TASMAN RESOURCES LTD — Annual Report 2011

Sep 19, 2011

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for the Year Ended 30 June 2011

Tasman Resources Ltd & Controlled Entities ABN: 85 009 253 187

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R E S O U R C E S LTD

Table of Contents

Table of Contents
Highlights for the Year to 30 June 2011	3
Corporate Directory	4
Review of Operations	5
Corporate Governance Statement	11
Directors’ Report	15
Auditor’s Independence Declaration	20
Statement of Comprehensive Income	21
Statement of Financial Position	22
Statement of Changes in Equity	23
Statement of Cash Flows	24
Notes to the Financial Statements	25
Directors’ Declaration	40
Independent Auditor’s Report	41
Additional Information for Listed Public Companies	44
Tenement Schedule	46

Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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HIGHLIGHTS FOR THE YEAR TO 30 JUNE 2011

• Tasman continued successful testing of its 100% owned Vulcan iron-oxide copper uranium gold (IOCGU or Olympic Dam-style) Project located approximately 30km north of Olympic Dam in SA. A total of eight holes have now been drilled at Vulcan, with all having intersected IOCGU-style alteration and/or mineralisation.

• VUD 7 intersected a very thick zone (+150m) of “classic” mineralised, hematiterich breccias on the eastern side of the Vulcan target. An intersection of 163m down hole at 0.23% Cu, 0.07g/t Au, 2.4g/t Ag, 0.04kg/t U3O8 and 0.01% Mo was obtained, and includes 90m at 0.25% Cu, 0.09g/t Au, 3.0g/t Ag, 0.05kg/t U3O8 and 0.02% Mo.

• VUD 8 also intersected a thick zone of low grade mineralisation (179.75m down hole at 0.19% Cu, 0.10g/t Au (applying a 0.5 g/t cut), 0.02kg/t U3O8 and 68g/t Mo. Included is a higher-grade zone from 910m (21m down hole) of 0.63% Cu, 0.28g/t Au, 0.02kg/t U3O8 and 107g/t Mo.

• In VUD 7, the host rocks, style of mineralisation and metal association is very similar to the mineralisation in the eastern portion of the Olympic Dam Deposit .

Also encouraging is the intersection of the copper-iron sulphide bornite in VUD 8, and much higher Cu/S ratios than recorded in all previous Vulcan drill holes. (This ratio measures the proportion of copper compared with the amount of total sulphur). This confirms that significant sulphide zoning is present and this will play an important role in vectoring exploration towards higher grade and commercially much more attractive mineralisation.

• Vulcan occurs within Tasman’s very substantial tenement holdings adjacent to BHP Billiton’s giant Olympic Dam deposit. Based on geophysical data the Vulcan target covers at least 11 square km (comparable to the Olympic Dam deposit), and Tasman is hoping for a major world class discovery. Resolution of an Aboriginal heritage issue over the southern part of the Vulcan target is in progress.

• Tasman has identified a new IOCGU target at Lucas Hill, approximately 25km south east of Woomera in SA.

• No further exploration was conducted at Parkinson Dam. Several other companies have expressed interest in farming in, and are currently reviewing data.

• Tasman has a 19% interest (fully diluted) in Fission Energy Ltd, which, under an agreement, can explore for uranium within certain of Tasman’s South Australian tenements. Fission also owns 50% of the Mt Thirsty nickel-cobalt-manganese oxide deposit in Western Australia.

• Tasman has a 17.4% interest (fully diluted) in alternative energy company Eden Energy Ltd, which is involved in production, development and marketing of hydrogen-based fuels and interests in coal seam gas, conventional hydrocarbons, innovative production of carbon nanotubes and geothermal energy.

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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CORPORATE DIRECTORY

DIRECTORS:

Gregory H Solomon LLB (Executive Chairman) Douglas H Solomon BJuris LLB (Hons) (Non-Executive) Guy T Le Page B.A., B.Sc. (Hons).,M.B.A., F.FIN., MAusIMM (Non-Executive)

COMPANY SECRETARY:

Aaron P Gates BCom CA

REGISTERED OFFICE:

Level 40, Exchange Plaza 2 The Esplanade Perth Western Australia 6000 Tel +61 8 9282 5889 Fax +61 8 9282 5866 Email: mailroom@tasmanresources.com.au Website: www.tasmanresources.com.au

SOLICITORS:

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

Minter Ellison 1 King William Street Adelaide SA 5000

AUDITORS:

Grant Thornton (Audit) Pty Ltd Chartered Accountants Level 1 10 Kings Park Road West Perth WA 6005

SHARE REGISTRY:

Advance Share Registry Services 150 Stirling Highway Nedlands WA 6009

STOCK EXCHANGE LISTING:

ASX Code: TAS (ordinary shares)

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

ASX Code: TAS

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REVIEW OF OPERATIONS

The Company has exploration licences and applications located in South Australia covering a range of commodities – gold, silver, copper, uranium, zinc and lead for which the company’s tenements are considered prospective.

The uranium potential of certain of Tasman’s tenements is being investigated by Fission Energy Ltd, which was spun out of Tasman in 2007. Tasman has a 19% fully diluted interest in Fission.

Tasman Resources Ltd holds a 100% interest in the following exploration projects:

• The Lake Torrens IOCGU Project comprising Exploration Licences 4206, 4300, 4322 and 4405 and EL Application 2008/436.

• The Lucas Hill IOCGU Project, consisting of EL Application 2010/376.

• The Parkinson Dam Epithermal Gold - Silver Project (ELs 3739, 4168 and 4475).

• The Central Gawler Gold - Nickel Project (ELs 3343, 3423 and 3532).

EXPLORATION RESULTS

During the year, the Company spent $1.63 million on various exploration activities. Details of the results of the exploration are outlined below.

Lake Torrens Iron-oxide, Copper-Gold Uranium (IOCGU) Project (100% Tasman)

Further progress was made at Tasman’s 100% owned Vulcan IOCGU Project located approximately 30km NNE of BHP Billiton’s Olympic Dam deposit (see Figure 1) with a further three diamond drill holes being completed. The Project occurs within Tasman’s Lake Torrens Project, which consists of extensive tenement holdings (over 1,800 square km) adjacent to BHP Billiton’s Olympic Dam tenements (Figure 1).

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Figure 1: Location Plan showing the Vulcan IOCGU Project, nearby IOCGU deposits/systems and several key (historic) tectonic lineaments (dashed blue lines).

During the year a further three holes were completed, and all drill holes are show in Figure 2. Drill holes VUD 7 and VUD 8 were particularly encouraging:

ASX Code: TAS

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Figure 2: Vulcan residual bouguer gravity image (background) showing the location of all holes drilled to date.

VUD 7

VUD 7, (697,250mE 6,658,280mN, Figure 1) intersected altered basement volcanics at 847m followed by a thick zone of “classic” IOCGU-style mineralised hematite-rich breccias between 1065m and the bottom of the hole at 1227.8m.

Mineralisation consists of disseminated pyrite (iron sulphide) and chalcopyrite (copper-iron sulphide), hosted within a breccia composed of fine grained black to steely-grey hematite, with lesser carbonate minerals and quartz. Near the bottom of the hole the pyrite-chalcopyrite mineralisation weakens and host rock clasts become quite abundant. Assay results received for VUD 7 are provided in Table 1.

Tasman previously noted that whilst the intersection in VUD 7 is over at least 150m, it is unlikely of itself to be of economic significance owing to the anticipated grades and the considerable depth. The results are, however, considered to be a major exploration breakthrough:

• VUD 7 confirms that Vulcan hosts mineralisation of the same style, and of comparable thickness to that which makes up a very large portion of the nearby Olympic Dam IOCGU deposit.

• VUD 7 is located in the previously undrilled eastern “limb” of the Vulcan prospect, a significant distance from the other parts of the prospect as defined by the geophysical anomaly and the earlier drill holes. It seems likely that mineralisation may extend considerably further east north-east from VUD 7 (Figure 2).

• VUD 7 considerably enhances the potential of the much larger, and believed to be more prospective (and as yet untested) southern portion of the prospect which is interpreted to be at a slightly shallower depth. This southern target is located where the two key structural trends in the prospect (north northwest and east north-east) intersect, and is a very large and strong gravity anomaly (Figure 2).

From	To	Thickness	Cu	Au	Ag	U308	Mo	Fe
(m)	(m)	(m)	(%)	(g/t)	(g/t)	(kg/t)	(%)	(%)
1064.95	1227.8	162.85	0.23	0.07	2.4	0.04	0.01	23.7
Including
1118	1208	90.00	0.25	0.09	3.0	0.05	0.02	26.8

Table 1: Summary of assay results for VUD 7. Drill core for assay was halved by diamond sawing, and analysis was performed by a combination of fire assay/solvent extraction and flame AAS, ICP optical emission and mass spectrometry. Averages were calculated by weighting by sample length and density.

ASX Code: TAS

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Figure 3: Close-up photo of typical hematite breccia from VUD 7. Hematite is dark grey, sulphides (pyrite and chalcopyrite) are yellow/silverish and the other minerals are carbonate (probably siderite), quartz and feldspar. (NQ Core – approx. 50mm diameter).

VUD 8

VUD 8 was drilled approximately 800m north-east of the discovery hole VUD 1 at 694,244mE; 6,660,826mN (Figure 2). The hole was designed to further test the large northern section of the gravity anomaly.

VUD 8 hit basement altered and mineralised rocks (part of the Vulcan IOCGU system) at a depth of 899.75m and was terminated at 1079.5m, still in the IOCGU system. Mineralisation was seen throughout the hole, particularly within the upper section, where in addition to chalcopyrite and pyrite, minor bornite (copper-iron-sulphide) was recognized.

Assay results for VUD 8 confirm the significance of the hole and are summarised in Table 2.

From	To	Thickness	Cu	Au	U3O8	Mo	Cu/S Ratio
m	m	m	%	g/t	kg/t	g/t
	1079.5
899.75	(EOH)	179.75	0.19	0.10	0.017	68	0.37
910	931	21	0.63	0.28	0.023	107	0.62

Table 2: Summary of assay results for VUD 8. Drill core for assay was either halved by diamond sawing and assayed on one metre samples, or chip sampled and composited over three or five metre intervals. Analysis was performed by a combination of fire assay/solvent extraction and flame AAS, ICP optical emission and mass spectrometry. Averages were calculated by weighting by sample length and density.

These assays confirm the significance of drill hole VUD 8, and highlight the potential of the northern part of the Vulcan system.

However, Tasman believes that of greater significance is the much higher copper to sulphur ratios seen throughout the hole (see Table 2) compared with much lower ratios in most of the previous holes. For example, the average copper to sulphur ratio for the VUD 7 162.85m intersection noted above is 0.09, reflecting the dominance of pyrite in this hole. The copper to sulphur ratio measures the proportion of copper compared to the amount of total sulphur, and in VUD 8 higher ratios are consistent with the presence in the hole of the higher copper tenor mineral, bornite.

The presence of bornite and higher copper sulphur ratios is considered particularly encouraging. It indicates, by analogy with the key sulphide zoning patterns and grade distributions seen at Olympic Dam, that there is potential to find the upper parts of the sulphide zoning sequence, and hence higher grade mineralisation elsewhere within the Vulcan system.

ASX Code: TAS

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Figure 4: Close up photo of NQ size diamond drill core from 917m depth in VUD 8. Visible is disseminated bornite (purple coloured near centre of photo) chalcopyrite (a different copper iron sulphide mineral, yellow) with associated with hematite (grey and reddish) in a very highly silicified breccia host rock. Width of photo is about 15cm.

Background

Vulcan was discovered by Tasman following the recognition, by Tasman of the following:

• A large, and previously untested gravity anomaly (Figure 2), with associated anomalous magnetic characteristics,

• A favourable location with respect to certain key tectonic lineaments (Figure 1) which had been important in the discovery of Olympic Dam by WMC Resources, and

• Unusual, previously unexplained reflection patterns in seismic data collected in a Government survey several years earlier.

The discovery drill hole, VUD 1 was drilled by Tasman in November 2009, and intersected a thick sequence of IOCGU-style altered and weakly mineralised basement rocks, including an intersection of 53m down hole at 0.10% Cu, 0.04g/t Au, 0.4g/t Ag and 0.021kg/t U3O8.

Vulcan is a very large target, comparable in size to Olympic Dam, and clearly capable of hosting a very large ore deposit (see Figure 4). However, after only eight drill holes, exploration at Vulcan is still at a very early stage – at Olympic Dam it is well known that it was not until the ninth hole was drilled that other than low grade mineralisation was hit, and only in the sixteenth hole (RD 17) that high grades were intersected.

Future Program

Tasman will continue the drilling of selected priority sites within the Vulcan IOCGU system. Resolution of Aboriginal heritage matters affecting a portion of the southern part of the gravity target is continuing.

Tasman has a number of other IOCGU targets within its Lake Torrens tenement holdings, which at this stage are lower priority than Vulcan. These include Zeus, Billy Barnes and Marathon South.

ASX Code: TAS

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Figure 4: Comparison of areal extent of regional IOCGU systems with Vulcan target as currently defined.

Lucas Hill IOCGU Project (100% Tasman)

During the year Tasman identified a new IOCGU target at Lucas Hill, located approximately 25km south of Woomera in SA. Tasman now proposes to seek Aboriginal heritage clearance for the target after which it is proposed to test the anomaly with at least one diamond drill hole.

Parkinson Dam Gold-Silver (-Lead-Zinc) Project (100% Tasman)

Tasman’s 100% owned Parkinson Dam Project is located approximately 60km west of Port Augusta in South Australia. Tasman commenced exploration at Parkinson Dam in mid-2005, discovering previously unknown epithermal gold-silver mineralisation in outcrop.

Following initial phases of RC percussion and diamond drilling, Tasman hit high grade mineralisation in drill hole PD 63 (21m at 21g/t Au and 83g/t Ag, including 9m down hole at 31g/t Au and 152g/t Ag), but subsequent drilling was unable to repeat the grade or width of this intersection.

Further targets for drill testing have been identified within the Project, but no further drilling was completed during the year due to higher priority work at Vulcan Project.

Central Gawler Gold-Nickel Project (100% Tasman)

No further work was conducted by Tasman on these tenements during the year. Access to this area is currently restricted by the Department of Defence, but Tasman is hopeful that this will be resolved shortly.

EXPLORATION AGREEMENTS AND JOINT VENTURES

Diamond Exploration Agreement with Flinders Mining Ltd (formerly Flinders Diamonds)

Flinders Mines has a diamonds only joint venture with Tasman over all of Tasman’s tenements in South Australia, except for the Lucas Hill and Parkinson Dam Projects. Under the joint venture, Flinders may earn 70% of the diamond rights by expenditure of $750,000 over a four-year period.

ASX Code: TAS

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Fission Energy Ltd

Fission Energy Ltd was listed on the ASX on 18[th] June 2007 as a uranium-focussed mineral explorer, and Tasman has a 19% interest in Fission. Under an agreement with Tasman, Fission has the rights to explore for uranium on a significant portion of Tasman’s South Australian tenements.

Fission has a joint venture with Mega-Hindmarsh Ltd, a wholly owned subsidiary of Mega Uranium Ltd of Canada to explore part of the Parkinson Dam Project for uranium. The area is considered prospective for unconformityassociated uranium deposits close to the contact between the Mesoproterozoic Corunna Conglomerate and the underlying Palaeoproterozoic sedimentary rocks.

INVESTMENTS

Investment in Fission Energy Ltd (Tasman has a 19% interest in Fission Energy on a fully diluted basis)

Fission Energy owns 50% of the Mt Thirsty Nickel-Cobalt Project in WA, with the other 50% held by Barra Resources Limited (ASX: BAR).

Mt Thirsty Oxide Deposit

The Mt Thirsty Cobalt–Nickel-Manganese oxide project is located 20km north-northwest of Norseman.

Mt Thirsty has a current JORC compliant Indicated Resource of 16.6 million tonnes at 0.14% Co, 0.60% Ni and 0.98% Mn and a JORC compliant Inferred Resource of 15.3 million tonnes at 0.11% Co, 0.51% Ni and 0.73% Mn over an apparent strike of 1.3 kilometres and a width of around 800 metres.

Mt Thirsty – Nickel Sulphides

In early 2010 the intersection of primary nickel sulphide mineralisation was announced by Fission Energy Limited and Barra Resources Limited. Reverse circulation hole MTRC015 intersected a 6 metre thick zone of massive and stringer nickel sulphides assaying 3.38% nickel at a down hole depth of 201 metres. Follow-up drilling has intersected further nickel sulphides, although the latest follow up diamond drill hole completed early in 2011 failed to intersect additional mineralisation at depth.

Investment in Eden Energy Ltd (Tasman has a 17.4% interest in Eden Energy on a fully diluted basis)

Tasman, through its wholly owned subsidiary, Noble Energy Ltd, has a current share and option holding in alternative energy company Eden Energy Ltd (ASX: EDE), which is presently valued at approximately $4.18 million or 2.1 cents per Tasman share. Tasman holds 42,244,727 fully paid shares and 6,927,106 options in Eden, which on a fully diluted basis represents a 17.4% share holding.

During the year Eden has made considerable progress in its core businesses, in particular the commercial development of its patented hydrogen-based fuel Hythane® in India. Eden sold a major share of its coal seam methane business in Wales, although it retained a strategic interest. Eden has a 100% in certain geothermal properties in South Australia.

The interpretations and conclusions reached in this report are based on current geological theory and the best evidence available to the authors at the time of writing. It is the nature of all scientific conclusions that they are founded on an assessment of probabilities and, however high these probabilities might be, they make no claim for complete certainty. Any economic decisions that might be taken on the basis of interpretations or conclusions contained in this report will therefore carry an element of risk.

The information in this annual report, insofar as it relates to Mineral Exploration activities, is based on information compiled by Robert N. Smith and Michael J. Glasson, who are members of the Australian Institute of Geoscientists, and who have more than five years experience in the field of activity being reported on. Mr Smith and Mr Glasson are full-time employees of the company. Mr Smith and Mr Glasson have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Smith and Mr Glasson consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

It should not be assumed that the reported Exploration Results will result, with further exploration, in the definition of a Mineral Resource

ASX Code: TAS

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CORPORATE GOVERNANCE STATEMENT

The Board of Directors

The Company’s constitution provides that the number of directors shall not be less than three and not more than ten. There is no requirement for any share holding qualification.

As and if the Company’s activities increase in size, nature and scope the size of the board will be reviewed periodically, and as circumstances demand.

The membership of the board, its activities and composition, is subject to periodic review. The criteria for determining the identification and appointment of a suitable candidate for the board shall include quality of the individual, background of experience and achievement, compatibility with other board members, credibility within the Company’s scope of activities, intellectual ability to contribute to board’s duties and physical ability to undertake board’s duties and responsibilities.

Directors are initially appointed by the full board subject to election by shareholders at the next general meeting. Under the Company’s constitution the tenure of a director (other than managing director, and only one managing director where the position is jointly held) is subject to reappointment by shareholders not later than the third anniversary following his or her last appointment. Subject to the requirements of the Corporation Act 2001, the board does not subscribe to the principle of retirement age and there is no maximum period of service as a director. A managing director may be appointed for any period and on any terms the directors think fit and, subject to the terms of any agreement entered into, may revoke the appointment.

The Board considers that the Company is not currently of a size, nor are its affairs of such complexity to justify the formation of separate or special committees at this time. The board as a whole is able to address the governance aspects of the full scope of the Company’s activities and to ensure that it adheres to appropriate ethical standards.

Role of the Board

The Board’s primary role is the protection and enhancement of long-term shareholder value.

To fulfil this role, the board is responsible for oversight of management and the overall corporate governance statement of the Company including its strategic direction, establishing goals for management and monitoring the achievement of these goals.

Appointments to Other Boards

Directors are required to take into consideration any potential conflicts of interest when accepting appointments to other boards.

Independent Professional Advice

The Board has determined that individual directors have the right in connection with their duties and responsibilities as directors, to seek independent professional advice at the Company’s expense. With the exception of expenses for legal advice in relation to director’s rights and duties, the engagement of an outside adviser is subject to prior approval of the Chairman and this will not be withheld unreasonably.

Continuous Review of Corporate Governance

Directors consider, on an ongoing basis, how management information is presented to them and whether such information is sufficient to enable them to discharge their duties as directors of the Company. Such information must be sufficient to enable the directors to determine appropriate operating and financial strategies from time to time in light of changing circumstances and economic conditions. The directors recognise that mineral exploration is an inherently risky business and that operational strategies adopted should, notwithstanding, be directed towards improving or maintaining the net worth of the Company.

ASX Principles of Good Corporate Governance

The board has reviewed its current practices in light of the ASX Principles of Good Corporate Governance and Best Practice Guidelines with a view to making amendments where applicable after considering the Company’s size and the resources it has available.

As the Company’s activities develop in size, nature and scope, the size of the board and the implementation of any additional formal corporate governance committees will be given further consideration.

The following table sets out the Company’s present position with regard to adoption of these Principles.

ASX Code: TAS

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CORPORATE GOVERNANCE STATEMENT

	ASX Principle	Reference/comment
Principle 1: Lay solid foundations for management and oversight
1.1	Companies should establish the functions reserved to the board and those delegated to senior executives and disclose those functions.	The Company has not adopted this recommendation to formalise and disclose the functions reserved to the board and those delegated to management. The roles and functions within the Company must remain flexible in order for it to best function within its level of available resources.
1.2	Companies should disclose the process for evaluating the performance of senior executives.	The Company does not have any senior executives and as such has not developed a process for evaluating the performance of senior executives.
1.3	Companies should provide the information indicated in the Guide to Reporting on Principle 1.	See above.
Principle 2: Structure the board to add value
2.1	A majority of board should be independent directors.	Due to the Company’s size, nature and extent of operations, the company has departed from this principle.
2.2	The chair should be an independent director.	Due to the Company’s size, nature and extent of operations, the company has departed from this principle.
2.3	The roles of chair and chief executive officer should not be exercised by the same individual.	The Company does not have a Chief Executive Officer.
2.4	The board should establish a nomination committee.	Acting in its ordinary capacity from time to time as required, the Board carries out the process of determining the need for, screening and appointing new directors. In view of the size and resources available to the Company, it is not considered that a separate nomination committee is warranted.
2.5	Companies should disclose the process for evaluating the performance of the board, its committees and individual directors.	Acting in its ordinary capacity, the board from time to time carries out the process of considering and determining performance issues. Whenever relevant, any such matters are reported to the ASX.
2.6	Companies should provide the information indicated in Guide to Reporting on Principle 2.	The skills and experience of directors are set out in the Company’s Annual Report and on its website.
Principle 3: Promote ethical and responsible decision-making
3.1	Companies should establish a code of conduct and disclose the code or summary of the code as to: • the practices necessary to maintain confidence in the Company’s integrity • the practices necessary to take into account their legal obligations and the responsible expectations of their stakeholders • the responsibility and accountability of individuals reporting or investigating reports of unethical practices.	The Company has a Code of Conduct which can be viewed on the Company’s website.
3.2	Companies should establish a policy concerning diversity and disclose the policy or a summary of that policy. The policy should include requirements for the board to establish measurable objectives for achieving gender diversity and for the board to assess annually both the objectives and progress in achieving them.	Due to the Company’s size, nature and extent of operations, the company has departed from this principle.

ASX Code: TAS

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3.3	Companies should disclose in each annual report the measurable objectives for achieving gender diversity set by the board in accordance with the diversity policy and progress towards achieving them.	Due to the Company’s size, nature and extent of operations, the company has departed from this principle.
3.4	Companies should disclose in each annual report the proportion of women employees in the whole organisation, women in senior executive positions and women on the board.	Tasman does not have any women employees in the organisation, women in senior executive positions or women on the board.
3.5	Companies should provide the information indicated in Guide to Reporting on Principle 3.	The Code of Conduct can be viewed on the Company’s website.

Principle 4: Safeguard integrity in financial reporting

4.1	The board should establish an audit committee.	Due to the Company’s size, nature and extent of operations, the company has departed from this principle. The Board itself is the forum that deals with this function.
4.2	The audit committee should be structured so that it: • consists only non-executive directors • consists of a majority of independent directors • is chaired by an independent chair, who is not the chair of the board • At least three members	See 4.1
4.3	The audit committee should have a formal charter.	See 4.1
4.4	Companies should provide the information indicated in Guide to Reporting on Principle 4.	See above

Principle 5: Make timely and balanced disclosure

5.1	Companies should establish written policies designed to ensure compliance with ASX Listing Rule disclosure requirements and to ensure accountability at a senior management level for that compliance and disclose those policies or a summary of those policies.	The Company has a Continuous Disclosure Policy which can be viewed on the Company’s website.
5.2	Companies should provide the information indicated in Guide to Reporting on Principle 5.	See above.
Principle 6: Respect the rights of shareholders
6.1	Companies should design and disclose a communications policy for promoting effective communication with shareholders and encourage their participation at general meetings and disclose their policy or a summary of that policy.	The Company has a Communications Policy which can be viewed on the Company’s website.
6.2	Companies should provide the information indicated in Guide to Reporting on Principle 6.	The Company has a Communications Policy which can be viewed on the Company’s website.

ASX Code: TAS

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Principle 7: Recognise and manage risk

7.1	Companies should establish policies for the oversight and management of material business risks and disclose a summary of those policies.	Due to the size and nature of the Company, the Company does not have formalised policies on risk management. The Board recognises its responsibility for identifying areas of material business risk and for ensuring that arrangements are in place for adequately managing these risks. This issue is regularly reviewed at board meetings and risk management culture is encouraged amongst employees and contractors.
7.2	The board should require management to design and implement the risk management and internal control system to manage the company’s material business risks and report to it on whether those risks are being managed effectively. The board should disclose that management has reported to it as to the effectiveness of the company’s management of its material business risks.	See above
7.3	The board should disclose whether it has received assurance from the chief executive officer (or equivalent) and the chief financial officer (or equivalent) that the declaration provided in accordance with section 295A of the Corporations Act is founded on a sound system of risk management and internal control and that the system is operating effectively in all material respects in relation to financial reporting risks.	The Executive Chairman and the Chief Financial Officer make this assurance to the board.
7.4	Provide information indicated in Guide to Reporting on Principle 7.	See above.
Principle 8: Remunerate fairly and responsibly
8.1	The board should establish a remuneration committee.	Due to the size and nature of the Company, the Company does not have a remuneration committee. 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.
8.2	The remuneration committee should be structured so that it: • consists of a majority of independent directors • is chaired by an independent chair has at least three members.	See 8.1
8.3	Companies should clearly distinguish the structure of non-executive directors remuneration from that of executives.	See 8.1
8.4	Companies should provide information indicated in ASX Guide to Reporting on Principle 8.	No schemes exist for retirement benefits for non-executive directors other than statutory superannuation.

ASX Code: TAS

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DIRECTORS’ REPORT

Your directors present their report on the company and its controlled entities for the financial year ended 30 June 2011.

Directors

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

Gregory H Solomon

Douglas H Solomon

Guy T Le Page

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 Aaron P Gates has worked for Tasman Resources Ltd for the past 3 years. He is a Chartered Accountant and Chartered Secretary, has completed a Bachelor of Commerce (Curtin University) with majors in accounting and business law and completed a Diploma of Corporate Governance. Prior to joining Tasman he worked in public practice in audit and corporate finance roles.

Principal Activities

The principal activity of the economic entity during the financial year ended 30 June 2011 was mineral exploration.

Operating Results

The consolidated loss of the economic entity after providing for income tax amounted to $991,896 (2010: $1,581,854).

Dividends Paid or Recommended

No dividends were paid or declared for payment during the year.

Mineral Exploration Operations

Tasman’s primary focus during the year has been mineral exploration for a range of commodities within the Company’s tenements in South Australia and Queensland. The principal exploration projects are Lake Torrens IOCGU-base metal project, the Parkinson Dam epithermal gold-silver (lead-zinc) project and central Gawler Craton gold-nickel-cobalt project in South Australia, and the Mirrica gold-base metal project in Queensland.

All Tasman’s tenements in South Australia (except for Parkinson Dam) are subject to a farm-in agreement with Flinders Mining Ltd, covering diamonds. Tasman also has an agreement with Fission Energy covering uranium.

A review of the operations of the Group during the year ended 30 June 2011 is set out in the Review of Operations on Page 5.

Financial Position

The net assets of the consolidated group have increased by $2,030,833 from 30 June 2010 to $15,786,733 in 2011. This increase has largely resulted from capital raisings during the year and revaluation of investments.

Significant Changes in State of Affairs

In the opinion of the directors, other than disclosed elsewhere in this report, there were no significant changes in the state of affairs of the Company that occurred during the year.

After Balance Date Events

No other matters or circumstances 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 future financial years.

Future Developments, Prospects and Business Strategies

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

ASX Code: TAS

Page 15 of 46

Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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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.

Information on Directors

Gregory H Solomon

Executive Chairman

Qualifications LLB

Experience Appointed chairman 1987. Board member since 1987. A solicitor with more than 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 31,115,475 Ordinary Shares 7,231,673 Options Directorships held in other listed Fission Energy Limited (ASX:FIS) entities Eden Energy Limited (ASX:EDE)

Douglas H Solomon

Non-Executive

Qualifications BJuris LLB (Hons) Experience Board member since 3 April 2003. 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 30,659,960 Ordinary Shares 7,159,918 Options Directorships held in other listed Fission Energy Limited (ASX:FIS) entities Eden Energy Limited (ASX:EDE)

Guy T Le Page

Qualifications

Non-Executive

B.A., B.Sc. (Hons).,M.B.A., F.FIN., MAusIMM Bachelor of Arts, Bachelor of Science, Masters Degree in Business Administration, Bachelor of Applied Science (Hons), Graduate Diploma in Applied Finance and Investment

Experience Board member since February 2001. 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 and he has acted as a consultant to private and public companies.

Interest in Shares and Options 1,784,821 Ordinary shares Directorships held in other listed Eden Energy Limited (ASX:EDE) entities Fission Energy Limited (ASX:FIS) Red Sky Energy Limited (ASX:ROG) Palace Resources Limited (ASX:PXR) Soil Sub Technologies Ltd (ASX: SOI)

ASX Code: TAS

Page 16 of 46

Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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Remuneration Report (Audited)

This report details the nature and amount of remuneration for each director of Tasman Resources Ltd, and for the executives receiving the highest remuneration.

Remuneration Policy

The remuneration policy of Tasman Resources Ltd has been designed to align director and executive objectives with shareholder and business objectives by providing a fixed remuneration component and offering specific longterm incentives based on key performance areas affecting the economic entity’s financial results. The board of Tasman Resources Ltd believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best executives and directors to run and manage the economic entity, as well as create goal congruence between directors, executives and shareholders.

The Board’s policy for determining the nature and amount of remuneration for board members and senior executives of the economic entity is as follows:

• All executives receive a base salary (which is based on factors such as length of service and experience), superannuation, fringe benefits and options.

Executives are also entitled to participate in the employee share and option arrangement.

All directors and executives receive a superannuation guarantee contribution where required by the government, which is currently 9%, and do not receive any other retirement benefits. Some individuals, however, have chosen to sacrifice part of their salary to increase payments towards superannuation.

All remuneration paid to directors and executives is valued at the cost to the company and expensed. Any shares which may be issued to executives would be valued as the difference between the market price of those shares and the amount paid by the director or executive. Options are valued using the Black-Scholes methodology.

The board policy is to remunerate non-executive directors at market rates for time, commitment and responsibilities. The remuneration committee determines payments to the non-executive directors and reviews their remuneration annually, based on market practice, duties and accountability. Independent external advice is sought when required. The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval by shareholders at the Annual General meeting. Fees for non-executive directors are not linked to the performance of the economic entity. To align directors’ interests with shareholder interests, directors are encouraged to hold shares in the company and are able to participate in the employee option plan.

Performance based Remuneration

No performance based remuneration was paid during the year.

Shares Issued on Exercise of Compensation Options

No options were exercised during the year that were granted as compensation in prior periods.

Options issued as part of remuneration for the year ended 30 June 2011

No options were issued to directors and employees as part of their remuneration during the year.

Details of Remuneration for Year Ended 30 June 2011

The remuneration for each director and each of the executive officers of the consolidated entity during the year was as follows:

Key Management Personnel Remuneration - 2011

Key Management Person Gregory H Solomon Douglas H Solomon Guy T Le Page Aaron P Gates Robert N Smith Michael J Glasson

Short-term Benefits Post-employment benefits Share-based payments Total Perfor- mance Related Salary and Fees Cash profit share Non- cash benefit Other Super- annuation Other Equity Options $ $ $ $ $ $ $ $ $ % 120,000 - - - 10,800 - - - 130,800 - 24,000 - - - 2,160 - - - 26,160 - 24,000 - - - 2,160 - - - 26,160 - (i) - - - - - - 2,640 2,640 - 170,723 - - - 49,876 - - - 220,599 - 167,861 - - - 49,845 - - - 217,706 -

506,584 - - - 114,841 - - 2,640 624,065 -

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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DIRECTORS’ REPORT

Key Management Personnel Remuneration - 2010

Key Management Person Gregory H Solomon Douglas H Solomon Guy T Le Page Aaron P Gates Robert N Smith Michael J Glasson

Short-term Benefits Post-employment benefits Share-based payments Total Perfor- mance Related Salary and Fees Cash profit share Non- cash benefit Other Super- annuation Other Equity Options $ $ $ $ $ $ $ $ $ % 120,000 - - - 10,800 - - 40,600 171,400 - 24,000 - - - 2,160 - - 40,600 66,760 - 24,000 - - - 2,160 - - 40,600 66,760 - (i) - - - - - - 2,640 2,640 - 137,000 - - - 49,390 - - 37,100 223,490 - 131,500 - - - 49,985 - - 37,100 218,585 -

436,500 - - - 114,495 - - 198,640 749,635 -

(i) These management personnel are remunerated by Princebrook Pty Ltd under the Princebrook Management Services Contract.

Directors Meetings

During the financial year, 1 meeting of directors was held. Attendance by each director during the year were as follows:

follows:
	Directors’ Meetings
	Number eligible to attend	Number attended
Gregory H Solomon	1	1
Douglas H Solomon	1	1
Guy T Le Page	1	1

Due to the nature of the operations and the size of the board, all the directors were in close communication throughout the year and most matters by attended to by way of circulatory resolution rather than formal directors meetings.

Indemnifying Officers or Auditor

The company has paid premiums 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. The total premium paid was $6,000.

Options

At the date of this report, the unissued ordinary shares of Tasman Resources Ltd under option are as follows:

Grant Date Date of Expiry Exercise Price 16 October 2008 26 May 2013 $0.12 7 April 2009 16 April 2012 $0.10 23 June 2009 30 June 2012 $0.10 7 August 2009 30 June 2012 $0.16 20 November 2009 20 November 2012 $0.16875 8 February 2010 8 February 2013 $0.15 1 June 2010 31 May 2013 $0.15	Number under Option 500,000 1,574,804 22,372,334 2,000,000 3,000,000 401,606 500,000
	30,348,744

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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DIRECTORS’ REPORT

During the year ended 30 June 2011, no ordinary shares of Tasman Resources Ltd were issued on the exercise of options granted under the Tasman Resources Ltd Employee Option Plan. No shares have been issued since that date.

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.

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 a party for the purpose of taking responsibility on behalf of the company for all or any part of those 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 did not compromise the external auditor’s independence for the following reasons:

• all non-audit services are reviewed and approved prior to commencement to ensure they do not adversely affect the integrity and objectivity of the auditor; and

• the nature of the services provided do not compromise the general principles relating to auditor independence in accordance with APES 110: Code of Ethics for Professional Accountants set by the Accounting Professional and Ethical Standards Board.

No fees for non-audit services were paid/payable to the external auditors during the year ended 30 June 2011.

Auditor’s Independence Declaration

The auditor’s independence declaration for the year ended 30 June 2011 has been received and can be found on page 20.

Signed in accordance with a resolution of the Board of Directors.

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----- Start of picture text -----

_______
----- End of picture text -----

Gregory H Solomon

Dated this 19[th] day of September 2011

ASX Code: TAS

Page 19 of 46

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Grant Thornton Audit Pty Ltd ABN 94 269 609 203

10 Kings Park Road West Perth WA 6005 PO BOX 570 West Perth WA 6872

Auditor’s Independence Declaration To the Directors of Tasman Resources Limited

T +61 8 9480 2000 F +61 8 9322 7787 E admin.wa@au.gt.com W www.grantthornton.com.au

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Tasman Resources Limited for the year ended 30 June 2011, I declare that, to the best of my knowledge and belief, there have been:

• a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

• b no contraventions of any applicable code of professional conduct in relation to the audit.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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P W Warr

Director – Audit & Assurance

Perth, 19 September 2011

Grant Thornton Audit Pty Ltd ACN 130 913 594, a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389.

Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.

Liability limited by a scheme approved under Professional Standards Legislation.

Page 20 of 46

Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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STATEMENT OF COMPREHENSIVE INCOME FOR YEAR ENDED 30 JUNE 2011

Note Other income 2 Audit and accounting Depreciation and amortisation expense Employee benefits expense Exploration expenditure written off 14 Impairment of exploration and evaluation 14 Insurance Legal and other consultants Listing and share registry Management fees Other expenses Realised loss on sale of available-for-sale financial assets Loss before income tax 3 Income tax expense 4 Loss for the year Other Comprehensive Income Gain / (Loss) on revaluation of financial assets Income tax relating to comprehensive income Total other comprehensive income, net of tax Total Comprehensive Income / (Loss) attributable to members of the parent Basic/Diluted earnings per share (cents per share) 7	Consolidated Group 2011 $ 2010 $ 308,997 137,653 (26,189) (22,571) (3,199) (3,503) (424,564) (599,674) (23,279) (28,764) (442,503) (602,580) (14,268) (15,275) (13,086) (14,094) (63,921) (49,996) (226,170) (226,170) (63,714) (57,628) - (99,252)
	(991,896) (1,581,854) - -
	(991,896) (1,581,854) 1,412,890 (33,252) - -
	1,412,890 (33,252)
	420,994 (1,615,106) (0.4943) (0.9016)

The accompanying notes form part of these financial statements.

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2011

Note ASSETS CURRENT ASSETS Cash and cash equivalents 8 Trade and other receivables 9 TOTAL CURRENT ASSETS NON-CURRENT ASSETS Financial assets 10 Property, plant and equipment 13 Exploration and Evaluation expenditure 14 TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables 15 TOTAL CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 16 Reserves Retained earnings/(accumulated) losses TOTAL EQUITY

Consolidated Group 2011 $ 2010 $ 813,892 2,083,980 49,968 113,123 863,860 2,197,103 4,206,317 2,001,953 10,980 11,662 10,875,151 9,850,374 15,092,448 11,863,989 15,956,308 14,061,092 169,575 305,192 169,575 305,192 169,575 305,192 15,786,733 13,755,900 21,220,230 19,610,391 4,037,016 2,624,126 (9,470,513) (8,478,617) 15,786,733 13,755,900

The accompanying notes form part of these financial statements.

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED 30 JUNE 2011

	Issued	Option	Financial	Accumulated	Accumulated	Total
	Capital	Reserve	Asset		Losses
			Reserve
	$	$	$		$	$
Consolidated Group
Balance at 30 June 2009	16,193,088	671,575	1,748,143		(6,896,763)	11,716,043
Shares issued during the year, net of
issue costs	3,417,303	-		-	-	3,417,303
Options issued during the year	-	237,660		-	-	237,660
Total other comprehensive income	-	-	(33,252)		(1,581,854)	(1,615,106)
Balance at 30 June 2010	19,610,391	909,235	1,714,891		(8,478,617)	13,755,900
Shares issued during the year, net of
issue costs	1,609,839	-		-	-	1,609,839
Total other comprehensive income	-	-	1,412,890		(991,896)	420,994
Balance at 30 June 2011	21,220,230	909,235	3,127,781		(9,470,513)	15,786,733

The accompanying notes form part of these financial statements.

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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STATEMENT OF CASH FLOWS FOR YEAR ENDED 30 JUNE 2011

Note CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest received Net cash used in operating activities 22a CASH FLOWS FROM INVESTING ACTIVITIES Exploration and evaluation expenditure Purchase of property, plant and equipment Investment in financial assets Proceeds on sale of property, plant and equipment Proceeds on sale of financial assets Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares, net of issue costs Net cash provided by financing activities Net increase (decrease) in cash held Cash at beginning of financial year Cash at end of financial year 8	Consolidated Group 2011 $ 2010 $ 231,562 62,595 (801,386) (734,221) 71,204 45,304
	(498,620) (626,322)
	(1,627,316) (1,288,911) (2,517) (1,597) (751,474) - - 500 - 66,842
	(2,381,307) (1,223,166)
	1,609,839 3,417,302
	1,609,839 3,417,302
	1,270,088 1,567,814 2,083,980 516,166
	813,892 2,083,980

The accompanying notes form part of these financial statements.

ASX Code: TAS

Page 24 of 46

Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards, including Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001 .

The financial report covers the consolidated group of Tasman Resources Ltd and controlled entities, and Tasman Resources Ltd as an individual parent entity. Tasman Resources Ltd is a listed public company, incorporated and domiciled in Australia.

The financial report of Tasman Resources Ltd and controlled entities, and Tasman Resources Ltd as an individual parent entity complies with all International Financial Reporting Standards (IFRS) in their entirety.

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

Basis of Preparation

The accounting policies set out below have been consistently applied to all years presented.

Reporting Basis and Conventions

The financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.

Going Concern

The financial statements have been prepared on the basis that the entity is a going concern, which contemplates the continuity of normal business activity, realisation of assets and the settlement of liabilities in the normal course of business. After considering the minimum exploration expenditure and corporate overheads required for the next twelve months, the directors believe the Group currently has sufficient cash flow resources and other liquid assets available to continue as a going concern.

Accounting Policies

a. Principles of Consolidation

A controlled entity is any entity Tasman Resources Ltd has the power to control the financial and operating policies of so as to obtain benefits from its activities.

A list of controlled entities is contained in Note 11 to the financial statements. All controlled entities have a June financial year-end.

All inter-company balances and transactions between entities in the consolidated group, including any unrealised profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistencies with those policies applied by the parent.

Minority equity 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 charge for current income tax expense is based on the profit for the year adjusted for any nonassessable or disallowed items. It is calculated using the tax rates that have been enacted or are substantially enacted by the balance sheet date.

Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited in the income statement except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.

ASX Code: TAS

Page 25 of 46

Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

b. Income Tax Continued

Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised.

Tasman Resources Ltd and Noble Resources Pty Ltd, its wholly-owned Australian subsidiary, have formed an income tax consolidated group under the tax consolidation regime. The Group notified the Australian Tax Office that it had formed an income tax consolidated group to apply from 1 July 2005. The tax consolidated group has entered a tax sharing agreement whereby each company in the group contributes to the income tax payable in proportion to their contribution to the net profit before tax of the tax consolidated group.

c. Property, Plant and Equipment

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

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 that will be received from the asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

Depreciation

The depreciable amount of all fixed assets including building and capitalised lease assets, but excluding freehold land, is depreciated on a straight-line basis over their useful lives to the consolidated group commencing from the time the asset is held ready for use.

The depreciation rates used for each class of depreciable assets are:

The depreciation rates used for each	class of depreciable assets are:
Class of Fixed Asset	Depreciation Rate
Plant and equipment	15–50%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the income statement. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.

d. Exploration and Evaluation Expenditure

Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.

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

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.

Costs of site restoration are provided over the life of the facility from when exploration commences and are included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal, and rehabilitation of the site in accordance with clauses of the mining permits. Such costs have been determined using estimates of future costs, current legal requirements and technology on an undiscounted basis.

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

e. Financial Instruments

Recognition

Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method.

Available-for-sale financial assets

Available-for-sale financial assets include any financial assets not included in the above categories. Available-for-sale financial assets are reflected at fair value. Unrealised gains and losses arising from changes in fair value are taken directly to equity.

Financial liabilities

Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payments and amortisation.

Fair value

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models.

Impairment

At each reporting date, the Group assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether impairment has arisen. Impairment losses are recognised in the income statement.

f. Impairment of Non-Financial Assets

At each reporting date, the Group reviews the carrying values of its non-financial tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the income statement.

Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.

Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

g. Investments in Associates

Investments in associate companies are recognised in the financial statements by applying the equity method of accounting. The equity method of accounting recognised the group’s share of post-acquisition reserves of its associates.

h. Employee Benefits

Provision is made for the company’s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits.

Equity-settled compensation

The Group operates a number of share-based compensation plans. These include both a share option arrangement and an employee share scheme. The bonus element over the exercise price of the employee services rendered in exchange for the grant of shares and options is recognised as an expense in the income statement. The total amount to be expensed over the vesting period is determined by reference to the fair value of the shares of the options granted.

ASX Code: TAS

Page 27 of 46

Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

• i. Provisions

• Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

• j. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the balance sheet.

• k. Revenue

• Revenue from the sale of goods is recognised upon the delivery of goods to customers.

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

• Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.

• l. Comparative Figures

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

• m. New accounting standards and interpretations not yet adopted

• The directors have assessed the new accounting standards issued but not yet effective at 30 June 2011 and noted no impact on the entity’s financial statements.

Critical Accounting Estimates and Judgments

The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the group.

Key Estimates — Impairment

The Group’s policy for exploration and evaluation is discussed in Note 1(d). The application of this policy requires management to make certain assumptions as to future events and circumstances. Any such estimates and assumptions may change as new information becomes available. At the date of this report the Group has sufficient reason to believe:

• rights to explore in specific areas, once expired, will be renewed;

• substantive expenditure on further exploration and evaluation in specific areas has been budgeted;

• exploration in specific areas is ongoing and the entity has not decided to discontinue such activities; and

• no specific sufficient data exists that indicates that the carrying amount of the exploration and evaluation asset is unlikely to be recovered.

The financial report was authorised for issue on 19 September 2011 by the board of directors.

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 NOTE 2: OTHER INCOME

Note — interest received — other — wages recovery from associated entity NOTE 3: LOSS FOR THE YEAR a. Expenses Depreciation and amortisation expense Exploration expenditure written off b. Significant Revenue and Expenses The following significant revenue and expense items are relevant in explaining the financial performance: Impairment of exploration and evaluation NOTE 4: INCOME TAX EXPENSE a. The prima facie tax on loss from ordinary activities before income tax is reconciled to the income tax as follows: Prima facie tax payable on loss from ordinary activities at 30% (2010: 30%) Add tax effect of: — other non-allowable items — deferred tax assets not brought to account The applicable weighted average effective tax rates are as follows: b. Unrecognised Deferred Tax Balances: Unrecognised deferred tax asset- losses Unrecognised deferred tax asset - other Unrecognised deferred tax liabilities Net Unrecognised deferred tax assets NOTE 5: AUDITORS’ REMUNERATION Note Remuneration of the auditor of the parent entity for: — auditing or reviewing the financial report	2011 $ 2010 $ 71,204 45,304 93,244 - 144,549 92,349
	308,997 137,653
	3,199 3,503 23,279 28,764 (442,503) (602,580) (297,569) (474,556)
	(297,569) (474,556) 2,640 189,403 294,929 285,153
	- -
	Nil% Nil% 5,947,179 5,217,080 44,492 31,384 (4,168,327) (3,356,048)
	1,823,344 1,892,416
	2011 $ 2010 $ 26,189 20,371

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 NOTE 6: KEY MANAGEMENT PERSONNEL COMPENSATION

• a. Names and positions held of economic and parent entity key management personnel in office at any time during the financial year are:

Key Management Person

Position

Gregory H Solomon Executive Chairman Douglas H Solomon Non-Executive Director Guy T Le Page Non-Executive Director Aaron P Gates Company Secretary / CFO Robert N Smith Senior Geologist Michael Glasson Senior Geologist

• b. Options and Rights Holdings

Number of Options Held by Key Management Personnel

Gregory H Solomon Douglas H Solomon Guy T Le Page Aaron P Gates Robert N Smith Michael J Glasson Total

Balance 1.7.2010 Granted as Comp- ensation Options Exer- cised Net Change Other Balance 30.6.2011 Total Vested 30.6.2011 Total Exer- cisable 30.6.2011 Total Unexer- cisable 30.6.2011 6,633,297 - - 598,276 7,231,673 7,231,673 7,231,673 - 6,570,301 - - 589,617 7,159,918 7,159,918 7,159,918 - 1,000,000 - - - 1,000,000 1,000,000 1,000,000 - 500,000 - - 417 500,417 400,417 400,417 100,000 1,988,205 - - 1,880 1,990,085 1,990,085 1,990,085 - 2,034,981 - -* 5,915 2,040,896 2,040,896 2,040,896 -

18,726,784 - - 1,196,105 19,922,989 19,822,989 19,822,989 100,000

*The Net Change Other reflected above includes those options that have been forfeited by holders, options that have lapsed, as well as options issued during the year under review.

c. Shareholdings

Number of Shares held by Key Management Personnel

Gregory H Solomon Douglas H Solomon Guy T Le Page Aaron P Gates Robert N Smith Michael J Glasson Total	Balance 1.7.2010 Received as Compensation Options Exercised Net Change Other* Balance 30.6.2011 28,171,975 - - 2,943,500 31,115,475 27,851,500 - - 2,808,460 30,659,960 1,784,821 - - - 1,784,821 - - - 21,667 21,667 40,235 - - 57,520 97,755 233,878 - - 73,657 307,535
	58,082,409 - - 5,904,804 63,987,213

• Net Change Other refers to shares purchased, taken up under pro-rata rights issues, share purchase plans or sold during the financial year.

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

NOTE 7: EARNINGS PER SHARE

Note a. Reconciliation of earnings to profit or loss Profit/(loss) Earnings used to calculate basic EPS	2011 $ 2010 $ (991,896) (1,581,854)
	(991,896) (1,581,854) No. No.

b. Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS 200,684,176 175,446,758

The effect of share options on issue is not potentially dilutive at 30 June 2010 or 30 June 2011.

NOTE 8: CASH AND CASH EQUIVALENTS

NOTE 8: CASH AND CASH EQUIVALENTS
	Note	2011	2010
		$	$
Cash at bank and in hand		813,892	2,083,980
		813,892	2,083,980
Reconciliation of cash
Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the
statement of financial position as follows:
Cash and cash equivalents		813,892	2,083,980
		813,892	2,083,980
NOTE 9: TRADE AND OTHER RECEIVABLES
CURRENT
Other receivables		49,968	113,123
		49,968	113,123
NOTE 10: FINANCIAL ASSETS
Available-for-sale financial assets	10a	4,206,317	2,001,953
		4,206,317	2,001,953
a. Available-for-sale financial assets
Listed investments, at fair value
— shares in listed entities		3,998,504	2,001,953
— options in listed entities		207,813	-
Total available-for-sale financial assets		4,206,317	2,001,953

Available-for-sale financial assets comprise investments in the ordinary issued capital of various entities. There are no fixed returns or fixed maturity date attached to these investments.

NOTE 11: CONTROLLED ENTITIES

11: CONTROLLED ENTITIES
	Country of	Percentage	Owned (%)*
	Incorporation	2011	2010
Parent Entity:
Tasman Resources Ltd	Australia
Subsidiaries of Tasman Resources Ltd:
Noble Energy Pty Ltd	Australia	100%	100
* Percentage of voting power is in proportion to ownership

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

NOTE 12: ASSOCIATED COMPANIES

NOTE 12: ASSOCIATED COMPANIES	NOTE 12: ASSOCIATED COMPANIES	NOTE 12: ASSOCIATED COMPANIES
Interests are held in the following associated companies
Name	Principal Activities	Country of	**Shares Ownership Interest **			Carry amount of
		Incorporation				investment
				2011	2010	2011	2010
				%	%	$	$
Listed:
Fission Energy Limited Mineral exploration		Australia	Ord	19.70	19.70		- -
				Note	2011		2010
					$		$
a.	Movements During the Year in Equity Accounted Investment
	in Associate
	Balance at beginning of the financial year					-	-
Add:	New investments during the year					-	-
	Share of associated company’s profit/(loss) after income tax			10b		-	-
	Balance at end of the financial year					-	-
b.	Equity accounted profits of associate are broken down as
	follows:
	Share of loss before income tax					-	-
	Share of income tax expense					-	-
	Share of loss after income tax					-	-
c.	Summarised Presentation of Aggregate Assets, Liabilities
	and Performance of Associate
	Current assets				691,036		1,463,825
	Non-current assets				14,762,219		14,332,800
	Total assets				15,453,255		15,796,625
	Current liabilities				106,543		222,934
	Non-current liabilities				250,000		250,000
	Total liabilities				356,543		472,934
	Net assets				15,096,712		15,323,691
	Revenues					-	-
	Profit/(Loss) after income tax of associate				(261,229)		(780,138)
d.	Ownership interest in Fission Energy	Limited at that	company’s reporting date was 19.70% (2010:
	19.70%) of ordinary shares. The reporting date of Fission Energy			Limited is 30 June 2011.
					2011		2010
					$		$
e.	Market value of listed investment in associate
	— Fission Energy Limited - shares				975,000		2,000,000
	— Fission Energy Limited - options					-	300,000
					975,000		2,300,000

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 NOTE 13: PROPERTY, PLANT AND EQUIPMENT

NOTE 13: PROPERTY, PLANT AND EQUIPMENT
Plant and equipment: At cost Accumulated depreciation Total plant and equipment Total Property, Plant and Equipment	2011 $ 2010 $ 55,670 72,631 (44,690) (60,969)
	10,980 11,662
	10,980 11,662

Movements in Carrying Amounts

Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year

Plant & Equipment Balance at the beginning of year Additions Disposals Depreciation expense Carrying amount at the end of year	11,662 14,406 2,517 1,597 - (838) (3,199) (3,503)
	10,980 11,662

NOTE 14: EXPLORATION AND EVALUATION EXPENDITURE

NOTE 14: EXPLORATION AND EVALUATION EXPENDITURE
	2011	2010
	$	$
Balance at the beginning of the financial year	9,850,374	9,111,335
Expenditure incurred during the year	1,530,559	1,370,383
Less tenements sold	(40,000)	-
Less provision for impairment	(442,503)	(602,580)
Less Written off	(23,279)	(28,764)
Balance at the end of the financial year	10,875,151	9,850,374

Recoverability of the carrying amount of exploration assets 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.

Capitalised costs included in cash flows from investing activities in the cash flow statement NOTE 15: TRADE AND OTHER PAYABLES CURRENT - UNSECURED Trade payables Sundry payables and accrued expenses Employee entitlements	2011 $ 2010 $ 1,627,316 1,288,911
	24,048 187,703 63,204 56,983 82,323 60.506
	169,575 305,192

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 NOTE 16: ISSUED CAPITAL

Note 210,089,840 (2010: 193,787,678) fully paid ordinary shares a. Ordinary shares At the beginning of reporting period Shares issued – prior year Shares issued during the year — 4 October 2010 — 14 October 2010 — 25 May 2011 — 27 May 2011 — Options exercised at various dates At reporting date	2011 $ 2010 $ 21,220,230 19,610,391
	21,220,230 19,610,391
	2011 No. 2010 No. 193,787,678 160,627,981 - 33,159,697 9,020,000 - 100,000 - 7,171,886 - 93 - 10,183 -
	210,089,840 193,787,678

On 4 October 2010 and 14 October 2010 the company issued 9,020,000 and 100,000 ordinary shares respectively at $0.10 per share by way of a Share Purchase Plan to raise working capital.

On 25 May 2011 and 27 May 2011 the company issued 7,171,886 and 93 ordinary shares respectively at $0.10 per share by way of a pro-rata Rights Issue to raise working capital.

Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the number of shares held. At the shareholders meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands.

b.

Options At the beginning of reporting period Options issued Options exercised Options lapsed	2011 No. 2010 No. 28,565,806 54,739,000 1,793,121 5,981,818 (10,183) (24,667) - (32,130,345)
	30,348,744 28,565,806

i. For information relating to the Tasman Resources Ltd employee option plan and options issued to key management personnel during the financial period, refer to Note 25 Share-based Payments.

• c. Capital Management

Management controls the working capital of the Group in order to maximise the return to shareholders and ensure that the Group can fund its operations and continue as a going concern. Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting its capital structure in responses to changes in these risks and in the market. These responses include the management of expenditure and debt levels, distributions to shareholders and share and option issues.

There have been no changes in the strategy adopted by management to control the capital of the Group since the prior year.

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

NOTE 17: RESERVES

a. Option Reserve

• The option reserve records items recognised as expenses on valuation of employee share options.

• b. Financial Asset Reserve

The financial asset reserve records revaluations of non-current assets. Under certain circumstances dividends can be declared from this reserve.

NOTE 18: COMMITMENTS

a. Capital Expenditure Commitments

Exploration commitments:

In order to maintain current rights of tenure to exploration tenements, the company is required to perform minimum exploration work to meet the requirements specified by various State governments. Due to the nature of the company’s operations in exploring and evaluating areas of interest, it is very difficult to forecast the nature and amount of future expenditure. It is anticipated that expenditure commitments for the twelve months will be tenement rentals of $50,000 (2010: $50,000) and exploration expenditure of $210,000 (2010: $1,667,000). Joint venture parties earning their interest in various tenements may effectively meet a significant portion of the commitment costs. These obligations can also be reduced by selective relinquishment of exploration tenure or application for expenditure exemptions.

NOTE 19: CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Directors are not aware of any contingent assets or contingent liabilities as at 30 June 2011.

NOTE 20: SEGMENT REPORTING

The group operates predominately in one geographical segment and one business being gold and other base metals exploration in South Australia. Operating segments are identified based on internal reports reviewed by the chief operating decision maker/s.

NOTE 21: EVENTS AFTER THE BALANCE SHEET DATE

There were no material events occurring after the reporting date.

NOTE 22: CASH FLOW INFORMATION

		2011	2010
		$	$
a.	Reconciliation of Cash Flow from Operations with Loss after Income Tax
	Loss after income tax	(991,896)	(1,581,854)
	Non-cash flows in loss
	Depreciation	3,199	3,503
	Share based payments	2,640	229,960
	Impairment expense	442,503	602,580
	Net gain on disposal of available for sale assets	-	99,252
	Net gain on disposal of plant and equipment	-	338
	Write-off of exploration expenditure	23,279	28,764
	Changes in assets and liabilities, net of the effects of purchase and
	disposal of subsidiaries
	(Increase)/decrease in trade and term receivables	(6,383)	(29,756)
	Increase/(decrease) in trade payables and accruals	28,038	20,891
	Cash flow used in operations	(498,620)	(626,322)

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 NOTE 23: PARENT COMPANY INFORMATION

		2011	2010
		$	$
a.	Parent Entity
	Assets
	Current assets	863,595	2,197,019
	Non-current assets	13,478,726	11,673,056
	Total Assets	14,342,321	13,870,075
	Liabilities
	Current liabilities	169,575	305,192
	Non-current liabilities	-	-
	Total liabilities	169,575	305,192
	Equity
	Issued Capital	21,220,230	19,610,391
	Retained Earnings	(7,944,219)	(6,954,743)
	Reserves
	Financial assets reserve	(12,500)	-
	Option reserve	909,235	909,235
	Total reserves	896,735	909,235
	Financial performance
	Profit for the year	(989,476)	(1,575,681)
	Other comprehensive income	(12,500)	-
	Total comprehensive income	(1,001,976)	(1,575,681)
	Contingent Liabilities
	The Directors are not aware of any contingent liabilities as at 30 June 2011.

NOTE 24: RELATED PARTY TRANSACTIONS

		2011	2010
		$	$
Transactions between related parties are on normal commercial terms and
conditions no more favourable than those available to other parties.
a.	Key Management Personnel
	Management fees paid to Princebrook Pty Ltd, a company in which Mr GH
	Solomon and Mr DH Solomon have an interest.	226,170	226,170
	Legal fees paid to Solomon Brothers, a firm of which Mr GH Solomon and
	Mr DH Solomon are partners.	13,086	25,062
	Placement fees paid to RM Capital, a firm of which Mr GT Le Page has an
	interest.	-	103,169
b.	Associated Companies
	Reimbursement from Fission Energy Ltd (which Tasman has a 19% fully
	diluted interest) for employee costs on a hourly basis, in relation to
	Tasman staff utilised by Fission.	100,292	53,838
	Hire charges to Fission Energy Ltd (which Tasman has a 19% fully diluted
	interest) for hire of a vehicle owned by Fission.	8,500	8,900

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

NOTE 25: SHARE-BASED PAYMENTS

The following share-based payment arrangements existed at 30 June 2011:

Employee Share Option 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.

Eligible Employee means a full or part-time employee or 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 other price determined by the Board at the time of issue.

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

• (a) commencing on the second anniversary; and

• (b) ending on the fifth anniversary

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

No options have been exercised during the year ended 30 June 2011. The closing share market price of an ordinary share of Tasman Resources Ltd on the Australian Securities Exchange at 30 June 2011 was $0.07 (30 June 2010 $0.11). Included under employee benefits expense in the statement of comprehensive income is $2,640 (2010: $229,960), and relates, in full, to equity-settled share-based payment transactions.

All options granted to key management personnel are for ordinary shares in Tasman Resources Ltd, which confer a right of one ordinary share for every option held.

The options outstanding at 30 June 2011 had a weighted average exercise price of $0.15 and a weighted average remaining contractual life of 1.2 years. Exercise prices range from $0.10 to $0.16 in respect of options outstanding at 30 June 2010.

outstanding at 30 June 2010.
Outstanding at the beginning of the year Granted Expired Outstanding at year-end Exercisable at year-end	2011 2010 Number of Options Weighted Avg Exercise Price Number of Options Weighted Avg Exercise Price 7,976,410 0.15 4,274,804 0.15 - - 5,901,606 0.16 - - (2,200,000) 0.20
	7,976,410 0.15 7,976,410 0.15
	7,876,410 0.15 7,776,410 0.15

NOTE 26: FINANCIAL INSTRUMENTS

• a. Financial Risk Management

The group’s financial instruments consist mainly of deposits with banks, accounts payable.

The main purpose of non-derivative financial instruments is to raise finance for group operations.

i. Liquidity Risk

Responsibility for liquidity risk management rests with the Board of Directors. The Group manages liquidity risk by maintaining adequate reserves and by continuously monitoring cash flows.

The remaining contractual maturities of the Group and Parent entities financial liabilities are:

6 months or less Total	2011 $ 2010 $ 169,575 305,192
	169,575 305,192

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

NOTE 26: FINANCIAL INSTRUMENTS CONTINUED

ii. Credit Risk

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, as disclosed in the balance sheet.

The Group does not have any material credit risk exposure to any single receivable or group of receivables under financial instruments entered into by the Group.

b Financial Instruments

i. Interest Rate Risk

The Group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rates on classes of financial assets and financial liabilities, is as follows:

	Weighted Average Effective Interest Rate	Weighted Average Effective Interest Rate	Weighted Average Effective Interest Rate	Floating Interest Rate	Floating Interest Rate	Non Interest Bearing	Non Interest Bearing	Total
	2011		2010	2011	2010	2011	2010	2011	2010
				$	$	$	$	$	$
Financial Assets:
Cash and cash equivalents	4.25%		4.00%	813,892 2,083,980		-	-	813,892 2,083,980
Trade and other receivables		-	-	-	-	49,968	113,123	49,968	113,123
Total Financial Assets		-	-	813,892 2,083,980		49,968	113,123	863,860 2,197,103
Financial Liabilities:
Trade and sundry payables		-	-	-	-	169,575	305,192	169,575	305,192
Total Financial Liabilities		-	-	-	-	169,575	305,192	169,575	305,192

• ii. Price Sensitivity Analysis

At 30 June 2011, the effect on equity as a result of changes in the price risk, with all other variables remaining constant would be as follows

2011	2010
$	$

Increase in market value of available-for-sale financial assets at fair value by 10% 420,632 200,195 Decrease in market value of available-for-sale financial assets at fair value by 10% (420,632) (200,195) At 30 June 2011, there will be no effect on profit as a result of changes in the price risk.

• iii. Net Fair Values

Aggregate net fair values and carrying amounts of financial assets and financial liabilities.

Financial Assets Cash and cash equivalents Loans and receivables Available-for-sale financial assets at fair value Investments accounted for using the equity method Financial Liabilities Trade and sundry payables	2011 2010 Carrying Amount $ Net Fair Value $ Carrying Amount $ Net Fair Value $ 813,892 813,892 2,083,980 2,083,980 49,968 49,968 113,123 113,123 4,206,317 4,206,317 2,001,953 2,001,953 - 975,000 - 2,300,000
	5,070,177 6,045,177 4,199,056 6,499,056
	169,575 169,575 305,192 305,193
	169,575 169,575 305,192 305,193

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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NOTE 27: COMPANY DETAILS The registered office of the company is:

The registered office of the company is: The principal place of business is: Tasman Resources Ltd Tasman Resources Ltd Level 40, Exchange Plaza Level 40, Exchange Plaza 2 The Esplanade 2 The Esplanade Perth Perth Western Australia 6000 Western Australia 6000

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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DIRECTORS’ DECLARATION

In the opinion of the directors of Tasman Resources Ltd (the “Company”):

• a. the financial statements and notes set out on pages 21 to 39, and the Remuneration disclosures that are contained in pages 17 to 18 of the Remuneration Report in the Directors’ Report, are in accordance with the Corporations Act 2001, including:

• (i) giving a true and fair view of the Group’s financial position as at 30 June 2011 and of its performance, for the financial year ended on that date; and

• (ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001; and

• (iii) complying with International Financial Reporting Standards as disclosed in Note 1.

• b. the remuneration disclosures that are contained in page 17 to 18 of the Remuneration Report in the Directors’ Report comply with Australian Accounting Standard AASB 124 Related Party Disclosures and

• c. 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.

---

Gregory H Solomon Director

Dated this 9[th] day of September 2011

ASX Code: TAS

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Grant Thornton Audit Pty Ltd ABN 94 269 609 023

10 Kings Park Road West Perth WA 6005 PO BOX 570 West Perth WA 6872

T +61 8 9480 2000 F +61 8 9322 7787 E admin.wa@au.gt.com W www.grantthornton.com.au

Independent Auditor’s Report To the Members of Tasman Resources Limited

Report on the financial report

We have audited the accompanying financial report of Tasman Resources Limited (the ‘Company’), which comprises the consolidated statement of financial position as at 30 June 2011, and the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year ended on that date, a summary of significant accounting policies, other explanatory notes to the financial report and the directors’ declaration of the consolidated entity comprising the Company and the entities it controlled at the year’s end or from time to time during the financial year.

Directors’ responsibility for the financial report

The Directors of the Company are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards and the Corporations Act 2001. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial report that are free from material misstatement, whether due to fraud or error. The Directors also state, in the notes to the financial report, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that compliance with the Australian equivalents to International Financial Reporting Standards ensures that the financial report, comprising the financial statements and notes, complies with International Financial Reporting Standards.

Auditor’s responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards which require us to comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.

Liability limited by a scheme approved under Professional Standards Legislation

Page 41 of 46

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

Auditor’s opinion

In our opinion:

• a the financial report of Tasman Resources Limited is in accordance with the Corporations Act 2001, including:

• i giving a true and fair view of the consolidated entity’s financial position as at 30 June 2011 and of its performance for the year ended on that date; and

• ii complying with Australian Accounting Standards and the Corporations Regulations 2001; and

• b the financial report also complies with International Financial Reporting Standards as disclosed in the notes to the financial statements.

Report on the remuneration report

We have audited the remuneration report included in pages 17 to 19 of the directors’ report for the year ended 30 June 2011. The Directors of the Company are responsible for the preparation and presentation of the remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.

Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.

Liability limited by a scheme approved under Professional Standards Legislation

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Auditor’s opinion on the remuneration report

In our opinion, the remuneration report of Tasman Resources Limited for the year ended 30 June 2011, complies with section 300A of the Corporations Act 2001.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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P W Warr Director - Audit & Assurance

Perth, 19 September 2011

Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.

Liability limited by a scheme approved under Professional Standards Legislation

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES

1. Shareholding as at 31 August 2011

a. Distribution of Shareholders

Distribution of Shareholders Category (size of holding) 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 100,001 – and over	Number Ordinary 94 303 344 1,124 283
	2,148

• b. The number of shareholdings held in less than marketable parcels at 30 June 2011 is 528.

• c. The names and relevant interests of the substantial shareholders listed in the company’s register as at 31 August 2011 are:

The names and relevant interests of the substantial 31 August 2011 are:	shareholders listed in the company’s register as at
Shareholder	Number Ordinary
Arkenstone Pty Ltd	28,621,975
March Bells Pty Ltd	28,301,500

d. Voting Rights

Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting or by proxy has one vote on a show of hands.

e. 20 Largest Shareholders — Ordinary Shares

20 Largest Shareholders — Ordinary Shares	20 Largest Shareholders — Ordinary Shares
Name		Number of	% of Issued
		Shares Held	Capital
1.	Arkenstone Pty Ltd	22,399,927	10.662%
2.	March Bells Pty Ltd	19,026,578	9.056%
3.	March Bells Pty Ltd	8,497,000	4.044%
4.	Arkenstone Pty Ltd	8,227,200	3.916%
5.	HSBC Custody Nominees (Australia) Ltd	7,168,452	3.412%
6.	Mr Lafras Luitingh	3,250,000	1.547%
7.	Mr Thomas Fleet Scaife	3,200,912	1.524%
8.	Nefco Nominees Pty Ltd	2,708,334	1.289%
9.	Ernie Pty Ltd	2,500,000	1.190%
10.	March Bells Pty Ltd	2,356,601	1.122%
11.	Citicorp Nominees Pty Limited	2,317,029	1.103%
12.	RBC Dexia Investor Services Australia Nominees Pty Ltd	1,769,556	0.842%
13.	Kavel Pty Ltd	1,760,000	0.838%
14.	Madam Biau Luan Tan	1,506,000	0.717%
15.	Lippo Securities Nominees (BVI) Ltd	1,500,000	0.714%
16.	Resources & Land Management Services	1,408,334	0.670%
17.	Peto Pty Ltd	1,361,250	0.648%
18.	Malenki Pty Ltd	1,300,000	0.619%
19.	Gasmere Pty Ltd	1,205,629	0.574%
20.	Arden Medical Pty Ltd	1,182,129	0.563%
		94,644,931	45.050%

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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1. Optionholding as at 31 August 2011 (TASOB: $0.10 Expiring 30 June 2012)

a. Distribution of Optionholders

Distribution of Optionholders Category (size of holding) 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 100,001 – and over	Number of Optionholders 196 213 96 143 22
	670

b. 20 Largest Optionholders — TASOB

20 Largest Optionholders — TASOB	20 Largest Optionholders — TASOB
Name		Number	% of Issued
		Options Held	Capital
1.	Arkenstone Pty Ltd	4,515,040	20.182%
2.	March Bells Pty Ltd	3,878,495	17.337%
3.	March Bells Pty Ltd	1,702,081	7.608%
4.	Arkenstone Pty Ltd	1,647,084	7.362%
5.	Ernie Pty Ltd	843,625	3.771%
6.	March Bells Pty Ltd	480,385	2.147%
7.	Mr Thomas Fleet Scaife	422,494	1.889%
8.	Timmid Pty Ltd	419,875	1.877%
9.	Temmedo Pty Limited	350,000	1.564%
10.	Mr Alban Horst Hasslinger	300,000	1.341%
11.	Mr Kenneth Lamb & Mrs Valerie Lamb	290,813	1.300%
12.	Rivermore Pty Limited	262,706	1.174%
13.	Mr Roy Wiseman & Mr Benjamin Wiseman	200,000	0.894%
14.	Mr Peter Weber	155,000	0.693%
15.	Mrs Barbara Watson	154,688	0.691%
16.	Mr David Pennock	146,500	0.655%
17.	Mr Phillip Hardcastle	125,417	0.561%
18.	Voodoo Financial Services Pty Ltd	125,000	0.559%
19.	HSBC Custody Nominees (Australia) Limited	125,000	0.559%
20.	Mr Timothy McDonnell	121,398	0.543%
		16,265,601	72.707%

3. Unlisted Options as at 31 August 2011

Name Date of Expiry Exercise Price ESOP 16 April 2012 0.10 ESOP 26 May 2013 0.12 ESOP 30 June 2012 0.16 DIRECTORS 20 November 2012 0.16875 ESOP 8 February 2012 0.15 ESOP 31 May 2013 0.15	Number under Option 1,574,804 500,000 2,000,000 3,000,000 401,606 500,000
	7,976,410

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2011

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TENEMENT SCHEDULE

Table 1 lists further details on the tenements.

Table 1: Tasman Resource Tenement Schedule

State	Licence Type	Number	% Interest	Locality	Location
SA	EL	4168	100*	Wartaka	Approximately50 km west of Port Augusta
SA	EL	4206	100*	White Cliff	Approximately70 km NNW of Andamooka
SA	EL	4405	100*	Fergusson Hill	Approximately120km northwest of Andamooka
SA	EL	4300	100*	Andamooka	ImmediatelyENE of Andamooka
SA	EL Applic.	2008/436	100*	Todds Dam	Approximately45km west of Andamooka
SA	EL	4322	100*	Andamooka North	Approximately140 km northwest of Leigh Creek
SA	EL	4475	100*	Iron Knob	Approximately50 km WSW of Port Augusta
SA	EL Applic.	59/10	100*	Sandstone	Approximately90 km southwest of Coober Pedy
SA	EL Applic.	233/10	100*	Wildingi Claypan	Approximately95 km southwest of Coober Pedy
SA	EL Applic.	6/11	100*	GalaxyTank	Approximately85 km southwest of Coober Pedy
SA	EL	3739	100*	Old Wartaka	Approximately70 km west of Port Augusta
SA	EL	4770	100	Lucas Hill	Approximately25km SE of Woomera

• Fission has the uranium rights in these tenements under an agreement with Tasman. In ELs 4206, 4300, 4322 and EL4405, 2008/436 Fission only has the rights to uranium mineralisation in rocks above the basement.

ASX Code: TAS

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