TASMAN RESOURCES LTD — Interim / Quarterly Report 2004

Jan 29, 2004

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^ST DECEMBER, 2003

HIGHLIGHTS

Titan

• During the quarter, four new drill holes were completed and one earlier hole was deepened. All $\bullet$ encountered extensive alteration and mineralisation, with one hole (TI6) intersecting higher grade copper mineralisation, confirming the very large size (13km x 10km) of the overall iron oxide, copper-gold (IOCG) mineralised system.
• Potential follow-up high-grade targets identified are being investigated prior to further drilling.

Clara St Dora

Identification of structural controls on the copper and/or gold mineralisation (chip samples up to 3%Cu and 5g/t Au) in the vicinity of the old high-grade Clara St Dora mine. Targets based on this structural understanding together with untested IP features will be tested by shallow drilling during the first Quarter of 2004.

Diamonds

• Tasman's investigations into the diamond potential and prospectivity of the Lake Torrens $\bullet$ Project concluded that rocks of Jurassic and older age have potential to host diamondiferous kimberlite and lamproite intrusions. This was overlooked by previous explorers.
• Very interesting magnetic targets have been identified from aeromagnetic data. Field checking (loam sampling) as well as stream sediment sampling programs for diamonds and kimberlite indicator minerals are being planned.

REVIEW OF OPERATIONS

Tasman Resources NL holds a 100% interest in the "Lake Torrens Project" comprising Exploration Licences 2988, 2989, 2594, 2642, 2733, 2772, 2832, 2835, 3006, 3007, 3109, 3123 and 3140 a s well as Exploration Licence Applications 261/03, 262/03, 263/03 and 265/03 (see Figure 1).

Exploration for the quarter comprised:

• Drilling at the Titan Prospect;
• density/susceptibility modelling of geophysical targets;
• desktop studies on the diamond and nickel potential of the project area; and,
• completion of an investigation into the potential for economic near-surface high-grade deposits within the project area.

1) Exploration Activities

i) Titan Prospect

The Titan Prospect consists of two very strong magnetic and gravity anomalies located 33km north of Olympic Dam (see Figure 2). Tasman Resources considers there is encouraging evidence that geological processes similar to those that operated at Olympic Dam and Prominent Hill have taken place at Titan, and that the potential for economic copper-gold mineralisation warrants further drill testing.

During the Quarter, four new deep vertical holes were completed and an earlier hole, TI2, was deepened to a final depth of 862m (see Figures 3 and 4, and Table 1). In summary, drilling has confirmed Titan as an important iron oxide, copper-gold mineralised system and validated earlier comparisons with Olympic Dam models.

Three of the new holes, T14, T15 and T16, and the extension to T12, have tested the east and northeastern flanks of the main geophysical anomaly. The holes intersected geologically favourable haematite-rich (relative to magnetite) host rocks, strong alteration and encouraging evidence of sulphide zoning (pyrite, chalcopyrite and bornite).

		Collar (AGD84 AMG Z53)		Total	Basement	Basement
Drill Hole	Easting	Northing	RĽ	Depth	From	Interval	Notes
				(m)	(m)	(m)
BD1	677222	6662954	100.	941	607	334	Prev. WMC hole
BD2	674097	6665649	100.	829	652	177	Prev. WMC hole
TI1	677345	6662721	94	460	--	$- -$	Hole abandoned
TI2	677335	6662701	94	862	605	257	Redrill of TH
TI3	677545	6662250	86	958	608	350
TI4	677609	6662753	90	871	608	263
TI5	678152	6663830	91	754	627	127
TI6	677400	6662565	93	865	604	261

Table 1: Titan: Summary of holes drilled to date

Drill hole TI6 intersected a zone of steep, vein-style chalcopyrite-pyrite (with trace bornite) mineralisation within a broader zone of vein and disseminated style mineralisation. Assay results from this zone are:

$\bullet$ 47m at 0.27% Cu and 0.06 g/t from 608m, including 5m at 1.14% Cu and 0.25 g/t Au from 620m.

The copper results are substantially higher than any other mineralisation so far drilled at Titan (although lower than previously reported visual estimates). These results continue to support the potential for high-grade mineralisation on the eastern margin of the Titan system, up to 300m east of TI6 (Figure 3).

Cobalt results for TI6 were also strongly anomalous, underscoring the metal endowment of the Titan system. The entire basement intercept in TI6, 261m from 604m depth assayed 135ppm Co, with narrower zones returning higher values, e.g. 7m at 433ppm Co from 732m and 8m at 300ppm Co from 773m depth.

Hole TI3, was drilled approximately 500m southeast of hole TI2. Instead of intersecting altered and mineralised basement at about 600m as expected, the hole intersected approximately 320m of Pandurra Formation (a sedimentary unit younger than the age of mineralisation at Olympic Dam and Titan) before passing through a probable fault zone and into highly altered (haematite-chlorite-magnetite-pyrite-carbonate) basement. This result suggests that TI3 has been drilled in an area that has been down-faulted relative to the mineralised basement to the west, and that the Titan system may extend further east and be larger than previously thought (although at greater depths) beneath the Pandurra Formation. Furthermore, such an extension is interpreted to have possibly preserved the top of the mineralised system (beneath the Pandurra Formation) from subsequent erosion. This is a highly attractive exploration target as the upper, cooler, more oxidised and potentially much higher grade parts of this extension to the system would be possibly still present. The exact relationship of this basement to the rest of the Titan system remains to be resolved. Higher in the hole, strongly anomalous silver (4m at 65ppm Ag from 919m) (composite core chip and $\frac{1}{2}$ core analysis)) and bismuth values (40m at 24ppm Bi, including 1 m at 120 ppm, in composite core chip samples) were obtained from within, and at the faulted margin of, the Pandurra Formation. These anomalies may reflect late stage remobilisation of metals from the Titan mineralised system, or possibly an upper, more oxidised and higher-grade part of the system preserved beneath the Pandurra Formation. This latter possibility is supported by gravity inversion modelling which suggests zones of moderately dense rocks occur east of the interpreted fault. Strategies to follow up and test these concepts are being considered.

Holes TI4 and TI5 and the extension to TI2 intersected zones of strong alteration and moderate sulphide mineralisation (mostly pyrite-chalcopyrite, with rare bornite). Assay results for copper and gold are not considered economically significant; the best intercept in TI4 was 11m at 0.10% Cu from 859m and in TI5 was 18m at 0.10% Cu from 724m. Regions of reinterpreted higher density, derived from various gravity residual images, adjacent to these holes are now being re-assessed based on the new density data from these new holes to locate further drill holes.

All of the seven drill holes into the greater Titan mineralised system have encountered extensive alteration and mineralisation confirming the very large size $(13 \times 10 \text{ km})$ and significant metal enrichment of the mineralised system at Titan. Tasman remains convinced of the potential for economic high-grade zones within this system, which will be targeted by drilling planned for the next three to six months.

Tasman are assessing the suitability of various downhole geophysical techniques to assist in targeting follow-up drilling at Titan.

The drilling at Titan has also highlighted the potential for preservation of upper (and highergrade) portions of IOCG-type deposits beneath newly recognised Pandurra Formation in this area. Opportunities for these situations have been identified in a large area extending for 15km to 20km east and south of Titan. However, the gravity station coverage over this area is extremely poor and Tasman consider the acquisition of detailed gravity data to be the key step in the evaluation of this recently recognised target area.

Exploration at Titan and the surrounding area will now focus on technical assessment of all Titan data and defining targets for further drilling. Particular focus will be on investigations designed to refine and improve vectors to the location of high-grade mineralisation at Titan. Drilling techniques such as wedging and Navi-drilling are being evaluated for their ability to provide more cost-effective tests in the vicinity of existing holes.

ii) Near-surface High-grade Mineralisation

As previously reported, Tasman has been assessing the potential of the Lake Torrens Project area to host near surface high-grade resources amenable to rapid development.

This review has identified the Clara St Dora mine area as the most prospective area, as outlined below.

The OK Copper vicinity situated at the northern end of Lake Torrens was also noted as an area warranting some further work to assess the karst-fill copper mineralisation located over a relatively wide area.

iii) Clara St Dora

Mapping and sampling at Clara St Dora identified structurally controlled copper-gold mineralisation hosted by shear breccias. The gold tenor of the area was previously unrecognised as was the clear structural control on the shear zones and the probable magmatic source of the mineralising fluids. The structural interpretation highlights an area of shallow cover to the southwest of the old mine workings which has not been previously drilled as of particular interest. This new interpretation is supported by a number of untested moderately chargeable zones.

Despite intense weathering in shear zones, there is evidence of hydrothermal alteration, notably sericite, associated with at least some of the mineralised shears. This observation suggests that a magmatic source for copper mineralisation is likely and that consequently the potential for gold mineralisation is enhanced.

Limited rock sampling for gold was completed as part of the re-mapping exercise around the main workings; better results are shown in Table 1.

Sample	AMGE	AMGN	Description	Au (AR) ppm	Αū (FA) ppm	Ag ppm	As ppm	Mo ppm	Cu $\frac{\partial}{\partial \alpha}$	Fе $\%$
CD 001	741369	6713522	Im radius rockchip from Cu-mineralised shear zone & wall rocks	0.19	0.19	1.00	36.5	1.4	3.0	2.0
CD002	741376	6713537	Rockchips across 10cm wide shear zone breccia, abundant green copper $^{\sim}20\%$	5.10	4.68	4.00	175.0	6.0	11.3	2.1
CD003	741347	6713542	Rockchips across 1.m wide shear zone with abundant green copper	0.16	0.06	2.60	19.5	1.6	5.9	0.7

Table 2

Gold was analysed by aqua regia digest followed by AAS, and repeated by fire assay. The other elements were digested using mixed acids and analysed by ICP.

These results demonstrate the potential for the Clara St Dora system to generate significant gold results within shear zones and enhance the potential for locating economic mineralisation in adjacent covered untested areas.

An RC percussion drill programme comprising several fences of holes is being prepared to test the structural targets identified by the work. Depending upon rig availability, drill testing is planned for the first Quarter of 2004.

iv) Other Basement Targets

An assessment of the potential for IOCG deposits and other styles of mineralisation of interest to Tasman is continuing over the southern portion of Tasman's tenements. The assessment consists of a review of basement drill core from previous drilling at Atlas, Vulcan and Titan west (BD2) prospects, compilation of depth to basement, stratigraphic and available structural data and geophysical modelling based on gravity and magnetics data

v) Marathon South - IOCG Potential

Density-magnetic susceptibility modelling has highlighted a number of additional interesting residual gravity anomalies to the south of the Marathon area. Further work will focus on identifying the likely source of these features and possible drill targets.

vi) Atlas - Nickel Potential

Geophysical modelling and drill core review has defined the limits of two large mafic intrusives and at least one large Hiltaba-style granitic intrusive. Discussions with a nickel consultant have confirmed Tasman's initial interest in the nickel potential of these mafic bodies as well as concerns relating to practical aspects of exploration including the likely depth of cover. Further exploration at Atlas is being reviewed, but follow up is likely to only be in conjunction with other base metal exploration in the area.

vii) Diamond Review

A recently completed desktop study on the diamond potential and prospectivity of Tasman's Lake Torrens Project area concluded that rocks of Jurassic and older age have good potential to host diamondiferous kimberlite and lamproite intrusions that were overlooked by previous diamond explorers. Very prospective magnetic targets have been identified from a detailed review of available data. Limited loam sampling is planned to check these targets, whilst stream sediment sampling programmes for diamonds and kimberlite indicator minerals are also being considered.

Previous diamond exploration within and adjacent to the current Tasman Resources tenements found diamond indicator minerals, including diamonds, from stream sediment and loam sampling suggesting that diamond source rocks occur close by.

Important advances in diamond exploration have taken place since the Lake Torrens project area was assessed for diamonds in the past. Better geophysical surveying and processing tools; better diamond sample processing techniques encompassing finer fractions of stream sediments and loam samples; enhanced analytical techniques for geochemical analysis of outcrop areas; improved understanding of diamond exploration in Australian environments; and an expanded understanding of diamond geology together with recently published geological data and digital exploration data sets, have all combined to greatly increase Tasman's chances of locating the primary sources of the diamonds in its tenements.

All available aeromagnetic data for the project vicinity was re-processed with a focus on diamond targets. A number of highly prospective magnetic "kimberlite-like" targets were identified during this processing, and several of these are located within catchment areas with diamond indicator minerals. Follow-up work is planned.

Gregory H. Solomon Chairman Dated 30^th January 2004

The results reported by Tasman Resources NL to the extent that they relate to mineralization are based on information compiled by G. M. Jeffress, who is a Member of the Australian Institute of Geoscientists, and who has a minimum of five years experience in the field of activity being reported. It should not be assumed that the reported exploration results will result, with further exploration, in the definition of a Mineral Resource. Any exploration target sizes mentioned are conceptual in nature and do not imply that Mineral Resources have been, or will be, defined.

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 which might be taken on the basis of interpretations or conclusions comained in this report will therefore curry an element of risk.

Figure 1: Tasman Resources NL Lake Torrens Project Location showing Exploration Licences (green)and Licence Applications (pink)

Figure 2: Selected Prospect Locations within the Lake Torrens Project area

Figure 3: Titan Prospect - Drill hole locations on Gravity residual image (128 pass hanning)

Figure 4: Cross Section from BD1 to TI3

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 DECEMBER 2003

Consolidated statement of cash flows

		Current quarter	Year to date
	Cash flows related to operating activities	\$A'000	$(6$ months) \$A'000
1.1	Receipts from product sales and related debtors	0	0
1.2	Payments for (a) exploration and evaluation (b) development (c) production (d) administration	(499)	(842) (280)
1.3	Dividends received	(146) 0	0
1.4	Interest and other items of a similar nature received	9	12
1.5	Interest and other costs of finance paid	0	0
1.6	Income taxes paid - GST Paid	(65)	(108)
	Income Taxes - GST Refunds Received	14	84
1.7	Other (provide details if material)	0	0
	Net Operating Cash Flows	(687)	(1, 134)
	Cash flows related to investing activities
1.8	Payment for purchases of: (a)prospects (b) equity investments (c)other fixed assets	0 $\Omega$ (10)	0 $\Omega$ (10)
1.9	Proceeds from sale of: (a) prospects (b)equity investments (c) other fixed assets	0 0 0	0 0 0
1.10	Loans to other entities	0	0
1.11	Loans repaid by other entities	0	0
1.12	Other (provide details if material)	0	0
	Net investing cash flows	(10)	(10)
1.13	Total operating and investing cash flows (carried forward)	(697)	(1, 144)

Total operating and investing cash flows 1.13 (brought) forward)	(697)	(1, 144)
Cash flows related to financing activities Proceeds from issues of shares, options, etc. 1.14 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings	1,583 0 0	2,058 0 0
1.18 Dividends paid 1.19 Other (provide details if material) Share Issue Costs	0 (74)	$\Omega$ (101)
Net financing cash flows	1,509	1,957
Net increase (decrease) in cash held	812	813
1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20	292 0	291 0
1.22 Cash at end of quarter	1,104	1,104

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		137
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.

Legal Fees re Prospectus were paid during the quarter to a firm of which Mr GH Solomon and Mr DH Solomon are partners.

Commissions on placements were paid during the quarter to a company of which Mr GT Le Page is a director.

Bona-fide reimbursement of expenses for the period to 31 December 2003.

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

$2.2^{\circ}$ 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	Nii

Estimated cash outflows for next quarter

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

Reconciliation of cash

follows.	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	Current quarter \$A'000	Previous quarter \$A'000
5.1	Cash on hand and at bank	104	155
5.2	Deposits at call	1,000	137
5.3	Bank overdraft	0
5.4	Other (provide details)	0
	Total: cash at end of quarter (item 1.22)	1,104	292

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
	tenements acquired or increased	EL 2988 EL 2989 EL 3123 EL 3140 EL 2594 $EL$ 2642 EL 2733 EL 2772 EL 2832	Licence granted (EL 2339) Licence granted (EL 2340) Licence granted (EL 2507) (EL Licence granted 2543) Licence granted	100% 100% 100% 100% 100% 100% 100% 100% 100%	100% 100% 100% 100% 100% 100% 100% 100% 100%
		EL 2835 EL 3006 EL 3007 EL 3109 ELA 261/03 ELA 262/03 ELA 263/03 ELA 265/03	Licence granted Licence granted Licence granted Licence granted Licence granted Licence granted Licence granted Licence granted Application lodged in Qtr Application lodged in Qtr Application lodged in Qtr Application lodged in Qtr	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.

3) (cents) (cents) 7.1 NOT Preference APPLICABLE securities (description) Changes during 7.2 quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions 7.3 Ordinary 66,752,515 66,752,515 securities 7.4 Changes during quarter (a) Increases 13,786,500 13,786,500 through issues (b) Decreases through returns of capital, buy- backs (c) Increases through release 14,378,060 from restriction NOT 7.5 *Convertible APPLICABLE debt securities (description) Changes during 7.6 quarter (a) Increases through issues (b) Decreases through securities matured, converted 7.7 Options Expiry date Exercise price 30,630,849 30,630,849 28 Feb 2006 20 cents 7.8 Issued during NIL. NIL. quarter 7.9 Exercised NIL NIL during quarter 7.10 Expired during NIL NIL quarter 7.11 Debentures NOT APPLICABLE (totals only) 7.12 Unsecured NOT APPLICABLE notes (totals only)		Total number	Number quoted	price per issue security (see note	Amount paid up per security (see note 3)

Compliance statement

• This statement has been prepared under accounting policies which comply with accounting $\ddagger$ standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
• $\overline{2}$ This statement does give a true and fair view of the matters disclosed.

GREGORY H SOLOMON - DIRECTOR Date: 30 JANUARY 2004

Notes

• 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.
• $\bar{2}$ 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.
• 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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