TASMAN RESOURCES LTD — Interim / Quarterly Report 2011

Mar 9, 2011

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Tasman Resources Ltd ABN 85 009 253 187

and Controlled Entities

Interim Financial Report for the Half-Year Ended 31 December 2010

TASMAN RESOURCES LTD ABN 85 009 253 187 AND CONTROLLED ENTITIES

CONTENTS

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Highlights	3
Corporate Directory	4
Review of Operations	5
Directors’ Report	10
Auditors’ Independence Declaration	11
Consolidated Statement of Comprehensive Income	12
Consolidated Statement of Financial Position	13
Consolidated Statement of Changes in Equity	14
Consolidated Statement of Cash Flows	15
Notes to the Financial Statements	16
Directors’ Declaration	18
Independent Auditor’s Review Report	19

ASX Code: TAS

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TASMAN RESOURCES LTD ABN 85 009 253 187 AND CONTROLLED ENTITIES

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HIGHLIGHTS

SA – VULCAN PROJECT

• Drilling has confirmed the potential significance of Tasman’s Vulcan IOCGU discovery, and the first five drill holes will be followed up with a new round of drilling early in 2011.

• The most encouraging hole drilled in 2010 was VUD 003, which intersected a downhole zone of 56.65m at 0.59% Cu, including 7.8m at 1.21% Cu, and 0.65m at 7.82% Cu, 2.41g/t Au and 0.03kg/t U3O8.

• A 2D seismic reflection survey was completed successfully.

• Endeavours aimed at resolving access issues covering the southern, and possibly most prospective part of the Vulcan IOCGU system are continuing.

• Following the Vulcan IOCGU discovery, a regional data review has highlighted new targets for testing.

CORPORATE

The Company completed the raising of $0.91 million before costs by the issuing of approximately 9.1 million fully paid ordinary shares at an issue price of $0.10 per share via a share purchase plan to existing shareholders.

INVESTMENTS

Fission Energy (Tasman: 28.0% shareholding fully diluted as at 31[st] December 2010).

• Further evaluation and metallurgical testing of the Mt Thirsty cobalt-nickelmanganese (oxide) deposit was conducted. Additional infill drilling was completed and resource modelling is in progress.

• Exploration for nickel sulphides continued, with a number of significant intersections being obtained, including (down-hole) 2m at 5.9% Ni, 2m at 3.5% Ni and 1m at 4.7% Ni.

Eden Energy (Tasman: 16.6% shareholding, fully diluted as at 31[st] December 2010).

• Eden acquired the 50% interest in the pyrolysis project and the gas to liquids held by the University of Queensland.

• Eden’s wholly owned subsidiary, Hythane Company has commenced the scale-up of the pyrolysis technology in Colorado, USA and is now testing and optimising the process.

• In India, development of Eden’s Optiblend® Dual Fuel business continued.

ASX Code: TAS

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TASMAN RESOURCES LTD ABN 85 009 253 187 AND CONTROLLED ENTITIES

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CORPORATE DIRECTORY

DIRECTORS:

Gregory H Solomon LLB (Executive Chairman) Douglas H Solomon BJuris LLB (Hons) (Non-Executive) Guy T Le Page BA, BSc (Hons), MBA, FINSIA, MAusIMM (Non-Executive)

COMPANY SECRETARY:

Aaron P Gates B.Com, CA, ACIS

REGISTERED OFFICE:

Level 40, Exchange Plaza 2 The Esplanade Perth Western Australia 6000 Tel +61 8 9282 5889 Fax +61 8 9282 5866 Email: mailroom@tasmanresources.com.au Website: www.tasmanresources.com.au

SOLICITORS:

Solomon Brothers Level 40, Exchange Plaza 2 The Esplanade Perth WA 6000

Minter Ellison 1 King William Street Adelaide SA 5000

AUDITORS:

Grant Thornton Audit Pty Ltd Chartered Accountants Level 1 10 Kings Park Road West Perth WA 6005

SHARE REGISTRY:

Advance Share Registry Services 150 Stirling Highway Nedlands WA 6009

STOCK EXCHANGE LISTING:

ASX Code: TAS (ordinary shares) TASOB (options expiring 30 June 2012)

Quotation has been granted for all the ordinary shares and all issued options of the company on all Member Exchanges of the Australian Stock Exchange Limited.

ASX Code: TAS

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TASMAN RESOURCES LTD ABN 85 009 253 187 AND CONTROLLED ENTITIES

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REVIEW OF OPERATIONS

DETAILS

IOCGU EXPLORATION: SOUTH AUSTRALIA

Vulcan Project (100% Tasman)

Drilling Status

No further drilling was conducted at Vulcan during the six months due to wet weather in eastern Australia delaying the drilling contractor’s prior program. Drilling is now due to resume in January 2011.

Tasman expects to drill at least four holes in this program. Each hole is expected to take about two to three weeks to drill, and assay results are expected four to six weeks after the completion of each hole. Drill sites have been selected to target a diversity of potential opportunities for high-grade mineralisation, based on gravity, magnetic and seismic geophysical data, and a geological model based on features exhibited in other IOCGU systems such as Olympic Dam and Prominent Hill.

Work continues towards resolution of heritage matters affecting a portion of the southern, and possibly most prospective part of the gravity target.

The location of Vulcan is shown in Figure 1, and a plan showing the location of the five drill holes already completed at Vulcan is given in Figure 2.

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Figure 1: Location Plan showing the Vulcan IOCGU Project, nearby IOCGU deposits/systems and several key (historic) tectonic lineaments identified prior to the discovery of Olympic Dam (dashed blue lines). Tasman’s tenements are shown in green.

ASX Code: TAS

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TASMAN RESOURCES LTD ABN 85 009 253 187 AND CONTROLLED ENTITIES

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Figure 2: Vulcan residual bouguer gravity image with the location of the five drill holes VUD 001 to 005, completed to date.

Exploration Completed To Date: Significance

All five drill holes completed at Vulcan to date have intersected the alteration and mineralisation associated with the Vulcan IOCGU system. The best results have been from hole VUD 003, which intersected much stronger IOCGU mineralisation than the discovery hole VUD 001, including 7.8m down hole at 1.21% Cu, (and 0.35g/t Au) higher copper grade than the Olympic Dam discovery hole RD 1. This 7.8m zone is included within a much thicker interval of 56.65m at 0.59% Cu, which also included a number of other higher grade zones such as 0.75m at 4.44% Cu, 1.34g/t Au, 0.58kg/t U3O8 and 0.65m at 7.82% Cu, 2.41g/t Au and 0.03kg/t U3O8, as reported to the ASX on 6[th] July 2010.

VUD 002 and VUD 004 , intersected weaker mineralisation than VUD 003, although interestingly, VUD 002 also intersected further anomalous rare earth element concentrations, with one five metre zone (from 947m to 952m down hole) averaging 0.29% Ce and 0.18% La, comparable to levels seen in mineralised hematite-rich breccias at Olympic Dam. VUD 004 intersected a 1.37m thick zone at the basement unconformity averaging 0.91kg/t U3O8.

The main sulphide minerals intersected in the first holes (VUD 001 to VUD 004) are pyrite and chalcopyrite and not the higher tenor bornite or chalcocite as seen in higher grade parts of the Olympic Dam Deposit. However, Vulcan is clearly large enough (about 11km[2] ) for significant development elsewhere within the system of this style of highergrade, and economically more attractive mineral assemblage. Further, individual sections of these holes have returned assays for copper, uranium, gold, cerium and lanthanum that are equivalent to the higher-grade ore mined at Olympic Dam, confirming that the system has the potential to produce high-grade mineralisation.

VUD 005 has intersected rocks believed to be highly altered parts of the Vulcan system, although no significant visible mineralisation has been observed.

ASX Code: TAS

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TASMAN RESOURCES LTD ABN 85 009 253 187 AND CONTROLLED ENTITIES

Regional Review and Synthesis

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Following the drilling success at Vulcan a review of regional geophysical and geological data has been conducted. This review has highlighted the importance of a number of patterns and trends evident in these data on a regional scale.

For example, it believed that there is a clear link between the IOCGU systems at Vulcan and Titan, evident in both the regional gravity (see Figure 3) and magnetic data for the area. This suggests that untested targets between these IOCGU systems such as the previously identified Zeus target (Figure 3) may have a higher priority for drill testing than previously believed.

Likewise, at the Marathon East target (Figure 3), detailed gravity and magnetic features have highlighted a significant anomaly for drill testing.

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Figure 3: Known and interpreted IOCGU systems (Olympic Dam, Vulcan and Titan) and IOCGU targets Zeus and Marathon East) superimposed on regional bouguer gravity image.

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 follow-up drilling in 2010 has confirmed the potential significance of the discovery.

GOLD EXPLORATION: SOUTH AUSTRALIA

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

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) .

No exploration was conducted at Parkinson Dam during the six months.

ASX Code: TAS

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TASMAN RESOURCES LTD ABN 85 009 253 187 AND CONTROLLED ENTITIES

OTHER PROJECTS

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Tasman has gold and base metal projects at Mirrica in Queensland and the Central Gawler Craton in South Australia (Figure 4). However, there was only limited exploration activity in these areas during the six months due to priority work at Vulcan. The Streaky Bay uranium project in South Australia has been surrendered.

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Figure 4: 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

The Company completed the raising of $0.91 million before costs by the issuing of approximately 9.1 million fully paid ordinary shares at an issue price of $0.10 per share via a share purchase plan to existing shareholders.

Investment in Fission Energy Ltd

Tasman has a 28.0% interest in uranium explorer and potential nickel-cobalt producer Fission Energy Ltd (ASX: FIS), on a fully diluted basis as at 31[st] December 2010.

Mt Thirsty Nickel-Cobalt Project (refer Fission Energy Ltd Six Monthly 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

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

ASX Code: TAS

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TASMAN RESOURCES LTD ABN 85 009 253 187 AND CONTROLLED ENTITIES

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Infill resource drilling of the oxide deposit was completed, and this will enable an updated resource estimation to be calculated early in 2011, and open pit optimisation and mine scheduling studies to be carried out prior to possible commencement of the PFS.

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 will occur early in 2011.

Investment in Eden Energy Ltd

Tasman has a 16.6% interest in alternative energy company Eden Energy Ltd (ASX: EDE), on a fully diluted basis as at 31[st] December 2010.

Pyrolysis Project

• Eden acquired the 50% interest in the pyrolysis project and the gas to liquids project held by the University of Queensland by the issue of 3.75 million Eden shares.

• Eden’s wholly owned subsidiary, Hythane Company has commenced the initial scale-up of the pyrolysis technology in Colorado, USA and are now testing and optimising the process, and preliminary results are encouraging.

India

• Eden secured further sales of Optiblend® Dual Fuel Kits in northern India.

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.

ASX Code: TAS

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TASMAN RESOURCES LTD ABN 85 009 253 187 AND CONTROLLED ENTITIES

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DIRECTORS’ REPORT

Your directors submit the financial report of the consolidated group for the half-year ended 31 December 2010.

Directors

The names of directors who held office during or since the end of the half-year:

Mr Gregory H Solomon

Mr Douglas H Solomon

Mr Guy T Le Page

Review of Operations

The net loss after income tax for the half year was $644,486 (2009: $1,194,164).

A review of the operations of the Group during the half-year ended 31 December 2010 is set out in the Review of Operations on Page 5.

Auditor’s Declaration

The lead auditor’s independence declaration under section 307C of the Corporations Act 2001 is set out on page 11 for the half-year ended 31 December 2010.

This report is signed in accordance with a resolution of the Board of Directors.

Director

Gregory H Solomon

Dated this 10[th] day of March 2011

ASX Code: TAS

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10 Kings Park Road West Perth WA 6005 PO BOX 570 West Perth WA 6872

T +61 8 9480 2000 F +61 8 9322 7787 E info.wa@au.gt.com W www.grantthornton.com.au

Auditor’s Independence Declaration To The Directors of Tasman Resources Limited

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of Tasman Resources Limited for the half-year ended 31 December 2010, I declare that, to the best of my knowledge and belief, there have been:

• a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• b no contraventions of any applicable code of professional conduct in relation to the review.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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M J Hillgrove Director - Audit & Assurance

Perth, 10 March 2011

Grant Thornton Audit Pty Ltd ACN 130 913 594, a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389.

Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.

Liability limited by a scheme approved under Professional Standards Legislation.

TASMAN RESOURCES LTD ABN 85 009 253 187 AND CONTROLLED ENTITIES

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

Note Other Income Accounting and audit expense Depreciation and amortisation expense Employee benefits expense Exploration expenditure written off Impairment of exploration expenditure Finance costs Legal and other consultants expense Management Fees Other expenses Realised loss sale of available-for-sale assets Loss before income tax Income tax expense Loss for the period Other Comprehensive Income Change in fair value of financial assets Income tax relating to other comprehensive income Other comprehensive income, after tax Total Comprehensive Income / (Loss) attributable to members of the parent Basic earnings per share (cents per share)	Consolidated Group 31 Dec 2010 31 Dec 2009 $ $ 210,105 71,248 (13,120) (9,842) (1,408) (1,698) (182,617) (365.796) (22,989) (18,597) (442,503) (602,580) - - (5,512) (3,200) (113,085) (113,085) (73,357) (51,362) - (99,252)
	(644,486) (1,194,164) - -
	(644,486) (1,194,164)
	(281,275) 423,334 - -
	(281,275) 423,334 (925,761) (770,830)
	(0.3106) (0.6329)

The accompanying notes form part of these financial statements.

ASX Code: TAS

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2010

Note ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables TOTAL CURRENT ASSETS NON-CURRENT ASSETS Financial assets Property, plant and equipment Exploration and Evaluation expenditure TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables TOTAL CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses TOTAL EQUITY	Consolidated Group 31 Dec 2010 30 Jun 2010 $ $ 1,995,630 2,083,980 95,877 113,123
	2,091,507 2,197,103
	1,775,677 2,001,953 10,254 11,662 9,972,136 9,850,374
	11,758,067 11,863,989
	13,849,574 14,061,092
	127,813 305,192
	127,813 305,192
	127,813 305,192
	13,721,761 13,755,900
	20,502,014 19,610,391 2,342,850 2,624,126 (9,123,103) (8,478,617)
	13,721,761 13,755,900

The accompanying notes form part of these financial statements.

ASX Code: TAS

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2010

	Share Capital
			Financial Asset	Accumulated
	Ordinary	Option Reserve	Reserve	Losses	Total
	$	$	$	$	$
Balance at 1 July 2009	16,193,088	671,575	1,748,143	(6,896,763)	11,716,043
Shares issued during the period	1,432,047	-	-	-	1,432,047
Total other comprehensive income	-	-	423,334	(1,194,164)	(770,830)
Options issued during the period	-	187,660	-	-	187,660
Subtotal	17,625,135	859,235	2,171,477	(8,090,927)	12,564,920
Dividends paid or provided for	-	-	-	-	-
Balance at 31 December 2009	17,625,135	859,235	2,171,477	(8,090,927)	12,564,920
Balance at 1 July 2010	19,610,391	909,235	1,714,891	(8,478,617)	13,755,900
Shares issued during the period	891,623	-	-	-	891,623
Total other comprehensive income	-	-	(281,275)	(644,486)	(910,762)
Options issued during the period	-	-	-	-	-
Subtotal	20,502,014	909,235	1,433,616	(9,123,103)	13,721,761
Dividends paid or provided for	-	-	-	-	-
Balance at 31 December 2010	20,502,014	909,235	1,433,616	(9,123,103)	13,721,761

The accompanying notes form part of these financial statements.

ASX Code: TAS

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CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest received Net cash provided by (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Exploration expenditure Proceeds from the sale of equity investments Payments for equity investments Net cash provided by (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares Proceeds from loans Net cash provided by (used in) financing activities Net increase/(decrease) in cash held Cash at beginning of period Cash at end of period	Consolidated Group 31 Dec 2010 31 Dec 2009 $ $ 111,150 34,574 (390,545) (366,870) 41,848 11,913
	(237,547) (320,383)
	(727,426) (465,514) - 66,842 (15,000) -
	(742,426) (398,672)
	891,623 1,432,047 - -
	891,623 1,432,047
	(88,350) 712,992 2,083,980 516,166
	1,995,630 1,229,158

The accompanying notes form part of these financial statements.

ASX Code: TAS

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

NOTE 1: BASIS OF PREPARATION

The half-year consolidated financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001 , Australian Accounting Standard AASB 134: Interim Financial Reporting, Australian Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board. Compliance with Australian Accounting Standards ensures compliance ensure the financial statements and note also comply with International Financial Reporting Standards.

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2010 and any public announcements made by Tasman Resources Ltd and its controlled entities during the halfyear in accordance with continuous disclosure requirements arising under the Corporations Act 2001 . The half-year report does not include full disclosures of the type normally included in an annual financial report.

Accounting Policies

The accounting policies have been consistently applied by the entities in the consolidated group and are consistent with those in the June 2010 financial report except for the adoption of the following new and revised Accounting Standards.

Whilst amendments to the Accounting Standards and Australian Accounting Interpretations have been considered and the Group does not anticipate early adoption of any of the reporting requirements and does not expect these requirement to have any material effect on the Group’s financial statements.

NOTE 2: LOSS FOR THE PERIOD The following revenue and expense items are relevant in explaining the financial performance for the interim period Impairment of capitalised exploration expenditure Write-off of capitalised exploration expenditure on areas of interest abandoned	2010 $ 2009 $ 22,053 602,580 22,989 18,597
	45,042 621,177

NOTE 3: SEGMENT INFORMATION

The Group has identified its operating segments based on the internal reports that are reviewed and used by the board of Directors (chief operating decision maker) in assessing performance and determining the allocation of resources.

The Group is managed on the basis on the basis it is a mineral exploration company operating in the geographical region of Australia. The mineral assets held via outright ownership or joint venture are considered one business segment and the minerals currently being targeted include copper, gold, silver and uranium in South Australia and Queensland.

ASX Code: TAS

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

NOTE 4: RELATED PARTY TRANSACTIONS

		2010	2009
		$	$
Transactions between related parties are on normal commercial terms and conditions
no more favourable than those available to other parties unless otherwise stated.
Transactions with related parties:
a.	Key Management Personnel
	Management fees and administration fees paid to Princebrook Pty Ltd, a
	company in which Mr GH Solomon and Mr DH Solomon have an interest.	113,085	113,085
	Legal and professional fees paid to Solomon Brothers, a firm of which Mr GH
	Solomon and Mr DH Solomon are partners.	5,512	13,213
	Options issued to Mr GH Solomon, Mr DH Solomon and Mr GT LePage
	pursuant to the AGM.	-	121,800
b.	Associated Companies
	Reimbursement to the Company from Fission Energy Ltd and its associates,
	(which the Company has a 28.1% fully diluted interest) for employee costs on
	an hourly basis.	103,085	56,986
	Reimbursement to the Company from Eden Energy Ltd, (which the Company
	has a 17.8% fully diluted interest) for employee costs on an hourly basis.	-	2,349
NOTE 5: ISSUED CAPITAL
202,907,678 (2009: 177,561,423) fully paid ordinary shares		20,502,014	17,625,135
		20,502,014	17,625,135
a.	Ordinary shares
	At the beginning of reporting period	193,787,678	160,627,981
	Shares issued – prior year	-	16,933,442
	Shares issued during the year
	— 4 October 2010	9,020,000	-
	— 14 October 2010	100,000	-
	At reporting date	202,907,678	177,561,423

On 4 and 14 October 2009 the company issued 9,020,000 and 100,000 ordinary shares respectively at $0.10 per share to raise working capital.

NOTE 6: CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The directors are not aware of any contingent liabilities or contingent assets as at 31 December 2010.

NOTE 7: EVENTS SUBSEQUENT TO REPORTING DATE

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the economic entity, the results of those operations, or the state of affairs of the economic entity in future financial years.

ASX Code: TAS

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DIRECTORS’ DECLARATION

The directors of the company declare that:

1. The financial statements and notes, as set out on pages 12 to17:

2. a. comply with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations; and

3. b. give a true and fair view of the economic entity’s financial position as at 31 December 2010 and of its performance for the half-year ended on that date.

4. In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Director Gregory H Solomon

Dated this 10[h] day of March 2011

ASX Code: TAS

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10 Kings Park Road West Perth WA 6005 PO BOX 570 West Perth WA 6872

Independent Auditor’s Review Report To the Members of Tasman Resources Limited

T +61 8 9480 2000 F +61 8 9322 7787 E info.wa@au.gt.com W www.grantthornton.com.au

We have reviewed the accompanying half-year financial report of Tasman Resources Limited (“Company”), which comprises the consolidated financial statements being the statement of financial position as at 31 December 2010, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, a statement of accounting policies, other selected explanatory notes and the directors’ declaration of the consolidated entity, comprising both the Company and the entities it controlled at the half-year’s end or from time to time during the half-year.

Directors’ responsibility for the half-year financial report

The directors of the Company are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s responsibility

Our responsibility is to express a conclusion on the consolidated half-year financial report based on our review. We conducted our review in accordance with the Auditing Standard on Review Engagements ASRE 2410: Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the consolidated entity’s financial position as at 31 December 2010 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Tasman Resources Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

Grant Thornton Audit Pty Ltd ACN 130 913 594, a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389.

Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia. Liability limited by a scheme approved under Professional Standards Legislation.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we complied with the independence requirements of the Corporations Act 2001.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Tasman Resources Limited is not in accordance with the Corporations Act 2001, including:

• a giving a true and fair view of the consolidated entity’s financial position as at 31 December 2010 and of its performance for the half-year ended on that date; and

• b complying with Accounting Standard AASB 134: Interim Financial Reporting and Corporations Regulations 2001.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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M J Hillgrove Director - Audit & Assurance Perth, 10 March 2011

Grant Thornton Audit Pty Ltd ABN 94 269 609 023, a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389. Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.

Liability limited by a scheme approved under Professional Standards Legislation.