TASMAN RESOURCES LTD — Interim / Quarterly Report 2003

Jan 30, 2003

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 Email: gsolomon@tasmanresources.com.au Website: www.tasmanresources.com.au

ASX QUARTERLY EXPLORATION REPORT FOR PERIOD ENDED 31 DECEMBER 2002

HIGHLIGHTS

• The possibility of "Mount Isa Style" mineralisation over an extended area has emerged from the geophysical and geochemical surveys at Clara St Dora.
• Potentially large base/precious metal targets have been identified by geophysical surveys at Marathon M1 and M2.
• Aggressive drilling program to commence in February 2003 with Clara St Dora and Marathon M1 and M2 being the focus;
• Tasman placed a total of 2,071,000 shares at 17 cents each to raise \$352,070 (before expenses of the issue) to fund the upcoming exploration program and provide funds for working capital.
• Aboriginal heritage clearances have been completed at Clara St Dora, Amoco, Titan and Marathon.

REVIEW OF OPERATIONS

$\mathbf{1}$ . Exploration Tenements - Tasman Resources NL 100%

"The Lake Torrens Project Area" comprises the following: - Exploration Licences 2988, 2989, 2507, 2543, 2594, 2642, 2733, 2772, 2832, 2835, 3006 and 3007.

Subsequent to the end of the quarter, an area of 2424km² (being portions of Els 2988, 2642, 3006 and 3007) was relinquished in accordance with the requirements of the South Australian Department of Mineral Resources. The remaining tenements comprise an aggregate area of 7201 km².

$2.$ Exploration Activities

Clara St Dora

The four preliminary electrical survey lines (IP/resistivity) conducted since the start of the quarter at various locations along the previously identified parallel residual gravity anomalies (which have a strike length of approximately 5km) indicated the presence of highly electrically chargeable material coincident with the gravity anomalies. These geophysical indications are what could be expected over a major sedimentary "exhalative" (SEDEX) style of mineralisation, of which Mt Isa is an example. However, the area has not been previously drilled and the presence of base metal sulphides has not yet been established.

From the limited work to date, there are now ten significant IP targets, seven of which are coincident with a strong residual gravity anomaly (up to 3mgals dynamic range) at depths of starting from 75m to 200m. These have been identified over a 3.6km strike length where the electrical surveys have been conducted. The locations of these P lines and the anomalous zones and the IP pseudo sections with the gravity and magnetic profiles for lines 2 and 3 are shown on the attached plans.

Since the end of the quarter: -

(i) further infill gravity and electrical surveys have sharpened the targets;

(ii) Aboriginal heritage clearance has now been obtained over the primary target zones; (iii) Mobile Metal Ion (MMI) geochemical sampling was undertaken at close spaced intervals over one of these primary targets, and a strong correlationship between moderately elevated copper, lead, zinc, gold, silver, cobalt and molybdenum assays and the observed geophysical (gravity and IP) anomalies is evident, further increasing the prospectivity of these targets.

Preliminary reverse circulation/diamond drilling of between three and five of these anomalies is scheduled to commence in mid-February 2003 and is planned to target interpreted sulphide mineralisation.

CATASMAN\ASX\ANNOUNCEMENTSASX_QTLY_REPORT_DEC_2002.DOC

Merged 50 / 100m Data

CATASMAN\ASX\ANNOUNCEMENTSASX_QTLY_REPORT_DEC_2002.DOC

Marathon Prospect M1 (Waterman's Plain)

During the quarter, three preliminary electrical survey lines (IP/resistivity) were conducted over the large M1 magnetic/gravity anomaly that is located approximately 30km NE of WMC's Olympic Dam Mine.

The residual gravity anomalies and 3 dimensional interpretation of the various Marathon targets are shown on the attached diagram. Significant IP responses, starting at depths ranging from 50m to 200m, were encountered on all three lines (as shown on the attached diagram), one being in close proximity to a historic previously unrecorded copper mine shaft (6m-8m deep), the waste from which was visually noted to contain high grade copper carbonate and copper silicate mineralisation.

Since the end of the quarter, further gravity and electrical surveys have sharpened the targets, Aboriginal heritage clearance has been obtained over the primary target zones, and preliminary drilling over three targets is scheduled during the February 2003 drilling program.

Marathon Project - M1 Anomaly IP Results Lines 1-3

Minutena di

time 2

TENTINAN BIGGERIERIERE

SS

孤雞

Desetoria
Talenta

Allen Alexander

internation control passes they
Policynijant, aplicitie, achiev, aplica

76 i
an tilt 1941
1951 - Anto

$\begin{array}{c} \text{Sibaxa Uram } 0 \ \text{Cian } 2 \end{array}$

鑘

500.

Marathon Prospect M2 (Saddle Hill)

Three further electrical survey lines (IP/resistivity) were conducted over this target located approximately 5km NE of the Marathon M1 target. A significant IP anomaly, approximately 200m wide and at a depth of 250m, was identified (as shown on the attached diagram). This IP anomaly is coincident with the residual gravity anomaly and off-set from a strong magnetic anomaly and near the intersection of four interpreted major faults and presents a significant drilling target.

Since the end of the quarter an infill gravity survey has been conducted to sharpen the targets, Aboriginal heritage clearance has been obtained and one drill hole is proposed during February 2003.

Marathon Prospects M3, M4 and M5

Electrical surveys (IP/resistivity) were conducted over each of these areas and lower level IP anomalies coincident with residual gravity anomalies were also identified. These targets will be followed up in due course.

Shelf 6

During the quarter one diamond drill hole (from two planned drill holes) was completed to a down hole depth of 167.5m. At various intervals sub-economic Mississippi Valley type (MVT) mineralisation comprising minor copper and zinc sulphides were observed, which again confirmed the existence of MVT style mineralisation in the area. The primary drill target was not drilled due to a mechanical breakdown, and this is now scheduled for the February 2003 drilling program.

Amoco

This new MVT target is located approximately 5km south west of Shelf 6 and was identified from a gravity survey conducted by Amoco more than 20 years ago. Three IP/resistivity lines were surveyed and a significant IP anomaly has been identified as a possible MVT base metal target.

Since the end of the quarter, Aboriginal heritage clearance has been obtained over this target and a gravity survey conducted to further resolve possible drilling targets. It is proposed to drill one or two drill holes into this target as part of the February 2003 drilling program to test for the presence of MVT style mineralisation.

Titan

No further activity occurred on this target during the quarter. However it is proposed to conduct a deep searching electrical survey (pole/dipole) over the target zone during the forthcoming quarter. A proposal for joint venturing this target was received but at this stage Tasman proposes to proceed further on its own.

Westmount

Further mapping occurred during the quarter. However, due to the emergence of major targets at Clara St Dora and Marathon, follow up work on the previously announced IP anomaly was not undertaken, and further review will be scheduled during the next three to six months.

Activities Since the end of the Quarter

• Aboriginal heritage clearances have been completed over the Clara St Dora, Marathon, $\mathbf{1}$ . Titan and Amoco targets.
• $\overline{2}$ . Equity Raising

The Company has raised a further \$352,070 (before the expenses of the issue) by issuing 2,071,000 ordinary fully paid shares at 17 cents each to provide additional working capital and to fund ongoing exploration activity including the February 2003 drilling program.

Gregory H. Solomon Chairman

Dated 31 January 2003

Appendix 5B

$Rule 5.3$

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2081.

Name of entity

TASMAN RESOURCES NL

ABN

85 009 253 187

Quarter ended ("current quarter") 31 December 2002

Consolidated statement of cash flows

Cash flows related to operating activities		Current quarter \$A'000	Year to date (3 months) \$A'000
1.1	Receipts from product sales and related debtors	$\Omega$	$\Omega$
1.2	Payments for (a) exploration and evaluation (b) development (c) production	(92)	(242)
	(d) administration	(136)	(250)
1,3	Dividends received	0	$\Omega$
1.4	Interest and other items of a similar nature received	14	30
1.5	Interest and other costs of finance paid	$\Omega$	$\Omega$
1.6	Income taxes paid - GST Paid	(18)	(39)
	Income Taxes - GST Refunds Received	17	95
1.7	Other (provide details if material)	0	0
	Net Operating Cash Flows	(215)	(406)
	Cash flows related to investing activities
1.8	Payment for purchases of: (a)prospects	0	$\mathbf 0$
	(b)equity investments	0	$\mathbf 0$
	(c)other fixed assets	(2)	(2)
1.9	Proceeds from sale of: (a) prospects	0	0
	(b)equity investments	0	0
	(c) other fixed assets	0	0
1.10	Loans to other entities	$\theta$	$\mathbf 0$
1.11	Loans repaid by other entities	0	0
1.12	Other (provide details if material)	0	0
	Net investing cash flows	(2)	(2)
1.13	Total operating and investing cash flows (carried forward)	(408)	(408)

1.13	Total operating and investing cash flows (brought forward)	(408)	(408)
1.14 1.15 1.16 1.17 1.18 1.19	Cash flows related to financing activities Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings Repayment of borrowings Dividends paid Other (provide details if material) Share Issue Costs Net financing cash flows	165 0 0 0 0 (4) 161	165 0 $\Omega$ 0 $\mathbf 0$ (4) 161
	Net increase (decrease) in cash held	(56)	(247)
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	1,346 0.	1.537 0
1.22	Cash at end of quarter	1,290	1.290

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter \$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	86
1.24	Aggregate amount of loans to the parties included in item 1.10

1.25 Explanation necessary for an understanding of the transactions Management Fees, as per agreement, were paid during the quarter to a company of which Mr GH Solomon is a director Bona-fide reimbursement of expenses for the period to 31 December 2002. Directors Fees for the period.

Non-cash financing and investing activities

$2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

ΝIΙ

$2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Not applicable

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available \$A'000	Amount used \$A'000
3.1	Loan facilities	Nil	Nil
-3.2	Credit standby arrangements	Nil	Nil

Estimated cash outflows for next quarter

		\$A'000
4.1	Exploration and evaluation	550
4.2	Development
	Total	550

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.		Current quarter \$A'000	Previous quarter \$A'000
5.1	Cash on hand and at bank	27	96
5.2	Deposits at call	1,263	1,250
5.3	Bank overdraft	0	0
5.4	Other (provide details)	0	0
	Total: cash at end of quarter (item 1.22)	1.290	1,346

Changes in interests in mining tenements

		Tenement	Nature of interest	Interest at	Interest at
		reference	(note (2))	beginning	end of
				of quarter	quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed	NII
6.2		EL 2988	Licence granted	100%	100%
	Interests in mining		(formerly EL 2339)
	tenements acquired or increased	EL 2989	Licence granted	100%	100%
			(formerly EL 2340)
		EL 2507	Licence granted	100%	100%
		EL 2543	Licence granted	100%	100%
		EL 2594	Licence granted	100%	100%
		EL 2642	Licence granted	100%	100%
		EL 2733	Licence granted	100%	100%
		EL 2772	Licence granted	100%	100%
		EL 2832	Licence granted	100%	100%
		EL 2835	Licence granted	100%	100%
		EL 3006	Licence granted	100%	100%
		EL 3007	Licence granted	100%	100%

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Total number Number auoted price Issue 3) (cents)	per Amount paid up per security (see note security (see note 3) 'cents)
---------------------------------------------------------------	-----------------------------------------------------------------------------------

7.1	Preference *securities (description)	NOT APPLICABLE
7.2	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-
	backs,
	redemptions
7.3	*Ordinary	45,861,682	31,483,000
7.4	securities Changes during quarter
	(a) Increases through issues (b) Decreases through returns of capital, buy- backs	1,650,000	1,650,000
7.5	*Convertible	NOT
	debt securities	APPLICABLE
	(description)
7.6	Changes during
	quarter
	(a) Increases through issues
	(b) Decreases
	through securities
	matured,
	converted
7.7	Options	30,630,849	16,152,006	Exercise price 20 cents	Expiry date 28 Feb 2006
7.8	Issued during
	quarter	NIL.	NIL.
7.9	Exercised
	during quarter	NIL	NIL
7.10	Expired during
	quarter	NIL	NIL
7.11	Debentures	NOT
	(totals only)	APPLICABLE
7.12	Unsecured	NOT
	notes (totals	APPLICABLE
	only)

Compliance statement

This statement has been prepared under accounting policies which comply with $\mathbf{1}$ accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

This statement does give a true and fair view of the matters disclosed. $\overline{2}$

GREGORY H SOLOMON - DIRECTOR Date: 31 JANUARY 2003

Notes

$\mathbf{1}$ The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

$\overline{2}$ The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

$\overline{4}$ The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

1. Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

---