TASMAN RESOURCES LTD — Capital/Financing Update 2007

May 15, 2007

Wednesday 16 May 2007

Company Announcements ASX Limited

Drilling programs commencing on core Lake Torrens and Lilleyvale IOCG projects and early results from drilling at Mombo Bore

Highlights:

• Drilling of up to 9 high priority holes to commence into two large mineralised iron oxide breccia systems of the Olympic Dam / Prominent Hill / Carrapateena style at the Titan and Marathon South prospects, South Australia.
• Drilling contractor secured to commence program on high priority holes in September quarter into a large iron oxide breccia system having many of the features of Cloncurry-style iron-oxide copper gold (IOCG) and Broken Hill Type (BHT) lead-zinc mineralization at Lilleyvale, Queensland.
• Early results from ongoing drilling program on geophysical anomalies connected at depth to outcropping copper mineralisation at Mombo Bore Project, Western Australia.

Lake Torrens IOCGU Project

WCP Resources Ltd ("WCP") (ASX Code: WCP) will next week commence the Company's first exploration reverse circulation/diamond drilling program on its Lake Torrens iron oxide copper gold uranium ("IOCGU") project in South Australia. The Company is earning a 65% interest in the project from Tasman Resources Limited (ASX code: TAS), which is being funded through the recently announced transaction with Dynamite Resources Limited ("Dynamite Resources") (TSXV: DNR).

The Lake Torrens IOGCU Project adjoins BHP Billiton Limited's world-class Olympic Dam mine at Roxby Downs in the Stuart Shelf reaion of South Australia. The Titan and Marathon South prospects along with numerous additional prospects including Vulcan, Zeus, Billy Barnes, Atlas and Parakylia are all considered prospective for IOCGU mineralisation. The drilling program is aimed at targeting basement structures associated with gravity anomalies which are likely conduits for fluids which caused

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

the alteration and mineralisation. The structural control is consistent with the geological environment at Olympic Prominent $Hill$ Dam. and Carrapateena.

The I 9 hole program will drill approximately 7,000 metres to test high priority drill targets located to the northeast, northwest and southwest of the original discovery hole (BDT) within the large (approximately $10 \ \text{km}^2$ ) surface area) IOCG system at Titan: and the western and southeastern portions of the larae anomalv (approximately 10 km² surface area) at Marathon South.

Lilleyvale IOCG Project

The Company has secured a suitable ria $\overline{1}$ drill two deep Reverse Circulation/Diamond holes to test two large gravity features covering more than 33 square kilometres, partly coincident with magnetic anomalies that are known to have many of the features of Cloncurrystyle IOCG and BHT lead-zinc mineralisation at its second IOCG project area at Lilleyvale, Queensland.

The Company is earning a 60% interest from its joint venture partner, Platsearch NL (ASX Code: PTS). The drilling is scheduled to commence in the September Quarter 2007. In addition, gravity surveys are underway to better refine the planned drilling targets.

Mombo Bore Project

RC Drilling has commenced at the Kingfisher Prospect being one of three known copper prospects at the Company's 75% owned Mombo Bore Project in the Gascoyne Province in Western Australia. This program has been designed to test numerous laterally persistent (>1,500 metres) geophysical anomalies that are associated with outcropping oxide copper (Chrysocolla and Malachite) mineralisation that, for the most part have not been previously investigated using modern exploration methods.

To date, five holes have been completed for a total of 1,660 metres. These holes have successfully traversed the target zones to vertical depths in excess of 300

metres and the samples have been submitted for analysis. Geological logging has indicated the host rocks comprise a complex assemblage of medium $\overline{10}$ hiah. arade metamorphosed intermediate $\overline{1}$ ultra-mafic volcanics: and siliceous and calcareous sediments of the Moogie Metamorphic unit of the Glenburgh Terrane.

Early indications from the drilling show these rocks to contain from 2 metre to over 200 metre intercepts of disseminated pyrite (trace to 5%). In addition, narrow (approximately 2 metre) intercepts of disseminated chrysocolla and chalcopyrite mineralisation have been recorded in association with indications of shearing. The program is ongoing and the results will be reported when they come to hand.

Funding

These projects are all well funded by the recently announced transaction with Dynamite Resources, which is earning an interest in WCP's rights to the Lake Torrens Project and by the \$10 million placement which was lead managed by Tricom Equities Limited. The first \$3.8 million tranche of the placement has settled with the balance being subject to WCP shareholder approval at the Extraordinary General Meeting scheduled for 12 June 2007.

For further information contact WCP Resources (02) 9248 6900:

Gavin Daneel	General Manager Operations
Greg Martyr	Executive Director
Levi Mochkin	Executive Director

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 Mining 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 fulltime 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.