TASMAN RESOURCES LTD — Capital/Financing Update 2004

Sep 23, 2004

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 24 September 2004

LAKE TORRENS PROJECT

HIGHLIGHTS

• Tasman has been successful in its two applications to the Department of Primary Industry and Resources in South Australia as part of the government exploration initiative for a contribution of 50% of the drilling costs for drilling two drill holes, TI8 at Titan and MS1 at Marathon South. Both of these are considered to be highly prospective targets for potentially large scale Olympic Dam style copper/gold deposits.
• At Titan drilling has commenced on the two diamond drill holes (TI7 and TI8) testing geological and strongly conductive geophysical targets.
• At Marathon South (24 km northeast of Olympic Dam), drilling of MS1 will occur following the completion of the two drill holes at Titan. MS1 is targeting a modest sized Olympic Dam style iron oxide copper gold deposit which is interpreted from a strong electrical conductor which has been found in basement rocks, coincident with a distinct residual gravity anomaly and relative magnetic low. The basement is entirely untested in this area.

Mineral Exploration

Titan

As previously announced, two further diamond drill holes are underway (Figure 1), targeting highgrade copper-gold mineralisation, based on encouraging electrical geophysical data (Figure 2) and Tasman's geological model.

• TI7 is currently being drilled 80m southeast of TI6. Based on Tasman's geological model, the hole will follow up the higher-grade mineralised zone intersected near the top of TI6 and test coincident, conductive geophysical anomalies from AMT and MALM surveys (Figure 3).
• TI8 is to be drilled 400m east of TI4, and will test coincident residual gravity, AMT, IP ٠ and MALM geophysical anomalies, in an area of weak magnetic response. Based on

Tasman's geological modelling of these systems, the coincidence of these geophysical anomalies is ideal in terms of potential high-grade mineralisation (Figure 4).

Marathon South

A single AMT geophysical traverse was completed across a residual gravity anomaly, coincident with a relative magnetic low, within a much larger (10km by 25km) regional northeast trending magnetic and gravity feature. The Waterman's Plains copper occurrence, located within the Andamooka Limestone at the top of the overlying sedimentary sequence is 2.4 km northeast along this trend (Figure 5).

Geophysical modelling suggests that the source of the gravity anomaly at Marathon South could be an iron-rich body within the basement at a depth of about 450m to 500m. The recent AMT geophysical traverse (Figure 6) indicates that the northwestern margin of the gravity anomaly is electrically conductive, and this could be due to sulphides hosted within a modest-size, iron-oxide copper gold system (Figure 7).

Gregory H Solomon Executive Chairman

Figure 1: Titan Prospect - Residual gravity image (64 Hanning) with locations of cross sections, AMT Line 4 and planned drill holes.

Figure 2: Titan Prospect, AMT Line 4 - 1D smooth model inversion of time series scalar TE mode AMT (Rho YX) data (combined 100m and 50m data).

Figure 3: Titan Prospect - Cross Section C-D, showing interpreted basement geology and drill targets.

Figure 4: Titan Prospect - Cross Section A-B, showing interpreted basement geology and drill targets.

Figure 5: Marathon South Prospect; residual gravity image (128 Hanning) with locations of AMT Line and proposed drill hole.

MS1

Figure 6: Marathon South, AMT line 1 - 1D smooth model inversion of time series corrected scalar TE mode (Rho YX) data (50m data).

Figure 7: Marathon South - Residual Gravity Profile and Interpretive Cross Section with proposed drill hole