TASMAN RESOURCES LTD — Annual Report 2003

Sep 29, 2003

TASMAN RESOURCES N.L.

(A.C.N. 009 253 187)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003

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TASMAN RESOURCES N.L. CORPORATE DIRECTORY

DIRECTORS:

Gregory H Solomon Douglas Howard Solomon Guy Touzeau Le Page

COMPANY SECRETARY:

Raymond F Buscall

REGISTERED OFFICE:

Level 40, Exchange Plaza 2 The Esplanade Perth WA 6000 Tel (08) 9221 5323 Fax (08) 9221 5955 Email: mailroom@tasmanresources.com.au Website: www.tasmanresources.com.au

SOLICITORS:

Solomon Brothers Level 40, Exchange Plaza 2 The Esplanade Perth WA 6000

Minter Ellison 1 King William Street Adelaide SA 5000

AUDITORS:

Hall Chadwick Chartered Accountants Level 40, Bank West Tower 108 St Georges Terrace Perth WA 6000

SHARE REGISTRY:

Advance Share Registry Services Level 7 200 Adelaide Terrace Perth WA 6000

STOCK EXCHANGE LISTING:

Quotation has been granted for all the ordinary shares of the company on all Member Exchanges of the Australian Stock Exchange Limited.

TASMAN RESOURCES N.L. DIRECTORS' REPORT

Your directors submit the financial accounts of the company for the period ended 30 June 2003.

DIRECTORS

The names of the directors in office at any time during or since the end of the year are.

Mr Gregory H Solomon	Mr Douglas H Solomon (appointed 3 April 2003)
Mr Guy T LePage	Mr William S Yeaman (resigned 3 April 2003)

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

The particulars of the qualifications and experience of each the current directors, are as follows:-

Gregory Howard Solomon LLB (Executive Chairman)

Mr Solomon is a solicitor with almost 30 years Australian and international experience in a wide range of areas including mining law, commercial negotiation (including numerous mining and exploration joint ventures) and corporate law. He is a senior partner in the Western Australian legal firm, Solomon Brothers and has held directorships of various public company since 1984 including two mining/exploration companies.

Douglas Howard Solomon, BJuris LLB (Hons) (Non-executive)

Mr Solomon is a Barrister and Solicitor with more than 20 years experience in the areas of mining, corporate, commercial and property law. He is a partner in the legal firm, Solomon Brothers.

Guy Touzeau Le Page, B.A., B.Sc. (Hons)., M.B.A., ASIA., MAusIMM (Non-Executive)

Mr Le Page is currently a corporate adviser at RM Capital Pty Ltd specialising in resources. He is actively involved in a range of corporate initiatives from mergers and acquisitions, initial public offerings to valuations, consulting and corporate advisory roles. Mr Le Page was Head of Research at Morgan Stockbroking Limited (Perth) prior to joining Tolhurst Noall as a Corporate Adviser in July of 1998. As Head of Research, Mr Le Page was responsible for the supervision of all Industrial and Resources research. As a Resources Analyst, Mr Le Page published detailed research on various mineral exploration and mining companies listed on the Australian Stock Exchange. The majority of this research involved valuations of both exploration and production assets.

Prior to entering the stockbroking industry he spent 10 years as an exploration and mining geologist in Australia, Canada and the United States. His experience spans gold and base metal exploration and mining geology and he has acted as a consultant to private and public companies. This professional experience included the production of both technical and valuation reports for resource companies.

Mr Le Page holds a Bachelor of Arts, a Bachelor of Science and a Masters Degree in Business Administration from the University of Adelaide, a Bachelor of Applied Science (Hons) from the Curtin University of Technology and a Graduate Diploma in Applied Finance and Investment from the Securities Institute of Australia.

PRINCIPAL ACTIVITY

The principal activity of the company during the financial year ended 30th June 2003 was mineral exploration. In particular, the company undertook an extensive exploration programme on numerous targets within the Lake Torrens Project Area, including a significant amount of geochemical sampling, numerous geophysical surveys (including gravity and electrical IP-resistivity surveys), percussion and core drilling programmes and ongoing reviews of previous exploration data.

REVIEW OF OPERATIONS

All of the company's exploration tenements and tenement applications are located in South Australia. The primary focus is the Lake Torrens Project that covers an area of 8777 km² (comprising eleven exploration licences and two exploration licence applications as at 16/9/03).

The project area encompasses most of the area from the northern end of Lake Torrens to the southern end of Lake Eyre South. The project area is also adjacent to WMC's Olympic Dam Mining Lease and surrounding exploration licence on its northern side. The Lake Torrens Project comprises the following tenements:

• EL 2988 (formerly EL 2339) $\bullet$
• EL 2989 (formerly EL 2340) ٠
• $\bullet$ EL 2594
• EL 2642
• EL 2733
• EL 2772
• EL 2832 EL 2835
• EL 3006
• EL 3007
• EL 3109
• $\bullet$ ELA 039/03 (formerly EL 2507)
• ELA 109/03 (formerly EL 2543)

All tenements are 100% beneficially held by the company.

Exploration Targets

The Lake Torrens Project area is a large under-explored area, adjoining one of the world's major iron oxide Cu-Au-U deposits (Olympic Dam). The area is traversed by major structural zones (including the Torrens Hinge Zone, Norwest Fault and the continental lineaments G2 and G9).

Almost all of the older, potentially mineralised lithologies within the project area are masked by younger sedimentary layers and sand dunes resulting in very little surface expression of potential orebodies. Tasman has taken a multi-commodity approach in its exploration program. The preferred commodities are base metals (especially copper, zinc and cobalt) and precious metals (gold, silver and platinoid elements).

The Lake Torrens Project is prospective for several types of economic precious and base metal deposits, including:

Within the Mesoproterozoic basement rocks the main exploration target is: Olympic Dam Type Cu-Au deposits.

Within the Adelaidean and Cambrian sediments, they include, in approximate order of importance: Sediment-hosted copper deposits, in particular of the Zambian Copperbelt style, or associated with brecciated diapiric structures;

SEDEX or Mt Isa type Zn-Pb-Ag deposits associated with pyritic, graphitic shales and dolomites. Mississippi Valley type ("MVT") lead-zinc-copper-silver mineralisation.

Structurally hosted gold deposits associated with large fault systems in the Adelaidean sediments. Disseminated sediment-hosted gold deposits with Carlin-type affinities.

Carbonate-hosted willemite (zinc silicate) mineralisation similar to the deposits at the Puttapa Mine.

REVIEW OF OPERATIONS (Cont'd)

Exploration Targets (Cont'd)

The majority of the tenements form one continuous block $(8452km^2)$ with a small area at the northern end of the Ediacara Mineral Field (325km²). Approval has been received from the South Australian Government to treat all of the tenements as one project area for the purpose of annual reporting, expenditure obligations and periodic relinquishment of portions of the tenement areas.

EXPLORATION RESULTS Summary

During the financial year, the company spent \$1.5 million on various exploration activities on the Lake Torrens Project Area, including:

Geophysical surveys:

Gravity surveys along the Marathon Trend, at Clara St Dora, at Shelf 6 and Amoco; and, Electrical surveys (IP and resistivity) along the Marathon Trend (at Watermans Plain M1, Saddle Hill M2, Plateau Hill M3, Opal Tank South M4 and Opal Tank West M5), at Clara St Dora, West Mount, Shelf 6, Amoco and at Titan.

Focussed soil geochemical sampling programmes for selective extraction analysis of mobile metal ions (using Amdel's Deepleach 11 digest) at the West Mount, Clara St Dora, Waterman's Plain and Saddle Hill prospects to assist drill target selection.

Modelling and interpretation of the geophysical data and preparation of enhanced and residual images of the gravity and magnetic data.

Mapping was completed at Clara St Dora and at West Mount.

Percussion and core drilling at Clara St Dora, Watermans Plain, Saddle Hill, Shelf 6 and Titan.

A more detailed discussion of the exploration activities and results for each area follow below

Detailed Exploration Results

Titan Prospect

The Titan Prospect is an iron oxide system with copper, gold and REE enrichment located 32km north of Olympic Dam. It was previously drilled by WMC in 1976 - drill holes BD1 and BD2. BD1 was extended by WMC in 1981. BD1 intersected 334m of mineralisation from a depth of 607m that averaged 0.1% Cu.

During the financial year, the company completed the following work at Titan:

Modelling of the gravity data by Resource Potentials using the UBC smooth model gravity inversion software. This work estimated the depth to the top of the shallowest gravity source to be $500m \pm 50m$ .

Comprehensive review and imaging of the available magnetic and gravity data.

IP/resistivity survey using 400m dipoles as an orientation survey. The technique worked very well and a second perpendicular line was completed. The IP data revealed a large (the 11mrad contours enclose a 1.8 by 2.2km area at 1km depth) strong IP feature.

Drilling of hole RC-DD03T1002 (T12) to 762m.

REVIEW OF OPERATIONS (Cont'd)

Exploration Results (Cont'd)

A vertical hole was drilled to test that part of the geophysical anomaly interpreted to have the shallowest cover (500 $m \pm 50m$ ) coincident with the interpreted extension of the IP anomaly within the gravity anomaly. Hole RC-DD03TI001 (TI1) reached 458.8m before drilling problems led its abandonment. Hole RC-DD03TI002 (TI2) was collared 20m away and drilled to 762.6m (the limit of the drill rig).

Hole TI2 reached Mesoproterozoic basement at 604.5m depth, the basement rocks comprise arkosic metarenites with an early pervasive 'red rock' alteration overprinted by weak to intense veining, vein networks and pervasive magnetite +haematite +chlorite ±pyrite ±chalcopyrite alteration.

Widespread copper, gold, uranium, cobalt and silver mineralisation is present in TI2. Better assay results from TI2 are listed in Table 1. Maximum results for these elements are 1.2% Cu, 0.2g/t Au, 0.1% Co and 12g/t Ag, all in 1m samples. The overall tenor of mineralisation in TI2 is generally similar to BD1, but peak values are greater.

However, alteration in TI2 appears to be stronger, with significant development of several different styles of haematite and chlorite ±sericite. Narrow matrix-supported haematite breccias occur in the lower portions of the hole together with feldspar-phyric dykes.

From	To	Int.	Cu	Αu	Ag	Co	U
(m)		(m)	%	ppb	g/t	ppm	kg/t
604	758	154	0.08	0.017	0.50	80	0.040
including
604	618	14	0.09	0.019	0.34	50	0.017
620	644	24	0.10	0.014	0.38	58	0.039
652	682	30	0.15	0.028	0.43	155	0.027
including
653	656	3	0.51	0.095	0.77	175	0.031
664	668	4	0.18	0.024	0.63	399	0.049
687	695	8	0.08	0.018	0.40	82	0.030
707	720	13	0.08	0.019	0.58	83	0.008
733	747	14	0.06	0.020	1.29	58	0.037
753	758	5	0.07	0.011	0.18	55	0.028

Table 1: Selected TI2 Assay Results

Tasman Resources considers there to be encouraging signs that geological processes similar to those that operated at Olympic Dam have taken place at Titan, and that the potential for major copper-gold mineralisation warrants further drill testing.

REVIEW OF OPERATIONS (Cont'd) Exploration Results (Cont'd)

Marathon Trend

Review and reprocessing of public domain geophysical data identified an elongate gravity high 42km north-northeast of Olympic Dam. This feature was named the Marathon Trend by Tasman Resources.

During the financial year, the company undertook collection of 400m-spaced gravity stations. This work revealed a number of discrete gravity anomalies along the Marathon Trend: M1 (Watermans Plain), M2 (Saddle Hill), M3 (Plateau Hill), M4 (Opal Tank South) and M5 (Opal Tank West). Modelling of the gravity data by Resource Potentials using UBC smooth model inversion software confirmed the presence of the denser bodies along the trend and indicated that the depths to the tops of the bodies were in the order of 400-600m.

Following identification of these gravity features, the company initiated a series of electrical surveys measuring the IP chargeability and resistivity responses over the gravity sources. The aim of this work was to directly identify either disseminated sulphides or iron oxides associated with ODT systems. Following the identification of a strong chargeability response at Saddle Hill, electrical surveys were conducted at each of the prospects along the Marathon Trend. Strong chargeability responses were located at Waterman's Plain, Saddle Hill and Amoco.

Detailed infill gravity data (100m and 200m station spacing) was collected over the prospects to resolve better the causative bodies. This infill data revealed numerous short wavelength anomalies at each of the Marathon prospects particularly in the residual or filtered gravity images. Given the actual or interpreted presence of the Andamooka Limestone over most of these areas, the short wavelength gravity anomalies were interpreted as being possibly due to MVT-style mineralisation given their association with the strong IP results.

Waterman's Plain (M1)

Waterman's Plain is located approximately 30 km northeast of Olympic Dam and comprises a zone (6km by 2.5km) of complex gravity and magnetic anomalism with associated near surface (less than 200m) chargeability anomalies.

Soil samples were collected along the IP lines to assist in definition of drill targets. Results were erratic, though a number of copper anomalies were revealed that supported the geophysical targets.

A total of thirteen scout holes were drilled testing various targets at Waterman's Plain. Eight drill holes targeted the IP anomalies associated with residual gravity highs.

At Waterman's, concentrations of iron sulphides were found to be the likely cause of the IP anomalies, with an altered zone 5m-10m thick at the base of the Andamooka Limestone showing elevated zinc, lead ±Cu ±Co.

During the exploration at Waterman's Plain, an old shaft with copper mineralized mullock scattered around it was located. The old workings were not previously known or recorded in published material.

REVIEW OF OPERATIONS (Cont'd)

Exploration Results (Cont'd)

Assays of grab samples of gossanous mineralised rock selected from the mullock heap gave results of up to 40% Cu and 28.4ppm Ag with elevated Co (210ppm max). Mineragraphic examination of the mineralised rock from identified a mixture of goethite and atacamite (basic copper chloride, 59% Cu) with about 20% copper sulphides. The sulphides comprise principally chalcocite (80% Cu) together with subordinate digenite (78% Cu) and covellite (66% Cu). The atacamite is pervasive, permeating the goethite and forming monomineralic zones. Primary gossan textures were evident in the samples, suggesting weathering and supergene enrichment of primary mineralisation rather than formation by transported surficial accumulation.

The company drilled a single drill hole under the old workings to assess the continuity and depth extent of the mineralisation. Hole RCO3WP007 intersected goethitic zones with minor visible green copper which returned assays (3m composites) from the 12-21m zone averaging 3.3% Cu, including 3m at 9.82% Cu and 4.3% Pb.

Mapping around the shaft suggested a NNE-trending structure as the possible control on the mineralisation, whilst the geophysical datasets suggested WNW offsets along this structure may be localising the mineralisation. Soil samples over this NNE zone returned anomalous copper in the partial extraction results.

Follow-up close spaced drilling of four holes (a hole under WP7, 10m step outs north and south, and a scissor hole) failed to intersect any additional mineralisation around the shaft. Goethitic zones were intersected though they are all on roughly the same vertical depth, suggesting a palaeo-watertable affect, and returned no anomalous metal results from the assays.

The mineralisation mined in the shaft at Waterman's Plain is interpreted to be very localised and structurally controlled, probably at the intersection of two structures. The origin of the copper and other metals at Waterman's Plain is unclear, though the gossan textures suggest original sulphides that support a deeper primary source. The metals may be related to the deeper magnetic/gravity target at Waterman's Plain or may represent examples of the karst-fill style of mineralisation.

The shallow cover at Waterman's Plain warrants additional exploration to locate other, larger, examples of this high-grade mineralisation style; whilst the deeper Olympic Dam style target also requires further investigation.

Saddle Hill (M2)

Saddle Hill is located 35km northeast of Olympic Dam. The prospect lies on the northeast-trending Marathon gravity/magnetic zone and covers the shallowest gravity anomaly along the trend. IP electrical surveys have defined a central resistive zone interpreted as a plug or horst with anomalous chargeability responses on its margin. Two lines of soil samples collected over Saddle Hill returned anomalous Cu, Pb, Zn, Ni, Co, Au, Ag, U and REE results from selective extractions.

A 60° scout hole to investigate the main chargeability feature was completed. Hole RC-DD03SH001 (SH1) was drilled to 462.6m and drilled through Yarrawurta Shale, Andamooka Limestone, Yarloo Shale and Simmens Quartzite.

After testing the interpreted position of the IP anomaly the hole was extended to target Mesoproterozoic basement and test the source of the gravity anomaly at Saddle Hill. Unfortunately the hole suffered excessive steepening and revised geophysical modelling indicated that the target was unlikely to be reached so the hole was stopped.

REVIEW OF OPERATIONS (Cont'd) LAKE TORRENS PROJECT(Cont'd) Exploration Results (Cont'd)

No clear source for the IP anomaly was identified in SH1. Traces of disseminated chalcopyrite (copper sulphide) were noted at several locations within the Simmens Quartzite, in more reduced sections of the rock. Assay results from SH1 were subdued.

The Saddle Hill Prospect remains a high priority target - the IP anomaly has not been explained and the soil geochemistry is distinctly anomalous. The presence of trace chalcopyrite within the Neoproterozoic supports the potential for either sediment hosted mineralisation (for example, Mt Gunson style targets) or may represent an Olympic Dam-type system halo associated with the gravity/magnetic feature.

Clara St Dora Area

The Clara St Dora area is located approximately 100km north-northeast of Olympic Dam. The company has been targeting stratiform base metal mineralisation. Highly chargeable zones co-incident with gravity anomalies have been located by Tasman Resources.

Additional high resolution gravity infill at 25m station spacing together with 50m dipole-dipole IP/resistivity electrical surveys were completed to sharpen targets within the gravity/chargeability anomalies previous identified by Tasman Resources. Soil samples were collected along the electrical survey lines over the geophysical anomalies to assist with target definition for the drilling. Selective extractions on the soils to collect mobile metal ions (MMI) returned anomalous results in Cu, Pb, Zn and Ag.

Scout drilling of the co-incident residual gravity, chargeability and soil geochemical (MMI) anomalies was completed at three target zones in the Clara St Dora area.

Drilling on Line 3 revealed that the Eromanga Basin sedimentary cover in the Clara area is quite shallow (20-40 m) and free of artesian water. The holes intersected variably pyritic graphitic dolostones and dolomitic shales, interpreted to be part of the Neoproterozoic Skillogalee Formation. Downhole and gradient array IP confirmed that the high chargeability features had been intersected by the drilling, with the IP response interpreted to be primarily due the graphite present. The gravity anomaly is interpreted to be due to dolomite.

Assays results from the drilling were subdued.

The recognition of Skillogalee Formation carbonaceous dolostones and dolomitic shales as favourable host rocks together with the thin cover sequence in the Clara St Dora region is considered to enhance the prospectivity of the area for structurally controlled mineralisation of the Nifty or Burra styles. The thin cover also improves the chances of locating more stratabound types of mineralisation associated with the Callana Group around the margins of the Bopeechee Syncline.

Follow-up of the copper intersections reported from last year's work programme was postponed until the geophysical anomalies described above were tested. The potential for near-surface high-grade extensions or repetitions of the Clara St Dora mine mineralisation remains to be tested.

REVIEW OF OPERATIONS (Cont'd) LAKE TORRENS PROJECT(Cont'd) Exploration Results (Cont'd)

Shelf 6 Prospect

Shelf 6 Prospect is located 50km northeast of Olympic Dam. Tasman Resources has been targeting base metal mineralisation hosted by Cambrian and Neoproterozoic sediments of the Stuart Shelf.

A series of four percussion and five core holes were completed at Shelf 6 during the financial year to test a co-incident gravity/chargeability anomaly and a shallow chargeability feature.

The holes drilled through shallow aeolian sand cover and Tertiary sandstone before drilling through a thin ferruginous duricrust at the top of the Andamooka Limestone and then through the Andamooka Limestone into the disconformably underlying the Yarloo Shale.

Better assay results from the drilling are listed in Table 2.

HoleID	From (m)	To (m)	Int.	Сu (ppm)	Pb (ppm)	Zn (ppm)	Аg (ppm)	Αu (ppb)	Co (ppm)
RC- DD03SF001	15	21	6	80	83	175	0.6	0.5	20
RC03SF002	18	24	6	162	106	298	0.2	1	38
RC03SF002	145	159	14	139	45	85	0.3	1	10
RC- DD03SF003	15	24	9	58	53	125	0.2	1.2	13
RC- DD03SF003	146	158	12	150	56	130	0.3	2	12
$RC-$ DD03SF004	18	24	6	62	97	255	2	44	18
RC03SF005	15	24	9	62	41	277	0.2	0.5	56
RC03SF006	18	24	6	87	55	405	0.4	1.3	61
RC03SF007	15	24	9	56	39	340	0.3	4,5	38
RC03SF007	66	70	4	290	64	190	0.1	0.5	1.4

Table 2: Better Assay Results from Shelf 6

The basal 12m of the Andamooka Limestone is distinctly altered with an interpreted silica-clay assemblage. Sulphides, including chalcopyrite, tennantite, sphalerite, galena, pyrite and marcasite are present as interpreted late stage infill of fractures, stylolites and porous zones, in amounts up to 1% over 1m intervals.

The iron enriched zone at the top of the limestone is acting as a geochemical trap and contains elevated and anomalous values for Cu, Pb, Zn, Ag, As, Au, Mo and Co.

This drilling programme has clearly shown the presence of base metal mineralisation and alteration at the base of the Andamooka Limestone. This zone offers an encouraging target horizon for significant "Mississippi Valley Type" base metal mineralisation in the Shelf 6 vicinity and elsewhere on the Stuart Shelf. The results will now be reviewed in detail to determine Tasman's ongoing exploration strategy at Shelf 6 and on the portion of the Stuart Shelf within Tasman's project area for base metal mineralisation.

REVIEW OF OPERATIONS (Cont'd) Exploration Results (Cont'd)

West Mount Area

The West Mount area is located 86km east-northeast of Olympic Dam.

Drilling in the previous financial year identified two zones of mineralisation. The eastern zone (carbonate dominant) returned low-grade mineralisation in the form of siderite-malachite veins, generally in a stockwork of sub-parallel veins. Typical of the near surface drill intersections was WMRC 012 with 40m at 0.17% copper, WMRC007 with 16m at 0.35% copper, and downhole from WMRC007, 16m at 0.24% copper. The Western zone, 550m to the west, comprises a stratiform pyrite/barite zone, thinly blanketed with alluvium. Drilling had targeted a strong, narrow IP anomaly coincident with a linear magnetic anomaly. The drill results indicate a strike length of more than 600m with copper peaking at 300pm. This is part of a narrow MMI defined copper anomaly that strikes up to 4km to the north that will be investigated as a potential stratiform/stratabound copper deposit. Selective rock samples from along this zone returned assays of up to 8.8% Cu.

During the financial year the company undertook additional soil sampling, rock sampling, detailed mapping and data review.

Due to perceived higher priority targets at Clara St Dora, along the Marathon Trend and at Titan, no other work was completed at Westmount. However, there are still unresolved geophysical targets at West Mount and the potential for near-surface high-grade copper ±silver±gold mineralisation associated either with the old workings or along strike remains to be tested.

FUTURE EXPLORATION PROGRAMS

The company is pursuing a range of exploration strategies within the Lake Torrens Project designed to maximise exploration success and achieve a positive cash flow at the earliest opportunity.

In summary, the company is focussing on basement-hosted Olympic Dam type targets, sediment hosted targets (Cu, Co, Zn, Ag, Au), near-surface high-grade mineral occurrences with the potential to deliver short term cash flow, and, new assessing new opportunities such as the diamond potential of the project area. A range of prospects at varying levels of exploration maturity are being investigated for each of these target types.

The company believes that the Lake Torrens Project covers an exciting range of geology with excellent potential for the discovery of an economic mineral deposit. The interest in the project area is highlighted by the recent joint investment by Geoscience Australia/PIRSA of over \$0.5M in a seismic survey, which traverses (in part) the centre of Tasman's tenements. The results of this new geophysical survey will be available in 2004 and will significantly enhance the understanding of the regional geology, crustal structures, and controls on mineralisation in the area. Furthermore, this data will directly assist in targeting exploration by highlighting structures in the company's tenements..

OPERATING RESULTS

The company has reported a loss of \$510,935 (2002 \$383,231) for the year, after providing for nil income tax.

DIVIDENDS

No dividends were paid during the period and no recommendation is made as to dividends.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

Significant change in the state of affairs of the Company during the financial year was as follows;

An increase in the paid up capital from \$4,177,051 to \$4,738,921 as a result of issue of the following shares during the year;

1,650,000 ordinary fully paid shares were issued at 10 cents per share as per applications. A commission of 6% was payable to holders of Australian financial services licences.

2,071,000 ordinary fully paid shares were issued at 0.17 cents per applications. A commission of 6% was payable to holders of Australian financial services licences.

700,000 ordinary fully paid shares were issued at 0.10cents per share as per applications. A commission of 6% was payable to holders of Australian financial services licences.

EVENTS SUBSEQUENT TO BALANCE DATE

On 3 July 2003 2,083,333 ordinary fully paid shares were issued at 0.12 cents per applications and on 10 September 2003 2,250,000 ordinary fully paid shares were issued at 10 cents per share as per applications. A commission of 6% is payable to holders of Australian financial services licences. The funds raised will be used to extend or follow up the current drilling programme at the Lake Torrens Project.

Apart from the items mentioned in the Exploration Results above and the above share issues, there are no other matters or circumstance have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of those operations, or the state of affairs of the company in subsequent financial years.

ENVIRONMENTAL ISSUES

The company is the subject of environmental regulation with respect to mining exploration and will comply fully with all requirements with respect to rehabilitation of exploration sites.

FUTURE DEVELOPMENTS

The Company proposes to continue with its exploration program as detailed in the Review of Operations.

DIRECTORS SHAREHOLDINGS

Number of ordinary shares in which the directors have a relevant interest at the date of this report are as follows:-

	ORDINARY SHARES	OPTIONS TO ACQUIRE ORDINARY SHARES
GH Solomon	6,875,865	4.661.266
DH Solomon	6.824.666	4,661,266
GT LePage	577,779	423,890

OPTIONS

No options were granted over unissued shares or interest during or since the financial year by the company to the executives as part of their remuneration package.

No person entitled to exercise the option had or has any right by virtue of the option to participate in any share issue of any other body corporate.

No shares have been issued by virtue of the exercise of an option during the year or to the date of this report and there are 30,630,849 unissued ordinary shares for which options are outstanding at the date of this report.

DIRECTORS' AND EXECUTIVE OFFICERS' EMOLUMENTS

The company pays directors fees to the executive chairman and to non-executive directors. The remuneration level was set at the annual general meeting of shareholders held in November 2001.

The emoluments of Directors during the financial year are shown in the following table;

	Other Benefits Paid \$	Directors Fees Paid \$	Superannuation Paid s	Total \$
GH Solomon	157.500	120,000	10,800	288,300
WS Yeaman	٠	8.000	10.720	18,720
GT LePage	-	24,000	2,160	26,160
DH Solomon	w	6,000	360	6,360

Other Benefits include items paid and shown as related party transactions in the Notes to the Financial Statements at Note 13 (a).

MEETINGS OF DIRECTORS

During the year 10 directors' meetings were held. The number of meetings at which directors were in attendance is as follows:

	No. of meetings held	No. of meetings attended
GH Solomon	10	10
WS Yeaman	7	6
GT LePage	10	10
DH Solomon	з	3

INDEMNIFYING OFFICERS OR AUDITOR

During or since the end the financial year the company has given an indemnity or entered an agreement to indemnify, or paid or agreed to pay insurance premiums as follows:

During the year the company has taken out and paid the premium to insure the directors against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of director of the company, other than conduct involving a wilful breach of duty in relation to the company.

Signed in accordance with a resolution of the Board of Directors

$\ddot{\phantom{a}}$

Gregory Brows

G H Solomon Director Signed in Perth this 30th day of September 2003

TASMAN RESOURCES N.L. DIRECTORS DECLARATION

The directors of the company declare that:

• $\mathbf{1}$ the financial statements and notes, as set out on pages 15 to 29, are in accordance with the Corporations Act 2001:
• $(a)$ comply with Accounting Standards and the Corporations Regulations 2001; and
• $(b)$ give a true and fair view of the company's financial position as at 30 June 2003 and of its performance for the year ended on that date;
• $\overline{2}$ . in the director's opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Greenaughtersous

G H Solomon Director

Signed in Perth this 30th day of September 2003

TASMAN RESOURCES N.L. STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2003

		2003	2002
	NOTE	Ŝ	Ś
CURRENT ASSETS
Cash Assets	5	287,827	1,534,701
Receivables	6	81,337	85,977
TOTAL CURRENT ASSETS		369,164	1,620,678
NON CURRENT ASSETS
Property, plant and equipment	7	31,448	43,652
Exploration Expenditure	8	3,562,891	2,076,328
TOTAL NON CURRENT ASSETS		3,594,339	2,119,980
TOTAL ASSETS		3,963,503	3,740,658
CURRENT LIABILITIES
Payables	9	304,529	132,619
TOTAL CURRENT LIABILITIES		304,529	132,619
NET ASSETS		3,658,974	3,608,039
EQUITY
Contributed Equity	10	4,738,921	4,177,051
Accumulated losses	11	(1,079,947)	(569, 012)
TOTAL EQUITY		3,658,974	3,608,039

The accompanying notes form part of these financial statements.

TASMAN RESOURCES N.L. STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2003

	NOTE	2003 \$	2002 \$
CLASSIFICATION OF EXPENSES BY FUNCTION
Other revenues from ordinary activities	з	52,843	59,434
Administration expenses Depreciation expense		(544, 212) (19, 566)	(430, 013) (12, 652)
Loss from ordinary activities before income tax expense	4	(510, 935)	(383, 231)
Income tax (expense) / benefit	2
Loss from ordinary activities after income tax expense		(510, 935)	(383, 231)
Basic earnings per share (cents per share)	17	(1.102)	(1.108)

The accompanying notes form part of these financial statements.

$\hat{\mathcal{A}}$

TASMAN RESOURCES N.L. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2003

	NOTE	2003 s Inflows (Outflows)	2002 Inflows (Outflows)
Cashflows From Operating Activities
Payments to suppliers Interest received Goods and Services Tax Refunds		(684, 131) 52,843 166,394	(572, 334) 59,434 122,988
Net cash outflows from operating activities	16(b)	(464, 894)	(389, 912)
Cash Flows From Investing Activities
Exploration expenditure Purchase of Property Plant & Equipment		(1,336,489) (7, 361)	(1, 351, 758) (56, 304)
Net cash outflows from investing activities		(1, 343, 850)	(1,408,062)
Cash Flows From Financing Activities
Proceeds from issue of shares Share Issue Costs		587,070 (25, 200)	3,720,000 (471, 665)
Net cash inflows from financing activities		561,870	3,248,335
Net increase (decrease) in cash held		(1, 246, 874)	1,450,361
Cash at beginning of the financial year		1,534,701	84,340
Cash at the end of the financial year	16(a)	287,827	1,534,701

The accompanying notes form part of these financial statements.

$1.$ Statement of Accounting Policies

The financial report is a general purpose financial report that has been prepared in accordance with Accounting Standards, Urgent Issues Group Consensus Views, other authoritative pronouncements of the Australian Accounting Statements Board and the Corporations Act 2001.

Tasman Resources NL is a listed company, incorporated and domiciled in Australia.

The financial report has been prepared on an accruals basis and is based on historical costs and does not take into account changing money values or, except where stated, current valuations of non-current assets. Cost is based on the fair values of the consideration in exchange for assets.

The following is a summary of the material accounting policies adopted by the company in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

$(a)$ Income Tax

The company has adopted the liability method of tax effect accounting whereby income tax expense for the period is calculated on the accounting profit after adjusting for items which. as a result of their treatment under income tax legislation, create permanent differences between that profit and the taxable income. The tax effect of timing differences which arises from the recognition in the accounts of items of revenue and expenses in periods different from those in which they are assessable or allowable for income tax purposes, are represented in the balance sheet as "future income tax benefits" or "provision for deferred income tax", as the case may be at current tax rates. The net future income tax benefit relating to tax losses and timing differences is not carried forward as an asset unless the benefit is virtually certain of being realised.

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the company will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

$(b)$ Mining Tenements and Exploration Expenditure

Exploration and evaluation costs shown in the balance sheet represent an accumulation of net direct exploration and evaluation costs incurred by the company in relation to areas of interest for which rights of tenure are current and expected to be maintained and in respect of which ÷.

• $(i)$ such costs are expected to be recouped through successful development and exploitation of each area, or alternatively, by its sale; or
• $(ii)$ exploration and/or evaluation activities in the areas have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to the areas are continuing.

$\mathbf{1}$ . Statement of Accounting Policies (Cont'd)

The ultimate recoupment of costs related to the areas of interest in the exploration and evaluation phase is dependent on the successful and commercial exploitation and/or sale of the relevant areas, at amounts at least equal to book value.

Accumulated costs in relation to an abandoned area are written off in full in the year in which the decision to abandon the area is made.

Property, Plant and Equipment $(c)$

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation.

Plant and Equipment Plant and equipment are measured on the cost basis.

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows which will be received from the assets employed and subsequent disposal. The expected net cash flows have not been discounted to their present values in determining recoverable amounts.

Depreciation

The depreciable amount of all fixed assets is depreciated on a straight line basis over their useful lives to the economic entity commencing from the time the asset is held ready for use. The depreciation rates used for Plant and Equipment are 15-50%

$(d)$ Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST.

$(e)$ Revenue

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

			2003 \$.	2002 \$.
2.		Income Tax The prima facie tax (benefit) on loss from ordinary activities before income tax is reconciled to the income tax as follows:
		Prima facie tax on loss from ordinary activities before income tax @ 30% Tax effect of permanent differences Expenditure incurred in exploration activities claimable under Section 122J Future income tax benefits not recognised	(153, 281) 6,161 (400, 947) 548,067	(114, 969) 210 (421, 211) 535,970
		Income tax expense/(benefit) attributable to loss from ordinary activities before income tax
		Future income tax benefit arising from tax losses not brought to account at balance date as realisation of the benefits is not regarded as virtually certain	1,314,319	793,254
	(a) (b) (c)	The benefits will only be available if:- future assessable income is derived of a nature and of an amount sufficient to enable the benefit to be realised: the conditions for deductibility imposed by the tax legislation continue to be complied with; and no changes in tax legislation adversely affect the company in realising the benefit.
3.	Revenue	Operating Activities - interest revenue - other persons	52,843	59,434
		Total Revenue	52,843	59,434
4.		Loss from Ordinary Activities Loss from ordinary activities before income tax has been determined after (a) Expenses

1. Cash Assets Cash on hand

Cash at bank

Depreciation - plant and equipment

19,566

287,811

287,827

16

12,764

1,534,685

1,534,701

16

		2003 \$	2002 \$
6.	Receivables
	Current:
	GST Refunds	74,251	83,671
	Deposit- Funds held in Trust	750	2,306
	Bonds	5,000
	Cash Advances	1,336
		81,337	85,977
7.	Property, plant and equipment
	Plant and Equipment
	At cost	63,666	56,304
	Accumulated depreciation	(32, 218)	(12,652)
	Balance at end of year	31,448	43,652
	Total Property plant and equipment	31,448	43,652

$(a)$ MOVEMENTS IN CARRYING AMOUNTS Movement in carrying amounts for plant and equipment between the

beginning and the end of the current financial year

	PLANT AND EQUIPMENT	TOTAL
Balance at beginning of the year Additions Disposals Depreciation Expense	43,652 7,362 (19, 566)	43,652 7,362 (19, 566)
Carrying amount at the end of the year	31,448	31,448

		2003 \$	2002 s
8.	Exploration Expenditure Costs carried forward in respect of areas of interest in:
	- Exploration and evaluation phases	3,562,891	2,076,328
	Total exploration expenditure	3.562.891	2.076.328

The ultimate recoupment of costs carried forward for exploration and evaluation phases is dependent on the successful development and commercial exploitation or sale of respective mining areas.

The company's exploration tenements include areas subject to Native Title Claims. As a result mining and exploration activities may be subject to exploration and mining restrictions or compensation payments. At the date of this report Work Area Clearance Agreements which enable initial exploration to occur have been finalised with 3 of the 4 native title claimant groups (and the 4th is being negotiated). However the directors are unable to quantify the financial impact of any future claims.

9. Payables

$10.$

Current:
Creditors and accruals	304,529	132,619
Contributed Equity 48,632,682 ordinary shares fully paid Note 10(a)
(2002 - 44,211,682 ordinary shares fully paid)	4,738,921	4,177,051
(a) Movements in Contributed Equity During the Year Opening balance
44,211,682 (2002 - 16,289,516) ordinary shares fully paid	4,177,051	908,550
Issue of shares - prior year		4,020,000
Issue of shares (i) - 9 Oct 2002 $(1,650,000 \text{ shares})$	165,000
Issue of shares $(ii) - 23$ Jan 2003 $(2,071,000 \text{ shares})$	352,070
Issue of shares (iii) $-30$ May 2003 (700,000 shares)	70,000
Less share issue costs	(796, 865)	(751, 499)
Closing Balance 48,632,682 (2002 44,211,682) ordinary shares fully
paid	4,738,951	4,177,051

2003 2002 \$. \$.

10. Contributed Equity (Cont'd)

• On 9 October 2002 1,650,000 ordinary fully paid shares were issued at 10 $(i)$ cents per share on application for shares.
• On 23 January 2003 2,071,000 ordinary fully paid shares were issued at 17 $(ii)$ cents per share on application for shares.
• $(iii)$ On 30 May 2003 700,000 ordinary fully paid shares were issued at 10 cents per share on application for shares.

$(b)$ Options

No options to aquire shares have been issued during the year.

Movements in options issued during the year	2003 No.	2002 No.
Options on issue at beginning of the year Issued prior year	30.630.849	14,144.764 16,486,085
Options on issue at end of year	30,630,849	30,630,849

No shares have been issued by virtue of the exercise of an option during the year or to the date of this report and there are 30,630,849 unissued ordinary shares for which options are outstanding at the date of this report.

11. Accumulated Losses

Accumulated losses at the beginning of the financial
vear	(569.012)	(185.782)
Net loss for the year	(510.935)	(383.231)
Accumulated losses at the end of the financial year	(1.079.947)	(569.012)

12. Segmental Information

$(i)$ Geographical The company operated only in Australia.

$(ii)$ Business The company operated in the area of mineral exploration.

			2003 Ś	2002 Ś.
13.		Related Party Transactions
		Transactions with related parties, unless otherwise stated, are at normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.
	(a)	Transactions with related parties: Director related parties
		Management and administration fees (for provision of accomodation, accounting and secretarial services company and all administration support) paid to Princebrook Pty Ltd, a company in which Mr GH Solomon and Mr DH Solomon have an interest	157,500	138.448
		Legal and professional fees to Solomon Brothers, a firm of which GH Solomon and Mr DH Solomon are partners. (\$100,000 of this was settled by way of issue of 500,000 ordinary fully paid shares at 20 cents per share)		158,126
	(b)	The number of ordinary shares in which the directors have a relevant interest at the 30 June 2003 are:

$\cdots$

$\cdots$

	Opening Balance	Ordinary Shares acquired during the year	Ordinary Shares disposed of during the year	Closing Balance
GH Solomon	6.805.865	70,000	$\mathbf{r}$	6,875,865
DH Solomon	6,805,866	18,800		6,824,666
GT LePage	577,779	$\overline{\phantom{a}}$	-	577.779

$(c)$ The number of options to acquire ordinary shares in which the directors have a relevant interest at the 30 June 2003 are:

	Opening Balance	Options acquired during the year	Options disposed of during the year	Closing Balance
GH Solomon	4,661,266	۰	۰	4,661,266
DH Solomon	4,661,267	-	$\overline{\phantom{a}}$	4,661,267
GT LePage	423,890	$\overline{\phantom{a}}$	-	423,890

$14.$ COMMITMENTS

Exploration Commitments

The company has certain obligations to perform minimum exploration work and to expend minimum amounts of money on such work on mining tenements. These obligations may be varied from time to time subject to approval and are expected to be fulfilled in the normal course of the operations of the company subject to the company being able to raise sufficient additional capital. In accordance with an agreement with Primary Industries and Resources SA that the total minimum commitments on the existing tenements is \$1,000,000 for the calendar year 2003 and that a minimum of 10% of the combined tenement area is surrendered in the calendar year 2003. These commitments have not been provided for in the accounts. In part these commitments can be satisfied by time spent by officers of the company on activities related to the exploration tenements.

15. REMUNERATION AND RETIREMENT BENEFITS

(a) DIRECTORS' REMUNERATION Income paid or payable, to all directors of the company and any related parties 344,979 399,196

Number of directors income from the company and related parties was within the following bands;

$$0 - 9,999$
$$10,000 - 19,999$
$$20,000 - 29,999$
$$280,000 - 289,999$		$\sim$
$$360,000 - 369,999$	$\overline{\phantom{0}}$

The names of the directors who have held office during the financial year are:-

Gregory Howard Solomon William Stanley Yeaman (Resigned 3 April 2003) Guy Touzeau LePage Douglas Howard Solomon (Apointed 3 April 2003)

(b) EXECUTIVES REMUNERATION

Remuneration received or due and receivable by executive officers of the company and any related parties for management of the affairs of the company whose income is \$100,000 or more.

2003 2002 \$. \$

$16.$ NOTES TO THE STATEMENTS OF CASH FLOWS

$\sim 10^7$

(a) Reconciliation of Cash

For the purpose of this statement of cash flows, cash includes:-

cash on hand and in at call deposits with banks or financial institutions, net of ${ij}$ bank overdrafts; and

Cash at the end of the year is shown in the balance sheet as:

Cash at Bank and on hand	287,827	1,534,701
	287,827	1,534,701
(b) Reconciliation of the operating loss after income tax to the net cash flow used in operations
Operating loss after income tax	(510.935)	(383, 231)
Non-cash flows in operating loss Depreciation	19.566	12,652
Changes in assets and liabilities Decrease(Increase) in receivables Increase(Decrease) in creditors and accruals	18,945 7,530	(73, 218) 53,885
	(464.894)	(389.912)

(c) Non-cash financing activities

During the previous year 500,000 ordinary fully paid shares were issued at 20 cents per share as part payment of legal fees to Solomon Brothers as shown in Note 13.

During the previous year 1,500,000 ordinary fully paid shares were issued at 20 cents per share as part consideration of commissions paid on placements to the prospectus.

$17.$

		2003 \$	2002 \$
	EARNINGS PER SHARE
(a)	Reconciliation of Earnings to Net Loss Operating loss	(510.935)	(383, 231)
	Earnings used in the calculation of basic EPS	(510.935)	(383.231)
(b)	Weighted average number of ordinary shares on issue used in calculation of basic earnings per share	46,355,371	34,589,285

$(c)$ As at 30 June 2003 the company had 30,630,849 options on issue exercisable at 20 cents. These options are not considered to be potential ordinary shares for the calculation of dilutive earnings per share. Dilutive earnings per share has not been disclosed as its calculation does not show an inferior view of the earnings performance to that shown by the basic earnings per share.

18. EVENTS SUBSEQUENT TO BALANCE DATE

Apart from the matters as disclosed under exploration results in the directors report there are no other matters or circumstance which have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of those operations, or the state of affairs of the company in subsequent financial years.

19. AUDITORS REMUNERATION

Amounts, received or due and receivable by auditors for:

auditing the accounts	5.050	3.500
other services.	1.000	5.000

20. SUPERANNUATION

All employees are entitled to varying benefits on retirement, disability or death and the end benefit is determined by the accumulation of contributions and earnings of the fund and various options within the fund available to each employee. The company makes contributions to the funds at the rate of 9% of gross salaries and wages. These contributions are legally enforceable in Australia.

$21.$ FINANCIAL INSTRUMENTS

(a) TERMS, CONDITIONS, AND ACCOUNTING POLICIES

The company's accounting policies, including the terms and conditions of each class of financial assets, financil liability and equity instrument, both recognised and unrecognised at balance date, are as follows;

$......$

RECOGNISED FINANCIAL INSTRUMENTS	STATEMENT ОF FINANCIAL POSITION NOTES	ACCOUNTING POLICIES	TERMS & CONDITIONS
(i) Financial Assets Cash	5	Cash represents cash on hand and at bank with financial institutions. All cash is carried at nominal amounts
Receivables - Other	6.	Receivables are carried at nominal amounts
(ii) Financial Liabilities Trade creditors and accrued expenses	9	Liabilities are recognised for amounts to be paid in the future for goods and services, received whether or not billed to the company.	Trade liabilities are normally settled on 30 day terms.
(iii) Equity
Ordinary shares	10	Ordinary share capital is recognised at the amount paid- up.	Details of shares issued are set out in note 10

2003

FINANCIAL INSTRUMENT	FLOATING INTEREST RATE 0-1 YEAR	NON- INTEREST BEARING 0- 1 YEAR	TOTAL	WEIGHTED AVERAGE EFFECTIVE INTEREST RATE
(i) Financial Assets
Cash	287.827		287,827	4.30%
Receivables Trade & other		81,337	81,337	N/A.
Total Financial Assets	287.827	81.337	369.164
(ii) Financial Liabilities Trade creditors and accrued
expenses		304,528	304,528	N/A
Total Financial Liabilities		304,528	304,528

$21.$ FINANCIAL INSTRUMENTS (Cont'd)

2002

FINANCIAL INSTRUMENT	FLOATING INTEREST RATE 0-1 YEAR	NON- INTEREST BEARING 0- 1 YEAR	TOTAL	WEIGHTED AVERAGE EFFECTIVE INTEREST RATE
(i) Financial Assets Cash Receivables Trade & other	1,534,701	85,977	1,534,701 85,977	4.30% N/A
Total Financial Assets	1,534,701	85,977	1,620,678
(ii) Financial Liabilities Trade creditors and accrued expenses		132,619	132,619	N/A
Total Financial Liabilities		132,619	132,619

(b) NET FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES

The aggregate net fair values of financial assets and financial liabilities, at the balance date, are approximated by their carrying value as represented in the Statement of Financial Position.

(c) CREDIT RISK EXPOSURES

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets is the carrying amount, net of any provision for doubtful debts, as disclosed in the statement of financial position and notes to the financial statements.

22. EMPLOYEE BENEFITS

Employees Share Option Plan

THE PLAN

The purpose of the Plan is to provide Eligible Employees with an incentive to remain with the Company and to improve the longer-term performance of the Company and its return to shareholders. It is intended that the Plan will enable the Company to retain and attract skilled and experienced Eligible Employees and provide them with the motivation to make the Company more successful.

Eligible Employee means a full or part time employee or a director of the Company or of associated bodies corporate of the Company who is determined by the Board to be an Eligible Employee for the purposes of the Plan or any other person who is declared by the board to be an Eligible Employee for the purposes of the Plan;

The Exercise Price is whichever is the greater of the following:

• $(a)$ 125% of the Market Price of a Share determined on the date of grant of an Option:
• $(b)$ 20 cents; or
• $(c)$ any greater price determined by the Board at the time or issue,

The Exercise Period means, in relation to an Option, the period:

• $(a)$ commencing on the second anniversary; and
• $(b)$ ending on the fifth anniversary,

of the date of grant of an Option, subject to any variation under rule 7 or as otherwise determined by the Company at the time of grant of an Option.

No options have been issued under this plan.

The Directors were issued options in May 2001 under the same terms and conditions for those which are listed on the Australian Stock Exchange. The movements in holdings of the Directors are shown at Note 13 (c).

No options have been exercised.

The closing share market price of an ordinary share of Tasman Resources NI on the Australian Stock Exchange ay 30 June 2003 was \$0.175 (30 June 2002 \$0.125)

INDEPENDENT AUDIT REPORT TO THE MEMBERS OF TASMAN RESOURCES NL

SCOPE

We have audited the financial report of Tasman Resources NL comprising the Directors' Declaration, Statement of Financial Position, Statement of Financial Performance, Statement of Cash Flows and notes to and forming part of the financial report for the year ended 30 June 2003. The company's directors are responsible for the financial report. We have conducted an independent audit of this financial report in order to express an opinion on it to the members of the company.

Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance whether the financial report is free of material misstatement. Our procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial report, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respects, the financial report is presented fairly in accordance with Accounting Standards and other mandatory professional reporting requirements and statutory requirements so as to present a view which is consistent with our understanding of the company's financial position, and performance as represented by the results of its operations and its cash flows.

The audit opinion expressed in this report has been formed on the above basis.

AUDIT REPORT

In our opinion, the financial report of Tasman Resources NL is in accordance with:

• $(a)$ the Corporations Act 2001, including:
• giving a true and fair view of the company's financial position as at 30 $(i)$ June 2003 and of its performance for the year ended on that date; and
• complying with Accounting Standards and the Corporations Regulations $(ii)$ $2001$ : and
• $(b)$ other mandatory professional reporting requirements.

INHERENT UNCERTAINTY REGARDING CARRYING VALUE OF CAPITALISED ACQUISITION AND EXPLORATION COSTS

Without qualification in the opinion expressed above, attention is drawn to the carrying value of mining tenements and exploration expenditure carried forward as referred to in Note 8, is dependent upon the company's rights to tenure of the areas of interest, the results of future exploration and the recoupment of costs through successful development and exploration of the areas of interest, or alternatively by their sale at amounts at least equal to book value.

$1/\mu$ N

Partner

MAURICE L. ANGHIE

Hall Chadeide

HALL CHADWICK Chartered Accountants

DATED at PERTH this 30^th day of September 2003

Level 40 BookWest Tower 108 St George's Terrace Penh 6000 rom oodo
Western Australia

GPO Box W2106 PERTH WA 6846

Telephone: (08) 9320 2888 Facsimile: (06) 9320 2999
Emoli: hopernfo@holl chodwick com ou www.holldhodwick.com.cu

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TASMAN RESOURCES N.L.

CORPORATE GOVERNANCE STATEMENT

Corporate Governance

The Board comprises at least three directors and not more than six. During the year directors' fees were paid to the Chairman and the non-executive directors. The remuneration level was set at the annual general meeting held in November 2001.

The Board comprises directors with an appropriate range of qualifications and expertise.

The Board meets on a regular basis and follows meeting guidelines set down to ensure all directors are made aware of, and have available all necessary information, to participate in an informed discussion on all agenda items.

The Board members identify risks and opportunities and seek assistance from the Company Financial Officers, and where applicable, the other directors and the Company's legal advisors.

Directors have the right, in connection with their duties and responsibilities as directors to seek independent professional advice at the company's expense, Prior approval from the Chairman is required but will not be unreasonably withheld.

The Board of Directors is responsible for the corporate governance of the company. The Board guides and monitors the business affairs of TASMAN RESOURCES NL on behalf of the shareholders by whom they are elected and to whom they are accountable.

The Board's Responsibilities:

• Reviews the financial performance on a monthly basis.
• Acts on behalf of and is accountable to the shareholders.

• Identifies business risks and considers actions to manage these risks.

• Seeks to identify the expectations of the shareholders, as well as other regulatory and ethical expectations.

The Board's Accountability:

• The Board believes that budgets are necessary and monitoring performance against budgets is beneficial.

• The Board receives reports from external auditors and deals with the points raised therein. Follow up action is taken if considered necessary.

• The Board does consider composition of the board and management when circumstances change.

Audit Committee

The company did not maintain an audit committee during the year as the directors and the Company Secretary make up the entire management team within the company.

TASMAN RESOURCES N.L. ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES

Shareholding Number of Shareholders

1,000

Distribution of Shareholders Nurgher

No. of Ordinary Shares	Shareholders
$1 - 1.000$	10
$1,001 - 5,000$	193
$5,001 - 10,000$	243
10,001 - 100,000	481
100,001 - and over	73

Marketable Parcels

The number of shares held in less than marketable parcels is 204.

Substantial Shareholders	Ordinary shares
Total issued shares at 18 September 2003	52,966,015
March Bells Pty Ltd Arkenstone Pty Ltd	6.657.999 6,709,199

Voting Rights

Subject to any rights or restrictions for the time being attached to any classes of Shares (at present there are none), at meetings of shareholders of the Company

• $(a)$ each shareholder entitled to vote may vote in person or by proxy, attorney or representative:
• $(b)$ on a show of hands, every person present who is a Shareholder or a proxy, attorney or representative of a Shareholder has one vote: and
• $(c)$ on a poll, every person present who is a Shareholder shall, in respect of each fully paid Share held by him, or in respect of which he is appointed a proxy, attorney or representative, have one vote for the Share, but in respect of partly paid shares, shall have such number of votes as bears the same proportion which the amount paid (not credited) is of the total amounts paid and payable(excluding amounts credited).

Restricted Securities

At the date of listing there were 16,633,991 shares and 18,555,088 options placed in escrow to be released at various dates. The restricted securities as at the date of this report are as follows;

Fully paid shares - restricted to 18 December 2003	14,378,060
Options - restricted to 18 December 2003	14,478,843

TASMAN RESOURCES N.L. ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES

20 Largest Shareholders - Ordinary Shares

	Name	Ordinary Fully Paid Shares	% Held of Issued Ordinary Capital
1. 2.	Arkenstone Pty Ltd March Bells Pty Ltd	6,709,199	12.667%
3.	Peto Pty Ltd < 1953 Super Fund A/c >	6,657,999 1,014,007	12.570% 1.914%
4.	Dempsey PJ	800,000	1.510%
5.	Williams International Investment Corporation Pty Ltd	750,000	1,416%
6.	Powell JD	735,588	1.389%
7.	Cunningham AR	718,500	1.357%
8.	Le Page GT	577,779	1.091%
9.	Gray PR	577,779	1.091%
10.	The Strategic Capital Superannuation Services Limited	534,626	1.009%
11.	Fergus R	525,000	0.991%
12.	Australian Financial Securities Pty Ltd Dempsey PJ	510,000	0.963%
13.	Bucknall RM	504,960	0.953%
14.	Arredo Pty Ltd	500,000	0.944%
15.	CH Administration Pty Ltd & Watson DR	500,000	0.944%
16.	McGougan Bi & KJ	482,834	0.912%
17.	Tascoast Pty Ltd	454,978	0.859%
18.	Tudorovic D	412,779	0.779%
19.	Lamb KW & VP	410,000	0.774%
20.	Distance Investments Pty Ltd	400,000	0.755%
		23,796,028	47.896%

Confirmation of Expenditure

$\dots \dots \dots \dots \dots \dots$

The company confirms that any cash on hand at the time of admission to the listing on the Stock Exchange has been used in accordance with the expenditure program as per the prospectus dated 15 August 2001.