TASMAN RESOURCES LTD — Interim / Quarterly Report 2006

Oct 30, 2006

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

Website: www.tasmanresources.com.au

ASX QUARTERLY EXPLORATION REPORT FOR PERIOD ENDED 30TH SEPTEMBER 2006

HIGHLIGHTS

• Diamond coring programme at Parkinson Dam targeting gold, silver and base metals completed with 754.9m drilled – very encouraging sulphide-rich epithermal veining intersected, assays awaited.
• 2019 m RC percussion drilling completed at Parkinson Dam targeting gold and uranium, assays awaited.
• Tempest EM survey enhances the uranium potential of the Garford palaeochannel with over 200km of untested channels outlined.
• 4512m RAB drilling completed on Central Gawler projects targeting gold and nickel, assays awaited.

MINERAL EXPLORATION ACTIVITIES

Tasman Resources NL holds a 100% interest in the following exploration projects (see Figures 1 and 2):

• The "Lake Torrens Project" comprising Exploration Licences 2989, 3109, 3123, 3140, 3174, 3175, 3177, 3209, 3254, 3261, 3441, 3449, 3541, 3607 and 3634, and, ELA 399/06 (formerly 2832).
• The "Parkinson Dam Epithermal Gold-Silver Project" (ELs 3102, 3307, 3453 and ELA 289/06).
• The "Central Gawler Gold-Uranium-Nickel Project" (ELs 3306, 3339, 3340, 3341, 3342, 3343, 3344, 3345, 3423, 3532 and ELA 189/06).
• The "Mirrica Project" comprises applications 15642 and 15643 for EPMs in Queensland.

GOLD EXPLORATION

Parkinson Dam Epithermal Gold-Silver Project (Tasman 100%)

Tasman's 100% owned Parkinson Dam Project is located approximately 60km west of Port Augusta. The project comprises an extensive area with outcropping epithermal gold-silver mineralised quartz veins and float.

A total of 23 RC percussion drill holes of varying depths plus a precollar for a core hole were completed during and after the quarter, totalling 2019m.

This round of drilling at Parkinson Dam, was designed to test a number of epithermal gold-silver targets, based on:

• follow up of mineralisation previously intersected by Tasman (e.g. 3m downhole at $3.4g/t$ Au and $80g/t$ Ag);
• newly located outcropping gold-silver mineralisation (rock chip samples up to $1.0g/t$ Au and $15g/t Ag$ ;
• highly anomalous calcrete soil samples; and, $\bullet$ .
• geological interpretation, including new data from a detailed airborne magnetic survey.

In addition, three deeper diamond core drill hole tails have been drilled at the northern end of a previous drilling traverse to test for higher-grade extensions to thick, but low-grade lead-zinc $\pm$ gold-silver mineralisation intersected. This mineralisation (with previous intersections of up to 96m at 0.2% Pb and 27m at 0.4% Zn) is believed to be part of the epithermal gold-silver system discovered by Tasman last year, and may have the potential to yield economic grades of lead and zinc, as well as gold-silver.

A total of 754.9m core drilling in three holes has been completed to the date of this report. The core from the first hole is described below; the field team has yet to report on the other two holes.

The first hole (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 reverse circulation (RC) percussion drilling to 51m depth, and completed with NQ diamond coring to 416.4m. No assays are available for the hole at this stage.

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, predominantly galena or lead sulphide with minor sphalerite or zinc sulphide) and associated epithermal-style alteration (chlorite, sericite and carbonates). Overall, the grade of the mineralisation is expected to be generally similar to previous intersections.

However, a much stronger zone of sulphide-quartz mineralisation was intersected from 251.80m to 256.20m (4.4m downhole). This interval is estimated to contain several percent base metal sulphides, in particular galena, and is also expected to contain elevated gold and silver values. Within this interval, a 1.5m zone was estimated (visually) to contain up to 15-20% galena. Weaker mineralisation continues below this sulphide-rich veining to the end of the hole.

Tasman stresses that at this stage no assays are available for this narrow interval nor the remainder of the hole. The true thickness of the mineralisation, its lateral extent, attitude or potential economic significance is not known. Assessment of these factors will require detailed analysis and further followup drilling, as the area remains open to the north, east, west and at depth. The interpreted target area covers at least $3km^2$ to the north of PD 30 and remains untested.

Tasman expects to have assay results for the 4.4m zone of interest by early November, and for the rest of the hole by late November. Assays from the 2019m of RC percussion drilling completed during September on other targets at Parkinson Dam will also be available in November.

Tasman is very encouraged by the sulphide-enriched epithermal veining in PD 30 and the considerable potential it highlights, particularly on the northern side of the prospect.

Eyre, Skye and Birdie Gold Prospects (Tasman 100%)

Drill testing at the Eyre, Skye and Birdie Prospects was completed during the quarter.

Eyre is located 7km west of the Alice Springs railway line approximately 85km north of Tarcoola, and the Skye and Birdie Prospects are about 95km southwest of Coober Pedy.

These prospects were originally drilled by previous explorers. Tasman's objectives were to both explore around mineralisation identified earlier, but poorly tested, and to test new anomalies and zones identified from new work completed by Tasman.

A total of 30 RAB holes totalling 1740m were drilled. Assays are awaited.

URANIUM EXPLORATION

Garford Palaeovalley Uranium Project (Tasman 100%)

Tasman holds tenements covering approximately 1200 km² that cover part of the Garford palae ochannel on the Gawler Craton 85km southwest of Coober Pedy. The area is prospective for Tertiary palaeochannel-hosted (roll front-type or redox-related) uranium mineralisation.

During the quarter, Tasman conducted a Tempest airborne electromagnetic survey over the Garford palaeochannel. Preliminary results have been received from the contractor. The survey has clearly outlined palaeochannels within the Garford palaeovalley, defining the position and depth of the channels; Figure 3 shows an image of the interpreted depth to resistive basement – a map of the palaeochannels.

The preliminary results show the number of channels, their complexity and channel geometry to be greater than initially expected, thus upgrading the size and prospectivity of uranium targets in the area. The length of channels seen in the preliminary data in the area is now interpreted to exceed 200km, with numerous tributaries seen. Final processing of the data is underway, with interpretation of the results and drill planning to follow during the current quarter.

Furthermore the better definition of the channels will assist planning of follow-up ground exploration such as aircore drilling and down hole gamma logging as well as help with access and heritage surveys.

Wynbring North Uranium Project (Tasman 100%)

The project area is within EL 3306 on the Gawler Craton and is located approximately 75km northwest of Tarcoola in South Australia near the Trans-Australia Railway, and is 15km west of the Warrior Uranium deposit that is located in an adjacent palaeochannel draining the same granitic source rocks as the Wynbring Channel. Drilling during the 1980's by a previous explorer identified significant radiometric anomalies in the palaeochannel, 95% of which remains untested in Tasman's tenement.

The extent of the palaeochannel, as defined by Tasman's recent HoistEM survey, within EL3306 at Wynbring (perhaps up to 40km) represents a sizable uranium exploration target.

Tasman is currently discussing possible joint ventures for this project.

Parkinson Uranium Project (Tasman 100%)

As previously reported, Tasman has located outcropping uranium mineralisation (as fine-grained uranimite or $UO_2$ ). This mineralisation was first found by uranium explorer PNC in the mid-1980's, who recognised the uranium potential of the area, but did not drill test this occurrence.

The uranimite is located close to a regional unconformity or geological contact, considered a significant 'ingredient' in certain uranium exploration models. In addition, nearby there are several airborne radiometric anomalies, a soil radon anomaly (from PNC's earlier work) and anomalous surface uranium geochemical values, all of which are untested.

Tasman drill tested this area with a number of shallow, RC percussion holes, as part of the drilling programme outlined above; assay results are awaited.

NICKEL EXPLORATION

Sturt Nickel Project (Tasman 100%)

The Sturt project area is within EL 3341 on the Gawler Craton and is located approximately 85km northwest of Tarcoola in South Australia.

Recent fieldwork by Tasman has located an area of poorly outcropping weathered ultramafic rocks. which have returned Ni assays up to 1500ppm in surface pisolites and are prospective for nickel mineralisation.

Tasman completed a series of RAB traverses, testing various aeromagnetic and geological features of possible ultramafic origin. A total of 2772m of RAB drilling in 69 holes was completed.

Drilling within the Sturt Prospect defined a probable ultramafic belt at least 400m wide and up to 8km in length. Assays to confirm the ultramafic lithologies identified from weathered RAB chips, nickel and other pathfinder elements are awaited.

BASE METAL EXPLORATION

Lake Torrens Project - Thrust Prospect (Tasman 100%)

The Thrust Prospect is located 90km northeast of Roxby Downs and lies within the Adelaide Geosyncline. The prospect is characterised by numerous highly anomalous Deepleach $1^{TM}$ zinc results that are associated with weak chargeability responses.

A small programme comprising 611m of RAB/RAB hammer percussion drilling was completed to test the best coincident geochemical and/or geophysical anomalies.

Assays are awaited.

CORPORATE

Negotiations are ongoing with several groups who have approached Tasman with a view to assessing various tenements for farm-in.

Gregolan Marague

Greg 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: SA Tenement Locations

Figure 2: Mirrica Project Location

Figure 3: Garford Palaeovalley - image and contours of interpreted depth to resistive basement; Tasman Tenements in blue outline

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") 30 September 2006

Consolidated statement of cash flows

Cash flows related to operating activities		Current quarter \$A'000	rear to date $(3$ months)
			\$A'000
1.1	Receipts from product sales and related debtors	$\Omega$	0
1.2	Payments for (a) exploration and evaluation (b) development (c) production	(196)	(196)
	(d) administration	(250)	(250)
1.3	Dividends received	0	Ð
1.4	Interest and other items of a similar nature received	5	82
1.5	Interest and other costs of finance paid	0	$\Omega$
1.6	Income taxes paid - GST Paid	(25)	(25)
	Income Taxes - GST Refunds Received	28 40	28 40
1.7	Other (provide details if material)- Pace Grants
	Net Operating Cash Flows	(398)	(398)
1.8 1.9	Cash flows related to investing activities Payment for purchases of: (a)prospects (b) equity investments (c)other fixed assets Proceeds from sale of: (a) prospects (b) equity investments
1.10	(c) other fixed assets Loans to other entities
1.11	Loans repaid by other entities
1.12	Other (provide details if material)
	Net investing cash flows	0	0
1.13	Total operating and investing cash flows (carried forward)	(398)	(398)

1.13	Total operating and investing cash flows (brought forward)	(398)	(398)
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	0 0 0 0 0 0	0 O 0 O $\Omega$
	Net financing cash flows	$\Omega$	0
	Net increase (decrease) in cash held	(398)	(398)
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	679 0	679 0
1.22	Cash at end of quarter	281	281

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	108
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 paid during the quarter to a firm of which Mr GH Solomon and Mr DH Solomon are partners.

Bona-fide reimbursement of expenses for the period to 30 September 2006 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	Νi

Estimated cash outflows for next quarter

		\$A'000
$-4.1$	Exploration and evaluation	650
4.2	Development
	Total	650

Subsequent to end of quarter additional capital has been raised to fund part of this expenditure.

Reconciliation of cash

f

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	81	479
5.2	Deposits at call	200	200
53	Bank overdraft	0
5.4	Other (provide details)	0
	Total: cash at end of quarter (item 1.22)	281	679

Changes in interests in mining tenements

$6.1$

$6.2$

	Tenement reference	Nature of interest (note (2))	Interest at beginning	Interest at end of
			of quarter	quarter
Interests in mining tenements relinquished,
reduced or lapsed
Interests in mining		(formerly)
tenements acquired or	EL 2989	Licence granted (EL 2340)	100%	100%
increased	EL 3102	Licence granted	100%	100%
	EL 3109	Licence granted	100%	100%
	EL 3123	Licence granted (EL 2507)	100%	100%
	EL 3140	Licence granted (EL 2543)	100%	100%
	EL 3174	Licence granted	100%	100%
	EL 3175	Licence granted	100%	100%
	EL 3177	Licence granted	100%	100%
	EL 3209	Licence granted (EL 2594)	100%	100%
	EL 3254	Licence granted	100%	100%
	EL 3261	Licence granted	100%	100%
	EL 3306	Licence granted	100%	100%
	EL 3307	Licence granted	100%	100%
	EL 3339	Licence granted	100%	100%
	EL 3340	Licence granted	100%	100%
	EL 3341	Licence granted	100%	100%
	EL 3342	Licence granted	100%	100%
	EL 3343	Licence granted	100%	100%
	EL 3344	Licence granted	100%	100%
	EL 3345	Licence granted	100%	100%
	EL 3423 EL 3449	Licence granted (ELA 111/05) Licence granted (ELA 272/05)	100% 100%	100% 100%
	EL 3453	Licence granted (ELA 339/05)	100%	100%
	EL 3532	Licence granted (ELA 258/05)	100%	100%
	EL 3541	Licence granted (ELA 777/04)	100%	100%
	EL 3607	Licence granted (ELA 685/05)		100%
	Outstanding Applications:
		ELA 131/06, ELA 189/06, ELA 289/06, EPM 15642, EPM 15645
	New Applications this quarter and subsequent to the quarter: ELA 399/06 (formerly EL 2832)

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	102,967,510	102,967,510
7.4	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs
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	200,000 200,000 2,800,000	NIL NIL. NIL.	Exercise price 25 cents 30 cents 20 cents	Expiry date 3 March 2007 3 March 2008 30 August 2009
7.8	Issued during quarter	2,800,00	NIL.	20 cents	30 August 2009
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 1 with accounting 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.

RAYMOND FRANCIS BUSCALL - COMPANY SECRETARY 31 October 2006 Date:

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.
• $\overline{2}$ 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.
• The definitions in, and provisions of, AASB 1022: Accounting for Extractive 4 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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