TASMAN RESOURCES LTD — Interim / Quarterly Report 2012

Apr 18, 2012

ACN 009 253 187

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ASX QUARTERLY REPORT for the Period Ended 31 March 2012

HIGHLIGHTS

SA – VULCAN IOCGU* PROJECT

• The conditional farm-in/JV Letter Agreement with Rio Tinto Exploration has been extended until 4 May 2012 to allow further time for the conditions precedent to be satisfied

SA – LUCAS HILL TARGET

• Strong alteration and some copper mineralisation intersected in the two deep holes drilled

• Strong Lucas Hill gravity response not yet explained

• Iron oxide-copper-gold-uranium

Level 40, Exchange Plaza 2 The Esplanade, Perth, Western Australia 6000 Telephone: (08) 9282 5889 Facsimile: (08) 9282 5866 Website: www.tasmanresources.com.au

DETAILS

IOCGU EXPLORATION: SOUTH AUSTRALIA

Vulcan Project (100% Tasman)

The conditional Farm-in/JV Letter Agreement over Tasman’s Exploration Licence EL4322 that hosts the Vulcan IOCGU prospect, executed with RTX on 7 October 2011 and which required certain conditions precedent to be satisfied by 6 April 2012, has been extended until 4 May 2012 to allow further time for the conditions to be satisfied.

The only remaining conditions which have not as yet been satisfied are:

• (a) Tasman satisfying RTX that RTX has the sole and exclusive right to explore, mine and develop the Tenement;

• (b) The Parties entering into an Exploration Services Agreement by which RTX will engage the services of Tasman on an exclusive basis to conduct the Initial Exploration Program;

• (c) The Parties entering into a Formal Agreement to fully record the terms and conditions of the Parties’ respective rights and obligations under the Agreement and the Joint Venture (if formed); and

• (d) Tasman securing reasonable access for the purposes of conducting the Initial Exploration Program over a specific area of the Tenement over which Tasman has previously not secured Aboriginal Heritage access.

The first three of these conditions are very close to finalisation, and Tasman and RTX are confident that these conditions will be satisfied by the Extended Date.

Additionally, progress is also being made in relation to the last condition, and Tasman and RTX remain optimistic that further progress will be made in the near future.

Accordingly, Tasman and RTX have agreed to extend the date for satisfaction of these conditions until 4 May 2012. The rest of the terms of the Agreement, as previously announced, remain unchanged.

These terms include the following key provisions:

• RTX to pay Tasman an initial A$10 million.

• Tasman to undertake an estimated A$5 million exploration program that includes at least 12,000 metres of drilling within the first 12 months of the Agreement.

• RTX can then elect to earn a 55% interest in the Agreement by:

• paying to Tasman a further A$7 million; and

• within 3 years of electing to farm-in, fund the delineation of a JORC compliant Inferred mineral resource and completing a concept study; or

• expending a further A$25 million on exploration costs,

whichever shall be the earlier.

• Tasman can then either retain a 45% interest and thereafter contribute or, if not, RTX may, at its election, increase its interest to 80% by either:

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• completing a pre-feasibility study within a further 5 years; or

• expending a further A$50 million on exploration costs,

• whichever shall be the earlier.

• If RTX earns an 80% interest, Tasman then has the right to either:

• maintain a 20% interest, contributing to future funding; or

• offer to sell its 20% to RTX (which RTX must purchase) for an agreed value or at fair market value.

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. Tasman’s initial discovery drill hole, VUD 001, intersected the Vulcan IOCGU system late in 2009.

Eight diamond drill holes have been completed by Tasman at Vulcan, all exhibiting IOCGUstyle alteration and/or mineralisation, including copper, gold, uranium, silver, molybdenum and rare earth elements. Recent age dating of the mineralisation at about 1590 million years confirms that Vulcan belongs to the same “family” of deposits as Olympic Dam, Prominent Hill and Carrapateena.

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Figure 1: Plan showing Tasman’s main exploration tenements in the Lake Torrens Project. Also shown are the Olympic Dam Deposit and other nearby IOCGU prospects, including Tasman’s Vulcan prospect.

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Lucas Hill (100% Tasman)

Tasman completed two deep diamond drill holes at its wholly owned Lucas Hill Project located 100km south of Olympic Dam in South Australia (Figure 2). Drilling was aimed at testing a discrete, gravity anomaly (Figure 3), apparently larger in area and of comparable strength to that over the Carrapateena deposit, 48km to the ENE. Geophysical modeling indicated that the likely source of the gravity target at Lucas Hill is a significant body of quite dense material, becoming more magnetic at depth. The modeled depth to this body was about 900 to 1000m.

A vertical hole (LHD001, 693977E 6530146N GDA94 Zone 53) was drilled initially, intersecting the basement deeper than anticipated at 1128m. Variable intensity sericite - chlorite -carbonate alteration was intersected in places down this hole, with associated weak copper sulphide (chalcopyrite) mineralization over a 0.2m interval. The hole was terminated at 1275m in relatively unaltered metasediments, interpreted to be part of the Wallaroo Group.

A second hole (LHD002) inclined at -75[o] to the SE was collared from the same location to follow up the alteration in the first hole, and intersected the basement at about the same RL, 230m further to the SE, closer to the centre of the interpreted highest density portion of the gravity model. More intense, sericite- chlorite - carbonate alteration in places overprinting earlier “red rock” alteration and obliterating the original metasediment host rock texture (refer Figures 4 to 6) was encountered in the lower portion of this hole. Copper sulphide (chalcopyrite) mineralization associated with pyrite and another sulphide mineral, probably arsenopyrite, was also observed over a short interval around 1320m. This hole was terminated at 1395m in intensely chlorite altered host rock.

The alteration observed in both holes is most likely part of a larger IOCGU[*] system although insufficient dense material (eg. hematite) was observed in these holes to explain the strength of the observed gravity response in the Lucas Hill area.

While the depth of the basement is significant, Tasman believes the presence of strong alteration and some mineralisation associated with a strong, as yet unexplained gravity anomaly, warrants further geophysical work and possible drill testing. Assay results should be available in four to six weeks.

Background:

Lucas Hill is located about 25km southeast of Woomera, and was identified on the basis of the following parameters:

• A discrete, probably basement-sourced gravity anomaly (Figure 3), apparently larger in size and of comparable strength to the Carrapateena deposit, 48km to the east northeast.

• An associated magnetic anomaly of comparable size.

• A prime regional location – within the highest priority, IOCGU Potential Zone 1 as defined by Geoscience Australia.

• Coincident and aligned along a major west northwest tectonic lineament (Figure 2) as originally defined during WMC’s exploration that led to the discovery of Olympic Dam in 1975.

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Figure 2: Tasman Lake Torrens and Lucas Hill Project Locations showing selected key historic tectonic lineaments, IOCGU deposits/prospects (yellow) and Lucas Hill gravity target.

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LHD001
LHD002
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Figure 3: Lucas Hill Project - Residual Gravity Image with inset of Carapateena Residual Gravity Image at same scale.

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Figure 4: Sericite -carbonate - hematite veins cross cutting and also partly replacing laminated Wallaroo Group? metasediments. Hole LHD002 1199m NQ2 core.

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Figure 5: Pervasive “red rock” and variably chlorite-sericite-carbonate altered Wallaroo Group? metasediments hosting chalcopyrite mineralization (yellow) together with pyrite and arsenopyrite? (silvery). Hole LHD002, 1320m NQ2 core.

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Figure 6: Breccia composed of strongly chlorite-sericite altered Wallaroo Group? metasediments with remnant “red rock” altered clasts. Hole LHD002 1387m NQ2 core.

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OTHER PROJECTS

Tasman has gold and base metal projects at Parkinson Dam and the Central Gawler Craton in South Australia (Figure 7).

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Figure 7: Location of Tasman Project Areas in South Australia

CORPORATE

Investment in Eden Energy Ltd (EDE)

Tasman has a 20.78% interest (62,375,727 shares) in alternative energy company Eden Energy Ltd (ASX: EDE), on a fully diluted basis as at 31[st] March 2012. (refer Eden Energy Ltd Quarterly Report for full details)

• Eden is continuing in the development of its carbon/hydrogen pyrolysis project

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

Investment in Fission Energy Ltd (FIS)

Tasman has a 19% interest (25,000,000 shares) in uranium explorer and potential nickelcobalt producer Fission Energy Ltd (ASX: FIS) as at 31[st] March 2012. (refer Fission Energy Ltd Quarterly Report for full details)

Mt Thirsty Nickel-Cobalt Project

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 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.

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Recent investigations of processing routes suggest that one option involving relatively low cost recovery of cobalt at the expense of some nickel recovery warrants further consideration. Test work is continuing.

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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 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Name of entity

TASMAN RESOURCES LTD

ABN 85 009 253 187

Quarter ended (“current quarter”) 31 March 2012

Consolidated statement of cash flows

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 March (9 months) $A’000
	10 (914) - - (239) - 9 - - -	101 (1,041) - - (837) - 31 - - -
	(1,134)	(1,746)
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 (carriedforward)	- - - - - - - - -	- (1,030) - - - - - - -
	-	(1,030)
	(1,134)	(2,776)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (broughtforward)	(1,134)	(2,776)
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	6 - - - - -	2,071 - - - - -
	6	2,071
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	(1,128) 1,237 -	(705) 814 -
	109	109

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
		132
		-
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. Bona-fide re-imbursement of expenses. Legal Fees were paid during the quarter to a firm of which Mr GH Solomon and Mr DH Solomonare partners.

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

• 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

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
	-	-
	-	-

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	250
	-
	-
	200
Total	450

• If no funding is received from operational activities, a fund raising will be undertaken by one means or another.

Reconciliation of cash

Reconciliation of cash	Reconciliation of cash
Reconciliation of cash at the end of the quarter (as		Current quarter		Previous quarter
shown	in the consolidated statement of cash	$A’000		$A’000
flows)	to the related items in the accounts is as
follows.
5.1	Cash on hand and at bank		109		814
5.2	Deposits at call		-		-
5.3	Bank overdraft		-		-
5.4	Other (provide details)		-		-
	Total: cash at end of quarter(item 1.22)		109		814

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 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	224,523,193	224,523,193
	59,886	59,886	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
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	22,305,645 1,574,804 2,000,000 3,000,000 401,606 500,000 500,000	22,305,645 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
	59,886	59,886	10 cents	30 June 2012
7.11 Debentures (totals only)
7.12 Unsecured notes (totals only)

• See chapter 19 for defined terms.

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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:

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Date: 19 April 2012

Company secretary

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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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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• See chapter 19 for defined terms.

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Appendix 5B Page 5