EQ RESOURCES LIMITED — Regulatory Filings 2007

Mar 22, 2007

23 March 2007

ASX Announcement

NSW & Tasmanian Exploration Update Exploration Manager Appointed: Drilling Commenced at Grieves & Scheduled for Tara in Early April: Drilling at Grenfell. Hiawatha & Weabonga to follow.

Icon Resources' Board of Directors would like to provide shareholders with the following update on its NSW and Tasmanian exploration activities.

Exploration Manager Appointed

The Board is pleased to announce the appointment of Mr Darcy Milburn as Exploration Manager, with effect from February 12, 2007.

Darcy has more than 20 years experience in mineral exploration and resource development, having previously served as Chief Geologist for Queensland Metals Corporation and worked as an independent resource consultant and most recently in marketing and business development roles.

He has extensive experience in gold and base metals exploration and the evaluation and development of industrial minerals projects, which will complement the experience of the lcon management team.

Grieves Zinc Project, Tasmania (III 100%)

A two-fold program has commenced at Grieves: (a) diamond drilling to further investigate the mineralisation at depth and (b) sampling to upgrade and increase the zinc-in-peat resource. Metallurgical testwork for processing the zinc-in-peat is also ongoing with further encouragement. The company is awaiting assays and will provide more detail in its March Ouarterly report, expected to be released later in April.

Deeper Drilling at Grieves Targeting Sulphide/Oxide Zinc Mineralisation

Four diamond holes have been completed for a total of 722m. The first, IPD001 with a total depth of 315m, was designed to test depth extensions of the footwall mineralisation and whether the mineralisation at this depth was oxide or primary sulphide ore. The drilling in fact intersected oxide mineralisation before intersecting the underlying Moina Sandstone. While assays are still awaited, this intersection is approximately 150m down-dip from the previous deepest intersection.

Given the difficult drilling conditions and the persistence of oxide mineralisation at this depth, it was decided to postpone the drilling of a second deep hole which was designed to test the 'middle zone' of mineralisation. Icon is planning an extensive geophysical IP survey over the Professor Range tenements later in the year to identify other areas of potential sulphide mineralisation. Further drilling targeting sulphide mineralisation is likely after the completion of this survey and will combine further exploration of sulphide ore at Grieves itself...

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

Three more holes were drilled to firm up areas of zinc 'oxide' mineralisation near the Grieves Fault and Icon will continue to work towards an estimation of a JORC compliant zinc oxide resource. It should be noted that the zinc oxides are difficult to recognise visually and all potentially mineralised sections are being sampled and sent for assay at the completion of the program.

Grieves Zinc in Peat Project

A sampling program to increase the current resource and provide additional mineralised samples is progressing. Initial sampling using a long-arm excavator was found to be unsatisfactory and sampling will now commence with an auger in the last week of March.

Grieves Zinc in Peat Metallurgy

Icon are employing two metallurgical firms to investigate processing of the Grieves zinc in peat. Tasmanian-based Ka Pty Ltd has been pursuing a pyro-approach while Queensland-based Kaotech Pty Ltd has been using a chemical and mechanical attrition approach. These tests have demonstrated that the material readily dissolves in acid and that it can be fumed.

Icon's metallurgical consultant, Nick Moony, has reported that a combination of Kaotech Pty Ltd's process with conventional flotation may provide the most economical processing route. Icon is preparing attritioned samples for flotation testing at a recognised laboratory which is expected to take 4 to 6 weeks..

Icon is also seeking to commission the construction of a bench-scale 'plant' to test the zinc in peat through the complete process.

Tara, NSW (III 100%)

Tara is emerging as a significant tin exploration project. There are a number of exciting tin intersections that have been drilled at Tara; both in historical drilling (some of which has only recently been assayed by Icon) and in Icon's recent scout drilling. The results indicate that tin occurs within the overburden and at the base of the overburden as well as within the basement. Hence there are two key tin projects; testing for alluvial tin within the overburden and testing for primary tin mineralisation in the bedrock.

Icon's first priority is to sample the alluvial channels since the mining of a shallow, easily treated alluvial deposit can be very profitable. However, sampling of the unconsolidated sands is difficult and two drill holes collared in mid-March failed to penetrate the overburden to an adequate depth. A larger rig is scheduled to arrive early April and recommence the drilling program.

A trial resistivity has also been carried out to define the alluvial channels and the basement topography. Two lines were surveyed intersecting at drillhole T3. Figure 1 shows a perspective view of the two sections. The results have demonstrated that the technique is effective and further surveys are planned.

Figure 1. Perspective view of two resistivity sections at Tara showing a series of near-surface resistive (warmer colours) channels above less resistive clays and weathered basement all overlying fresh resistive basement at $\sim$ 75m below the surface. Each line is approximately 1400m long. Drilling designed to test the base of the channels for alluvial tin is scheduled to start in early April. Part of this program will also test for primary tin within the basement. Further geophysical surveys are planned to extend the definition of the channels and basement topography.

Grenfell South, NSW (III 100%)

The 3D IP survey recently carried out for Icon has defined zones of sulphide mineralisation at the eastern and western edges of the old gold workings (see December '06 quarterly). Icon has recently conducted a soil sampling program using the company's portable XRF to better define drill targets in these two zones.

At the western end, the survey has outlined anomalous zinc, lead and arsenic in a zone trending SE across the IP anomaly. The data from the eastern end are still being processed, but again it seems that elevated base metals occur in the vicinity of the extensive old workings. These results will be presented in more detail in the March Quarterly report.

Drilling at Grenfell South is scheduled to immediately follow the Tara drilling program.

Hiawatha, NSW (III 100%)

A 3D IP survey has been recently completed and some preliminary results received which indicate at least one area of elevated chargeabilities. Icon is planning a soil sampling program with the portable XRF to further define the areas of interest.

Drilling is scheduled to commence at the completion of the Grenfell South drilling program.

Weabonga, NSW (III 100%)

Several zones of interest have been defined by a recent 3D IP survey and these will be followed up by a soil sampling program using the portable XRF to further refine targets.

Drilling is scheduled to commence after the completion of the Hiawatha drilling program.

For further information, contact John Bishop, Managing Director 02 9279 1252 or 0418 373 429 Digital copies of this and other reports are available on our website www.iconresources.com.au. To receive email copies of future releases, subscribe by email to info@iconresources.com.au