TASMAN RESOURCES LTD — Capital/Financing Update 2006

Dec 21, 2006

22 December 2006

Company Announcements Office Australian Stock Exchange Ltd

WCP expands its IOCGU portfolio in a new Joint Venture adjacent to the World Class Olympic Dam Project

Highlights:

• IOCGU Heads of Agreement signed with Tasman Resources Limited on the Lake Torrens Project.
• . Located immediately to the north and west of BHP Billiton's World Class Olympic Dam Mine in central South Australia.
• Joint Venture tenure falls largely within IOCG Potential Rank 1 region defined by Geoscience Australia to have the highest potential for IOCG mineralisation within South Australia's Gawler craton.
• Numerous large mineralised iron oxide breccia systems of the Olympic Dam / Prominent Hill style have been discovered and only partly explored by seven deep diamond drillholes at Titan; and four holes at Marathon South.
• . Numerous drill ready targets to be tested commencing during the first auarter of 2007.

WCP Resources Limited ("WCP") is pleased to announce the signing of a Heads of Agreement to create a joint venture with Tasman Resources NL ("Tasman") (ASX: TAS) on its Lake Torrens IOCGU Project located adjoining BHP Billiton Limited's world-class Olympic Dam mine at Roxby Downs in the Stuart Shelf region of South Australia.

WCP Resources Ltd ABN 50 002 664 495

Level 1, 161 Sussex Street Sydney NSW 2000

Ph: +61 2 9248 6900 Fax: +61 2 9262 1559 Email: info@wcpresources.com.au

www.wcpresources.com.au

WCP can earn up to a 65% interest in iron-oxide - copper - gold - uranium ("IOCGU") deposits that occur within 8 granted exploration licences covering 2,870 km² by spending \$6.5 million within a five year period. WCP has agreed to a minimum expenditure commitment of \$750,000 within 12 months and a minimum of \$1 million per annum for the next 4 years if it proceeds with the joint venture on a year on year basis. No interest will be earned unless and until at least \$2,500,000 has been spent. At that stage WCP will have earned a 25% interest in the Project, and thereafter will earn a further 5% for each additional \$500,000 which it shall expend. WCP's rights will be limited to the IOCGU targets and it will have no rights to sediment hosted mineralisation in the tenements. Within 14 days of completion of formal documentation, WCP will issue Tasman 1,000,000 ordinary shares in WCP, which would be subject to a voluntary escrow of 12 months. The transaction is subject to the completion of formal documentation which is expected to be concluded by January 18, 2006.

The Lake Torrens Project tenements, currently 100% held by Tasman Resources Limited, border BHP Billiton Limited's Olympic Dam Project tenure to the north and west and occur within IOCG Potential Rank 1 and 2 areas defined by Geoscience Australia. Rank 1 is seen as having the highest potential for IOCG mineralisation on the Gawler Craton, and includes Olympic Dam (Proven and Probable Reserves¹ of 761 million tonnes arading 1.5% copper, 0.6 kg/t U₃O₈ and 0.5 g/t gold), Prominent Hill (Proven and Probable Reserves² of 68.2 million fonnes grading 1.31% copper and 0.59 g/t gold) and Carrapateena (discovery intercept³ of 178.2 metres grading 1.83% copper and 0.64 g/t gold).

There are a number of targets comprising Fe-altered volcanic breccia systems, mineralised haematite-magnetite breccias, and untested gravity anomalies that have been identified within the Lake Torrens IOCG Project area. Of these, the two most interesting are the Titan and Marathon South prospects.

Titan was first tested by WMC Ltd in 1976 when they drilled two holes targeted on coincident strong gravity/magnetic anomalies. BD1 intersected 334 metres of 0.1% copper from 607 metres depth in strong IOCG-style altered basement. Tasman have subsequently conducted detailed gravity work and limited electrical geophysics (AMT) and drilled 8 holes since 2003, with best intercepts of 111 metres of 0.1% copper from 604 metres depth in TI2 and 47 metres of 0.3% copper from 608 metres depth (including 5 metres of 1.1% copper and 0.3 g/t gold from 620 metres) in TI6. All of these holes have focused on a limited part of the eastern flank of the Titan aravity feature and to the southeast of BD1.

An initial program of 5 diamond holes has been designed to test high priority drill targets located to the northeast, northwest and southwest of BD1 within the large (approximately 10 km2 surface area) IOCG system at Titan.

Tasman commenced exploration using AMT over an untested gravity anomaly at Marathon South in 2005 and received PACE ("Plan for Accelerated Exploration") support funding from the South Australian Government for drilling MS1. The initial hole intersected 270 metres of highly altered breccias having strong similarities with parts of the "core-zone" of the Olympic Dam breccia complex. Subsequent drilling of an additional three holes, two of which were partly funded under a PACE-grant, tested northeastern portions of the anomaly and returned altered and brecciated rocks with weak copper mineralisation.

An initial program of 4 diamond holes has been designed to test high priority drill taraets located in the western and southeastern portions of the large anomaly (approximately 10 km² surface area) at Marathon South.

In addition, prospects have been identified at Vulcan, Zeus, Billy Barnes, Atlas, Beamish, Lullars, and Tolls Dam that are all considered prospective for IOCGU mineralisation of the Olympic Dam / Prominent Hill style.

WCP's Executive Director, Levi Mochkin said "WCP continues to actively increase the number of high quality projects in its portfolio. The Lake Torrens project is a particularly attractive IOCGU advanced exploration project that immediately adioins the Olympic Dam mine. We are very pleased to have signed this agreement with Tasman Resources and we look forward to finalising the formal documentation and commencing on a number of drill ready targets in 2007."

Yours sincerely

Levi Mochkin Executive Director WCP Resources Ltd.

Competent Person Declaration

The information in this document that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Gavin Daneel, who is a Member of The Australasian Institute of Minina and Metalluray. Mr Daneel has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Daneel, who is a full-time employee of the Company, consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Note 1: Olympic Dam MineSite Summary (olympicdam.infomine.com) Last updated - 15 November 2005)

Note: 2: Oxiana Limited. Prominent Hill Ore Reserve Statement Explanatory Notes August 2006 Note 3: Geological and metallogenic setting of the Carrapateena FeO-Cu-Au prospect - a PACE success story. MESA Journal 38, July 2005.

Figure 1. Lake Torrens IOCGU Project tenements (white) that comprise the Joint Venture between WCP and Tasman and their proximity to the World Class Olympic Dam Mine, IOCG prospects and Geoscience Australia's IOCG Potential Rank 1 regions. Background image is processed residual gravity with hotter colours signifying greater density.