon). A draft Prospectus is nearing completion, and seed funding is in place to facilitate the IPO. A summary of the GOS projects is available on the website: www.gossanhillgold.com.au.

Constance Range Iron Ore Alliance EPM 14589

Icon has joined the Constance Range Iron Ore Alliance, which includes Icon, Viento Group Ltd (ASX: VIE), Resolve Geo Pty Ltd and AMMG Ltd (ASX: AKA). Jointly, these Alliance members’ tenement holdings contain 92km outcrop strike length of the prospective iron ore formation – the Late Proterozoic Train Range Member.

The aim of the Alliance is to carry out investigations to confirm that the Constance Range iron ore mineralisation is of commercial significance, including confirmation that low-temperature calcination of the iron mineralisation produces high-grade magnetite ore, and that near-surface enrichment has resulted in the upgrade of some mineralisation to direct shipping grade.

Alliance members’ meetings have commenced, with future strategic development discussions in Brisbane and site reconnaissance planned for the September quarter. The Alliance plans to finalise vendor equity considerations, and discuss potential IPO and capital raising sizes, and other pertinent business matters, at the upcoming discussions.

The Constance Range historical iron ore deposits are located in the northwest of Queensland, close to the Northern Territory border. They form part of a regional iron formation within the South Nicholson Basin and have the potential to become a significant iron ore province.

Greenfields Exploration Tenements

Icon is continuing negotiations to introduce other parties to joint venture all its other non-tungsten and non-tin tenement holdings.

6

==> picture [55 x 63] intentionally omitted <==

Corporate

It is proposed to change Icon’s name to “Carbine Tungsten Limited”, subject to shareholder approval at the upcoming AGM, to reflect the Company’s focus on tungsten production and development.

Ian Sheffield-Parker Managing Director

Information in this report that relates to Exploration Results is based on information compiled by Darcy Milburn, who is a member of the Australasian Institute of Mining and Metallurgy. Darcy Milburn was a full-time employee of Icon during the quarter, 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”. Darcy Milburn consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

7

==> picture [53 x 63] intentionally omitted <==

Icon at a Glance

Directors

Dr Leon Pretorius, Chairman Mr Ian Sheffield-Parker, Managing Director Dr Andrew White, Director

Cash Balance

At 30 June 2011 Icon’s cash balance was approximately $375,000. Icon raised a further $4,492,000 through a Rights Issue which was finalised on 20 July 2011.

Company Secretary

Mr Robert Waring

Registered Office

Suite 505, Level 5, 35 Lime Street Sydney, NSW 2000 Australia Ph: +612 9279 1252 Fax: +612 9279 2727 Email: info@iconresources.com.au

Number of Shareholders

At 21 July 2011 Icon had 1,013 shareholders.

Major Shareholders

The share register records the following as major shareholders at 21 July 2011 accounting for 35.87% of the issued shares:

35.87% of the issued shares:
Shareholder L Pretorius S Bartrop and associates	% 13.07 4.46
A White and associates J Bishop and associates Neil K Watson & Margaret H Moroney David Hanks	2.71 2.67 2.34 2.26
Baglora Pty Ltd Neil Watson & Margaret Moroney	2.24 2.15
Fallon Nominees Pty Ltd Family> Nicholson Super P/L <Nicholson	2.00 1.97
Family S/F>

Issued Capital

At 26 July 2011 Icon’s issued capital was 179,067,822 ordinary shares, and 4,560,870 unlisted options exercisable between 14.5 and 44.5 cents.

Shareholder Enquiries

Matters relating to shares held and changes of address should be directed to the share registry: Computershare Investor Services Pty Ltd Yarra Falls, 452 Johnston Street Abbotsford Victoria 3067 Ph: 1300 850 505 Overseas callers: +613 9415 4000 Fax: +613 9473 2500

To receive Icon’s announcements by email, 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 Ian Sheffield-Parker on 0409 989 960

ASX Listing Code

The Company’s ASX listing code is III