TASMAN RESOURCES LTD — Capital/Financing Update 2004

Dec 21, 2004

TASMAN RESOURCES NL

ACN 009 253 187

Level 40, Exchange Plaza 2 The Esplanade, Perth, Western Australia 6000 Telephone: (08) 9282 5889 Facsimile: (08) 9282 5866

Website: www.tasmanresources.com.au

AUSTRALIAN STOCK EXCHANGE ANNOUNCEMENT

EXPLORATION UPDATE 22 December 2004

HIGHLIGHTS

Marathon South

270m of altered breccias intersected in MS 1 at Marathon South prospect. Follow-up drilling $\bullet$ scheduled for March 2005.

Gawler Craton Targets

• Exploration to commence in 2005 on new copper, nickel and gold prospects on Gawler Craton.

Marathon South prospect

Drillhole MS 1, located at Tasman's 100% owned Marathon South prospect, was completed at a depth of 830.8m, finishing in altered breccias containing weak sulphide mineralisation (less than one percent disseminated pyrite and lesser chalcopyrite). A total thickness of over 270m (from 558m to 830m downhole) of variably hematite-altered breccias and rocks of probable igneous origin were intersected in the hole (see Figure 1).

Assay results have been received, and as foreshadowed in Tasman's announcements dated 23^rd and $25^th$ November 2004, no significant mineralisation was intersected. Some anomalous values were returned for gold (up to $0.1$ g/t Au in individual 2m samples) and copper (of up to several hundred ppm with a maximum of 1600ppm over 2m from 804m) for individual samples. All samples were composited over 2m intervals from one-third core fillets.

The results are consistent with what is currently interpreted to be evidence of strong leaching of the breccias by geological processes not uncommon in volcanic calderas and diatremes.

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

• The significant nature and thickness of the breecias. As previously reported, the breecias consist of a variety of matrix and clast support styles, with clasts of both sedimentary and igneous origin. They exhibit a variety of alteration styles with hematite, sericite, silica (quartz) and carbonates the principal alteration minerals, and are interpreted as probably having formed in a volcanic caldera environment.

• The presence of significant igneous and volcanic components in the breccias. Brecciated, layered tuffaceous rocks, altered dykes of varying composition and altered igneous clasts within the breccias provide further evidence of igneous and volcanic processes during formation of the breccias.
• The rocks in MS 1 are undeformed. The lack of deformation of the breccias is consistent $\bullet$ with their formation at Hiltaba age or younger (i.e. $\sim$ 1600 million years old). Olympic Dam, Prominent Hill and other deposits in the region are undeformed and believed to have formed at this fime.
• The size and location of the geophysical gravity anomaly, MS 1 has been drilled on the southwest margin of a large and complex gravity feature (approximately 4km by 6km). 24km northeast of Olympic Dam. Apart from MS 1, the feature is completely untested.

Since the completion of MS 1, additional gravity data has been collected over the southern part of the anomalous feature. This information will be used to refine geophysical modelling and enhance follow up drill targeting.

Follow up drilling of at least four further drill holes (see Figure 1) is expected to commence at Marathon South in March 2005, which is the earliest time that Tasman has been able to secure a suitable drill rig.

Gawler Craton Targets

Tasman has identified a number of other areas prospective for copper, nickel and gold on the Gawler Craton, and lodged several exploration licence applications with the SA Department of Primary Industries and Resources. Grant of the exploration licences is expected early in 2005, and exploration will commence shortly after (see Figure 2 for location).

Gregory H. Solomon Executive Chairman

The information in this announcement, insofar as it relates to Mineral Exploration activities, is based on information compiled by Robert Smith, who is a member of the Australian Institute of Geoscientists, and who has more than five years experience in the field of activity being reported on. It should not be assumed that the reported Exploration Results will result, with further exploration, in the definition of a Mineral Resource.

Figure 1: Image of residual gravity for Marathon South, showing the outline of the more dense
features, the location of MS 1 and four possible follow up drillholes.

Figure 2 Location plan showing the Lake Torrens Project, Marathon South prospect and new Gawler Craton target areas.