EQ RESOURCES LIMITED — Interim / Quarterly Report 2011

Mar 13, 2011

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ABN 77 115 009 106

Half-Year Financial Report

31 DECEMBER 2010

CORPORATE DIRECTORY

ICON RESOURCES LTD

ABN 77 115 009 106

DIRECTORS

Leon Pretorius Ian Sheffield-Parker Andrew White

SECRETARY

Robert Waring

REGISTERED AND PRINCIPAL OFFICE

Suite 505, 35 Lime Street Sydney, NSW 2000 Telephone: +61 2 9279 1252 Facsimile: +61 2 9279 2727 E-mail: info@iconresources.com.au Website: www.iconresources.com.au

SHARE REGISTRY

Computershare Investor Services Pty Ltd Level 2, 45 St George Terrace Perth, WA 6000 Telephone: 1300 557 010

AUDITORS

Barnes Dowell James

BANKERS

Commonwealth Bank of Australia

STOCK EXCHANGE LISTING

Listed on Australian Stock Exchange Limited ASX Code: III

CONTENTS

Directors' Report ................................................................ 1 Auditor’s Independence Declaration .................................. 3 Consolidated Statement of Comprehensive Income ......... 4 Consolidated Statement of Financial Position ................... 5 Consolidated Statement of Cash Flows ............................. 6 Consolidated Statement of Changes in Equity .................. 7 Notes to the Half-Year Financial Statements ..................... 8 Directors’ Declaration ....................................................... 11 Independent Auditors Review Report .............................. 12

ICON RESOURCES LTD

DIRECTORS' REPORT

Your directors submit their report for the half-year ended 31 December 2010.

DIRECTORS

There were two changes in directors during the period of the report. The names of the Company’s directors in office during the half-year and at the date of this report are as below.

Dr Leon E Pretorius (Chairman)

Ian S Sheffield-Parker (Managing Director) – Appointed 1 January 2011

Dr Andrew H White (Chairman)

Dr John R Bishop (Managing Director) – Resigned 31 December 2010

Stephen B Bartrop (Non-executive Director) – Resigned 16 September 2010

REVIEW AND RESULTS OF OPERATIONS

The net result of operations after applicable income tax expense for the half-year was a profit of $1,287,521 (2009 – loss $465,751).

Operational Review

During the period under review, Icon continued to progress the re-development of the Mt Carbine Tungsten Project in North Queensland and commenced the rationalisation of mineral exploration interests throughout Eastern Australia as outlined below.

Mineral Development and Activity Highlights for the six-months ending December 2010.

Mt Carbine

A maiden JORC Inferred Resource estimate of 39.8 Mt at 0.14% WO3 at a 0.05% WO3 cutoff was completed based on grade validation of historical drilling and a 5000m program of core drilling adjacent to and beneath the existing open cut (refer 15[th] October 2010 ASX release for resource estimation methodology). Further evaluation of this resource and exploration for extensions to the known mineralization will proceed in parallel with the accelerated development of tailings and mineralized waste tungsten resources.

Metallurgical test work completed on the Mt Carbine #4 tailings dam resource has demonstrated that an acceptable mixed wolframite and scheelite concentrate is easily achievable using a simple gravity circuit. Additional work on flowsheet design is nearing completion, ahead of planned construction of the tailings retreatment plant in mid-2011.

On site ore sorter testwork completed on large tonnage bulk samples from low-grade mineralized stockpiles was completed with very encouraging results. Icon now regards the low grade mineralised waste (est ~12 million tonnes) from the previous open pit mining operation as a viable source of feed for a treatment plant. Re-treatment of the stockpile allowing for at least 4 to 5 years production at a rate of around 100 tonnes WO3 concentrate per month is to be confirmed by final feasibility studies to be carried out in 2011.

Exploration Portfolio

• Icon's copper-zinc prospects in Queensland were successfully spun out to Fitzroy Resources Ltd (listed in early December with Icon retaining approximately 20%). Refer to Note 4.

• Icon's NSW gold prospects are being vended into a new company, Gossan Hill Gold Ltd, with the intent of raising fresh capital in an IPO during 2011.

• Joint Venture partners are actively being sought for the remaining Icon prospect s

ICON RESOURCES LTD

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DIRECTORS' REPORT (continued)

FINANCIAL

The Company’s cash position as at 31 December 2010 was $1,072,268.

SUBSEQUENT EVENTS

The directors are not aware of any significant changes in the state of affairs of the Company occurring since the end of the half-year.

AUDITOR’S INDEPENDENCE DECLARATION

The auditor’s independence declaration as required under Section 307C of the Corporations Act 2001 is attached to this report.

Signed at Sydney this 14[th] day of March 2011 in accordance with a resolution of the directors.

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DR L E PRETORIUS Chairman

ICON RESOURCES LTD

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B A R N E S D O W E L L J A M E S

CHARTERED ACCOUNTANTS

AJD:RC

11 February, 2011

The Board of Directors Icon Resources Ltd Suite 505 35 Lime Street SYDNEY NSW 2000

Partners North Sydney C H Barnes FCA Level 13, 122 Arthur St A J Dowell CA North Sydney NSW 2060 B Kolevski (Affiliate ICAA) M Galouzis CA Manly Level 5, 22 Central Ave Associate Manly National Building M A Nakkan CA Manly NSW 2095 Correspondence PO Box 1664 North Sydney NSW 2059

Associate M A Nakkan CA

Telephone (02) 9956 8500 Facsimile (02) 9929 7428 Email: bdj@bdj.com.au

Dear Board of Directors,

ICON RESOURCES LTD

We declare that to the best of our knowledge and belief, during the half year ended 31 December 2010 there have been:

• i. No contraventions of auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit, and

• ii. No contraventions of any applicable code of professional conduct in relation to the audit.

Yours faithfully, BARNES DOWELL JAMES

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........................................ Anthony Dowell Partner

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Liability limited by a scheme approved under Professional Standards Legislation Please refer to the website for our standard terms of engagement

Website: www.bdj.com.au

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Half-year ended 31 December 2010

Note REVENUE FROM ORDINARY ACTIVITIES 2 Gain on Tenement sale Administration expenses Audit services Consultant expenses Depreciation expense Employee benefits expense Share based payments – options issued Exploration expenditure written-off 5 Legal fees Office rentals Other expenses from ordinary activities PROFIT (LOSS) FROM ORDINARY ACTIVITIES BEFORE INCOME TAX EXPENSE INCOME TAX EXPENSE RELATING TO ORDINARY ACTIVITIES PROFIT (LOSS) FROM ORDINARY ACTIVITIES AFTER INCOME TAX EXPENSE NET PROFIT (LOSS) ATTRIBUTABLE TO MEMBERS OF ICON RESOURCES LTD Basic profit (loss) per share (cents per share) Diluted profit (loss) per share (cents per share)	31 Dec 2010 $ 65,068 1,632,733 (169,401) (6,500) (35,373) (11,452) (127,435) - (11,738) - (22,173) (26,208) 1,287,521 - 1,287,521 1,287,521 0.01 0.01	31 Dec 2009 $ 7,238 (111,129) (8,000) (47,401) (13,125) (128,089) (120,205) - (2,800) (21,616) (20,624)
		(465,751) -
		(465,751)
		(465,751)
		(0.01) (0.01)

ICON RESOURCES LTD

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

at 31 December 2010

Note CURRENT ASSETS Cash and cash equivalents Receivables 3 Prepayments TOTAL CURRENT ASSETS NON-CURRENT ASSETS Tenement and other security deposits Plant and equipment Investments 4 Deferred exploration and evaluation expenditure 5 TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Payables TOTAL CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 6 Reserves Accumulated losses Non-controlling interest TOTAL EQUITY	31 Dec 2010 $ 1,072,268 106,167 - 1,178,435 154,808 107,029 2,491,500 5,185,369 7,938,706 9,117,141 274,639 274,639 274,639 8,842,502 13,324,204 779,049 (5,260,756) 5 8,842,502	30 Jun 10 $ 26,706 295,450 19,948
		342,104
		162,808 111,001 - 4,935,709
		5,209,518
		5,551,622
		380,253
		380,253
		380,253
		5,171,369
		11,165,592 554,049 (6,548,277) 5
		5,171,369

ICON RESOURCES LTD

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CONSOLIDATED STATEMENT OF CASH FLOWS

Half-year ended 31 December 2010

CASH FLOWS FROM OPERATING ACTIVITIES Payment to suppliers and employees Other income Interest received NET CASH FLOWS (USED IN) OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of plant and equipment Expenditure on mining interests (exploration) Tenement security deposits NET CASH FLOWS (USED IN) INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Loans received/repaid Proceeds from issue of shares Equity raising expenses NET CASH FLOWS FROM FINANCING ACTIVITIES NET INCREASE (DECREASE) IN CASH HELD Add opening cash brought forward CLOSING CASH CARRIED FORWARD	31 Dec 2010 $ (259,853) 112,410 9,036 (138,407) (7,480) (895,164) 8,000 (894,644) (80,000) 2,253,750 (95,138) 2,078,612 1,045,561 26,706 1,072,267	31 Dec 2009 $ (447,607) 3,140 2,739
		(441,728)
		- (437,549) 10,000
		(427,549)
		- 1,473,893 (26,173)
		1,447,720
		578,443 223,858
		802,301

ICON RESOURCES LTD

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Half-year ended 31 December 2010

CONSOLIDATED AT 1 JULY 2009 Loss for the period Issue of share capital Share based payments reserve Non-controlling interest (Minority interest) AT 31 DECEMBER 2009 AT 1 JANUARY 2010 Loss for the period Issue of share capital Share based payments reserve Non-controlling interest (Minority interest) AT 30 JUNE 2010 AT 1 JULY 2010 Gain (Loss) for the period Issue of share capital Asset Revaluation reserve Share based payments reserve Non-controlling interest (Minority interest) AT 31 DECEMBER 2010	Attributable to the shareholders of Icon Resources Ltd
	Issued Capital $ Accumulated Losses $ Reserves $ Non- controlling interest $ Total Equity $ 8,783,640 (4,941,153) 433,844 5 4,276,336 - (465,751) - - (465,751) 1,447,720 - - - 1,447,720 - - 120,205 - 120,205 - - - - -
	10,231,360 (5,406,904) 554,049 5 5,378,510
	10,231,360 (5,406,904) 554,049 5 5,378,510 - (1,141,373) - - (1,141,373) 934,232 - - - 934,232 - - - - - - - - - -
	11,165,592 (6,548,277) 554,049 5 5,171,369
	11,165,592 (6,548,277) 554,049 5 5,171,369 - 1,287,521 - - 1,287,521 2,158,612 - - - 2,158,612 225,000 225,000 - - - - - - - - - -
	13,324,204 (5,260,756) 779,049 5 8,842,502

ICON RESOURCES LTD

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NOTES TO THE HALF-YEAR FINANCIAL STATEMENTS

1. BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT

The half-year financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the Company as the full financial report.

The half-year financial report should be read in conjunction with the annual financial report of Icon Resources Ltd as at 30 June 2010.

It is also recommended that the half-year financial report be considered together with any public announcements made by Icon Resources Ltd during the half-year ended 31 December 2010 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001.

(a) Statement of Compliance

The half-year financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, applicable Accounting Standards including AASB 134 “Interim Financial Reporting” and other mandatory professional reporting requirements.

The half-year financial report has been prepared on a historical cost basis and available-for-sale financial assets that have been measured at fair value.

For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting period.

The half-year financial report complies with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards ('AIFRS'). Compliance with AIFRS ensures that the half-year financial report, comprising the financial statements and notes thereto, complies with International Financial Reporting Standards ('IFRS').

(b) Basis of consolidation

The consolidated financial statements comprise the financial statements of Icon Resources Ltd (Icon or the “Company”) and its subsidiaries (“the Group”) as at 31 December each year.

The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.

Adjustments are made to bring into line any dissimilar accounting policies that may exist.

All inter-company balances and transactions, including unrealised profits arising from intra-group transactions, have been eliminated in full.

Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred out of the Group.

(c) Significant Accounting Policies

The half-year financial statements have been prepared using the same accounting policies as used in the annual financial statements for the year ended 30 June 2010.

2. REVENUE FROM ORDINARY ACTIVITIES

2. REVENUE FROM ORDINARY ACTIVITIES
Interest received – other persons/corporations Other income Gain on Tenement sale	31 December 10		31 December 09
	$ 9,037 56,031 1,632,733 1,697,801		$ 4,098 3,140 -
			7,238

ICON RESOURCES LTD

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NOTES TO THE HALF-YEAR FINANCIAL STATEMENTS

3. RECEIVABLES - CURRENT

3. RECEIVABLES - CURRENT
Cash on hand Interest receivable Refund for GST paid Other 4. NON-CURRENT ASSETS Investments Brought forward Value of shares received from sale of tenements during the period Value of options received from sale of tenements during the period Revaluation of shares as at 31 December 2010 Value carried forward	31 December 10		30 June 10
	$ - 5,733 39,769 60,665 106,167 - 1,500,000 766,500 225,000 2,491,500		$ 29 8 95,127 200,286
			295,450
			- - -
			-

On 6 December 2010 Fitzroy Resources Ltd completed a Purchase and Sale Agreement to acquire tenements in Queensland and in consideration issued Icon with 7,500,000 ordinary shares (escrowed for two years) and 5,000,000 Options with an exercise price of $0.30 and an expiry date of 6 December 2013 (also escrowed for two years).

5. NON-CURRENT ASSETS

Deferred exploration and evaluation expenditure

Costs brought forward Costs incurred during the period Expenditure recovery on sale of tenements Expenditure written off during the period Costs carried forward	31 December 10 $ 4,935,709 895,164 (633,766) (11,738) 5,185,369	30 June 10 $ 4,012,465 1,866,530 (943,286)
		4,935,709

6. ISSUED CAPITAL

		Number of	Issue
(a) Movements in ordinary share capital	Date	shares	price	$
1 January 2010 brought forward		85,871,546		10,257,533
Share issue costs for share placement 17 Nov 09				(26,174)
Shares issued under a placement	19-02-10	6,069,441	$0.09	546,249
Shares issued under a Share Purchase Plan	11-06-10	5,682,011	$0.075	426,150
Share issue costs				(38,166)
Balance as at 30 June 2010		97,622,998		11,165,592

ICON RESOURCES LTD

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NOTES TO THE HALF-YEAR FINANCIAL STATEMENTS

6. ISSUED CAPITAL (continued)

(a) Movements in ordinary share capital Date	Number of shares Issue price	$
1 July 2010 brought forward Shares issued under a placement 16-07-10 Shares issued under a placement 30-09-10 Shares issued under a placement 04-11-10 Share issue costs Balance as at 31 December 2010	97,622,998 6,000,000 $0.075 7,000,000 $0.075 8,500,000 $0.15 119,122,998	11,165,592 450,000 525,000 1,275,000 (91,388)
		13,324,204

7. ISSUED OPTIONS

Movements in Options Date	Number of Options Exercise price Maturity
(i) Unlisted Options
Options issued free pre listing IPO 03-03-06 Options issued free to John Richard Bishop 21-12-07 Options issued free under Company’s ESOP 18-01-08 Options issued free under Company’s ESOP 18-01-08 Options issued free under Company’s ESOP 26-06-09 Options issued free under Company’s ESOP 16-12-09 Options issued free under Company’s ESOP 16-12-09 Options issued under share placement 22-01-10 Options issued under share placement 19-02-10 Balance as at 31 December 2010	1,200,000 $0.30 08-03-2011 500,000 $0.45 30-11-2012 760,870 $0.45 30-11-2012 400,000 $0.30 30-11-2012 1,500,000 $0.35 30-11-2013 450,000 $0.15 17-11-2014 950,000 $0.20 17-11-2014 11,180,570 $0.15 30-06-2011 6,069,441 $0.15 30-06-2011 **23,010,881 **

8. CONTINGENT ASSETS AND LIABILITIES

The Group has provided guarantees totaling $154,808 ($147,808 in respect of mining tenements and $7,000 for other). These guarantees in respect of mining tenements are secured against deposits with the relative State Department of Mines. The Company does not expect to incur any material liability in respect of the guarantees.

9. SEGMENT INFORMATION

The Company operates predominantly in the one business segment and in one geographical area, namely Australian mineral exploration and evaluation.

Under the guidelines provided by AASB 8 “Operating Segments”, Icon was not required to undertake segment reporting as at 30 June 2010, and has not done so in this interim report for the six months to 31 December 2010, although it is likely that compliance with the standard will require segment reporting to be undertaken in the next annual report.

10. SUBSEQUENT EVENTS

No event has occurred subsequent to 31 December 2010 requiring disclosure in, or amendment to, these financial statements.

ICON RESOURCES LTD

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DIRECTORS’ DECLARATION

In accordance with a resolution of the directors of Icon Resources Ltd, I state that:

In the opinion of the directors:

• a) the financial statements and notes of the Company:

• i) give a true and fair view of the Company’s financial position as at 31 December 2010 and the performance for the half-year ended on that date; and

• ii) comply with Accounting Standard AASB 134 “Interim Financial Reporting” and the Corporations Regulations 2001; and

• b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

On behalf of the Board

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DR L E PRETORIUS Chairman of Directors

Sydney, 14 March 2011

ICON RESOURCES LTD

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B A R N E S D O W E L L J A M E S

CHARTERED ACCOUNTANTS

Partners North Sydney C H Barnes FCA Level 13, 122 Arthur St A J Dowell CA North Sydney NSW 2060 B Kolevski (Affiliate ICAA) M Galouzis CA Manly Level 5, 22 Central Ave Associate Manly National Building M A Nakkan CA Manly NSW 2095 Correspondence PO Box 1664 North Sydney NSW 2059

Associate M A Nakkan CA

Telephone (02) 9956 8500 Facsimile (02) 9929 7428 Email: bdj@bdj.com.au

INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of Icon Resources Ltd.

Report on the Half‐Year Financial Report

We have reviewed the accompanying half‐year financial report of Icon Resources Ltd, which comprises the consolidated statement of financial position as at 31 December 2010, and the consolidated statement of comprehensive income, statement of changes in equity and consolidated cash flow statement for the half‐year ended on that date, other selected explanatory notes and the directors’ declaration.

Directors’ Responsibility for the Half‐Year Financial Report

The directors of the company are responsible for the preparation and fair presentation of the half‐year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001 . This responsibility includes designing. Implementing maintaining internal controls relevant to the preparation and fair presentation of the half‐year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility

Our responsibility is to express a conclusion on the half‐year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the company’s financial position as at 31 December, 2010 and its performance for the half‐year ended on that date; and complying with Accounting Standard AASB 134.

Interim Financial Reporting and the Corporations Regulations 2001 .

As the auditor of Icon Resources Ltd, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

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Website: www.bdj.com.au

Liability limited by a scheme approved under Professional Standards Legislation

B A R N E S D O W E L L J A M E S

CHARTERED ACCOUNTANTS

A review of a half‐year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations Act 2001, provided to the directors of Icon Resources Ltd on 11 February, 2011, would be in the same terms if provided to the directors as at the date of this auditor’s review report.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half‐year financial report of Icon Resources Ltd is not in accordance with the Corporations Act 2001 including:

• a) giving a true and fair view of the company’s financial position as at 31 December, 2010 and of its performance for the half‐year ended on that date; and

• b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

BARNES DOWELL JAMES Chartered Accountants

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…...............……............. Anthony J Dowell Partner

14 March, 2011

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Liability limited by a scheme approved under Professional Standards Legislation

Website: www.bdj.com.au

ICON RESOURCES LTD

ABN 77 115 009 106

ASX CODE: III

Suite 505, 35 Lime Street, Sydney, NSW, 2000, Australia Telephone: +61 2 9279 1252 Facsimile: +61 2 9279 2727 Email: info@iconresources.com.au Website: www.iconresources.com.au