TASMAN RESOURCES LTD — Capital/Financing Update 2006

Nov 5, 2006

AUSTRALIAN STOCK EXCHANGE ANNOUNCEMENT

EXPLORATION UPDATE -6^th November 2006

HIGH GRADE LEAD AND ZINC AT PARKINSON DAM

• High grade lead and zinc $(7.6\% \text{ Pb}, 10.5\% \text{ Zn}, 0.4\% \text{ Cu}, 1.20\text{ g/t} \text{ Au},$ 120g/t Ag) over 1.66m down hole in first cored hole PD 30
• Assays awaited for remainder of 400m wide zone in PD 30 containing epithermal quartz $\pm$ sulphide veining
• Further two cored holes intersected wide zones of epithermal mineralisation - assays also awaited
• Mineralisation open to north $-$ approximately $3km^2$ target area still to be tested

Tasman is pleased to report assays for the sulphide-rich epithermal mineralisation intersected in the first cored drill hole, PD 30, at its 100% owned Parkinson Dam epithermal gold-silver (lead-zinc) prospect, located 60km west of Port Augusta in South Australia.

Assays have been received for a seven metre intersection (Table 1), within which is contained a zone of 1.66m down hole at 7.6% Pb, 10.5% Zn, 0.4% Cu, 1.20 $g/t$ Au and 120 $g/t$ Ag (intersection weighted by individual sample length and density).

These assays relate to a relatively narrow, but strongly sulphide-rich zone contained within a much broader zone containing epithermal quartz $\pm$ sulphide veining (at least 400m wide) reported to the ASX on 11^th October 2006. Assays for the broader zone are not yet available.

Background

Drill hole PD 30 is the first of three diamond drill holes recently completed at Parkinson Dam. PD 30 was designed to follow-up thick, highly anomalous, gold-silver (lead-zinc) mineralisation intersected in previous reverse circulation percussion (RC) holes. PD 30 is located 40m grid north from hole PD 27 (which intersected 96m at 0.2% Pb), and, like PD 27 is inclined at 60° south (see Figures 1 and 2). PD 30 was drilled with RC drilling to 51m depth, and completed with NQ diamond coring to 416.4m.

Almost the entire hole has intersected a very thick zone (at least 400m down hole) containing variable amounts of epithermal-style quartz-sulphide veining, disseminated sulphides (mostly pyrite and base metal sulphides, galena or lead sulphide and sphalerite or zinc sulphide) and associated epithermal-style alteration (chlorite and sericite). Overall, the grade of the thick zone of mineralisation is expected to be generally similar to the previous RC intersections.

However, a several metre thick zone containing much stronger sulphide-quartz mineralisation was intersected in PD 30 from 251.80m, and reported to the ASX on 11^th October 2006. Gold, silver, copper, lead and zinc assays for the zone have now been received and all assays for the zone are presented in Table 1.

Table 1

From	To Down hole depth (m)	Thickness metres	Density $g/cm^3$	Au ppm	Ag ppm	Cu %	Pb $\%$	$\mathbf{Z}\mathbf{n}$ ℅
251.00	251.80	0.80	2.70	0.02	6	< 0.01	0.36	0.10
251.80	252.00	0.20	2.92	1.60	104	0.10	5.02	9.54
252.00	253.00	1.00	2.71	0.07	16	0.03	0.80	1.06
253.00	254.00	1.00	2.69	0.03	$\leq$ 5	< 0.01	0.34	0.18
254.00	254.34	0.34	2.63	0.02	26	0.04	1.77	0.11
254.34	255.00	0.66	2.84	0.66	36	0.10	3.87	5.54
255.00	255.36	0.36	3.20	1.87	61	0.25	9.03	14.64
255.36	255.55	0.19	3.81	1.94	120	0.66	17.50	23.91
255.55	256.00	0.45	3.08	0.98	287	0.63	6.20	6.67
256.00	257.00	1.00	2.68	0.03	15	0.02	0.56	0.43
257.00	258.00	1.00	2.69	0.02	7	< 0.01	0.06	0.10

Note: 1. Half core (sawn) samples of NQ diamond core. Core recovery essentially 100%.

1. Core sampling intervals chosen to reflect geological and mineralisation boundaries.

2. Density (SG) measured gravimetrically. Assays: Au: Fire assay/AAS (detection limit 0.01ppm), Ag: 4 acid digest/AAS (5ppm), Cu, Pb and Zn: 4 acid digest/AAS (0.01%). Internal laboratory quality control on the results has been conducted, although no external laboratory checks have been conducted at this stage. 4. Entire hole has been logged and photographed.

3. As stated above the hole was inclined at 60 degrees towards grid south. However instrumentation problems prevented effective down hole surveying of this hole

Geology and Mineralisation

All mineralisation is hosted within the Mesoproterozoic Corunna Conglomerate. Within the prospect this unit is predominantly a red-brown, highly variable, coarse grained and weakly bedded conglomerate, containing lesser, narrow (up to a metre or so wide) bands of red/brown arkose.

In PD 30 mineralisation consists of complex and irregular zones of variably intense sericite and chlorite alteration of the conglomerate which has produced zones of bleaching and locally disseminated sulphide mineralisation, mostly pyrite, galena and sphalerite. In the most intensely altered zones, silicification and quartz veining is developed, with pyrite, galena, sphalerite and chalcopyrite (copper iron sulphide) usually associated with these quartz veins (see Figure 3 and 4).

Most of the individual veins which range from about 1mm up to 50mm are oriented at approximately 75 to 80 degrees to the drill core axis, consistent with the apparent dip of the mineralised veins as shown in Figure 1. This suggests that the down hole width of the mineralised veins is probably close to true width.

Discussion

Two further diamond drill holes were completed as part of this programme. One of these, PD 56 is a vertical hole drilled from the same site as PD 30 (see Figures 1 and 2). PD 56 intersected a generally similar thick zone of epithermal mineralisation throughout most of the hole. From about 254m to 261m down hole a zone of quartz-sulphide veining, which probably correlates with the higher grade zone in PD 30 was intersected, however the grade of this zone is likely to be lower in PD 56 than PD 30. The third hole, PD 31 was drilled approximately 200m southwest of PD 30, and has intersected a thick zone containing scattered epithermal alteration and quartz veining.

Tasman is awaiting the remaining assay results for diamond holes PD 30, PD 31 and PD 56 as well as RC holes completed during the recent programme. These results are expected during November 2006 and will be critical in helping formulate a strategy for follow-up drilling. As noted previously the area remains open to the north, east, west and at depth. The interpreted target area covers at least $3 \text{km}^2$ to the north and remains untested.

The prospect is located within about 200km of the Port Pirie lead smelter and 18km from the bitumen highway, factors that will favourably impact any economics.

Tasman is very encouraged by these results from its first diamond core hole at Parkinson Dam, and the emerging importance of lead and zinc. The style and type of alteration and mineralisation seen in this drilling programme are interpreted to be characteristic of the edges of a major mineralised system. Recently released PIRSA gravity data together with Tasman data suggest the presence of a major controlling structure to the north. The large completely untested area to the north of the current drilling now offers potential for significant lead and zinc discoveries, but the high grade gold and silver potential of the prospect overall is enhanced by these developments.

Greg H. Solomon Executive Chairman

The interpretations and conclusions reached in this report are based on current geological theory and the best evidence available to the authors at the time of writing. It is the nature of all scientific conclusions that they are founded on an assessment of probabilities and, however high these probabilities might be, they make no claim for complete certainty. Any economic decisions that might be taken on the basis of interpretations or conclusions contained in this report will therefore carry an element of risk.

The information in this announcement, insofar as it relates to Mineral Exploration activities, is based on information compiled by Graham M. Jeffress and Robert N. Smith, who are members of the Australian Institute of Geoscientists, and who have more than five years experience in the field of activity being reported on. Mr Jeffress and Mr Smith are full-time employees of the company. Mr Jeffress and Mr Smith have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Jeffress and Mr Smith consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

It should not be assumed that the reported Exploration Results will result, with further exploration, in the definition of a Mineral Resource.

Figure 1: North-South drilling cross section showing the distribution of gold and silver mineralisation in RC holes and diamond holes PD 30 & 56.

Figure 2: North-South drilling cross section showing the distribution of lead and zinc mineralisation in RC holes and diamond holes PD 30 & 56.

Figure 3: Drill hole PD30, tray 35: 251.16m-257.15m (wet). The higher grade quartz-sulphide mineralisation (grey) is accompanied by a wider zone of bleached, sericite-
chlorite alteration (yellow-cream to light brown colou

Figure 4: Figure 2: PD30 255.15-255.30m (wet). The high grade mineralisation consists of galena and sphalerite (various shades of grey), chalcopyrite (yellow) and quartz
(white). Scale in cm & m