TASMAN RESOURCES N.L. (ABN 85 009 253 187)

AND CONTROLLED ENTITIES

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

CORPORATE DIRECTORY

DIRECTORS:

Gregory Howard Solomon LLB (Executive Director) Douglas Howard Solomon BJuris LLB (Hons) (Non Executive) Guy Touzeau Le Page B.A., B.Sc. (Hons)., M.B.A., ASIA., MAusIMM (Non Executive) Graham Roland Bedford F.R.A.I.A. (Non Executive)

COMPANY SECRETARY:

Raymond F Buscall

REGISTERED OFFICE:

Level 40, Exchange Plaza 2 The Esplanade Perth Western Australia 6000 Tel $+61892215323$ Fax $+61892215955$ Email: [email protected] 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:

Bentleys MRI Perth Partnership (formerly Hall Chadwick) Chartered Accountants Level 40, Bank West Tower 108 St Georges Terrace Perth WA 6000

SHARE REGISTRY:

Advance Share Registry Services 110 Stirling Highway Nedlands WA 6009

STOCK EXCHANGE LISTING:

ASX Code: TAS (ordinary shares)

TASO (options expiring 28 February 2006)

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

DIRECTORS' REPORT

Your directors submit the financial accounts of the company for the period ended 30 June 2005.

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 Mr Guy T Le Page Mr Graham Roland Bedford (Appointed 5 September 2005)

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

COMPANY SECRETARY

The following person held the position of company secretary at the end of the financial year:

Mr Raymond F Buscall. Mr Buscall has worked for Tasman Resources NL for the past 15 years performing financial management roles of the business. Mr Buscall was appointed company secretary on 18 June 1990.

PRINCIPAL ACTIVITIES

MINERAL EXPLORATION

The principal activity of the Company during the financial year ended 30th June 2005 was mineral exploration. In particular, the Company undertook exploration programmes and project generation activities covering areas on the Stuart Shelf around Lake Torrens, near fron Knob and northwest of Tarcoola in the central Gawler Craton. Activities included geochemical sampling, geophysical surveys (including gravity and electrical surveys), percussion and core drilling programmes and ongoing reviews of previous exploration data leading to the acquisition of new projects.

ENERGY PROJECTS

During the year, the Company's subsidiary, Eden Energy Ltd undertook activities in a range of energy related areas including hydrogen fuels, transport and storage; coal bed/coal mine methane; a conventional gas play; and geothermal (deep heat mining) energy.

OPERATING RESULTS

The consolidated profit for the economic entity after providing for income tax and eliminating outside equity interest amounted to \$1,149,228.

DIVIDENDS PAID OR RECOMMENDED

There were no recommendations for the payment of dividends.

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DIRECTORS' REPORT

REVIEW OF OPERATIONS

MINERAL EXPLORATION

All of the Company's mineral exploration tenements and tenement applications are located in South Australia. The Company is targeting a range of commodities, gold, copper, silver, uranium, zinc, lead, nickel/cobalt and diamonds, for which the Company's tenements are considered prospective. Tables 1 and 2 list the tenement details. All tenements are 100% beneficially held by the Company. The total area covered by the Company's tenements (granted and applications) is 12,736km².

Table 1: Tasman Resources Granted Tenements

Tenement	GRANTED	Area	Location
		${km^2}$
EL2772	16/11/2000	826	Approximately 60 km west of Marree
EL2832	7/09/2001	131	Approximately 50 km west of Marree
EL2989	25/07/2002	873	Approximately 50 km northeast of Andamooka
EL3102	20/06/2003	75	Approximately 50 km west of Port Augusta
EL3109	24/07/2003	428	Approximately 70 km NNW of Andamooka
EL3123	3/09/2003	720	Approximately 80 km west of Marree
EL3140	15/10/2003	940	Approximately 50 km north of Andamooka
EL3174	10/03/2004	566	Approximately 120 km northwest of Andamooka
EL3175	10/03/2004	12	Immediately ENE of Andamooka
EL3176	10/03/2004	184	Approximately 50 km northwest of Andamooka
EL3177	10/03/2004	402	Approximately 45 km west of Andamooka
EL3209	11/05/2004	1298	Approximately 140 km northwest of Leigh Creek
EL3254	29/09/2004	351	Approximately 50 km southwest of Marree
EL3260	14/10/2004	972	Approximately 110 km NNW of Woomera
EL3261	14/10/2004	992	Approximately 90 km NNW of Woomera
EL3306	17/02/2005	435	Approximately 90 km northwest of Tarcoola
EL3307	17/02/2005	194	Approximately 50 km WSW of Port Augusta
EL3339	20/05/2005	163	Approximately 100 km SSE of Coober Pedv
EL3340	20/05/2005	264	Approximately 100 km south of Coober Pedy
EL3341	20/05/2005	338	Approximately 90 km northwest of Tarcoola
EL3342	20/05/2005	469	Approximately 120 km southwest of Coober Pedy
EL3343	20/05/2005	429	Approximately 90 km southwest of Coober Pedy
EL3344	20/05/2005	287	Approximately 70 km north of Tarcoola
EL3345	20/05/2005	130	Approximately 80 km northwest of Tarcoola

Table 2: Tasman Resources Tenement Applications

ELA	Application Date	Area (km ² )	Location
2004/00777	25/10/2004	271	Approximately 40 km southwest of Marree
2005/00111	28/02/2005	215	Approximately 95 km southwest of Coober Pedy
2005/00258	19/05/2005	379	Approximately 85 km southwest of Coober Pedy
2005/00272	24/05/2005	62	Approximately 90 km northwest of Woomera
2005/00295	9/06/2005	107.	Approximately 60 km west of Marree
2005/00339	8/07/2005	223	Approximately 70 km west of Port Augusta

DIRECTORS' REPORT

Exploration Targets

The Company's tenements are considered prospective for a range of target types. As is common with most areas of South Australia almost all of the older, potentially mineralised lithologies within the project area are masked by younger sedimentary layers and sand dunes resulting in no surface expression of potential orebodies. Whilst

presenting some challenges to exploration, this situation has also mean that large areas of South Australia are relatively unexplored and likely to host significant deposits of economic mineralisation.

The Company 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 and silver).

Iron Oxide Copper Gold Deposits and Sediment-hosted Base metals

The Stuart Shelf is a large under-explored area on the eastern edge of the Gawler Craton containing one of the world's major iron oxide copper gold silver uranium deposits at Olympic Dam, and largely lying between Lake Torrens and Lake Eyre. The area is traversed by major structural zones (including the Torrens Hinge Zone, Norwest Fault and the continental lineaments G2 and G9). The Company has a significant tenement position in this area - the Lake Torrens Project.

The Lake Torrens Project is considered prospective for several types of economic precious and base-metal deposits, including within the Mesoproterozoic basement rocks Olympic Dam-type iron oxide copper gold (IOCG) deposits, and, within the Adelaidean and Cambrian sediments, Mississippi-Valley-type ("MVT") lead-zinc-copper-silver mineralisation and carbonate-hosted willemite (zinc silicate) mineralisation, similar to the deposits in the Beltana area. Other possible types of mineralisation may include sediment-hosted copper deposits, similar to the Zambian Copperbelt style, or associated with diapiric brecciated structures; SEDEX or Mt Isa-type Zn-Pb-Ag deposits associated with pyritic, graphitic shales and dolomites, and structurally-hosted gold deposits associated with large fault systems in the Adelaidean sediments.

Epithermal Gold Silver Deposits

Epithermal style quartz vein hosted gold silver mineralisation has been recognised by the Company in the area northeast of Iron Knob. Epithermal deposits are quartz vein and stockwork style mineralisation that generally form at shallow depths (< 1km) when hot hydrothermal fluids associated with volcanic activity boil or encounter different chemical conditions. Epithermal deposits can vary considerably in size, grade and metal association. Examples include Pajingo and Wirralie (North Queensland, Australia), Ladolam-Lihir (PNG), Hishikari (Japan) and Chatree (Thailand). Precious metal mineralised epithermal deposits have not previously been identified in South Australia.

Gawler Craton structurally hosted Gold Deposits

The Gawler Craton hosts a number of gold deposits, including the Challenger Gold Mine, considered to be structurally controlled. Extensive open file databases of calcrete geochemical data have recently been released facilitating the evaluation of these target types. The Company has acquired a suite of tenements covering untested anomalous calcrete gold targets, gold mineralised drill intersections that require followup and known poorly tested known gold systems that also require additional evaluation to assess their potential to host economic deposits.

Nickel/Cobalt Sulphide Deposits

Several areas within South Australia are considered prospective for nickel ± cobalt mineralisation, including mafic/ultramafic belts within the Gawler Craton and mafic intrusions (Voiseys Bay style) along the edges of the Gawler Craton. The Company's tenements cover a number of situations with favourable geology or anomalous Ni-Co geochemistry considered of interest for these types of mineralisation.

DIRECTORS' REPORT

Uranium

Uranium deposits of several types are known in South Australia, the main economic types being the IOCG system at Olympic Dam and roll-front palaeochannel deposits such as those being exploited by at Honeymoon on the Curnamona Craton. Both IOCG targets and palaeochannel targets are present on the Company's tenements with IOCG targets such as Marathon South and Titan located in the Lake Torrens Project area and significant portions of the Garford and Wynbring palaeochannels covered by tenements in the central Gawler Craton area.

Diamonds

Desktop studies by the Company recognised the potential of several areas in South Australia to host diamond deposits. Reprocessing of aeromagnetic data and review of open file reports led to recognition of parts of the Torrens Hinge Zone/Stuart Shelf/Willouran Ranges and the central Gawler Craton as very prospective for diamonds. Important advances in diamond exploration have taken place since the Lake Torrens project area was assessed for diamonds in the past. Better geophysical surveying and processing tools; better diamond sample processing techniques encompassing finer fractions of stream sediments and loam samples; enhanced analytical techniques for geochemical analysis of outcrop areas; improved understanding of diamond exploration in Australian environments; and an expanded understanding of diamond geology together with recently published geological data and digital exploration data sets, have all combined to greatly increase Tasman's chances of locating the primary sources of the diamonds in its tenements.

EXPLORATION RESULTS Summary

During the financial year, the Company spent \$650,000 on various exploration activities, including:

Titan Iron Oxide Copper Gold Prospect

Drilling TI7 and TI8 ٠
Review of all data

Marathon South Iron Oxide Copper Gold Prospect

Drilling MS1 which identified a large potential volcanic breccia complex of the type that is interpreted to host the Olympic Dam deposit.
Detailed gravity data collected, processed and interpreted.
Drill targets identified for follow-up programme.
PACE 2 SA government funding secured to assist with drilling. $\bullet$

Wartaka Epithermal Gold Silver Project

Outcropping gold - silver mineralised epithermal quartz veining found.

Central Gawler Craton Projects

Numerous 'structure-hosted' gold targets identified, ranging from highly anomalous gold in calcrete results through to anomalous gold and arsenic RAB intercepts with no follow-up and other areas of known gold mineralisation needing further evaluation.
Highly anomalous nickel, cobalt and copper in calcrete samples with no follow-up work.
Roll front palaeochannel hosted uranium $\pm$ vanadium prospective areas identified in the Wynbring and Garford areas.

Torrens Hinge Carbonate-hosted Zinc-Lead silver

Target recognised on seismic and aeromagnetic data.
SDP soil gas sampling undertaken; results awaited

DIRECTORS' REPORT

Diamond exploration:

Kimberlite targets identified from re-processed aeromagnetic data. $\bullet$
$\bullet$ Field evaluation programme commenced.

DETAILED EXPLORATION RESULTS

Titan Iron Oxide Copper Gold 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. The Titan Prospect consists of two very strong magnetic and gravity anomalies.

During the year, the Company completed two holes, TI7 and TI8, targeting high-grade copper-gold mineralisation were completed during the quarter. The targets tested were identified from Tasman's geological modelling of the Titan system and from coincident, strong geophysical anomalies derived from several independent electrical geophysical techniques.

Hole TI7 failed to intersect higher grade mineralization than that hit in the adjacent encouraging hole TI6.

Hole Ti8 drilled into unmineralised Pandurra Formation. Apart from a narrow zone (about 5m thick) of probably late stage, remobilised sulphide mineralisation at the upper contact of the Pandurra Formation, no significant sulphides were intersected. At this stage the cause of the strong AMT anomaly (and the anomalous IP response) is not apparent from the drill hole, and the narrow zone of sulphides seems too thin and weak to be the cause of this strong anomaly. It seems likely that the target may have been just missed by TI8. Tasman is reviewing options such as downhole geophysics to address this question.

A revised model of the Titan system is under development to guide further exploration of this large, complex mineralised IOCG system to locate high grade copper gold mineralisation. Only a small part of the overall system has been evaluated to date and techniques to target new holes in untested parts of the system are under review.

Marathon South Iron Oxide Copper Gold Prospect

The Marathon South Prospect comprises a large, 4km by 6km, complex gravity anomaly located, coincident with a relative magnetic low, within a much larger (10km by 25km) regional northeast trending magnetic and gravity feature. The Waterman's Plains copper occurrence, located within the Andamooka Limestone at the top of the overlying sedimentary sequence is 2.4km northeast along this trend. The prospect is located approximately 24km northeast of WMC Resources' Olympic Dam Cu-U-Au-Ag deposit in South Australia.

During the year, the Company drilled hole MS1, The hole intersected a thick zone of haematite-altered and leached breccias. The hole was testing an AMT conductive zone on the margin of a residual gravity high.

MS1 was completed at a depth of 830.8m, finishing in altered breccias containing weak sulphide mineralisation. A total thickness of over 272.8m (from 558m to 830.8m downhole) of variably haematitealtered breccias and rocks of probable igneous origin were intersected in the hole.

The breccias consist of a variety of matrix and clast support styles, with clasts of meta-sedimentary and igneous rocks within a haematite-dominated matrix. Some breccias contain a variety of clast types, with

DIRECTORS' REPORT

evidence of more complex rebrecciation. Variable amounts of sericite, carbonate and silica alteration also occur throughout.

The thickness and areal extent of the breccias is not known, but the gravity anomaly being targeted is a complex feature, about 4km by 6km in size, and MS1 has intersected the extreme southwest margin of it.

Weak sulphide mineralisation, consisting of minor pyrite and lesser chalcopyrite (overall estimated at less than one percent sulphides) was intersected over numerous zones within the hole.

Assay results showed no significant mineralisation was intersected, as expected from the visual logging. The results are consistent with what is currently interpreted to be evidence of strong leaching of the breccias by geological processes not uncommon in volcanic calderas and diatremes.

However, some anomalous values were returned for gold (up to 0.1 g/t Au in individual 2m samples) and copper (up to several hundred ppm with a maximum of 1600ppm over 2m from 804m) for individual samples, despite the strongly leached character of the breccias. All samples were composited over 2m intervals from one-third core fillets.

The Company believes however it may have located a new large iron-oxide system, potentially mineralised and a relatively short distance from Olympic Dam.

Despite the lack of economic grades in this first hole, The Company is encouraged by the potential for Marathon South to host significant mineralisation as underlined by the following:

The significant nature and thickness of the breccias. The breccias consist of a variety of matrix $\bullet$ and clast support styles, with clasts of both sedimentary and igneous origin. They exhibit a variety of alteration styles with haematite, sericite, silica and carbonates the principal alteration minerals, and are interpreted as having formed in a subvolcanic diatreme environment.
The presence of significant igneous and volcanic components in the breccias. Brecciated, layered tuffaceous rocks, altered dykes of varying composition and altered igneous clasts within the breccias provide further evidence of igneous and volcanic processes during formation of the breccias.
The rocks in MS1 are undeformed. The lack of deformation of the breccias is consistent with their formation at Hiltaba age or younger (i.e. ~1600 million years old). Olympic Dam, Prominent Hill and other deposits in the region are undeformed and believed to have formed at this time.
The size and location of the geophysical gravity anomaly. MS1 has been drilled on the southwest margin of a large and complex gravity feature. Apart from drill hole MS1, the feature is completely untested. The prospect is located in a highly prospective part of the Olympic copper-gold province of the Gawler Craton. Furthermore, Marathon South is adjacent to a cluster of known IOCG deposits (Olympic Dam, Wiirda, Acropolis and Titan - see figure 1).

Since the completion of MS1, additional gravity data has been collected over the southern part of the anomalous feature. This new data assisted with refining the Company's geophysical modelling and was used to select drill targets.

Follow-up drilling of at least four drill holes is currently underway at Marathon South.

Wartaka Epithermal Gold Silver Project

Tasman has discovered outcropping highly anomalous gold-silver mineralisation on its 100% owned Wartaka Project, located approximately 60km west of Port Augusta. The discovery resulted from follow

DIRECTORS' REPORT

up of calcrete sampling data collected by a previous explorer in an area Tasman had earlier identified as prospective for gold mineralisation.

Rock chip assay results from the Wartaka area have been highly encouraging with strongly anomalous gold, silver, antimony and lead results returned from sampling of numerous subcropping veins in an area

at least 1.5km by 1.5km. Best assay results from grab samples of subcropping veins and float material include 1370ppb Au, 55ppm Ag, 27ppm Sb and 5000ppm Pb (as detailed in the Company's ASX announcements, post June 2005). Other mineralised veins have also been located in different areas of the tenement suggesting that a large epithermal system is present in the area.

The mineralisation is interpreted to be epithermal in character due to:

the presence of "classic" banded quartz veins showing crustiform, colloform, cockade and comb textures, together with complex overprinting relationships;
a distinctive gold-silver-lead-antimony metal association, typical of epithermal deposits; and,
evidence of hydrothermal clay alteration in wallrocks at surface.

Epithermal deposits are quartz vein and stockwork style mineralisation that generally form at shallow depths (<1km) when hot hydrothermal fluids associated with volcanic activity boil or encounter different chemical conditions. Epithermal deposits can vary considerably in size, grade and metal association. Examples include Pajingo and Wirralie (North Queensland, Australia), Ladolam-Lihir (PNG), Hishikari (Japan) and Chatree (Thailand). Epithermal deposits have not previously been identified in South Australia.

Tasman intends to advance exploration as a priority by:

conducting detailed geochemical sampling, mapping and possibly electrical geophysical surveys over the main 1.5 km by 1.5 km area noted above;
mapping and sampling over at least four other areas of interest (totalling about 5 km2) on the tenements. These include an area of newly located historical prospector activity, an area of anomalous lag geochemical samples, a potential strike extension to the north-east and the area surrounding recently sampled quartz veins found to be highly anomalous in antimony; and,
defining precise drill targets, conducting heritage clearances and drilling, which is anticipated late in 2005 or early the following year.

Carbonate-hosted Zinc Lead Exploration

Following the release of Geoscience Australia's seismic data along the Borefield road, north of Roxby Downs, the Company recognized structures within the Adelaidian sediments considered favourable for the focusing of basin dewatering brines into Cambrian carbonates. Such situations are commonly associated with the development of MVT-style zinc, lead and silver $\pm$ copper mineralisation. The innovative SDP soil gas technique has been used to assess the target zone identified on the Stuart Shelf. Results from the field work are awaited.

Central Gawler Craton

Tasman has a significant tenement holding in the central Gawler Craton in South Australia. The area is currently a focus for Tertiary channel-hosted (roll front-type) uranium exploration, and also hosts the Challenger and Tarcoola gold deposits and other advanced gold prospects such as Tunkillia.

DIRECTORS' REPORT

Tasman has acquired a portfolio of selected tenements within the central Gawler Craton, which are considered prospective for uranium, gold, nickel and diamonds. The portfolio was developed by:

$\bullet$ the application of Tasman's conceptual models for these types of deposits;
recognition of significant anomalies or mineralisation; and, $\bullet$
assessment of the comprehensive geological database provided by SA Government's Primary $\bullet$ Industry and Resources Department (PIRSA) which was largely compiled from the results of previous exploration.

Central Gawler Target Summary

Uranium:

$\alpha$ , where $\alpha$ is $\alpha$

$\langle \sigma \sigma \rangle$ , and $\sigma \sigma$ are $\sigma \sigma$ , and $\sigma$

	Wynbring North Prospect	This area was explored in the early 1980s by uranium explorer PNC (Australia) Pty Ltd and most of PNC's work was south of Tasman's exploration licence. However, PNC reported radiometric anomalies from probing of several drill holes within a Tertiary channel in the southern portion of Tasman's EL 3306, and concluded that roll front-type uranium mineralisation may exist within the channel. Granite, a possible primary source of the uranium, was intersected at the bottom of some of the PNC holes, and outcrops of granite occur sporadically in the catchment of the channel. Tasman believes that at least 10km of potential, undrilled channel may exist on EL 3306, and requires evaluation and test drilling (see Figure 2). Other branches of the channel may occur in areas of no outcrop or drilling.
	Garford Channel	50km of this channel is located within Tasman's tenements and its potential for hosting roll front-type uranium is unknown, but by analogy, is considered prospective.
Gold:	Eyre Prospect	An intersection of 20m at 53ppb Au (including 8m at 92ppb Au) from 42m to the bottom of the hole and highly anomalous arsenic (20m at 115ppm As from surface in a hole located 40m away) was intersected in RAB drilling in past exploration. Follow up step-out and deeper RC drilling is planned, and offers the potential for an early discovery (Figure 3).
	Norman Prospect	This prospect contains five separate areas of interest that were subject to drilling by prior explorers, who reported a number of significant, but sub-economic gold intersections in relatively sparse drilling. These areas require re-evaluation and possibly further drilling as a result of:
		a better understanding of the complexity and controls on high grade mineralisation likely in this geological environment, now evident at the Challenger deposit; and, a better understanding of the regolith and geochemical dispersion in this terrain.

DIRECTORS' REPORT

Goss and Forrest Prospects

Significant gold-in-calcrete anomalies (up to 10ppb Au in areas sampled at about 1.6km sample spacing) require follow-up surface sampling and possibly drilling.

Some of the tenements contain areas considered prospective for nickel mineralisation and diamonds.

Highly anomalous nickel, copper and cobalt-in-calcrete (up to 300ppm Ni, 175ppm Cu and 75ppm Co in samples collected 1km apart) have been reported in prior exploration, and the anomalies require follow-up sampling and evaluation.

The potential for diamonds has been highlighted from conceptual targeting and identification of multiple targets from detailed aeromagnetic processing. A microdiamond was recorded on Tasman's tenements in prior exploration.

Tasman intends to accelerate exploration over these areas over the coming six months with a combination of ground geological, geochemical and geophysical work, native title clearances followed by drilling.

Diamond Exploration

Following on from the Company's desktop study of the diamond potential and prospectivity of South Australia, which concluded that rocks of Jurassic and older age have good potential to host diamondiferous kimberlite and lamproite intrusions that were overlooked by previous diamond explorers, the Company completed re-processing of aeromagnetic data and selection of potential kimberlite targets.

Preliminary evaluation of the highest priority targets has been progressively undertaken as time permits throughout the year. A new evaluation technique for assessing the magnetic targets, SDP soil gas, was identified and discussions undertaken with parties holding known kimberlites to allow calibration of the technique.

ENERGY PROJECTS

Eden Energy Ltd ("Eden"), a Tasman Resources NL subsidiary, is a diversified energy company created to provide access to range of exciting new, clean green energy opportunities. Eden holds or is acquiring interests in:

hydrogen fuels, transport and storage;
coal bed/coal mine methane;
a conventional gas play; and
geothermal (deep heat mining) energy.

The Tasman / Eden Relationship

The proposed corporate structure (after completion of seed capital raising) of The Company and its subsidiary entities and their relationship to Brehon Energy plc is set out as follows:

DIRECTORS' REPORT

Hydrogen & Hythane^® Initiative - Summary

The Company, on behalf of Eden entered into a Memorandum of Understanding with Irish based Brehon Energy plc ("Brehon") to form a joint company known as Brehon Far East Pty Ltd ("Brehon Far East") in which Eden will hold 49% of the issued capital;
Under the agreement, Eden subscribed for up to 2.5million shares (representing 20% of the issued capital) in Brehon via the investment of US\$1,000,000.
Brehon Far East was granted the exclusive licence to market and distribute all Hythane® (a mixture of methane or natural gas and hydrogen) and other products owned or developed by Brehon throughout Asia, Australasia and the Pacific;
Brehon owns or has rights to a range of leading edge Hydrogen and Hythane® technologies and $\bullet$ patents. The technologies and patents address several of the major issues facing the transition to the Hydrogen economy;
The US developed Hythane^® technology has been developed over the last 15 20 years, has been $\bullet$ successfully trialled in a wide range of applications and is ready for full scale commercialisation particularly in rapidly expanding existing CNG vehicle markets. Brehon is in discussions in respect to sales with several substantial end users in Europe. This is seen as an immediate bridge between the current hydrocarbon economy and the future hydrogen economy;
The use of Hythane® as a fuel in lieu of CNG/Methane alone reduces CO₂, NO_x and other ė greenhouse gas missions. This in turn will give rise to significant carbon credits in countries that are signatories to the Kyoto Protocol. Formal European trading of carbon credits commences in $2005;$

DIRECTORS' REPORT

Hydrogen Storage

Brehon's Hydrogen storage technology which was initially developed as part of the NASA space program involves cryogenic (liquid and supercritical) storage of hydrogen and other gases. This enables far higher amounts of hydrogen to be stored in smaller sized tanks. This expertise is supplemented by a recent patent application by Brehon for a potentially significantly more efficient cryogenic storage tank. This technology has numerous applications including efficient storage for hydrogen powered motor vehicles which is currently one of the limiting factors in the transition to a Hydrogen economy. Brehon is in discussions with several leading automobile manufacturers to design and build prototype cryogenic storage tanks for their current developmental hydrogen vehicle programs.

Hythane

The Hythane^® technology was developed and patented by Frank Lynch (owner of Hydrogen Components Inc.) starting in the 1980s. Hythane® involves the addition of a small percentage of hydrogen (usually about 7% by energy) to natural gas to create a highly efficient very low emission vehicle fuel. Hythane® reduces NO_x emissions by 95%, relative to diesel and significantly reduces CO₂.

Hythane® has been successfully demonstrated in Denver (Colorado) in 1991, Erie (Pennsylvania) in 1993, in Montreal (Quebec) in 1995, and Coachella Valley California in 2003. Hythane® technology builds upon existing compressed natural gas (CNG) infrastructure and equipment, is fully developed, and available for immediate rollout.

Brehon Energy plc ("Brehon") acquired all the Hythane® technology in July 2004 and has engaged Frank Lynch as an exclusive consultant on Hythane® matters.

Eden has acquired a 20% interest in Brehon and a 49% interest in a joint venture marketing company named Brehon Far East Pte Ltd which holds the exclusive marketing rights for all Brehon technology for all countries in the Asia/Pacific region from Pakistan in the west to, but not including, the United States of America.

Hythane^® Marketing

Whilst interest has been shown in Hythane® in California, Europe, India and Australia to date, the most immediate and rapidly emerging market for Hythane® is China.

Significant progress has been made in the Hythane project in China. There is a potential market for in excess of 500,000 Hythane powered buses in China. To date, memoranda of understanding have been signed or negotiated with 6 major Chinese cities (potential market in excess of 70,000 buses). These Memoranda of Understanding have involved the Environmental Protection Bureau, which has indicated support for the Hythane project in China.

A Chinese demonstration project is planned for October - November 2005 in which 2 Hythane® powered buses will be built, tested and demonstrated. Subject to the outcome of that trial, preliminary approval for inclusion of Hythane in the Chinese Government's 16 City Clean Air Program has been obtained. This would immediately expose the Hythane project to 16 very large cities in China, all of which have significant air pollution problems.

Preliminary agreement has also been reached with engine controller manufacturers, Chinese engine manufacturers and Chinese bus manufacturers to work in conjunction with these relevant parties to develop the product range necessary to implement Hythane as a major vehicle fuel in China.

DIRECTORS' REPORT

New Brehon Technology

Significant additional work has taken place on several patents including for a conceptual portable super conducting energy storage device. An application has been lodged for a new patent in respect of a sophisticated blender for producing Hythane (blending hydrogen and natural gas). Several other patents r are also very close to being applied for.

South Wales JV (Eden earning 50%)

The Company has entered into a joint venture with Welsh-based Coastal Oil and Gas Limited that will give The Company the right to acquire a 50% interest in Coal Bed Methane (CBM)/Coal Mine Methane (CMM) and Natural Gas ("NG") more than 22% of the South Wales coalfields. The Petroleum Exploration and Development Licenses (PEDL 100, 148 & 149) together cover an area of approximately 430 km².

In addition The Company has also entered into a JV to acquire a 50% interest (up to 60% if expenditure > £1M) in an interpreted Oil/Natural Gas target situated within Devonian age rocks beneath the South Wales coalfields.

Both of these potential gas resources are strategically located in and around a number of industrial sites that are potential end users.

A detailed data capture of coal seam data from hardcopy maps and plans from historic coalmines in the 400km² tenement area has been completed. The purpose of this exercise is to determine the potential for tapping significant quantities of abandoned mine gas, and for identifying primary targets for testing unworked coal seams for possible development of coal seam gas.

Conversion of the compiled data to isopach maps and simplified 3D models is being considered. Identification of areas within the licence area that are sufficiently large to allow development of a commercial CBM well field is review. Once these areas are identified, structure and isopach maps together with 3D seam information will be used to site test wells. Permitting for the test wells takes between 6-8 weeks.

A suitable laboratory for performing the coal and gas testing programme has been identified in Germany. Negotiations to undertake the South Wales work are underway.

The search for a suitable drilling rig for the initial testing of the coal continues. A number of candidates have been identified and more detailed discussions are underway regarding capabilities, costs and availability.

South Australian Geothermal Exploration

Eden holds eight geothermal exploration licences in South Australia: GELs 166, 167, 168, 169, 175, 176, 177 and 185.

Eden's strategy will be to test the suitability of the target areas, drill test wells and, if successful, establish a power generation facility that can be used to either generate electricity or produce clean hydrogen for use as a fuel or additive to methane to produce Hythane®. It is proposed that both of these products will be marketed through the down-stream technology developed by Brehon.

and a more comparable.

Geothermal energy involves drilling holes up to 4.5km in depth into hot rocks, usually granites. The heat is produced in the rocks themselves and also comes from deeper within the Earth's core.

DIRECTORS' REPORT

The hot rocks are fractured with high pressure water to open up an network of cracks. Water is pumped down one borehole, travels through the fractured rocks, is heated and then recovered up other boreholes. The aim is to recover water at the highest possible temperature (at least 220oC) and pass it through a heat exchanger that then generates electricity using turbines. In order for the target rocks to retain heat and be hot enough, a thick sedimentary "blanket" is needed.

An integrated work programme assessing the geothermal targets in the GELs is continuing. There are five targets covered by Eden's GELs, comprising a range of different target types:

1. GEL 185 is located in the Cooper Basin and adjoins the GELs held by Geodynamics Ltd, which has already drilled and proven the concept with its two holes, Habonera 1 and Habonera 2. Eden's consultants have advised that ti is reasonable to expect similar geothermal conditions on GEL 185, as it is located on the same structure and subject to similar stresses on the Geodynamic GELs.
1. GELs 166 and 167 cover the West Well geophysical anomaly, an interpreted radiogenic iron oxide system buried beneath an estimated 3km of Adelaide geosyncline sediment. The area is approximately 60km west of Leigh Creek.
1. GEL 168 covers an interpreted thermally enhanced Hiltaba age granite, adjacent to the West Well target at Mulgaria, again buried beneath several kilometres of Adelaidean sediments.
1. GEL 169 is located approximately 80km south of Moomba, near Bollards Lagoon, and targets a proposed analogue of the Geodynamics target at Habanero.
1. GEL 177 covers an area with known high thermal temperature gradients over a gravity low interpreted to be a buried granite and/or a thicker sub-basin of the Eromanga Basin near Mungeranie on the Birdsville Track.
1. To the north of Renmark, a geothermal anomaly identified in early oil exploration wells is associated with the Nadda/Berri/Murray Basin.

The West Well anomaly was drilled tested by WMC in 1979. The 762m hole WWD1 only encountered Adelaidian shales and the hole was terminated when it was concluded that any economic mineralisation would be too deep. Discussions with the driller who drilled the hole and the geologist who supervised WWD1 have revealed that the collar was pressure cemented to an approximate depth of 20m immediately upon completion of the hole. This raises the strong possibility that the hole can be successfully re-entered, the geothermal gradient measured and heatflow for the West Well anomaly estimated. A recent visit to WWD1 by Eden staff confirmed the intact status of the collar.

Eden has been successful in obtaining SA Government PACE2 funding for part of the costs involved in reentering WWD1 and measuring the downhole temperatures. The rig contracted for the Marathon South drilling programme will be used to ream out the cement in the hole and run a BQ string to the bottom of the old hole. A small amount of fresh core will be drilled to provide data about the thermal conductivity of the Adelaidian sediments. It is anticipated that this work will occur in October 2005, once heritage and access issues are successfully concluded.

DIRECTORS' REPORT

FINANCIAL POSITION

The net assets of the economic entity have increased by \$5,101,498 from 30 June 2004 to \$10,716,755 in June 2005. The increase has largely resulted from the following factors:

Share issues raising \$7,053.320

The company's holdings in associated companies have increased by \$1,059,753 to \$1,059,753

The directors believe the group is in a strong and stable financial position to expand and grow its current operations.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

The following significant changes in the state of affairs of the parent entity occurred during the financial year:

5,000,000 ordinary fully paid shares were issued at 7.5 cents per applications. A commission of $(i)$ 6% is payable to holders of Australian financial services licences.
$(ii)$ 6,100,000 ordinary fully paid shares were issued at 7.5 cents per share as per applications. A commission of 6% is payable to holders of Australian financial services licences.
$(iii)$ 50,000 ordinary fully paid shares were issued at 8 cents per share as per applications.
5,010,000 ordinary fully paid shares were issued at 22 cents per share per applications received $(iv)$ pursuant to a prospectus dated 30 November 2004. A commission of 5% was payable to holders of Australian financial services licences.
7,970,500 ordinary fully paid shares were issued at 22 cents per share as per applications received $(v)$ pursuant to a prospectus dated 30 November 2004. A commission of 5% was payable to holders of Australian financial services licences.

AFTER BALANCE DATE EVENTS

The parent entity issued 16,806,722 fully paid ordinary shares at an issue price of 11.9 cents per share raising \$2,000,000.00. These shares are to be issued to Top Energy Pty Ltd pursuant to a resolution passed at a meeting of shareholders held on 25 July 2005

Mr Graham Roland Bedford was appointed to the board of directors on 5 September 2005.

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 economic entity, the results of those operations, or the state of affairs of the economic entity 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.

DIRECTORS' REPORT

FUTURE DEVELOPMENTS

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

INFORMATION ON DIRECTORS

The particulars of the qualifications and experience of each the current directors, are as follows:-
Crossry Howard Seleman | (Executive Chairmon) $\Gamma$ $\sim$ $\sim$

Gregory Howard Solomon	(Executive Chairman)
Qualifications	LLB
Experience	Appointed chairman 1987. Board member since 1987.Director of Eden Energy Limited since May 2004. 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 partner in the Western Australian legal firm, Solomon Brothers and has previously held directorships of various public companies since 1984 including two mining/exploration companies.
Interest in Shares and Options	7,255,865 Ordinary shares in Tasman Resources NL and options to acquire a further 4,661,266 ordinary shares. Options to acquire 1,500,000 ordinary shares in Eden Energy Limited.
Douglas Howard Solomon	(Non-executive)
Qualifications	BJuris LLB (Hons)
Experience	Board member since 3 April 2003. Director of Eden Energy Limited since May 2004. 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.
Interest in Shares and Options	7,374,666 Ordinary shares in Tasman Resources NL and options to acquire a further 4,661,267 ordinary shares. Options to acquire 1,500,000 ordinary shares in Eden Energy Limited
Guy Touzeau Le Page	(Non-Executive)
Qualifications	B.A., B.Sc. (Hons)., M.B.A., ASIA., MAusIMM Bachelor of Arts (University of Adelaide), Bachelor of Science (University of Adelaide), Masters Degree in Business Administration (University of Adelaide), Bachelor of Applied Science (Hons) (Curtin University of Technology), Graduate Diploma in Applied Finance and Investment (Securities Institute of Australia).
Experience	Board member since February 2001. Director of Eden Energy Limited since May 2004. Currently a corporate adviser 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. He previously 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

.......................................

DIRECTORS' REPORT

	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.
Interest in Shares and Options	810,779 Ordinary shares in Tasman Resources NL and options to acquire a further 273,890 ordinary shares. Options to acquire 1,500,000 ordinary shares in Eden Energy Limited
Graham Roland Bedford	(Non-Executive) nominee of Top Energy Pty Ltd
Qualifications	(F.R.A.I.A.)
Experience	Appointed director September 2005. An Australian Architect with over 30 years experience in development and management of many major Governmental and private building projects in Australia and overseas. He has also helped establish broad business links with key Chinese business and government enterprises including the resources and energy markets.
Interest in Shares and Options	350,000 Ordinary shares in Tasman Resources NL and options to acquire a further 200,000 ordinary shares.

REMUNERATION REPORT

This report details the nature and amount of remuneration for each director of Tasman Resources NL.

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.

Details of Remuneration for Year Ended 30 June 2005.

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

	Directors Fees Paid \$	Superannuation Paid	Total \$
GH Solomon	120,000	10,800	130,800
GT Le Page	24,000	2,160	26,160
DH Solomon	24,000	2,160	26,160

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.

Other Benefits include items paid and shown as related party transactions in the Notes to the Financial Statements at Note 16 (a).

DIRECTORS' REPORT

MEETINGS OF DIRECTORS

During the year 14 directors' meetings were held. The number of meetings at which directors were in attendance is as follows:

	No. of meetings	No. of meetings
	held	attended
GH Solomon	14	14
GT Le Page	14	14
DH Solomon	14	14

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.

OPTIONS

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 43,795,417 unissued ordinary shares for which options are outstanding at the date of this report.

PROCEEDINGS ON BEHALF OF COMPANY

No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is party for the purpose of taking responsibility on behalf of the company for all or any part of the proceedings.

The company was not a party to any such proceedings during the year.

NON-AUDIT SERVICES

The board of directors is satisfied that the provision of non-audit services during the year is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied that the services disclosed below do not compromise the external auditors independence for the following reasons;

the nature of the services provided do not compromise the general principles relating to auditor independence as set out in the Institute of Chartered Accountants in Australia and CPA Australia Professional Statement F1: Professional Independence.

The following fees for non-audit services were paid/payable to the external auditors during the year ended 30 June 2005:

Tax Services \$1,000.00

DIRECTORS' REPORT

AUDITORS INDEPENDENCE DECLARATION

The lead auditor's independence declaration for the year ended 30 June 2005 has been received and can be found on page 20 of the director's report.

Signed in accordance with a resolution of the Board of Directors

Gregory Romanon

an contracto de la construcción de la matematique de contracto de la matematique de la construcción de la con

G H Solomon Director Signed in Perth this 30th day of September 2005

CHARTERED
ACCOUNTANTS
& BUSINESS
ADVISORS

A MEMBER OF
MOORES FOWLAND
INTERNATIONAL

Beatless MRI Perth Partnership ABN 17735346518

City Office Level 49, Bank West Tower 108 St George's Terrace Perch WA 6000 Audralia

GPO Box W2106 Penh WA 6846

T 61 8 9320 2888 F 61 3 9320 2999

[email protected] www.hentleys.com

TASMAN RESOURCES NL ABN 85 009 253 187

AUDITOR'S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE COPORATIONS ACT 2001

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2005 there have been:

no contraventions of the auditor's independence requirements as set out in the Î. Corporations Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the ij audit.

BENTLEYS MRI PERTH PARTNERSHIP

$\mathcal{N}$

MAURICE L ANGHIE PARTNER

30TH September 2005

Level 40, BankWest Tower 108 St George's Terrace PERTH WA 6000

DIRECTORS' DECLARATION

$\mathbf{1}$

The directors of the company declare that:

the financial statements and notes, as set out on pages 22 to 44, 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 2005 and of its performance for the year ended on that date;
$\overline{2}$ the Chief Executive Officer and the Chief Finance Officer have each declared that
the financial records of the company for the financial year ended have been $(a)$ properly maintained in accordance with section 286 of the Corporations Act $2001;$
$(b)$ the financial statements and notes for the financial year comply with the Accounting Standards; and
$(c)$ the financial statements and notes for the financial year give a true and fair view.
3 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.

Sperany Moranon

GH Solomon Director

Signed in Perth this 30th day of September 2005

		Economic Entity		Parent Entity
		2005	2004	2005	2004
		Ŝ	\$	\$	\$
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2005
CURRENT ASSETS	NOTE
Cash Assets Receivables	5 6	3,754,555 469,077	451,940 32,831	1,464,898 292,291	451,940 56,757
TOTAL CURRENT ASSETS		4,223,632	484,771	1,757,189	508,697
NON CURRENT ASSETS
Other financial assets Investment accounted for using	7	1,310,735
the equity method	8
Property, plant and equipment	10	23,453	26,277	23,453	26,277
Exploration Expenditure	11	5,272,603	4,737,611	5,215,521	4,713,685
TOTAL NON CURRENT ASSETS		6,606,791	4,763,888	5,238,974	4,739,962
TOTAL ASSETS		10,830,423	5,248,659	6,996,163	5,248,659
CURRENT LIABILITIES
Payables	12	113,668	147,161	86,238	147,161
TOTAL CURRENT LIABILITIES		113,668	147,161	86,238	147,161
NET ASSETS		10,716,755	5,101,498	6,909,925	5,101,498
EQUITY
Contributed Equity	13	9,269,889	6,755,888	9,269,889	6,755,888
Accumulated losses	14	(505, 162)	(1,654,390)	(2,359,964)	(1,654,390)
Parent entity interest Outside equity interest		8,764,727 1,952,028	5,101,498	6,909,925	5,101,498
TOTAL EQUITY		10,716,755	5,101,498	6,909,925	5,101,498

$\bar{z}$

The accompanying notes form part of these financial statements.

an infinite constant compared to a constant continuation contains $\mathcal{L}^{\alpha}$ , and $\mathcal{L}^{\alpha}$ , and $\mathcal{L}^{\alpha}$ , and

		Economic Entity 2005 \$	2004 \$	2005 \$	Parent Entity 2004 \$
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2005
	NOTE
Other revenues from ordinary activities	з	157,694	33,790	133,009	33,790
Discount on acquisition of subsidiary		2,070,944
Administration expenses Depreciation expense		(1, 193, 487) (7,409)	(595,006) (13, 227)	(725, 418) (7, 409)	(595,006) (13, 227)
Exploration expenditure written off		(101, 417)		(101, 192)
Loss on disposal of fixed assets		(4, 564)		(4,564)
Share of losses of associates accounted for using the equity method		(5)
Profit/(Loss) from ordinary activities before income tax expense	4	921,756	(574, 443)	(705, 574)	(574, 443)
Income tax (expense) / benefit	2
Profit/(Loss) from ordinary activities after income tax expense		921,756	(574, 443)	(705, 574)	(574, 443)
Net profit/(loss) attributable to outside equity interests		(227, 472)
Net profit/(loss) attributable to members of the parent entity		1,149,228
Basic earnings per share (cents per share)	20	1.3847	(0.9363)	(0.8501)	(0.9363)

The accompanying notes form part of these financial statements.

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$\cdots$

		Economic Entity			Parent Entity
		2005	2004	2005	2004
		\$	\$	\$	Ş.
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2005
		Inflows	Inflows	Inflows	Inflows
	NOTE	(Outflows)	(Outflows)	(Outflows)	(Outflows)
CASHFLOWS FROM OPERATING ACTIVITIES
Receipts from customers		80,520		80,520
Payments to suppliers and
employees		(1,054,374)	(729, 383)	(868, 334)	(729, 383)
Interest received Goods and Services Tax		77,174	33,790	52,489	33,790
Refunds		117,617	174,973	95,823	174,973
Net cash outflows from
operating activities	19 (b)	(779,063)	(520, 620)	(639, 502)	(520, 620)
CASH FLOWS FROM
INVESTING ACTIVITIES
Exploration expenditure		(660, 110)	(1,324,012)	(603, 449)	(1,324,012)
Purchase of property plant &
equipment Investment in associated		(8,568)	(8, 221)	(8,568)	(8, 221)
entities		(1, 341, 298)
Investment in joint venture		(227,056)
Loans to controlled entities				(249, 525)
Loans to associated entities		(445, 736)
Net cash outflows from investing activities		(2,682,768)	(1, 332, 233)	(861,542)	(1,332,233)

CASH FLOWS FROM
FINANCING ACTIVITIES Proceeds from issue of shares
Proceeds from issue of		7,053,321	2,058,380	2,653,320	2,058,380
options			60,000		60,000
Share Issue Costs		(288, 875)	(101, 414)	(139, 319)	(101, 414)
Net cash inflows from
financing activities		6,764,446	2,016,966	2,514,001	2,016,966

Net increase (decrease) in cash held		3,302,615	164,113	1,012,957	164,113
Cash at beginning of the
financial year		451,940	287,827	451,940	287,827
Cash at the end of the financial year	19(a)
		3,754,555	451,940	1,464,897	451.940

The accompanying notes form part of these financial statements.

$\label{eq:constr-1} \alpha \alpha \beta \alpha \alpha \alpha \alpha \alpha \alpha \alpha \alpha \alpha \alpha \alpha \alpha \alpha \alpha \alpha \alpha \$

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

	Economic Entity		Parent Entity
2005	-2004	2005	2004
S	s	Ś	s

$1.$ 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.

The financial report covers the economic entity of Tasman Resources NL and controlled entities, and Tasman Resources NL as an individual parent entity. 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 economic entity in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

Principles of Consolidation $(a)$

A controlled entity is any entity controlled by Tasman Resources NL. Control exists where Tasman Resources NL has the capacity to dominate the decision-making in relation to the financial and operating policies of another entity so that the other entity operates with Tasman Resources NL to achieve the objectives of Tasman Resources NL. A list of controlled entities is contained in Note 20 to the financial statements.

All inter-company balances and transactions between entities in the economic entity, including any unrealised profits or losses, have been eliminated on consolidation.

Where controlled entities have entered or left the economic entity during the year, their operating results have been included from the date control was obtained or until the date control ceased. Outside interests in the equity and results of the entities that are controlled are shown as a separate item in the consolidated financial report.

$(b)$ Income Tax

The economic entity 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.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

	Economic Entity	Parent Entity
2005	2004	2005	2004
	Ś	s

Statement of Accounting Policies (Cont'd) 1.

$(c)$ 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 :-

$\left( 1\right)$ 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.

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.

$(d)$ Property, Plant and Equipment

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%

$(e)$ 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.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

	Economic Entity	Parent Entity
2005	2004	2005	2004
s	Ŝ	Ś	s

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

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

$(a)$ Impact of Adoption of Australian Equivalents to International Financial Reporting Standards

The company is preparing and managing the transition to Australian Equivalents to International Financial Reporting Standards (AIFRS) effective for the financial years commencing from 1 January 2005. The adoption of AIFRS will be reflected in the economic entity's and the parent entity's financial statements for the year ending 30 June 2006. On first time adoption of AIFRS, comparatives for the financial year ended 30 June 2005 are required to be restated. The majority of the AIFRS transitional adjustments will be made retrospectively against retained earnings at 1 July 2004.

The economic entity's management, with the assistance of external consultants, has assessed the significance of the expected changes and preparing for their implementation. The impact of the alternative treatments and elections under AASB 1: First Time Adoption of Australian Equivalents to International Financial Reporting Standards has been considered where applicable.

The directors are of the opinion that the key material differences in the economic entity's accounting policies on conversion to AIFRS and the financial effect of these differences, where known, are as follows. Users of the financial statements should note, however, that the amounts disclosed could change if there are any amendments by standard-setters to the current AIFRS or interpretation of the AIFRS requirements changes.

Impairment of Assets - Under AASB 136: Impairment of Assets, the recoverable amount of an asset is determined as the higher of fair value less costs to sell, and value in use. In determining value in use, projected future cash flows are discounted using a risk adjusted pre-tax discount rate and impairment is assessed for the individual asset or at the 'cash generating unit' level. A 'cash generating unit' is determined as the smallest group of assets that generates cash flows that are largely independent of the cash inflows from other assets or groups of assets. The current policy is to determine the recoverable amount of an asset on the basis of undiscounted net cash flows that will be received from the asset's use and subsequent disposal. It is likely that this change in accounting policy will lead to impairments being recognised more often.

Income Tax - Income tax will be calculated on the "balance sheet" approach under which temporary differences are identified for each asset and liability. As tax effects follow the underlying transaction, some tax effects will be recognised in equity.

Effects of Changes in Foreign Exchange Rates - The financial statements of economic entity may be reported in more than one currency. The economic entity's integrated foreign operations can no longer be translated using the temporal method.

Exploration Expenditure - Currently an accounting standard has yet to be issued which deals with the treatment of exploration and evaluation expenditure under IFRS.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

	Economic Entity	Parent Entity
2005	2004	2005	2004
s		s	s

Share-based Payments - The entity shall recognise the goods or services received or acquired in a share-based payment transaction when it obtains the goods or as the services are received. The entity shall recognise a corresponding increase in equity if the goods or services were received in an equity-settled share-based payment transaction. When the goods or services received or acquired in a share-based payment transaction do not qualify for recognition as assets, they shall be recognised as expenses. It is believed that the effect to the entity will be approximately \$24,000.

$(h)$ Comparative Figures

Where required by Accounting Standards comparative figures have been adjusted to conform with changes in presentation for the current financial year.

$\langle i \rangle$ Franking Credits

As at balance date there are no franking credits for the economic entity or the parent entity.

		Economic Entity		Parent Entity
		2005 \$	2004 \$	2005 \$	2004 \$
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	276,527	(172, 333)	(211, 672)	(172, 333)
	Expenditure incurred in exploration activities claimable under Section	(506, 393)		30,358
	122.1 Future income tax benefits not recognised	(231, 900) 461,766	(352, 416) 524,749	(163, 918) 345,232	(345, 201) 517,534
	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	2,493,573	2,031,807	2,369,861	2,031,428

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

		Economic Entity		Parent Entity
		2005	2004	2005	2004
		s		S	\$.
	The benefits will only be available if:-
(a)	future assessable income is derived of a nature and of an amount sufficient to enable the benefit to be realised;
88. A

the conditions for deductibility imposed by the tax legislation continue to be $(b)$ complied with; and

no changes in tax legislation adversely affect the company in realising the benefit. $(c)$

3.	Revenue Operating Activities
	- Interest revenue	77,174	33,790	52,489	33,790
	- PACE Grant funding	80,520		80,520
	Total Revenue	157,694	33,790	133,009	33,790
4.	Loss from Ordinary Activities Loss from ordinary activities before income tax has been determined after (a) Expenses
	Depreciation - plant and equipment	7,409
	Exploration expenditure written		13,227	7,409	13,227
	off	101,417		101,192
	Loss on disposal of fixed assets	4,564	165	4,564	165
5.	Cash Assets
	Cash on hand	739	16	738	16
	Cash at bank	3,753,816	451,924	1,464,160	451,924
		3,754,555	451,940	1,464,898	451,940
6.	Receivables Current:
	Amount Receivable from Partly owned subsidiaries			273,451	23,926
	Associated companies GST Refunds	445,078 9,468	22,634	6,893	22,634
	Deposit- Funds held in Trust	750	750	750	750
	Bonds	5,000	5,000	5,000	5,000
	Cash Advances	8,781	4,447	6,197	4,447
		469,077	32,831	292,291	56,757

NOTES TO THE FINANCIAL STATEMENTS FOR TI

$\overline{7}$ .

HE YEAR ENDED 30 JUNE 2005
	Economic Entity			Parent Entity
	2005	2004	2005	2004
	\$	\$	\$	\$

Other financial assets Non Current Assets Unlisted investments at cost
Shares in associates Note 9	1,341,303
Less provision for diminution	(281, 551)
	1,059,753
Investment in joint venture	250,983
	1,310,735
The economic entity has entered into a joint venture with Welsh-based Coastal Oil and Gas Limited that will give the economic entity the right to acquire a 50% interest in Coal Bed Methane (CBM)/Coal Mine Methane (CMM) and Natural Gas ("NG"). In addition the economic entity has also entered into a JV to acquire a 50% interest (up to 60% if expenditure $>$ £1M) in interpreted aп Oil/Natural Gas target situated in South Wales coalfields. The above are the costs to date to earn those rights.

8. Investments accounted for using the equity method

_________
Associated companies	Note 9 .

9. Associated Companies

Interests are held in the following associated companies Name Principle Activities

Name	Principle Activities	Ownership Interest		Carrying Amount of Investment
		2005	2004	2005	2004
		%	%	ŝ	\$,
Unlisted:
Brehon Far East	Marketing of
Pte Ltd	Hythane in Asia
	Ordinary shares	49.00
		$\sim$

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

		Economic Entity			Parent Entity
		2005	2004	2005	2004
		\$	\$	\$	\$
Brehon Energy plc	Hydrogen and Hythane technology development and marketing Ordinary shares	19.17		1,059,753
Companies Balance at the beginning of the	Movements During the Year in Equity Accounted Investment in Associated
financial year
Add: New investments during the year	Share of associated company's profit	5.
/ (loss) from ordinary activities and extraordinary items after income tax Share of associated company's reserve increments arising during the		(5)
уеаг
Less: Dividend revenue from associated company Disposals during the year
Balance at end of financial year
Retained Earnings Attributable to Associate Share of associates profit/(loss) from ordinary activities before income tax Share of associates income tax expense		(500, 441)
Share of associates profit/(loss) from ordinary activities after income tax Share of retained profits/(losses) at beginning of the financial year Dividends received		(500, 441)

Share of retained profits/(losses) at end of the financial year		(500, 441)
Reserves Attributable to Associate Asset Revaluation Reserve

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

	Economic Entity		Parent Entity
	2005	2004	2005	2004
	\$	\$	\$	\$
Balance at the beginning of the financial year Share of reserve increments

Balance at end of financial year

Summarised Presentation of
Aggregate Assets, Liabilities and Performance of Associates	438,858 434,071
Current Assets
Non-current Assets
Total Assets	872,929
Current Liabilities	908,057
Non-current Liabilities	130,941
Total Liabilities	1,038,998
Net Assets/(Liabilities)	(166,069)
Net profit/(loss) from ordinary activities after income tax of
associates	(1,659,844)

Ownership interest in Brehon Far East Pte Ltd and controlled entities at that company's balance date was 49% of ordinary share. The reporting date of Brehon Far East Pte Ltd and controlled entities is 30 June 2005

Tasman Resources NL's controlled entity owns 49% of issued ordinary shares of Brehon Far East Pte Ltd and controlled entities.

Brehon Far East Pte Ltd and controlled entities was acquired on 9 August 2004 for a cash consideration of $$5.$

Property, plant and equipment Plant and Equipment

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

		Economic Entity		Parent Entity
	2005	2004	2005	2004
	\$	\$	Ś	\$
At cost	75,660	71,542	75.660	71,542
Accumulated depreciation	(52, 207)	(45, 265)	(52, 207)	(45, 265)
Balance at end of year	23,453	26,277	23.453	26,277
Total Property plant and equipment	23,453	26,277	23.453	26,277

$(a)$ 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.	PLANT AND EQUIPMENT	TOTAL
Balance at beginning of the year Additions Disposals Depreciation Expense	26,277 9,149 (4, 564) (7,409)	26,277 9,149 (4, 564) (7,409)	26,277 9,149 (4, 564) (7, 409)	26,277 9,149 (4, 564) (7,409)
Carrying amount at the end of the vear	23,453	23,453	23,453	23,453
Exploration Expenditure Costs carried forward in respect of areas of interest in: - Exploration and evaluation phases	5,272,603	4,737,611	5,215,521	4,713,685
Total exploration expenditure	5,272,603	4,737,611	5.215.521	4,713,685

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.

$12.$ Payables

$11.$

Current:
Creditors and accruals	113.668	147.161	86.238	147.161

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

			Economic Entity		Parent Entity
			2005	2004	2005	2004
			\$	\$	\$	\$

13.	Contributed Equity Ordinary shares fully paid	Note
	66,752,515	13(a)	9,209,889	6,695,888	9,209,889	6,695,888

	$(2004 - 66, 752, 515)$
	Options	13(b)	60,000	60,000	60,000	60,000
	43,795,417 (2004)
	34,630,849)
			9,269,889	6,755,888	9,269,889	6,755,888
	(a) Movements in Contributed Equity
	During the Year	No.
	Ordinary shares fully paid
	Opening balance
	(200448, 632, 682)	66,752,515	6,695,888	4,738,921	6,695,888	4,738,921
	Issue of shares - prior year			2,058,380		2,058,380
$\langle i \rangle$	06 Aug 2004	5,000,000	375,000		375,000
(ii)	08 Sep 2004	6,100,000	457,500		457,500
(iii)	09 Nov 2004	50,000	4,000		4,000
(iv)	15 Dec 2004	5,010,000	1,102,200		1,102,200
(v)	17 Dec 2004	2,025,000	445,500		445,500
(vi)	20 Dec 2004	692,273	152,300		152,300
	(vii) 22 Dec 2004	531,000	116,820		116,820
	Less share issue costs		(139, 319)	(101, 413)	(139, 319)	(101, 413)
	Closing Balance
	(200466,752,515)	86,160,788	9,209,889	6,695,888	9,209,889	6,695,888

$\left( i\right)$ On 06 Aug 2004 5,000,000 ordinary fully paid shares were issued at 7.5 cents per share on application for shares.
$(ii)$ On 08 September 2004 6,100,000 ordinary fully paid shares were issued at 7.5 cents per share on application for shares.
$(iii)$ On 09 November 2004 50,000 ordinary fully paid shares were issued at 8 cents per share on application for shares.
$(iv)$ On 15 December 2004 5,010,000 ordinary fully paid shares were issued at 22 cents per share on application for shares.
$(v)$ On 17 December 2004 2,025,000 ordinary fully paid shares were issued at 22 cents per share on application for shares.
$(v_i)$ On 20 December 2004 692,273 ordinary fully paid shares were issued at 22 cents per share on application for shares.
$(vii)$ On 22 December 2004 531,000 ordinary fully paid shares were issued at 22 cents per share on application for shares.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

		Economic Entity		Parent Entity
		2005	2004	2005	2004
		Ś	\$	Š	\$

(b) Options
Movements in Contributed Equity During the Year	No.
Options expiring 28 February 2006 (Exercise price) \$0.20\$
Opening balance (200430, 630, 849)	34,630,849	60,000		60,000
Issue of options - Current year Prior year	9,164,568		60,000		60,000
Closing Balance (200434, 630, 849)	43,795,417	60,000	60,000	60,000	60,000

14. Accumulated Losses

Accumulated losses at the end of the financial year	(505.162)	(1,654,390)	(2,359,964)	(1.654.390)
Net profit/(loss) for the year	1,149,228	(574.443)	(705.574)	(574.443)
beginning of the financial year	(1.654.390)	(1.079.947)	(1.654.390)	(1.079.947)
Accumulated losses at the

$15.$ Segmental Information

$(i)$ Geographical
The entity operates predominately in Australia.
$(ii)$ Business The entity operates predominately in the area of mineral exploration.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

GT Le Page

. . . . . . . . . . . .

والمجاج المستقلب والمتعشف والمراد والمستحقق والمسا

					Economic Entity		Parent Entity
				2005	2004	2005	2004
				\$.	\$	\$	\$
16.		Related Party Transactions
	normal (a)	unless otherwise stated, are commercial unless otherwise stated. Transactions with related parties: Director related parties	Transactions with related parties, at terms and conditions no more favourable than those available to other parties
		have an interest	Management and administration fees paid to Princebrook Pty Ltd, a company in which Mr GH Solomon and Mr DH Solomon	231,756	157,500	157,500	157,500
		Legal and professional fees to Solomon Brothers, a firm of which GH Solomon and Mr DH Solomon are partners.		38,478	8,500	13,583	8,500
		Professional fees and commissions paid to RM Capital Pty Ltd, a company in which Mr GT Le Page is a
		director and shareholder. Page, a company in which Mr GT Le Page is a director and	Professional fees paid to GT Le	92,810	54,755	92,810	54,755
		shareholder.			1,000		1,000
	(b)	at the 30 June 2005 are:		The number of ordinary shares in which the directors have a relevant interest
			Opening Balance	Ordinary Shares acquired during the year	Ordinary Shares disposed of during the year		Closing Balance
		GH Solomon DH Solomon	6,875,865 7,124,666	380,000 250,000			7,255,865 7,374,666

$(c)$ The number of options to acquire ordinary shares in which the directors have a relevant interest at the 30 June 2005 are:

$\downarrow$

$\label{eq:conformal} \begin{minipage}[t]{0.9\textwidth} \centering \begin{minipage}[t]{0.9\textwidth} \centering \end{minipage}[t]{0.9\textwidth} \begin{minipage}[t]{0.9\textwidth} \centering \end{minipage}[t]{0.9\textwidth} \begin{minipage}[t]{0.9\textwidth} \centering \end{minipage}[t]{0.9\textwidth} \begin{minipage}[t]{0.9\textwidth} \centering \end{minipage}[t]{0.9\textwidth} \begin{minipage}[t]{0.9\textwidth} \centering \end{minipage}[t]{0.9\textwidth} \begin{minipage}[t]{0.9\textwidth} \$

710,779

560,779 150,000

. . . . . . . . . . . . . . . . . . . .

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

		Economic Entity		Parent Entity
		2005	2004	2005	2004
		\$	\$	Ş	\$
	Opening Balance	Options acquired during the year	Options disposed of during the year	Closing Balance
GH Solomon	4,661,266				4,661,266
DH Solomon	4,661,267	$\overline{\phantom{a}}$			4,661,267
GT Le Page	423,890		(150,000)		273,890

$17.$ 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 \$1,300,000 for the calendar year 2005 and that a minimum of 30% of the combined tenement area is surrendered in the calendar year 2005. 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.

Payable

- Not later than 1 year	1.300.000		$-1,300,000$
- Later than 1 year but not later			-
than 5 years		$\overline{\phantom{a}}$
- Later than 5 years	-	AM	٠

Other Commitments

The economic entity through Eden Energy Ltd, has entered into the following commitments: -

I. To fund exploration expenditure in South Wales pursuant to the joint Venture with Coastal Oil and Gas Limited in respect of coal bed methane, coal mine methane and conventional hydrocarbons on two Petroleum Exploration and development Licences covering an area of 430km². The estimated aggregate expenditure if these proceed is in the order of £2-2.5 million over 3-5 years.

These full commitments are dependent upon Eden Energy Ltd raising capital to meet these obligations.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

Economic Entity		Parent Entity
2005	2004	2005	2004
		s

18. DIRECTORS AND EXECUTIVES' REMUNERATION

(a) Parent Entity Directors
Mr GH Solomon	Executive Chairman
Mr DH Solomon	Director - Non Executive
Mr GT Le Page	Director – Non Executive
(b) Controlled Entity Directors
Mr GH Solomon	Executive Chairman
Mr DH Solomon	Director - Non Executive
Mr GT Le Page	Director - Non Executive
MR G Liu	Director - Non Executive

2005	Primary			Post Employ ment	Equity	Other	Total
	Salary Fees & Commis sions	Superan nuation Contribu tions	Cash Bonus	Non- Cash Benefits	Superan nuation	Options
Mr GH Solomon	177,258	12,578			$\blacksquare$		$\overline{\phantom{a}}$	189,836
Mr DH Solomon	33,161	2.444	$\overline{r}$		$\overline{\phantom{a}}$	٠	$\ddot{}$	35,605
Mr GT Le Page	33,161	2,444	$\overline{\phantom{0}}$	$\overline{\phantom{a}}$		$\blacksquare$		35,605
Mr G Liu	9,161	$\bullet$	$\overline{\phantom{0}}$	$\overline{\phantom{a}}$				9,161
	252.741	17,466						270,207

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

	Economic Entity	Parent Entity
2005	2004	2005	2004
s		s	s

$18.$ DIRECTORS AND EXECUTIVES' REMUNERATION

2004

2004					Post Employ
		Primary			ment	Equity	Other	Total
	Salary Fees & Commis sions	Superan nuation Contribu tions	Cash Bonus	Non- Cash Benefits	Superan nuation	Options
Mr GH Solomon	120.000	10,800	$\mathbf{a}$			$\mathbf{H}$	$\overline{ }$	130,800
Mr DH Solomon	24,000	2,160					w	26,160
Mr GT Le Page	24,000	2,160						26,160
	168,000	15,120	$\overline{a}$					183,120

(d) Remuneration - Options

There were no options issued during the year as part of remuneration to directors or executives. Refer to Note 16 for further disclosures on directors' remuneration.

19. NOTES TO THE STATEMENTS OF CASH FLOWS

(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 ${i}$ bank overdrafts; and

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

Cash at Bank and on hand	3.754.555	451.940	1,464.897	451.940
	3.754.555 ---------------------------------------	--------------------------------------	451,940 1,464,897	451.940

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

			Economic Entity		Parent Entity
			2005	2004	2005	2004
			\$	\$	\$	\$
19.		NOTES TO THE STATEMENTS OF CASH FLOWS
		(b) Reconciliation of the operating loss after income tax to the net cash flow used in operations
		Operating profit/(loss) after income tax	921,756	(574, 443)	(705, 574)	(574, 443)
		Non-cash flows in operating profit/ (loss) Discount on acquisition of
		subsidiary	(2,070,944)
		Provision for diminution	281,556
		Depreciation	7,409	13,227	7,409	13,227
		Loss on Disposal of Assets	4,564	165	4,564	165
		Exploration Expenditure written
	off		101,417		101,192
		Changes in assets and liabilities Decrease(Increase) in receivables Increase(Decrease) in creditors	8,672	3,855	13,831	3,855
		and accruals	(33, 493)	36,576	(60, 924)	36,576
			(779,063)	(520, 620)	(639, 502)	(520, 620)
20.		EARNINGS PER SHARE
	(a)	Reconciliation of Earnings to Net Loss Operating loss	1,149,228	(574, 443)	(705, 574)	(574, 443)
		Earnings used in the calculation of basic EPS	1,149,228	(574, 443)	(705, 574)	(574, 443)
	(b)	Weighted average number of ordinary shares on issue used in calculation of basic earnings per share	82,994,733	61,351,521	82,994,733	61,351,521

$(c)$ As at 30 June 2005 the company had 43,794,417 options on issue exercisable at 20 cents per share on or before 28 February 2006. These options are not considered to be potential ordinary shares for the calculation of dilutive earnings per share. Dilutive earnings per share have 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.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

Economic Entity			Parent Entity
2005	2004	2005	2004
		s	s

21. EVENTS SUBSEQUENT TO BALANCE DATE

16,806,722 fully paid ordinary shares were issued at an issue price of 11.9 cents per share raising \$2,000,000.00. These shares are to be issued to Top Energy Pty Ltd pursuant to a resolution passed at a meeting of shareholders held on 25 July 2005

Mr Graham Roland Bedford was appointed to the board of directors on 5 September 2005.

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.

$22.$ AUDITORS REMUNERATION

Amounts, received or due and receivable by auditors for:

- auditing the accounts	19,350	5.050	14,350	5,050
- other services	.000 ________	1.000	1.000	1.000

23. CONTROLLED ENTITIES

In May 2004 a company named Eden Energy Pty Ltd was incorporated in Australia as a wholly owned subsidiary of Tasman Resources NL. The company name was changed to Eden Energy Ltd in September 2004. As at 30 June 2005 Tasman Resources held 48.723% of the ordinary fully paid shares issued in Eden Energy Ltd and is represented by 3 of the 4 directors on the board of Eden.

24. 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.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

25. FINANCIAL INSTRUMENTS

(a) TERMS, CONDITIONS, AND ACCOUNTING POLICIES

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

RECOGNISED FINANCIAL INSTRUMENTS	STATEMENT OF 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
Receivables - Other	6	at nominal amounts. nominal amounts.	Receivables are carried at
(ii) Financial Liabilities Trade creditors and accrued expenses	11	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	13	Ordinary share capital is recognised at the amount paid- up.	Details of shares issued are set out in note 10
2005 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		3,754,555	18,840	3,754,555 18,840	4.30% N/A
Total Financial Assets		3,754,555	18,840	3,773,395
(ii) Financial Liabilities Trade creditors and accrued expenses			113,668	113,668	N/A
Total Financial Liabilities			113,668	113,668

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

25. FINANCIAL INSTRUMENTS (Cont'd)

2004

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	451,940	32,831	451,940 32,831	4.30% N/A.
Total Financial Assets	451,940	32,831	484,771
(ii) Financial Liabilities Trade creditors and accrued expenses		147,161	147,161	N/A.
Total Financial Liabilities		147,161	147,161

(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.

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.

26. 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.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

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.

On 3 March 2005 a total of 600,000 options were issued under the Tasman Resources Employee Share Option Plan at an issue price of \$nil per option. These were issued to employees not classified as specified executives.

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 14 (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 2005 was \$0.175 (30 June 2004 \$0.125)

EMPLOYEES

The number of full time employees as at balance date are

	2005	2004
Parent Entity
Economic entity

and a change of the property of the property of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract o

A MEMBER OF MOORES ROMLAND

Bentleys MRI Perth Partnership ABN 17 735 344 518

City Office Level 40, Bank West Tower 108 St George's Tempe Penti WA 6000 Australia

GPO Box W2105 Festh WA 6846

T 61 & 9320 2888 F 61 S 9320 2999

[email protected] www.beatlevs.com

TASMAN RESOURCES NL ABN 85 009 253 187 AND CONTROLLED ENTITY

INDEPENDENT AUDIT REPORT TO THE MEMBERS OF TASMAN RESOURCES NL

SCOPE

The financial report and directors' responsibility.

The financial report comprises the statement of financial position, statement of financial performance, statement of cash flows, accompanying notes to the financial statements, and the directors' declaration for Tasman Resources NL (the company) and the consolidated entity, for the year ended 30 June 2005. The consolidated entity comprises both the company and the entities it controlled during that year.

The directors of the company are responsible for the preparation and true and fair presentation of the financial report in accordance with the Corporations Act 2001. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report.

AUDIT APPROACH

We conducted an independent audit in order to express an opinion to the members of the company. Our audit was conducted in accordance with Australian Auditing Standards, in order to provide reasonable assurance as to whether the financial report is free of material misstatement. The nature of an audit is influenced by factors such as the use of professional judgment, selective testing, the inherent limitations of internal control, and the availability of persuasive rather than conclusive evidence. Therefore, an audit cannot guarantee that all material misstatements have been detected.

We performed procedures to assess whether in all material respects the financial report presents fairly, in accordance with the Corporations Act 2001, including compliance with Accounting Standards and other mandatory financial reporting requirements in Australia, a view which is consistent with our understanding of the company's and the consolidated entity's financial position, and of their performance as represented by the results of their operations and cash flows.

We formed our audit opinion on the basis of these procedures, which included:

examining, on a test basis, information to provide evidence supporting the amounts and disclosures in the financial report, and
assessing the appropriateness of the accounting policies and disclosures used and the reasonableness of significant accounting estimates made by the directors.

While we considered the effectiveness of management's internal controls over financial reporting when determining the nature and extent of our procedures, our audit was not designed to provide assurance on internal controls.

INDEPENDENCE

In conducting our audit, we followed applicable independence requirements of Australian professional ethical pronouncements and the Corporations Act 2001.

AUDIT OPINION

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

the Corporations Act 2001, including: a.
i. giving a true and fair view of the company's and consolidated entity's financial position as at 30 June 2005 and of their performance for the year ended on that date: and
ii. complying with Accounting Standards in Australia and the Corporations Regulations 2001; and
$b₁$ other mandatory professional reporting requirements in Australia.

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 11, 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.

BENTLEYS MRI PERTH PARTNERSHIP

Sull

ML ANGHIE PARTNER

Dated at PERTH this 30^th day of September 2005

CORPORATE GOVERNANCE STATEMENT

Corporate Governance

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

The Board of Directors acknowledge the Principles of Good Corporate Governance and Best Practice Recommendations set by the Australian Stock Exchange ("ASX") Corporate Governance Council. However, in view of the Company's current size and extent and nature of operations, full adoption of the recommendations is currently not practical. The Board will continue to work towards full adoption of the recommendations in line with growth and development of the Company in the years ahead. Where the Company's framework was different to the Principles of Good Corporate Governance and Best Practice Recommendations set by the ASX Corporate Governance Council, it has been noted below.

A summary of the current corporate governance practices as adopted by the Board are as follows:

The Board of Directors

Board Responsibilities

The Board assumes responsibility for overseeing the affairs of the Company by ensuring that they are carried out in a professional and ethical manner and that business risks are effectively managed.

The board carries out its responsibilities according to the following mandate;

The Company's Constitution fixes the number of Directors to at least three directors and not more than six. The Board currently consists of three, with at least two-thirds being nonexecutive directors:
The directors should possess a broad range of skills qualifications and experience;
The Company's Constitution requires that not less than one third of the all the Directors other than the Managing Director retire by rotation at each annual general meeting. Directors appointed during the period since the last annual general meeting of the company must submit themselves for election at the next Annual General Meeting;
The full board meets formally to conduct appropriate business. The Board uses resolutions in writing signed by all Directors to deal with matters requiring decisions between meetings;
All available information in connection with items to be discussed at a meeting of the board shall be provided to each director prior to that meeting.

The primary responsibilities of the Board include;

Review and ratify systems of risk management and internal compliance and control, codes of conduct, legal compliance, and any other regulatory compliance;
Approve and monitor the progress of major capital expenditure, capital management, and acquisition and divestitures;
Approve and monitor financial and other reporting to shareholders and the market;
Monitor the Board composition, Director selection, Board process and performances and ensure Directors have an understanding of the consolidated entities business;
Monitor and influence the key standards of the consolidated entity including Ethical Standards, $\bullet$ reputation and culture;
The approval of the annual and half-yearly financial report; $\bullet$
The review and adoption of annual budgets for financial performance of the consolidated entity and the monitoring of results;
Ensuring that the consolidated entity is able to pay its debts as and when they fall due.

The Company discloses the details of qualifications and experience of each Director in its annual report.

Due to the Company's current size and extent and nature of operations, the following departures from the Principles of Good Corporate Governance and Best Practice Recommendations have occurred:-

The Company does not have a majority of independent directors: The Chairman of the Board is an executive director.

Board Committees

Remuneration Committee

Due to the Company's current size and extent and nature of operations, the following departures from the Principles of Good Corporate Governance and Best Practice Recommendations have occurred:-

The Company does not have a Remuneration Committee. The Board believes that, with only three Directors on the Board, the Board itself is the appropriate forum to deal with this function.

The Company's Constitution allows for a maximum amount per annum to be paid to non-executive directors to be allocated at the discretion of the Directors. Any changes to the annual amount must be approved at a General Meeting of members of the Company.

Audit Committee

Due to the Company's current size and extent and nature of operations, the following departures from the Principles of Good Corporate Governance and Best Practice Recommendations have occurred:-

The Company does not have an Audit Committee. The Board believes that, with only three Directors on the Board, the Board itself is the appropriate forum to deal with this function.

Nomination Committee

Due to the Company's current size and extent of nature and operations, the following departures from the Principles of Good Corporate Governance and Best Practice Recommendations have occurred;

The Company does not have a Nomination Committee. The Board believes that, with only three Directors on the Board, the Board itself is the appropriate forum to deal with this function.

Independent Professional Advice

With prior approval of the Chairman, each director has the right to seek independent legal and other professional advice at the consolidated entity's expense concerning any aspect of the consolidated

entity's operations or undertaking in order to fulfil their duties and responsibilities as directors.

Ethical Standards

The Board endeavours to ensure that the Directors, officers and employees of the Company act with integrity and observe the highest standards of behaviour and business ethics in relation to their corporate activities.

Specifically, that Directors, officers and employees must:

Comply with the law;
Act in the best interests of the Company:
Be responsible and accountable for their actions; and
Observe the ethical principles of fairness, honesty and truthfulness, including disclosure of potential conflicts.

Trading Policy

It is the company's policy to encourage Directors and employees to own Shares in the Company. The trading in shares policy reinforces the obligations of Directors and employees of the Company, under the Corporations Act 2001 and the ASX Listing Rules in relation to trading in Company Shares. The policy restricts directors and employees from acting on material information until it has been released to the market. Directors are required to report share trading to the Company Secretary.

Continuous Disclosure

The Executive Chairman and Company Secretary have been appointed as the persons responsible for communications with the ASX. These people are also responsible for ensuring the compliance with the continuous disclosure requirements in the ASX listing rules and overseeing and co-ordinating information disclosure to the ASX.

The Executive Chairman and the Company Secretary are responsible for the communications strategy to promote effective communications with shareholders and encourage effective participation at general meetings. The Company adheres to best practice in its preparation of Notices of Meetings to ensure all shareholders are fully informed.

Risk Management

The Board is responsible for the consolidated entity's system of internal controls. The Board constantly monitors the operation and financial aspects of the consolidated entity's activities and considers the recommendations and advice of external auditors and other external advisers on the operations and financial risks that face the consolidated entity.

The Board ensures that recommendations made by the external auditors and other external advisers are investigated and, where considered necessary, appropriate action is taken to ensure that the consolidated entity has an appropriate internal control environment in place to manage the key risks identified.

In addition, the Board investigates ways of enhancing existing risk management strategies, including appropriate segregation of duties and the employment and training of suitably qualified and experienced personnel.

Due to the Company's current size and extent and nature of operations, the following departures from the Principles of Good Corporate Governance and Best Practice Recommendations have occurred:-

The Company does not have a full time chief executive officer or chief financial officer and therefore statements are not obtained from such persons in relation to Best Practice Recommendation 4.1.

Code of Conduct

As part of the Board's commitment to the highest standard of conduct, the consolidated entity requires executives, management and employees in carrying out their duties and responsibilities to act ethically and lawfully with respect to all transactions and matters including:-

Responsibilities to shareholders:
Compliance with laws and regulations;
Relations with customers and suppliers;
Ethical responsibilities:
Employment practices; and
Responsibilities to the environment and the community.

Due to the Company's current size and extent and nature of operations, the following departures from the Principles of Good Corporate Governance and Best Practice Recommendations have occurred:-

The Company has not established a Formal Code of Conduct in accordance with Best Practice Recommendation 10.1.

Communicating with Shareholders

The Board ensures that shareholders are kept informed of all major developments that affect their shareholding or the Consolidated Entity's State of Affairs through quarterly, half yearly, annual and ad hoc reports. All shareholders are encouraged to attend the Annual General Meeting to meet the Chairman and Directors and to receive the most updated report on the consolidated entity's activities.

The Company maintains a website at www.tasmanresources.com.au to provide shareholders with information of the Company's activities. Shareholders may communicate with the Company through its email address.

らくりょうにっぽんはなかなかカンコンコ

ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES

Shareholding Number of Shareholders

1,559

Distribution of Shareholders Number

No. of Ordinary Shares	Shareholders
$1 - 1,000$	-21
$1,001 - 5,000$	223
5,001 - 10,000	297
10,001 - 100,000	893
100,001 - and over	125

Marketable Parcels

The number of shares held in less than marketable parcels is 121.

Substantial Shareholders	Ordinary shares
Total issued shares at 27 September 2005	102.967.510
Top Energy Pty Ltd	16,806,722
March Bells Pty Ltd	7,207,999
Arkenstone Pty Ltd	7.089.199

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

each shareholder entitled to vote may vote in person or by proxy, attorney or $(a)$ representative;
on a show of hands, every person present who is a Shareholder or a proxy, $(b)$ attorney or representative of a Shareholder has one vote: and
on a poll, every person present who is a Shareholder shall, in respect of each $(c)$ 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.

All restricted securities were released by 18 December 2003 and therefore there are no restricted securities as at the date of this report.

ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES

20 Largest Shareholders - Ordinary Shares

Name	Fully Paid Shares	Issued Ordinary Capital
Top Energy Pty Ltd March Bells Pty Ltd Arkenstone Pty Ltd K & V Lamb Pty Ltd RBC Global Services Australia Nominees Pty Limited $<$ MLCI A/ $c$ > Synthe Pty Ltd Williams International Investment Corporation Pty Ltd Scaife TF Weber P Lamb KW & VP Colbern Fiduciary Nominees Pty Ltd Tascoast Pty Ltd Gray PR Powell JD Clarke RS < Dubeity Fund A/c> Fergus R Watson BJ LP Davis Pty Ltd 5th Avenue Properties Pty Ltd	16,806,722 7,207,999 7,089,199 2,939,110 1,773,872 1,724,007 1,254,000 1,000,000 1,000,000 940,000 685,000 591,478 577,779 521,000 500,000 500,000 500,000 460,000 428,000	16.316% 6.998% 6.882% 2.853% 1.722% 1.674% 1.217% 0.971% 0.971% 0.913% 0.665% 0.574% 0.561% 0.506% 0.485% 0.485% 0.485% 0.447% 0.416%
		0.407% 45.548%
	Malenki Pty Ltd	419,385 46,917,551

Confirmation of Expenditure

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.

AI assistant

TASMAN RESOURCES LTD — Annual Report 2005

65896_rns_2005-09-29_138a33bb-f658-47c2-a7e9-013aff103f93.pdf

TASMAN RESOURCES N.L. (ABN 85 009 253 187)

AND CONTROLLED ENTITIES

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

CORPORATE DIRECTORY

DIRECTORS:

COMPANY SECRETARY:

REGISTERED OFFICE:

SOLICITORS:

AUDITORS:

SHARE REGISTRY:

STOCK EXCHANGE LISTING:

DIRECTORS' REPORT

DIRECTORS

COMPANY SECRETARY

PRINCIPAL ACTIVITIES

MINERAL EXPLORATION

ENERGY PROJECTS

OPERATING RESULTS

DIVIDENDS PAID OR RECOMMENDED

DIRECTORS' REPORT

REVIEW OF OPERATIONS

MINERAL EXPLORATION

Table 1: Tasman Resources Granted Tenements

DIRECTORS' REPORT

Exploration Targets

Iron Oxide Copper Gold Deposits and Sediment-hosted Base metals

Epithermal Gold Silver Deposits

Gawler Craton structurally hosted Gold Deposits

Nickel/Cobalt Sulphide Deposits

DIRECTORS' REPORT

Uranium

Diamonds

EXPLORATION RESULTS Summary

Titan Iron Oxide Copper Gold Prospect

Marathon South Iron Oxide Copper Gold Prospect

Wartaka Epithermal Gold Silver Project

DIRECTORS' REPORT

DETAILED EXPLORATION RESULTS

Titan Iron Oxide Copper Gold Prospect

Marathon South Iron Oxide Copper Gold Prospect

DIRECTORS' REPORT

Wartaka Epithermal Gold Silver Project

DIRECTORS' REPORT

Carbonate-hosted Zinc Lead Exploration

Central Gawler Craton

DIRECTORS' REPORT

Central Gawler Target Summary

Uranium:

DIRECTORS' REPORT

Diamond Exploration

ENERGY PROJECTS

The Tasman / Eden Relationship

DIRECTORS' REPORT

Hydrogen & Hythane® Initiative - Summary

DIRECTORS' REPORT

Hydrogen Storage

Hythane

Hythane® Marketing

DIRECTORS' REPORT

New Brehon Technology

South Wales JV (Eden earning 50%)

South Australian Geothermal Exploration

DIRECTORS' REPORT

DIRECTORS' REPORT

FINANCIAL POSITION

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

AFTER BALANCE DATE EVENTS

ENVIRONMENTAL ISSUES

DIRECTORS' REPORT

FUTURE DEVELOPMENTS

INFORMATION ON DIRECTORS

DIRECTORS' REPORT

REMUNERATION REPORT

DIRECTORS' REPORT

MEETINGS OF DIRECTORS

INDEMNIFYING OFFICERS OR AUDITOR

OPTIONS

TASMAN RESOURCES LTD Annual Report 2005

Hydrogen & Hythane^® Initiative - Summary

Hythane^® Marketing