TASMAN RESOURCES LTD — Interim / Quarterly Report 2011

Apr 19, 2011

ACN 009 253 187

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ASX QUARTERLY REPORT for the Period Ended 31[st] March 2011

HIGHLIGHTS

SA – VULCAN IOCGU PROJECT

VUD 8

• Bornite intersected in VUD 8, the last drill hole in the current program.

VUD 8 intersected 180m of alteration and some mineralisation. Encouragingly, the copper-iron sulphide bornite, one of the copper minerals associated with the highgrade zones of mineralization at Olympic Dam, was intersected in one part of the hole, providing a vector to high grade mineralisation – assays are awaited.

VUD 7

• VUD 7 has intersected a very thick zone (+150m) of “classic” mineralised, hematite-rich breccias on the eastern side of the Vulcan IOCGU prospect, about 30km north of Olympic Dam.

Assays received for VUD 7 confirm the result - 163m at 0.23% Cu, 0.07g/t Au, 2.4g/t Ag, 0.04kg/t U3O8 and 0.01% Mo (hematite-rich zone, including lower grade dykes, host rock intervals etc.) This interval includes 90m at 0.25% Cu, 0.09g/t Au, 3.0g/t Ag, 0.05kg/t U3O8 and 0.02% Mo.

Whilst unlikely of itself to be of economic significance due to grade and depth, the intersection in VUD 7 is nevertheless significant because:

• Considerable thickness of “classic” IOCGU-style mineralized hematite-rich breccias are present at Vulcan,

• The mineralogy in VUD 7 is consistent with a well defined part of the Olympic Dam zonation sequence, and again clearly provides a vector to the potentially high grade parts of the Vulcan system,

• The location of VUD 7 greatly enhances the potential of the much larger, and believed to be more prospective (and as yet untested) southern portion of the prospect.

CORPORATE

Subsequent to the end of the quarter, Tasman has announced a non-renounceable pro-rata rights issue to Tasman Shareholders.

Level 40, Exchange Plaza 2 The Esplanade, Perth, Western Australia 6000 Telephone: (08) 9282 5889 Facsimile: (08) 9282 5855 Website: www.tasmanresources.com.au

Fission Energy (Tasman: 28.0% shareholding fully diluted as at 31[st] March 2011).

• Follow up diamond drilling of previously intersected nickel sulphides commenced immediately after the end of the Quarter.

• Updated resource estimates for the nickel-cobalt-manganese oxide resource were completed.

Eden Energy (Tasman: 16.6% shareholding, fully diluted as at 31[st] March 2011).

• Eden continues to make good progress with its carbon/hydrogen pyrolysis project.

• Eden’s US and Indian subsidiaries make progress in Optiblend Dual Fuel Kit sales.

DETAILS

IOCGU EXPLORATION: SOUTH AUSTRALIA

Vulcan Project (100% Tasman)

Drilling Status

Diamond drilling resumed at Vulcan during the quarter, and a further three holes were completed. A drill hole location plan is provided in Figure 1. Further drilling has been suspended at this stage to enable the encouraging results from the program to be properly assessed, and the next drill targets to be optimised using in particular, vectors derived from the recent holes.

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Figure 1: Vulcan residual bouguer gravity image with the location of Tasman’s eight holes drilled to date. (Datum AGD 94; MGA Zone 53)

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VUD 8

VUD 8 was drilled approximately 800m north-east of the discovery hole VUD 1 at 694,244mE; 6,660,826mN and was drilled vertically (see Figure 1). The hole was designed to further test the large northern section of the gravity anomaly.

VUD 8 hit basement altered and mineralised rocks (part of the Vulcan IOCGU system) at a depth of 899.75m and was terminated at 1079.5m, still in the IOCGU system. Mineralisation was seen throughout the hole, particularly within the upper section, where in addition to chalcopyrite and pyrite, minor bornite (copper-iron-sulphide) was recognized. Assays are not yet available.

The presence of bornite is considered particularly encouraging. It indicates, by analogy with the key sulphide zoning patterns and grade distributions seen at Olympic Dam, that there is potential to find the upper parts of the sulphide zoning sequence, and hence higher grade mineralisation elsewhere within the Vulcan system.

It should be noted that the high-grade copper mineralisation within the Olympic Dam deposit predominately comprises bornite and chalcocite. This is distributed across the deposit in many separate zones of varying size, that in most cases adjoin lower grade areas of mineralisation (predominately chalcopyrite- pyrite) and in some cases areas of little mineralisation.

VUD 7

Tasman previously announced that drill hole VUD 7, (697,250mE 6,658,280mN, Figure 1) had intersected altered basement volcanics at 847m followed by a thick zone of “classic” IOCGU-style mineralised hematite-rich breccias between 1065m and the bottom of the hole at 1227.8m.

Mineralisation consists of disseminated pyrite (iron sulphide) and chalcopyrite (copper-iron sulphide), hosted within a breccia composed of fine grained black to steely-grey hematite, with lesser carbonate minerals and quartz. Near the bottom of the hole the pyrite-chalcopyrite mineralisation weakens and host rock clasts become quite abundant. Assay results received for VUD 7 are provided in Table 1.

Tasman previously noted that whilst the intersection in VUD 7 is over at least 150m, it is unlikely of itself to be of economic significance owing to the anticipated grades and the considerable depth. The results are, however, considered to be a major exploration breakthrough:

• VUD 7 confirms that Vulcan hosts mineralisation of the same style, and of comparable thickness to that which makes up a very large portion of the nearby Olympic Dam IOCGU deposit.

• VUD 7 is located in the previously undrilled eastern “limb” of the Vulcan prospect, a significant distance from the other parts of the prospect as defined by the geophysical anomaly and the earlier drill holes. It seems likely that mineralisation may extend considerably further east north-east from VUD 7 (Figure 1).

• VUD 7 considerably enhances the potential of the much larger, and believed to be more prospective (and as yet untested) southern portion of the prospect which is interpreted to be at a slightly shallower depth. This southern target is located where the two key structural trends in the prospect (north north-west and east north-east) intersect, and is a very large and strong gravity anomaly (Figure 1).

Until Aboriginal heritage issues over this area are resolved, Tasman will continue to focus on the northern and eastern sections of the Vulcan system.

Cu Au Ag U308 Mo Fe

From

To

3

		Thickness
(m)	(m)	(m)	(%)	(g/t)	(g/t)	(kg/t)	(%)	(%)
1064.95	1227.8	162.85	0.23	0.08	2.4	0.04	0.01	23.7
Including
1118	1208	90.00	0.25	0.09	3.0	0.05	0.02	26.8

Table 1: Summary of assay results for VUD 7. Drill core for assay was halved by diamond sawing, and analysis was performed by a combination of fire assay/solvent extraction and flame AAS, ICP optical emission and mass spectrometry. Averages were calculated by weighting by sample length and density.

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Figure 2: Close-up photo of typical hematite breccia from VUD 7. Hematite is dark grey, sulphides (pyrite and chalcopyrite) are yellow/silverish and the other minerals are carbonate (probably siderite), quartz and feldspar. (NQ Core – approx. 50mm diameter).

VUD 6

The first hole in the current program, VUD 6 (GDA94 Zone 53 694,250mE 6,659,230mN, Figure 1) intersected thick IOCGU alteration but only low grade mineralisation.

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Future Program

• Fully assess results from recent drilling, including refinement of geophysical model and dating of selected samples from Vulcan system.

• Select new drill targets based on vectors from recent drilling results. Until aboriginal heritage issues over the highest priority southern target area are resolved Tasman will continue to focus on the northern and eastern sections of the Vulcan system.

Background

Tasman identified Vulcan as a prime IOCGU target in 2009, based on the presence of a very large gravity anomaly, supporting magnetic and seismic anomalies and Vulcan’s location close to key tectonic (structural) lineaments which had previously been used in the original targeting of Olympic Dam by WMC in the mid-1970s (see Figure1). Tasman’s initial discovery drill hole, VUD 001, intersected the Vulcan IOCGU system late in 2009, and further investigations have confirmed the potential significance of the discovery.

OTHER PROJECTS

Tasman has gold and base metal projects at Parkinson Dam and the Central Gawler Craton in South Australia and at Mirrica in Queensland (Figure 3), however there was no exploration activity in these areas during the quarter due to priority work at Vulcan.

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Figure 3: 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.

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CORPORATE

Capital Raising

Subsequent to the end of the quarter Tasman announced a non-renouncable pro-rata rights offer to Tasman shareholders. The offer consists of one (1) fully paid ordinary Tasman share for every twelve (12) fully paid ordinary Tasman shares held as at the Record Date, at a price of $0.10 per share, together with one (1) free attaching Tasman option for every four (4) shares issued under the Offer (each to acquire one fully paid ordinary Tasman share at an exercise price of $0.10 per share at any time up to and including 30 June 2012).

Funds raised from the Offer will be used to firstly meet the expenses of the Offer; and secondly to provide additional working capital for further exploration and drilling and other general operating matters and to continue to support Tasman’s investment in ASX listed Eden Energy Ltd and to enable Tasman to partially sub-underwrite the rights issue announced by Eden Ltd Energy on Wednesday 13 April 2011.

Investment in Fission Energy Ltd

Tasman has a 28.0% interest (25 million shares – market value $1.5m) in uranium explorer and potential nickel-cobalt producer Fission Energy Ltd (ASX: FIS), on a fully diluted basis as at 31[st] March 2011.

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 is located 20 kilometres north-northwest of Norseman, Western Australia.

Mt Thirsty Oxide Deposit

Updated resource figures have been estimated following infill drilling in 2010. Mt Thirsty has a current JORC compliant Indicated Resource of 16.6 million tonnes at 0.14% Co, 0.60% Ni and 0.98% Mn and a JORC compliant Inferred Resource of 15.3 million tonnes at 0.11% Co, 0.51% Ni and 0.73% Mn over an apparent strike of 1.3 kilometres and a width of around 800 metres.

Mt Thirsty – Nickel Sulphide Exploration

In early 2010 the intersection of primary nickel sulphide mineralisation was announced by Fission Energy Limited and 50% joint venture partner Barra Resources Limited. Reverse circulation hole MTRC015 intersected a 6 metre thick zone of massive and stringer nickel sulphides assaying 3.38% nickel at a down hole depth of 201 metres.

Follow-up reverse circulation drilling has intersected further nickel sulphides - MTRC020: 2m down hole at 5.9% Ni, MTRC022: 2m at 3.5% Ni, and MTRC030: 1m at 4.0% Ni.

Diamond drilling to test the zone of interest at a greater depth commenced after the end of the quarter.

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Investment in Eden Energy Ltd

Tasman has a 16.6% interest (35.87 million shares – market value $3.8m) in alternative energy company Eden Energy Ltd (ASX: EDE), on a fully diluted basis as at 31[st] March 2011.

• Eden continues to make good progress with its carbon/hydrogen pyrolysis project.

• Eden’s US and Indian subsidiaries make progress in Optiblend Dual Fuel Kit sales.

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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.

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Appendix 5B Mining exploration entity quarterly report

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, 01/06/10.

Name of entity

TASMAN RESOURCES LTD

	ABN 85 009 253 187 Consolidated statement of cash flows		Quarter ended (“current quarter”) 31 March 2011	Quarter ended (“current quarter”) 31 March 2011
			31 March 2011
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & 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 paid 1.7 Other (provide details if material) Net Operating Cash Flows		Current quarter $A’000		Year to date (9 months) $A’000
		95 (745) - - (240) - 19 - - -		219 (1,542) - - (575) - 61 - - -
		(871)		(1,837)
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)		- (34) (3) - - - - - -		- (49) (3) - - - - - -
		(37)		(52)
		(908)		(1,889)

• See chapter 19 for defined terms.

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Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(908)	(1,889)
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	- - - - - -	890 - - - - -
	-	890
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 ofquarter	(908) 1,996 -	(999) 2,087 -
	1,088	1,088

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 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
		103
		-
1.25 Explanation necessaryfor an understandingof 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. Directors Fees paid during the period. Bona-fide re-imbursement of expenses. Non-cash financing and investing activities	Explanation necessaryfor an understandingof 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. Directors Fees paid during the period. Bona-fide re-imbursement of expenses.

• 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 -

• 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 -

• See chapter 19 for defined terms.

Appendix 5B Page 2

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

3.1	Loan facilities
3.2	Credit standby arrangements

Amount available		Amount used
$A’000		$A’000
	-		-
	-		-

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	200
	-
	-
	150
Total	350

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)	1,088	1,996
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	1,088	1,996

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

• See chapter 19 for defined terms.

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Appendix 5B Page 3

Appendix 5B Mining exploration entity quarterly report

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
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital,buy-backs	202,907,678	202,907,678
	1,605	1,605	10 cents	10 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 (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	20,587,791 1,574,804 2,000,000 3,000,000 401,606 500,000 500,000	20,587,791 NIL NIL NIL NIL NIL NIL	Exercise price 10 cents 10 cents 16 cents 16,875 cents 15 cents 12 cents 15 cents	Expiry date 30 June 2012 16 April 2012 30 June 2012 20 Nov 2012 8 Feb 2013 26 May 2013 31 May2013
	1,605	1,605	10 cents	30 June 2012
7.11 Debentures (totals only)	NOT APPLICABLE
7.12 Unsecured notes (totals only)	NOT APPLICABLE

• See chapter 19 for defined terms.

Appendix 5B Page 4

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Appendix 5B Mining exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act.

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

Sign here: (Company secretary)

Date: 20 April 2011

Print name: Aaron Gates

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.

• == == == == ==

• See chapter 19 for defined terms.

30/9/2001

Appendix 5B Page 5