TASMAN RESOURCES LTD — Capital/Financing Update 2004

May 5, 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 $6^th$ May 2004

LAKE TORRENS PROJECT

1. Titan

Further Drilling

A decision has been taken to drill a further hole at Titan (TI7) to be located approximately 50m to 80m southeast of TI6 (see Figure 1). The precise collar location is currently being finalised. This is targeting an area which geological modelling, based on the exploration results, has identified as a target area for high-grade mineralisation. Subsequently, this target has been supported by two electrical geophysical surveys (AMT and mise-à-la-masse) as discussed in Tasman's March 2004 quarterly report. A suitable drill rig has been tentatively secured for the second half of June 2004.

Four additional drill targets have also been identified, and subject to the final locations being confirmed (dependent upon final processing and interpretation of the previous electrical surveys), it is proposed to also drill these targets during the second half of 2004. These additional drill holes will be subject to the company securing adequate funding for this purpose. Details of proposed mechanisms for this further funding will be announced as soon as they are determined.

Step out electrical surveys

Commencing at the end of May 2004 it is proposed to carry out further step out AMT surveys over the greater Titan area, to identify basement depth, conductive zones that may contain high sulphide content, possible faults and the extent of possible target zones. This strategy is being undertaken in view of the very encouraging results obtained from several AMT lines already undertaken at Titan.

2. Zeus

This target, approximately three kilometres southeast of Titan, was identified by the recent step out gravity survey.

Two highly conductive zones were identified by a recent AMT survey and will be further investigated as follows:

• Processing and interpretation of the existing electrical survey will be completed. $\bullet$
• An infill gravity survey will be conducted to provide more detailed gravity data over the target.
• Drilling of up to two drill holes subject to securing adequate funding. ٠

3. Marathon South, Vulcan and Atlas

It is proposed to conduct AMT surveys over these three prospects (see Figure 2) to determine basement depth, identify possible faults, conductive zones and the extent of any targets with a view to defining drill targets for possible testing during the second half of 2004.

Gregory H Solomon Chairman

Figure 1: Approximate location of proposed drill hole TI7 at Titan

Figure 2: Prospect locations on residual gravity image