TASMAN RESOURCES LTD — Interim / Quarterly Report 2007

Jan 30, 2007

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 OUARTERLY EXPLORATION REPORT FOR PERIOD ENDED 31^ST DECEMBER 2006

HIGHLIGHTS

• Tasman's investment in new green energy company Eden Energy Ltd $\bullet$ currently valued at approx. \$22 million or \$0.20/Tasman share
• High grade lead and zinc $(7.6\% \text{ Pb}, 10.5\% \text{ Zn}, 0.4\% \text{ Cu}, 1.20g/t \text{ Au}, 120g/t)$ Ag) over 1.66m down hole in first cored hole at Parkinson Dam, PD 30
• Thick zones containing lower-grade epithermal quartz $\pm$ sulphides in the remainder of PD 30 and follow-up holes PD 31 and 56. Drilling to resume in early March 2007
• \$6.5 Million Joint Venture Heads of Agreement signed with WCP Resources Limited to explore IOCGU targets on Tasman's tenements immediately to the north and west of Olympic Dam Mine in South Australia
• Up to \$75,000 of support funding granted from Primary Industries and Resources SA to test the Chudy's and 50 Mile MVT targets
• RAB drilling at Skye prospect locates primary gold mineralisation: 6m at 3g/t down hole, incl. 1m at 8g/t Au
• Data from an airborne EM survey flown in August has defined +80km of the uranium-prospective Tertiary Garford palaeochannel
• EM survey of Garford palaeochannel has highlighted also a separate NW-SE trending trough of probable Permian age with obvious coal potential and strong similarities to the Lake Phillipson coal deposit 10 km to the east
• Probable large differentiated mafic intrusion delineated at Sturt prospect, prospective for nickel-copper and PGE. Possible 8km strike inferred from aeromagnetics

MINERAL EXPLORATION ACTIVITIES

Tasman Resources NL holds a 100% interest in the following exploration projects (see Figures1 and 2):

• The "Lake Torrens IOCGU-Base Metal Project" comprising Exploration Licences 2989, 3109, 3123, 3140, 3174, 3175, 3177, 3209, 3254, 3261, 3449, 3541, 3607, 3634 and 3677. Of these, Exploration Licences 3109, 3175, 3174, 3177, 3209, 3261, 3449 and 3634 are subject to a joint venture agreement with WCP Resources.
• 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 Gold-Base Metal Project" comprises applications 15642 and 15643 for EPMs in Oueensland.

GOLD EXPLORATION

Parkinson Dam Epithermal Gold-Silver (Lead-Zinc) 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 mineralisation. Tasman is aggressively exploring this prospect with a variety of geochemical and geophysical techniques and both RC percussion and diamond drilling.

During the quarter assay results from 23 RC percussion drill holes of varying depths plus a precollar for a core hole were received. Most of these holes tested targets peripheral to the previously tested areas, with results from several holes highlighting areas requiring further follow up drilling.

Also during the quarter three relatively deeper diamond core holes PD 30, 31 and 56 were completed in one area 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 previously intersected (eg up to 96m down hole at $0.2\%$ Pb and $27m$ at $0.4\%$ Zn). See Figures 3 and 4.

Diamond Core Hole PD 30

PD 30 is located 40m grid north from hole PD 27 and is inclined at 60° south (Figures 3 and 4). The hole was drilled with RC percussion drilling to 51m depth, and completed with NO diamond coring at $416.4m.$

PD 30 intersected a very thick zone (over 400m down hole) containing variable amounts of epithermalstyle quartz-sulphide veining, disseminated sulphides (mostly pyrite and base metal sulphides, galena or lead sulphide and sphalerite or zinc sulphide) and associated epithermal-style alteration (chlorite, sericite and silica).

Within this interval, a zone of higher-grade lead-zinc mineralisation was intersected, and was reported to the ASX on 6^th November 2006 (1.66m down hole from a depth of 254.34m at 7.6% Pb, $10.5\%$ Zn, $0.4\%$ Cu, $1.20g/t$ Au and $120g/t$ Ag). This interval is included within a broader zone of 20m down hole at 1.2% Pb, 1.5% Zn, 0.1g/t Au and $16g/t$ Ag – see Figures 3 and 4). Individual assays for the higher-grade zone and the interval adjacent to it as reported are presented in Table 1.

Assays for all of PD 30 have been received, and reveal, as expected, broad zones of anomalous leadzinc-copper-silver and gold mineralisation over the remaining 400m of the hole (see Figures 3 and 4).

From	To	Thickness	Density	Au	Ag	Cu	Pb	Zn
Down-hole depth (m)		metres	$g/cm^3$	ppm	ppm	$\%$	$\frac{0}{0}$	$\%$
251.00	251.80	0.80	2.70	0.02	6	< 0.01	0.36	0.10
251.80	252.00	0.20	2.92	1.60	104	0.10	5.02	9.54
252.00	253.00	1.00	2.71	0.07	16	0.03	0.80	1.06
253.00	254.00	1.00	2.69	0.03	$<$ 5	< 0.01	0.34	0.18
254.00	254.34	0.34	2.63	0.02	26	0.04	1.77	0.11
254.34	255.00	0.66	2.84	0.66	36	0.10	3.87	5.54
255.00	255.36	0.36	3.20	1.87	61	0.25	9.03	14.64
255.36	255.55	0.19	3.81	1.94	120	0.66	17.50	23.91
255.55	256.00	0.45	3.08	0.98	287	0.63	6.20	6.67
256.00	257.00	1.00	2.68	0.03	15	0.02	0.56	0.43
257.00	258.00	1.00	2.69	0.02	$\overline{\overline{\overline{\overline{\overline{\overline{\overline{\overline{\overline{\overline{\overline{\overline{\overline{\over$	< 0.01	0.06	0.10

Note: 1. Half core (sawn) samples of NQ diamond core. Core recovery essentially 100%.

1. Core sampling intervals chosen to reflect geological and mineralisation boundaries.

2. Density (SG) measured gravimetrically. Assays: Au: Fire assay/AAS (detection limit 0.01ppm), Ag: 4 acid digest/AAS (5ppm), Cu, Pb and Zn: 4 acid digest/AAS (0.01%). Internal laboratory quality control on the results has been conducted, although no external laboratory checks have been conducted at this stage.

3. Entire hole has been logged and photographed.

4. As stated above the hole was inclined at 60 degrees towards grid south. However instrumentation problems prevented effective down hole surveying of this hole

Diamond Core Holes PD 31 and PD 56

These holes were designed to follow-up the mineralisation intersected in PD 30. PD 31 was drilled approximately 200m south west of PD 30, utilising an existing inclined percussion hole as a precollar, and PD 56 is a vertical hole drilled from the same site as PD 30 (Figures 3 and 4).

PD 31 and 56 intersected similar thick, highly anomalous zones of mineralisation to PD 30. In PD 31, the high grade zone intersected in PD 30 was not recognised despite the intersection of thick lower grade mineralisation (eg. 81m down hole from 235m down hole at $0.18\%$ Zn, $1.9g/t$ Ag; assays based on 3m chip composite sampling).

Vertical drill hole PD 56 intersected the down dip continuation of the high grade zone in PD 30, although the strength of the mineralisation was weaker. From 253m PD 56 recorded an intersection of 7m at 0.6% Pb, 0.4% Zn and 1.9g/t Ag, believed to be equivalent to the high grade zone in PD 30 (Figures 3 and 4).

Discussion

A follow up drilling strategy for the project has been developed, with drilling scheduled to resume in early March 2007. Drilling will focus in particular on locating higher-grade epithermal mineralisation related to the zones already intersected and evaluating the large, essentially untested area to the north and north west with a combination of diamond core and limited RC percussion drilling.

Tasman is very encouraged by the results from its first diamond core holes at Parkinson Dam, and the intersection of high grade mineralisation. The style and type of alteration and mineralisation seen in this drilling programme are interpreted to be characteristic of the edges of a major mineralised system. Recently released PIRSA gravity data together with Tasman data suggest the presence of a major controlling structure to the north. The large completely untested area to the north of the current drilling now offers potential for significant lead and zinc discoveries, but the high grade gold and silver potential of the prospect overall is enhanced by these developments.

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

Drill testing at the Eyre, Skye and Birdie Prospects was completed at the end of the September quarter and all assay results are now in hand. A total of 30 RAB holes were drilled for 1740m.

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.

All of 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 other anomalies and prospective zones identified by follow up work.

Skye Prospect

Seven inclined RAB holes totalling 449m were drilled at 10m spacings along a single fence at the Skye prospect to test for higher grade plunging primary gold mineralisation beneath a low grade supergene gold blanket defined by previous shallow drilling. All holes were inclined $60^{\circ}$ to the north west, and were planned to 80m however some had to be abandoned at shallower depths due to drilling difficulties. All holes were sampled in 4m composites.

The three most northern holes intersected an interpreted south east dipping zone of $+0.1$ g/t gold up to 15m in width. This zone had essentially been missed by the previous drilling which was mostly only to bedrock and in the opposite direction. Assays from the second hole included a 4m composite assaying 2.6 g/t from 56 to 60m with an adjacent 1.02 g/t from 52 to 56m. Reassaying of 1m intervals returned 2.95 g/t over 6m down hole from 54 to 60m including 8.3 g/t from 56 to 57m. This interval probably represents a plunging higher grade shoot within the broader low grade mineralised envelope.

Some elevated As values up to 290ppm are associated with the gold envelope however there is no strong correlation with the gold assays.

A low grade supergene zone is also developed on the south east side of the mineralised envelope below the base of complete oxidation and above and below the top of fresh rock. A low grade halo of +0.01 $g/t$ Au is also present from the surface to 5 to 15m depth above the supergene zone and thickens north westerly towards the top of the primary steeply dipping mineralised zone.

Follow up drilling of the primary mineralised zone at depth and along strike is planned to test for high grade "Challenger style" plunging shoots within it.

Birdie Prospect

Seven inclined RAB holes totalling 373m were drilled along two fences 100m apart to infill around anomalous gold values previously intersected in vertical holes spaced 50m apart. The holes were inclined 60° to the west and spaced approx. 30m apart. The best gold assay was obtained from hole BIRB06-003 which intersected 1.5 $g/t$ Au in a 4m composite from 40 to 44m, part of a 16m zone from 40 to 56m averaging 0.47g/t. This hole was drilled beneath a vertical hole which previously recorded a best assay of 1.4g/t over 1m.

Eyre Prospect

No significant results were obtained from follow up drilling of calcrete anomalies at the Eyre prospect however other targets remain to be tested.

URANIUM EXPLORATION

Garford Palaeovalley Uranium & Coal Project (Tasman 100%)

Tasman holds tenements over approximately $1200 \text{km}^2$ covering part of the Garford palaeochannel on the Gawler Craton 85km southwest of Coober Pedy in South Australia. The area is prospective for Tertiary palaeochannel-hosted (roll front-type or redox-related) uranium mineralisation such as that located elsewhere on the Gawler Craton e.g. the Beverley and Warrior deposits.

Processing, imaging and interpretation of the data from Tasman's recent airborne EM (TEMPEST) survey flown over the northern portion of its Central Gawler project have now been completed. The survey totalling 1450 line km was flown for Tasman by Fugro Airborne Surveys on north-south lines spaced 1km apart to better define the uranium - prospective Garford palaeochannel which trends in a generally east-west direction across Tasman's tenements (Figure 5).

Interpretation of the TEMPEST conductivity images suggests that in excess of 80 kilometres of the Garford palaeochannel exists within Tasman's tenements to depths of around 40 to 50m (Figure 6).

A similar length of deeper linear TEMPEST conductors to maximum depths of 130m located partially beneath the Garford channel (Figure 7) are interpreted to represent older buried Mesozoic - Permian palaeodrainages, based on the available stratigraphic drilling data. As the latter are also draining Precambrian crystalline basement rocks (potential uranium source rocks) and are known to contain carbonaceous material (potential uranium traps) they are also considered prospective for the roll front/palaeochannel hosted style of uranium deposit identified in the vounger Tertiary palaeodrainages. A typical conductivity depth image cross section at 430000mE is attached (Figure 8).

Coal Potential

A strong NW-SE trending conductor (Figure 7) from 70 to 130m depth is believed to be indicative of a Permian trough very similar to several narrow linear troughs further to the east which host the Lake Phillipson and Penrhyn coal deposits. These are located within the upper portions of the Mt Toondina Formation within the Permian Arckaringa Basin and according to government reports contain in excess of 5 billion tonnes of sub bituminous coal (PIRSA Report Book 96/25, 1996).

The potential for other troughs to the west of Lake Phillipson was alluded to by a PIRSA magnetic/ gravity interpretation and from three holes drilled in 1996. One of these holes (CPC 16, Figure 7) lies at the northern end of the interpreted trough and intersected several coal seams up to 2m in thickness within the Mt Toondina Formation from 54 to 100m. The EM data implies a broader, potentially more favourable portion of the trough up to 8.5km in width within Tasman's EL 3532. The Mt Toondina Formation however is possibly missing from hole CPC15 which was drilled at the southern end of this feature. This hole, which intersected carbonaceous sediments interpreted to belong to the older Permian Stuart Range Formation, may be on a local structural high between two sub basins.

Future Program

Tasman is currently finalising a uranium exploration strategy for the Wynbring and Garford palaeochannels within its Central Gawler tenement portfolio. An RC drilling program is also planned to test the coal potential of the recently interpreted Permian trough.

Any future coal discovery by Tasman could benefit from its close proximity to the existing Lake Phillipson deposits and the Alice Springs-Adelaide railway line, which is located approximately 30km to the east. A potential market for the coal would be the Port Augusta power station which is serviced by rail access and is anticipated to exhaust its own coal reserves at Leigh Creek within approximately 10 to 15 years.

Parkinson Dam Uranium Mineralisation (Tasman 100%)

As previously reported, Tasman has located outcropping uranium mineralisation (as fine-grained uraninite or $UO_2$ ) at its Parkinson Dam epithermal gold-silver (lead-zinc) prospect, reported above. This uranium mineralisation was first found by explorer PNC in the mid-1980's, who recognised the uranium potential of the area, but did not drill test this occurrence.

During the quarter Tasman tested this outcropping mineralisation with several RC percussion holes, demonstrating that this particular outcrop is of a fairly limited extent. However, the occurrence is located close to a regional unconformity or geological contact, considered a significant 'ingredient' in certain uranium exploration models, and the overall prospectivity for uranium at Parkinson Dam is not significantly diminished by the drilling.

Further work will consist of follow up of a number of previously defined airborne radiometric anomalies and geological reconnaissance along the continuation of the regional unconformity noted above.

NICKEL EXPLORATION

Sturt Nickel Project (Tasman 100%)

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

Fieldwork by Tasman in 2006 delineated an area of poorly outcropping weathered ultramafic rocks. which returned Ni assays up to 1500ppm in surface pisolites and are considered 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.

A fence of 50m spaced RAB holes drilled in the vicinity of the nickel anomalous surface pisolites intersected various strongly metamorphosed mafic and chromite bearing ultramafic lithologies beneath the weathered zone over a width of approx. 800m. Similar lithologies were observed on two other traverses drilled a further 4.3km to the south and 1.6 km to the north.

Petrographic study of selected bottom of hole drill chips supports the existence of a large differentiated mafic intrusive. Nickel assays up to 1400ppm and chromium assays up to 5000ppm confirm the ultramafic lithologies which are prospective for nickel – copper –PGE mineralisation.

The postulated mafic intrusion is associated with an airborne magnetic high which extends through Tasman's EL for +8km.

Follow up exploration including a possible ground EM survey is planned for 2007.

BASE METAL EXPLORATION: LAKE TORRENS PROJECT

Chudy's and 50 Mile Prospects (Tasman 100%)

Tasman has received approval from the South Australian Government for PACE Funding to the level of \$75,000 to test for base metals (zinc, silver, lead) at the Chudy's and 50 Mile prospects within EL 3209. Both prospects are located on the Stuart Shelf in central SA, approximately 40km northeast of Olympic Dam, on part of a complex structural zone known as the Torrens Hinge.

Tasman commenced exploration in the area in 2002, with partial leach geochemical sampling, detailed gravity and induced polarisation geophysical surveys and relatively shallow drilling. The principal target of this exploration was Mississippi Valley-type (MVT) mineralisation within the Andamooka Limestone. MVT deposits are an important class of orebodies that have provided a significant

proportion of the world's lead and zinc. Limited success was achieved with base metal sulphides being located within parts of the Andamooka Limestone, particularly at the base. However, focussing the exploration remained a fundamental problem.

The release of Geoscience Australia seismic data from along the borefield road north of Olympic Dam in 2004 delivered a previously unknown picture of the structures and geology of the area. Major faults in the subsurface that would have influenced the pathways of mineralising fluid flow during in the compression and folding of the basin 500 million years ago were clearly visible. Reprocessing of detailed aeromagnetic data revealed that the locations of these faults could be traced away from the seismic traverse.

Tasman recognised that the new picture presented by the seismic image enabled the MVT targeting process to be refined. The concept for the formation of MVT limestone-hosted base metal mineralisation includes:

• Compression and folding of the older Adelaidian lead to expulsion of mineralised brines from deeper layers;
• Major faults forming the Torrens Hinge Zone channelled mineralised fluid flow into the lower layers of the Andamooka Limestone;
• The carbonates of the Andamooka Limestone were the trap site where MVT style mineralisation may have formed.

The introduction of the Soil Desorption Pyrolysis (SDP) geochemical approach was the final element in undertaking a new MVT exploration programme on the Stuart Shelf in EL3209. SDP is a relatively new geochemical technique which measures trace amounts of volatile compounds that are adsorbed onto clay-sized particles in soil.

Rocks degas constantly due to burial, metamorphism and interaction with groundwater. However, ore deposits and the fluids that form them are chemically very different from their surroundings, and are frequently also associated with higher temperatures. The net result is that the gases above a buried mineral deposit are quite distinct from the regional background signal.

MVT deposits are particularly well suited to this approach because they are very commonly associated with hydrocarbons that are particularly easy to detect using SDP.

Tasman plans to drill a traverse of drill holes over the two best SDP anomalies located at Chudys and 50 Mile. Access issues are already largely resolved with only one group remaining to be consulted. Negotiations for a suitable drill rig have already commenced and Tasman plans to drill these holes by the middle of 2007.

Iron Oxide Copper-Gold-Uranium Joint Venture (Tasman 100%; WCP may earn up to 65% interest)

On $22^{nd}$ December 2006 Tasman announced the signing of a Heads of Agreement to create a joint venture with WCP Resources Limited ("WCP") on the Lake Torrens IOCGU Project. The JV will explore Tasman's tenements located adjacent to the north and west of BHP Billiton Limited's worldclass Olympic Dam mine at Roxby Downs in the Stuart Shelf region of South Australia.

WCP can earn up to a 65% interest in IOCGU deposits that occur within eight granted exploration licences covering 2870 $km^2$ by spending \$6.5 million within a five year period. WCP has agreed to a minimum commitment of \$750,000 within 12 months and before it can exit and thereafter to expend a minimum of \$1 million per annum for the next 4 years if it proceeds with the joint venture on a year on year basis. No interest will be earned unless and until at least \$2,500,000 has been spent. At that stage WCP will have earned a 25% interest in the Project, and thereafter will earn a further 5% for each additional \$500,000 of expenditure. If less than \$6.5 million is expended, WCP will earn a proportionally smaller interest in these IOCGU prospects.

Within 14 days of completion of formal documentation, WCP will issue Tasman 1,000,000 ordinary

shares in WCP, which would be subject to a voluntary escrow of 12 months. The transaction is subject to the completion of formal documentation which is expected to be concluded by January 18, 2006. The agreement excludes any sediment-hosted mineralization which is not an IOCGU deposit such as the sediment-hosted base metal targets that Tasman has identified at Chudys and 50 Mile bore and for which drilling programme, Tasman recently received a South Australian Government PACE (Plan for Accelerated Exploration) funding award of \$75,000 towards the cost of drill testing these targets,

The Lake Torrens Project tenements, currently 100% held by Tasman Resources Limited, border BHP Billiton Limited's Olympic Dam Project tenure to the north and west and occur within IOCG Potential Rank 1 and 2 areas defined by Geoscience Australia (see Figure 9). Rank 1 is seen as having the highest potential for IOCG mineralisation on the Gawler Craton. It includes Olympic Dam (Proven and Probable Reserves¹ of 761 million tonnes grading 1.5% copper, 0.5 g/t gold, and 0.6 kg/t U₃O₈), Prominent Hill (Proven and Probable Reserves² of 68.2 million tonnes grading 1.31% copper and 0.59 $g/t$ gold) and Carapateena (discovery intercept³ of 178.2 metres grading 1.83% copper and 0.64 g/t gold).

There are a number of targets comprising Fe-altered volcanic breccia systems, mineralised haematitemagnetite breccias, and untested gravity anomalies that have been identified within the Lake Torrens IOCG Project area. Of these, the two most interesting are the Titan and Marathon South prospects.

Tasman welcomes the agreement, which will fund a very large amount of exploration activity on these world-class targets over the next five years, without diluting Tasman's share capital.

CORPORATE

Investment in Eden Energy Ltd.

Tasman's current share and option holding in recently listed green energy company Eden Energy Ltd (ASX: EDE) is presently valued at approximately \$22 million or \$0.20 per Tasman share. Tasman holds 32,979,888 fully paid shares and 32,497,065 options in Eden, which on a fully diluted basis represent a 31% share holding.

During the quarter, Eden's share price has risen significantly, underpinned by developments in emerging green energy technologies, in particular hydrogen - based fuels.

having provision

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 Robert N. Smith and Michael J. Glasson, who are members of the Australian Institute of Geoscientists, and who have more than five vears experience in the field of activity being reported on. Mr Jeffress and Mr Smith are full-time employees of the company. Mr Smith and Mr Glasson 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 Smith and Mr Glasson 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

$10$

Figure 3: North-South drilling section showing the distribution of gold in RC holes and recently completed diamond core holes PD 30 and PD 56. Note that the nearby RC holes PD 27 and PD 28 were terminated within zones of mineralisation after intersecting excessive amounts of ground water.

11

Figure 4: North-South drilling section showing the distribution of lead and zinc in RC holes and recently completed diamond core holes PD 30 and PD 56. Note that the nearby RC holes PD 27 and PD 28 were terminated within zones of mineralisation after intersecting excessive amounts of ground water.

12

Figure 5: Location Plan Showing Tasman's Central Gawler Tenements, Interpreted Palaeochannels, Permian Trough and Coal Deposit Locations

Figure 6: Conductivity Depth Image at 40m and Interpreted Garford Palaeochannel

Figure 7: Conductivity Depth Image at 70m, Older Palaeochannel and Interpreted Permian Age Trough with Coal Potential

Figure 8: Conductivity Depth Image Cross Section Line 430000mE (Line 10110) Refer location in Figures 6 and 7.

Figure 9: Lake Torrens IOCGU Project tenements (white) that comprise the Joint Venture between WCP and Tasman and their proximity to the Olympic Dam mine, IOCGU prospects and Geoscience Australia's IOCG Potential Rank 1 regions. Background image is processed residual gravity with hotter colours generally indicating rocks of greater density.

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 2006

Consolidated statement of cash flows

	Cash flows related to operating activities	Current quarter \$A'000	Year to date (6 months) \$A'000
1.1	Receipts from product sales and related debtors	0	$\Omega$
1.2	Payments for (a) exploration and evaluation (b) development (c) production	(420)	(616)
	(d) administration	(273)	(523)
1.3 1.4	Dividends received Interest and other items of a similar nature received	0 6	Ð 88
1.5	Interest and other costs of finance paid	$\Omega$	0
1.6	Income taxes paid - GST Paid	(62)	(87)
	Income Taxes - GST Refunds Received	28	56
1.7	Other (provide details if material)- Pace Grants	0	40
	Net Operating Cash Flows	(721)	(1, 119)
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 (c) other fixed assets	(6)	(6)
1.10 1.11	Loans to other entities Loans repaid by other entities	267	267
1.12	Other (provide details if material)
	Net investing cash flows	261	261
1.13	Total operating and investing cash flows (carried forward)	(460)	(858)

1.13	Total operating and investing cash flows (brought forward)	(460)	(858)
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	810 Ω Ω 0 0 (100)	810 Ω Ð ∩ ∩ (100)
	Net financing cash flows	710	710
	Net increase (decrease) in cash held	250	(148)
1.20 1.21	Cash at beginning of guarter/year to date Exchange rate adjustments to item 1.20	281 0	679 O
1.22	Cash at end of quarter	531	531

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	112
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. Commissions and Fees 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 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

$2.2$ 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	250
4.2	Development
	Total	250

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

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	431	479
5.2	Deposits at call	100	200
5.3	Bank overdraft	0	0
5.4	Other (provide details)	0
	Total: cash at end of quarter (item 1.22)	531	679

Changes in interests in mining tenements

$6.1$

$6.2$

	Tenement	Nature of interest	Interest at	Interest at
	reference	(note (2))	beginning	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	Licence granted (ELA 111/05)	100%	100%
	EL 3449	Licence granted (ELA 272/05)	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%	100%
	EL 3634	Licence granted (ELA 131/06)		100%
	EL 3677	Licence granted (ELA 399/06)		100%
	Outstanding Applications:
		ELA 189/06, ELA 289/06, EPM 15642, EPM 15645
		New Applications this quarter and subsequent to the quarter:

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	109,017,510	108,967,510
7.4	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs	6,050,000	6,000,000
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 6,000,000	NIL NIL. Nil 6,000,000	Exercise price 25 cents 30 cents 20 cents 20 cents	Expiry date 3 March 2007 3 March 2008 30 August 2009 31 Dec 2009
7.8	Issued during quarter	6,000,00	6,000,000	20 cents	31 Dec 2009
7.9	Exercised during quarter	$\mathsf{NIL}$	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 Date: 31 January 2007

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.
• 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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