TASMAN RESOURCES LTD — Interim / Quarterly Report 2009

Oct 28, 2009

RESOURCES LTD

ACN 009 253 187

ASX QUARTERLY EXPLORATION REPORT

for the Period Ended 30[th] September 2009

HIGHLIGHTS

CAPITAL RAISING

• $1.515 million of additional capital raised via a share placement.

SA - IOCGU JV

• Drilling of high priority Iron-oxide Copper-Gold-Uranium (IOCGU – Olympic Dam style) target commenced at Vulcan Prospect in late October 2009.

• Strong gravity and magnetic anomalies at Vulcan are supported by anomalous seismic reflection patterns and a favourable tectonic lineament address.

SA – GOLD & SILVER

• At Parkinson Dam, drilling to test for extensions to the high-grade gold-silver structure intersected low-grade gold-silver values, but confirmed extensions to the structure.

• Exploration will now focus on the follow up of encouraging, earlier thick intersections of associated lead-zinc-silver mineralisation.

QLD – OIL SHALE

• Four new EPM Applications have been lodged for oil shale in the Julia Creek area in Queensland, bringing the total area to 1800km[2] .

INVESTMENTS

• Fission Energy (Tasman: 28.6% shareholding, fully diluted as at the 30[th] September 2009).

• Evaluation and metallurgical testing of the Mt Thirsty cobalt-nickel-manganese (oxide) deposit continued.

Down-hole geophysics defines an interesting off-hole EM anomaly at Woodcutters prospect and a second diamond drilling programme for nickel sulphides is in progress.

• Eden Energy (Tasman: 18.1% shareholding, fully diluted as at the 30[th] September 2009)

Eden secured the first three sales of its Optiblend® dual fuel system in Assam in northeastern India, the installation of these has been completed and they are now operational.

First US Hythane calibrated engine receives Californian Air Resources Board certification allowing commercial sales to commence.

Farm-out Agreement concluded with Origin Energy Ltd to farm into Eden’s Cooper Basin Geothermal Licence No. 185 in SA.

Level 40, Exchange Plaza

2 The Esplanade, Perth, Western Australia 6000 Telephone: (08) 9282 5889 Facsimile: (08) 9282 5855 Website: www.tasmanresources.com.au

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Tasman Resources Ltd Report for September Quarter 2009

DETAILS

BASE METAL – URANIUM EXPLORATION:

Lake Torrens Iron-Oxide Copper-Gold-Uranium Project (Tasman 100%)

Drilling of a very exciting, high priority iron-oxide copper-gold-uranium (IOCGU – Olympic Dam – style) target at Vulcan Prospect commenced in late October 2009.

Vulcan prospect is located 30km north of the Olympic Dam iron oxide copper-gold-uranium deposit (see Figure 1). The prospect was first identified by WMC shortly after the discovery of Olympic Dam, and WMC drilled a single exploration hole in 1981.

New detailed gravity, magnetic and seismic data show that Vulcan is a much more interesting anomaly than previously believed, and that the earlier WMC hole (which did not hit mineralisation) was drilled off the main anomaly. The gravity anomaly (potentially due to an IOCGU system) compares very favourably in strength and area to known IOCGU systems such as Olympic Dam, Prominent Hill and Carapateena (See Figure 2). Furthermore, the anomaly is located favourably with respect to several key, historic tectonic lineaments, which WMC used as part of their targeting of Olympic Dam (Figure 1).

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Figure 1: Location Plan showing the Vulcan IOCGU target, nearby IOCGU deposits/systems and

several key (historic) tectonic lineaments (dashed blue lines).

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Report for September Quarter 2009

Tasman Resources Ltd

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Figure 2: Bouguer gravity plan of Vulcan prospect (left), compared with the Carapateena IOCGU system (right). Heavy contour lines are milligals and lighter contour lines 0.1 milligals on both images.

A 3-D isometric (UBC) model, showing the distribution of the more magnetic and dense, but less magnetic rocks at Vulcan, is shown in Figure 3.

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Figure 3: Isometric view of a 3-D model of Vulcan, looking towards the north-west, prepared with UBC modelling software. The yellow zone shows the more magnetic rocks at Vulcan, whilst the red zones are the denser, less-magnetic parts of the prospect, and the main target for drilling.

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Report for September Quarter 2009

Tasman Resources Ltd

Geoscience Australia and PIRSA conducted two seismic traverses in the area in 2003. The first, a south to north traverse was located along existing roads and covered the westerly margins of the Vulcan prospect. The second traverse was conducted in a west to east direction.

Tasman’s analysis of the prospect suggests similar patterns of seismic reflections in the basement (highlighted in red) in the vicinity of both Vulcan (Figure 4) and Olympic Dam (Figure 5). The cause of these reflection patterns is not clear at this stage, but Tasman considers that their coincidence further enhances Vulcan’s prospectivity.

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Figure 4: Vulcan: Simplified and interpreted south-north seismic reflection profile through Vulcan prospect.

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Figure 5: Olympic Dam: Simplified and interpreted west-east seismic reflection profile through the southeast portion of the ODBC.

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Tasman Resources Ltd Report for September Quarter 2009

GOLD EXPLORATION: SOUTH AUSTRALIA

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

Background

Tasman discovered new, outcropping epithermal-style gold and silver mineralisation in 2005, and later hit very encouraging, high grade gold and silver mineralisation in vertical hole PD 63 (21m at 21g/t Au and 83g/t Ag, including 9m down hole at 31g/t Au and 152g/t Ag) . Follow up drilling close to PD 63 (within about 40m) confirmed the continuity and orientation of the main high grade structure targeted, but the intersections obtained were narrower and lower grade (e.g. 1.7g/t Au and 3.2g/t Ag over 1m down hole in PD 71).

Recent Drilling Program and Further Work

During the quarter, a drilling program aimed at testing the structure hosting this high-grade gold-silver mineralisation over a distance of about 1.6km westwards from the relatively small area previously drilled was completed. Ten drill holes, for 923m were drilled on eight, widely-spaced north-south traverses, with holes generally directed at -60 degrees to the south, aiming to pierce the structure at suitable orientations.

Drilling confirmed a westerly extension to the targeted structure; however, no high-grade intersections such as that in drill hole PD 63 were obtained. Best results include 3m down hole from 84m at 64ppb Au and 0.5ppm Ag in PD 80, and 1m down hole from 71m at 73ppb Au and 3.9ppm Ag in PD 81. However, potential exists for repeated parallel structures, mainly to the north of the area tested.

Exploration will now focus on potential new high-grade structures, but also on the follow up of encouraging thick zones of lead-zinc mineralisation hit in previous drilling. At least one deep hole is planned to test down dip of holes PD 70 (50m @0.9% Zn, 0.4% Pb) and PD 71 (55m @0.6% Pb and 0.4% Zn) on section 703,800E, see Figure 6.

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Figure 6: Parkinson Dam cross section at 703,800E, showing previous drilling results and possible location of follow-up diamond drill hole to test for higher grade lead-zinc mineralisation.

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Report for September Quarter 2009

Tasman Resources Ltd

OIL SHALE: QUEENSLAND

Julia Creek Project (Tasman 100%)

Four new EPM Applications have been lodged for oil shale in the Julia Creek area, 400km to 600km west of Townsville in Queensland. In total, Tasman now has applications covering a total area of approximately 1800km[2] , considered prospective for oil shale and associated elements such as vanadium, molybdenum and uranium within the Toolebuc Formation.

Reported, conventional oil yield from the area are 65 to 75l/t, however Xtract Energy plc aims to increase yields significantly from the Toolebuc Formation via a hydrogenation process.

Tasman is currently awaiting grant of these EPMs before commencing exploration and evaluation.

GOLD - BASE METAL EXPLORATION: QUEENSLAND

Mirrica Project (Tasman 100%)

The Mirrica project is located on the eastern edge of the Simpson Desert approximately 350 km southsouthwest of Mt Isa. Tasman’s principal exploration target is Mesoproterozoic gold and/or base metal mineralisation under relatively thin cover rocks of the Eromanga Basin and Simpson Desert sands. As previously reported, Tasman completed a 4,268m shallow RAB drilling programme in late-2008 without finding significant anomalism.

In late 2008 Krucible Metals Ltd. reported the discovery of highly anomalous gold, copper and bismuth results from surface rock chip sampling on an adjacent tenement to the north of Tasman’s Mirrica tenements. Krucible recently reported results of its initial drilling programme, which included an intersection of 27m at 0.40% Cu from 9m (including 3m at 2.3% Cu from 12m) from the first holes at its Champ Prospect. The anomalism occurs along the Toomba Fault, which continues within Tasman’s tenements. Tasman has applied for an additional EPM in the area.

CENTRAL GAWLER CRATON – OTHER PROJECTS (Tasman 100%)

Tasman holds Exploration Licences in the central Gawler Craton, covering areas considered prospective for Challenger-style gold and ultramafic-hosted nickel deposits, but no new exploration work was conducted during the quarter.

TENEMENT STATUS

Tasman Resources Ltd holds a 100% interest in the following exploration projects (see Figure 7):

• The Lake Torrens IOCGU-Base Metal Project (Exploration Licences 4206, 4300, 4322 and ELAs 2008/434 and 2008/436),

• The Parkinson Dam Epithermal Gold-Silver Project (ELs 3307, 3453, 3739, and 4168),

• The Central Gawler Gold - Nickel Project (ELs 3306, 3339, 3340, 3341, 3342, 3343, 3344, 3345, 3423, 3532 and 3712),

• The Streaky Bay Palaeochannel Uranium Project (ELAs 2009/0140 and 2009/0185),

• The Mirrica Gold-Base Metal Project in Queensland (EPMs 15642, 15645 and 18226), and

• The Julia Creek Oil Shale Project in Queensland (Applications for EPMs 18066, 18067, 18259, 18260, 18261, 18263 and 18316).

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Report for September Quarter 2009

Tasman Resources Ltd

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Figure 7: Location of Tasman Project Areas in South Australia and Queensland

Outside interests in Tasman’s 100%-owned mineral tenements:

Fission Energy Ltd has the right to explore for uranium in all Tasman’s South Australian tenements except for (a) basement-hosted mineralisation within the Lake Torrens Project and (b) part of the Parkinson Dam Project, where Fission farmed out its uranium exploration rights to Mega Hindmarsh Ltd.

Flinders Mining Ltd has a joint venture agreement with Tasman to explore for diamonds within all Tasman’s South Australian granted tenements except for the Parkinson Dam Project.

CORPORATE

Capital Raising

A placement to institutional and sophisticated investors raised $1.515 million through the issue of 16.8 million shares at $0.09 each. The funds will be used for exploration at Vulcan prospect and other projects and general working capital.

Investment in Eden Energy Ltd

Tasman has an 18.1% interest in alternative energy company Eden Energy Ltd (ASX: EDE), on a fully diluted basis as at 30[th] September 2009.

Eden is continuing to build its Indian and US-based Hythane ® businesses. In India, progress has been made on two Indian Hythane ® bus demonstration projects and Eden secured the first three sales of its Optiblend® dual fuel system in Assam in north-eastern India, where low cost natural gas is readily available. Installation of these three systems is now completed and they are operational.

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Report for September Quarter 2009

Tasman Resources Ltd

In the US, the San Francisco Airport Hythane® Project is underway and the Hempstead Hythane ® station opened. During the period, in conjunction with BAF Technologies, Eden has developed a Hythane[®] calibration for Ford 6.8L V10 engines used in E-450 vehicles. This calibration, which demonstrates the dramatic emissions reductions that can be achieved through the use of Hythane[®] , was recently granted certification by the California Air Resources Board (CARB), and is to be used in the forthcoming Hythane® project at San Francisco Airport with 27 Hythane® powered shuttle buses.

Initial US marketing attracted strong interest from dealers of a major engine manufacturer in Hythane Company’s OptiBlend® Dual Fuel Kit and first the US order was received.

In Australia, a farm-out Agreement was concluded with Origin Energy Ltd to farm into Eden’s Cooper Basin Geothermal Licence No. 185 in SA. Origin has now paid Eden $1 million cash and will bear the first $500,000 of expenditure on the licence, to earn a 70% interest in GEL 185. Each party will then contribute proportionally to further expenditure. Origin will be operator of the project.

The UK Coal Bed Methane joint venture completed the initial review and plans are being considered to develop several pilot production wells over the next three years.

Investment in Fission Energy Ltd

Tasman has a 28.6% interest in uranium explorer and potential nickel-cobalt producer Fission Energy Ltd (ASX: FIS), on a fully diluted basis as at 30[th] September 2009.

Fission has a joint venture with Mega-Hindmarsh Ltd, a wholly owned subsidiary of Mega Uranium Ltd of Canada to explore part of the Parkinson Dam Project for uranium. The area is considered prospective for unconformity-associated uranium deposits close to the contact between the Mesoproterozoic Corunna Conglomerate and the underlying Palaeoproterozoic sedimentary rocks.

At Wynbring in SA, Fission is considering a further programme of drilling to test for extensions to the known uranium mineralisation. In 2008 Fission announced assay results from drilling at the Wynbring uranium prospect on the Gawler Craton in South Australia. Results included up to 5m at 0.085% or 850ppm U3O8 (including 1m at 0.32% or 3,200ppm U3O8).

Mt Thirsty Nickel-Cobalt Project (refer Fission Energy Ltd Quarterly Report for full details)

Fission Energy owns 50% of the Mt Thirsty Nickel-Cobalt Project in WA, with the other 50% held by Barra Resources Limited (ASX: BAR).

Mt Thirsty Oxide Deposit

Mt Thirsty has a current JORC Indicated Resource of 14.8 million tonnes at 0.14% Cobalt, 0.59% Nickel and 0.99% Manganese and a JORC Inferred Resource of 14.2 million tonnes at 0.11% Cobalt, 0.52% Nickel and 0.77% Manganese over an apparent strike of 1.3 kilometres and a width of around 800 metres.

Mt Thirsty is an unusual deposit, being totally oxidized, fine grained and friable. The main mineralogy is iron oxides (goethite and hematite) and the cobalt content is high. The deposit is shallow with a 1.4:1 strip ratio.

Consultants from Independent Metallurgical Operations Pty Ltd (IMO) are conducting further detailed metallurgical test work and evaluation, and a program to facilitate timely preparation of a feasibility study.

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Report for September Quarter 2009

Tasman Resources Ltd

Mt Thirsty – Nickel Sulphide Exploration

A large electromagnetic (EM) anomaly, defined during a survey in the previous quarter (see ASX Announcement dated 9 June 2009), was test drilled with a single deep diamond drill hole (MTDD008).

On 1[st] July Fission and Barra announced to the ASX the discovery of significant sulphide mineralisation in this hole. On 27[th] July Fission and Barra announced the intersection of further sulphide mineralisation (including nickel sulphides) deeper in the same drill hole, within a very thick sequence (at least 700m) of originally olivine-rich, cumulate-textured ultramafic rocks. Unfortunately the footwall contact was not reached in the drill hole due to a likely thickening of the ultramafic unit and the depth capability of the drill rig.

These encouraging results were followed up with down-hole EM and further surface-based EM to the west to test the up-dip extension of the interpreted zone of interest. A second drill hole was collared further up dip and to the north to test the basal footwall contact at shallower depth and determine its attitude and hence the viability of deepening hole MTDD008. Unfortunately, difficult ground conditions forced the abandonment of this hole prior to reaching the footwall contact. Consideration will now be given to drilling a shallower replacement hole further to the west.

Diamond hole WCDD001 was completed at the Woodcutters prospect 6km further to the WNW to test an EM target, and 200m of cumulate - textured ultramafics were intersected. A downhole EM survey was conducted and an interesting off-hole EM anomaly was detected which may be indicating the presence of primary nickel sulphides at depth along strike from WCDD001. A diamond drill hole to test this EM anomaly at a depth of about 350 metres is currently in progress.

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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 years experience in the field of activity being reported on. Mr Smith and Mr Glasson 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.

Page 9 of 9

Rule 5.3

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 LTD

ABN 85 009 253 187

Quarter ended (“current quarter”) 30 September 2009

Consolidated statement of cash flow

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes– GST Refunds Received 1.7 Other (See note 1 below) Net Operating Cash Flows	Current quarter $A’000	Year to September (3 months) $A’000
	(134) (239) 3	(134) (239) 3
	(370)	(370)
Cash flows related to investing activities 1.8 Payment for purchases of: (a)prospects (b)equity investments (c)other fixed assets 1.9 Proceeds from sale of: (a) prospects (b)equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	66	66
	66	66
	(304)	(304)

1.13 Total operating and investing cash flows (brought forward)	(304)	(304)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows	(9)	(9)
	(9)	(9)
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	(313) 516	(313) 516
	203	203

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

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		113
		-
1.25	Explanation necessaryforanunderstanding ofthe 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. Directors Fees paid during the period. Legal Fees were paid during the quarter to a firm of which Mr GH Solomon and Mr DH Solomon are partners.

Non-cash financing and investing activities

2.1 2.2	Details of financing and investing transactions which have had a material effect on consolidated assets andliabilities but didnotinvolve cash flows
	Details of outlays made by other entities to establish or increase their share in projects in whichthereporting entityhas an interest

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	Nil	Nil
	Nil	Nil

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development	$A’000
	275
Total	275

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

Reconciliation of cash

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 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	203	516
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	203	516

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	EL 3901 EL 4188 EL 4207	Direct Direct Direct	100% 100% 100%	0% 0% 0%
	EPMA 18226 EPMA 18259 EPMA 18260 EPMA 18261 EPMA 18263 EPMA 18316	Direct Direct Direct Direct Direct Direct	0% 0% 0% 0% 0% 0%	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) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions	NOT APPLICABLE
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs	160,708,193	160,708,193
	80,212	80,212	2 cents	2 cents
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	NOT APPLICABLE
7.7 Options 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	30,131,775 20,612,633 1,507,804 2,000,000 500,000	30,131,775 20,612,633 NIL NIL NIL	Exercise price 20 cents 10 cents 10 cents 16 cents 12cents	Expiry date 31 Dec 2009 30 June 2012 16 April 2012 30 June 2012 26May2013
	80,212 2,000,000	80,212 NIL	10 cents 16 cents	30 June 2012 30 June 2012
	2,800,000	NIL	20 cents	30 August 2009
7.11 Debentures (totals only)	NOT APPLICABLE
7.12 Unsecured notes (totals only)	NOT APPLICABLE

Compliance statement

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

• 2 This statement does give a true and fair view of the matters disclosed.

AARON PHILIP GATES COMPANY SECRETARY / CFO

Date: 29 October 2009

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.

• 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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