TASMAN RESOURCES LTD — Capital/Financing Update 2004

Sep 23, 2004

24 September 2004

TASMAN TO EXPAND S.A. MINERAL SEARCH

FOLLOWING GOVERNMENT INITIATIVE

An injection of funds through a South Australian Government exploration initiative will see ASX-listed Tasman Resources NL expand its copper-gold drilling program near the giant Olympic Dam mine in the state's Far North.

Tasman announced today that it had been successful with two Government applications for a contribution of 50% of the drilling costs for two drill holes on its Lake Torrens leases in SA.

"We have two main targets – our Titan and Marathon South prospects - which are both considered to be highly prospective for containing potentially large scale Olympic Dam style copper-gold deposits," Tasman's Executive Chairman, Mr Greg Solomon, said today.

"Prior to our successful Government application, we had decided to apply Tasman's exploration funds to a two-hole drilling program which commenced this week on the Titan prospect only," he said.

"However, after being notified vesterday that Tasman had been chosen to participate under the SA Government exploration initiative, we will now drill a new exploration hole on the Marathon South prospect, immediately after completion of the current Titan drilling.

"It is a significant boost for the company and we look forward with great anticipation in the coming weeks to the results of this new drilling program."

The partial SA Government funding initiative has been made available to selected exploration companies under Theme 2 - Drilling Collaboration between Primary Industries and Resources SA (PIRSA) and Industry of the Plan For Accelerating Exploration (PACE Initiative).

Mr Solomon said the work being undertaken by the PIRSA team was generating a new wave of exploration enthusiasm throughout South Australia.

"Many parts of the state remain relatively unexplored and the current Government initiatives will help spur on explorers who are keen to help unlock the resource riches that exist in South Australia." he said.

Mr Solomon said he had been advised that under the current PACE Initiative, PIRSA had received many more proposals than could be accommodated with available funding.

"The proposals were assessed and ranked against the criteria listed in the Guidelines for Proposals by a panel comprising PIRSA representatives and two external geologists with extensive industry experience, but without commercial interests in SA." he said.

"Tasman is pleased that its exciting copper-gold targets have been considered as worthy participants in the funding scheme."

Drilling on Tasman's Titan prospect – located 30 kilometres from WMC's world-class Olympic Dam mine - started on Wednesday morning. Two diamond drill holes, TI7 and TI8, are targeting high-grade copper-gold mineralisation, based on encouraging electrical geophysical data and Tasman's own geological model.

Drilling of the two new Titan holes are expected to each take approximately 12 to 14 days to complete, after which the rig would move to the site of the MS1 drill hole on the Marathon South prospect.

Assaying of results from the Titan holes will take a further two to four weeks after completion of drilling, depending upon turn around time at the assay laboratory.

Media contacts:

Greg Solomon Executive Chairman Tasman Resources 08-9282 5889

John Field Field Public Relations 08-8234 9555 or 0418 819 527