TASMAN RESOURCES LTD — Interim / Quarterly Report 2004

Apr 29, 2004

Level 40, Exchange Plaza 2 The Esplanade. Perth, Western Australia 6000 Telephone: (08) 9282 5889 Facsimile: (08) 9282 5866

Website: www.tasmanresources.com.au

ASX QUARTERLY EXPLORATION REPORT FOR PERIOD ENDED 31ST MARCH, 2004

HIGHLIGHTS

Greater Titan Area

Since completing the four hole drilling programme at Titan in December 2003, Tasman has reviewed in detail the drillcore, assays and geology, completed a semi-regional infill gravity survey, and undertaken a significant amount of electrical geophysical surveys (down hole and surface).

The result is that the geological model of possible high grade zones of mineralisation in the small part of the large Titan system where exploration has occurred to date has been significantly supported by several of the electrical surveys, various new previously unknown gravity anomalies have emerged and several immediate drill targets for potential high grade mineralisation have been identified.

More specifically:-

• Highly encouraging results obtained from down-hole and surface electrical geophysical surveys producing several, highly anomalous responses from conductive (possibly sulphidic) bodies within the basement, in some cases coincident with the modelled target zones. These results are consistent with the geological model of the Titan prospect and also highlight potential new targets.
• Significant new gravity anomalies have been identified by the new gravity survey, in particular Zeus prospect, immediately east of Titan

Clara St Dora

• Evidence of a hydrothermal system at Clara St Dora has been identified. Anomalous, but generally low grade values from shallow RC drilling adjacent to the historical Clara St Dora workings

REVIEW OF OPERATIONS

Tasman Resources NL holds a 100% interest in the "Lake Torrens Project" comprising Exploration Licences 2988, 2989, 2594 (now ELA 187/04), 2642, 2733, 2772, 2832, 2835, 3006, 3007, 3109, 3123, 3140, 3174, 3175, 3176 and 3177, as well as a number of licence applications (see Figure 1). Exploration for the quarter comprised:

• comprehensive review of recent drilling and other data from Titan;

• acquisition of new gravity data in an area of poor coverage between Titan and Olympic Dam and additional infill gravity stations around and southeast of Titan;

• downhole and surface electrical geophysics at Titan:

• density/susceptibility modelling of various geophysical targets;
• RCP drilling at Clara St Dora: and.
• detailed orientation gravity and gradient array IP at OK Copper.

Exploration Activities

Titan Prospect

Based on previous drilling at Titan (a total of six drill holes, including BD1 drilled by WMC in 1976), Tasman as previously reported, concluded that this prospect has the potential to host a large iron-oxide copper gold deposit, with similarities to the nearby Olympic Dam and Prominent Hill deposits.

Geochemical, petrophysical and mineralogical data from the drilling, which to date has tested a relatively small part of the large (13 km by 10 km) Greater Titan System, was reviewed in detail. This study confirmed the eastern side of the prospect as a primary target for high grade mineralisation, in particular an area east of T16. Figure 4 show a map of Titan with locations of drill holes and geophysical lines and a schematic cross section from northwest to southeast is provided in Figure 8.

During the quarter, data from an orientation electromagnetic (EM) geophysical survey at Titan was reviewed in the light of recent drilling. Excellent correlation between the observed geophysical responses and known geology including certain key structures was recognised in this re-interpretation.

Accordingly, Tasman commenced further surface EM lines across Titan and over part of the nearby Zeus prospect (see Figure 3) to:

• test the efficacy of the technique in identifying basement depth;
• detect basement conductors which could be sulphide-rich bodies; and,
• locate basement structures, such as those thought to define the Titan system.

Initial results from the preliminary processing of the EM data to date are highly encouraging. Strong responses from conductive bodies (consistent with the response expected of highly sulphidic zones) as well as more subtle responses (which could be due to either low sulphide mineralisation or possibly other features such as faults or fracture zones) within the basement are evident. Figure 5 and Figure 6 show processed EM data for Lines 2 and 4.

• In Line 2 there is a strongly conductive, untested body between TI2 and BD1, weaker responses between TI3 and TI6, and a stronger response south east of TI3. This latter anomaly may relate to the TI3 fault zone or perhaps a body of mineralisation.
• In Line 4, there is a wide, very strongly conductive zone towards the centre of the line. This strongly conductive body could be due to sulphide – rich mineralisation as well as related to the projection of the TI3 fault from the southwest and provides an immediate drill target.

Ongoing validation, additional processing and interpretation of the data is currently in progress, however the strong EM anomalies are believed to be robust. More EM surveys are planned, and synthesis of the EM data with other geological and geophysical data sets will enable optimal drill hole targeting at Titan over the next month.

During the last quarter, Tasman also conducted downhole electrical surveys at Titan, designed to provide key additional information in the vicinity of the existing holes, and flag any near-hole sulphiderich or conductive bodies. Three separate techniques have been applied, and whilst the processing and interpretation are still in progress, initial indications are that despite the depth, two of these techniques may have located conductive zones of potential interest.

• Mise-á-la-masse (MALM) surveys were carried out by placing electrodes in drillholes TI4 and T16 and measuring voltages on a grid at the surface. Distortions in the overall response patterns can indicate near-hole conductive bodies. Anomalous responses from both holes were detected (see Figure 7) but further processing and interpretation is being undertaken to more clearly define potential targets of interest.
• Downhole EM and MMR electrical techniques were also conducted in TI4 and TI6. Again. anomalous, though subtle, responses were detected and further processing and interpretation is being undertaken to resolve these responses.

Gravity Survey to Target Further Olympic Dam-style targets

A 633-station gravity survey was completed over an area of approximately 478 km², from just west of Titan to approximately 15 km east and 18 km south of Titan (see Figure 2). The survey was designed to identify potential dense rocks of interest around the margins of Titan, and on a more regional basis, any large, dense bodies which may have been missed in historical gravity surveys, which had very sparse station spacings (around 6 km or more)

Processing of the data has highlighted an area of interest of about 20 km² immediately southeast of Titan (named Zeus prospect). Detailed gravity-magnetic modelling and gravity inversion modelling suggests basement in the area may contain a number of relatively dense, non-magnetic bodies of interest for iron-oxide copper gold mineralisation at reasonable depths (around 200m to 500m).

It is possible that they may be a structurally dislocated distal part of the Titan system, separate systems or reflecting fault related features in the cover sequence. The distal model is of particular interest, since the upper and more distal parts of iron-oxide systems may be more gold-rich and higher grade. More detailed gravity surveying will be undertaken over the several higher priority areas to better define drill targets.

New Target Areas

A new area of interest has been identified within the recently granted EL 3177, approximately 20km west of Olympic Dam and 20km northwest of Acropolis. Billy Barnes prospect is defined by moderate strength coincident gravity and magnetic anomalies, but gravity coverage is poor.

Further infill gravity and reconnaissance EM is being considered.

Clara St Dora Mine Area

A limited RC percussion drilling programme was completed in the vicinity of the old high-grade Clara St Dora copper workings (120km northeast of Olympic Dam). The drilling targeted near surface high grade copper-gold mineralisation, in both along-strike and down-plunge extensions to the northwest of the main workings.

The RCP drilling program, whilst intersecting localised high grade copper mineralisation (3m at 3.6%) Cu from 10m depth downhole in CSD23) adjacent to the old shaft, has not identified any substantial extensions to the historic high grade workings. However it has confirmed the presence of a possible hydrothermal system with the occurrence of elevated copper, cobalt (maximum of 3m at 228ppm Co

from 27m downhole in hole CSD10) and gold (maximum values of 65ppb Au in a 1m sample) in the rocks around the old mine

The system is open at depth. Whilst there is no clear indication from the results to date that there is an economic deposit at depth, the elevated metals in the rocks remain unexplained and the presence of a deeper system remains open.

A review of the Clara St Dora area more broadly will be undertaken before further work is carried out.

OK Conner Area

Orientation gravity and IP surveys were completed over the two best prospects at OK Copper (located at the northern end of Lake Torrens, 45km northeast of Olympic Dam) to assist in understanding the nature of the mineralisation and to identify drill targets.

Distinct gravity lows were associated with the area around old workings, and the gradient array IP electrical surveys at each prospect identified broad zones of elevated chargeability which may in part be due to disseminated iron sulphides in the carbonate rocks.

The survey also identified a 150m strike length moderately intense chargeable feature which represents a target for possible sediment hosted copper-silver-lead-zinc mineralisation which will be followed up in due course.

Gregory 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.

Figure 1: Lake Torrens Project Location and tenement map, showing granted Tasman exploration licences (Green) and Tasman licence applications (Pink).

Figure 2: Gravity images of data, including data collected in February 2004 between Titan, Vulcan and the southern licence boundary. (A) Variable density bouguer gravity Image. (B) 128 pass Hanning filter residual gravity

Figure 3: Location of new geophysical survey lines and Titan drill holes on residual gravity image (64 pass Hanning filter residual of variable density bouguer gravity).

Figure 4: Titan Prospect, showing drill holes, geophysical lines, tracks and residual gravity image

Figure 5: Titan Prospect, EM Line 2 showing preliminary interpretation as controlled by current drilling (as shown) -Neoproterozoic subhorizontal stratigraphy, basement unconformity and "TI3 Fault" shown. A strong conductor between BD1 And TI2 is obvious, as are more subtle conductive features along the traverse.

Tasman Resources

Figure 6: Than Prospect, EM Line 4. Showing preliminary interpretation - Neoproterozoic subhorizontal stratigraphy, basement unconformity and possible basement structures shown. The size and intensity of the EM (conductive) anomaly at the centre of the line is clearly apparent.

Page 9 of 16

Figure 7: Titan mise-á-la-masse. The upper figure shows (in colour) the residual potential field derived from TI6 and the lower shows the residual potential field derived from T14. Black polygons are interpreted conductive zones. Drill holes are shown as black circles. Different size grids were used for the data collection at T16 and T1.

Figure 8: Schematic NW-SE cross section through Titan showing recent drill holes and interpreted drill targets and zones of interest

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

TASMAN RESOURCES NL

ABN

85 009 253 187

Quarter ended ("current quarter") 31 MARCH 2004

Consolidated statement of cash flows

Cash flows related to operating activities		Current quarter \$A'000	Year to date (9 months)
		$\Omega$	\$A'000 0
1.1	Receipts from product sales and related debtors
1.2	Payments for (a) exploration and evaluation (** see note below)	(204)	(1,046)
	(b) development (c) production (d) administration	(153)	(433)
1.3	Dividends received	0	0
1.4 1.5	Interest and other items of a similar nature received Interest and other costs of finance paid	13 $\Omega$	25 $\Omega$
1.6	Income taxes paid - GST Paid	(28)	(136)
	Income Taxes - GST Refunds Received	52	136
1.7	Other (provide details if material)	$\Omega$	$\Omega$
	Net Operating Cash Flows	(320)	(1,454)
	Cash flows related to investing activities
1.8	Payment for purchases of: (a)prospects	0	0
	(b) equity investments	0	0
	(c) other fixed assets (** see note below)	2	(8)
1.9	Proceeds from sale of: (a) prospects	0	0
	(b) equity investments	0	0
1.10	(c) other fixed assets Loans to other entities	0 0	$\mathbf 0$ 0
1.11	Loans repaid by other entities	0	0
1.12	Other (provide details if material)	0	0
	Net investing cash flows	2	(8)
1.13	Total operating and investing cash flows (carried forward)	(318)	(1,462)

NOTE

Subsequent to the end of the previous quarter an adjustment was made for items included in Other Fixed Assets which were transferred to Exploration and Evaluation Expenditure. The amount as \$3k.

1.13	Total operating and investing cash flows (brought forward)	(318)	(1,462)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	0	2,058
1.15	Proceeds from sale of forfeited shares	0	0
1.16	Proceeds from borrowings	0	0
1.17	Repayment of borrowings	0	0
1.18	Dividends paid	0	0
1.19	Other (provide details if material)
	Share Issue Costs	0	(101)
	Net financing cash flows	$\Omega$	1.957
	Net increase (decrease) in cash held	(318)	495
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	1,104 Ð	291 0
1.22	Cash at end of quarter	786	786.

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	85
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 and Mr DH Solomon are directors. Bona-fide reimbursement of expenses for the period to 31 March 2004 Directors Fees and Superannuation paid during 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

Nil

$2.2$ 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	Nii
3.2	Credit standby arrangements	Nil	Nii

Estimated cash outflows for next quarter

		\$A'000
$-4.1$	Exploration and evaluation	300
4.2	Development
	Total	300

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	86	104
5.2	Deposits at call	700	1,000
5.3	Bank overdraft	0	Ð
5.4	Other (provide details)	0
	Total: cash at end of quarter (item 1.22)	786	1,104

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed	EL 2835 EL 2772 EL 2832 EL 2988 EL 2989 EL 3006 EL 3007	Surrendered in full Partially surrendered Partially surrendered Partially surrendered Partially surrendered Partially surrendered Partially surrendered	100%	NIL.
6.2	Interests in mining tenements acquired or increased	EL 2988 EL 2989 EL 3123 EL 3140 EL 2594 EL 2642 EL 2733 EL 2772 EL 2832 EL 3006 EL 3007 EL 3109 EL 3174 EL 3175 EL 3176 EL 3177	(formerly) (EL 2339) Licence granted Licence granted (EL 2340) Licence granted (EL 2507) (EL 2543) Licence granted Licence granted Licence granted Licence granted Licence granted Licence granted Licence granted Licence granted Licence granted 10 Mar 04 Licence granted Licence granted 10 Mar 04 Licence granted 10 Mar 04 Licence granted 10 Mar 04 Applications lodged in Qtr ELA 62/04, ELA 63/04, ELA 64/04, ELA 65/04, ELA 66/04, ELA 67/04, ELA 81/04, ELA 82/04, ELA 204/04, ELA 205/04	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 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 quoted	Issue price per security (see note 3) (cents)	Amount paid up per 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 securities	66,752,515	66,752,515
7.4	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	NIL	NIL.
7.5	*Convertible debt securities (description)	NOT APPLICABLE
7.6	Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7	Options	30,630,849	30,630,849	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 (totals only)	NOT APPLICABLE
7.12	Unsecured notes (totals only)	NOT APPLICABLE

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).

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

GREGORY H SOLOMON - DIRECTOR Date: 30 APRIL 2004

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.

$\mathcal{R}$ 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.

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

5 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.

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