TASMAN RESOURCES LTD — Interim / Quarterly Report 2021

Oct 27, 2021

==> picture [174 x 67] intentionally omitted <==

ASX QUARTERLY REPORT for the Period Ended 30[th] September 2021

HIGHLIGHTS

SOUTH AUSTRALIAN EXPLORATION PROJECTS

Lake Torrens IOCG* Project - EL6416 (Fortescue Metals Group Ltd (Fortescue) earning 51%)

• Vulcan South gravity targets defined

• Preparations commenced for a drilling program to test the Vulcan South target area with several wedges off previous Tasman drill holes

• Iron oxide-copper-gold.

MINERAL EXPLORATION

LAKE TORRENS PROJECTS, SOUTH AUSTRALIA

Lake Torrens IOCG Project – EL 6416 (Tasman 100%, Fortescue earning 51%).

Fortescue Agreement

Tasman Resources Ltd (“Tasman”) and FMG Resources Pty Ltd, a subsidiary of Fortescue Metals Group Ltd (ASX: FMG “Fortescue”) executed a Farm-in and Joint Venture Agreement (“Agreement”) over Tasman’s wholly owned Exploration Licence 6416 in June 2019 (Refer to TAS:ASX Announcement 14 June 2019).

EL6416 (refer Figure 1) hosts the Vulcan, Vulcan West and Titan iron oxide-copper-gold (“IOCG”) prospects, approximately 30km north of BHP’s Olympic Dam mine in South Australia.

==> picture [256 x 186] intentionally omitted <==

Figure 1: EL6416 showing Tasman IOCG prospects.

Level 15, 197 St Georges Terrace, Perth, Western Australia 6000 Telephone: (08) 9282 5889 Website: www.tasmanresources.com.au

Report for September Quarter 2021

==> picture [65 x 25] intentionally omitted <==

Work Carried Out During the Quarter by Fortescue

Drilling Program

During the quarter Fortescue began preparations for a new drilling program over the Vulcan South target area (refer Figure 2). This included technical reviews, land access negotiations and submission of a program for environmental protection and rehabilitation. Pending final stakeholders approvals, Fortescue proposes to re-enter and wedge off previous Tasman drill collars VUD011 and VUD012 followed by a cycle of navigational drilling across the major southern gravity targets. Each wedge hole will commence a short distance above the basement contact and is intended to traverse the southern gravity target and test the new gravity features arising from Fortescue’s infill gravity surveying, shown within the white ellipse in Figure 2 below.

Tasman has previously reported wide zones of copper mineralisation in both VUD011 and 012 as shown in Table 1, including 517m downhole at 0.15% Cu in VUD012 from 820m. The holes were also anomalous in gold, rare earth elements and palladium.

The drilling program is scheduled to start during the forthcoming quarter, initially with two wedges drilled to the south and west off VUD011 at around 700m depth and will be followed by a single wedge drilled to the west of VUD012 at around 750m depth.

==> picture [416 x 373] intentionally omitted <==

----- Start of picture text -----

Vulcan South
Target Area
----- End of picture text -----

Figure 2: Vulcan Prospect, new Fortescue residual gravity image showing location of Vulcan South target area, recent Fortescue holes VUD0018 & VUD0019 and previous Tasman drill holes. The thick black lines on the drill hole traces are the surface projections of basement intercepts (Grid GDA 94, Z53).

2

Report for September Quarter 2021

==> picture [65 x 25] intentionally omitted <==

Table 1: Previously Reported Assay Results from Holes VUD011 and 012.

Hole No	From	Interval*	Cu %	Au g/t	Ag g/t	U3O8 kg/t	Fe %
VUD011	1027	137	0.14	0.18	2	0.08	24
includes	1027	18	0.25	0.26	4	0.03	34
	1094	12	0.20	0.24	4	0.17	28
	1111	12	0.18	0.26	2	0.19	27
	1128	36	0.23	0.10	2	0.04	21
VUD12	819.7	517.7	0.15	0.04	0.1	0.03	11
includes	819.7	11.3	0.38	0.22	2	0.16	29
	916	77	0.26	0.05	1	0.03	17
	1068	85	0.22	0.06	0.5	0.03	1

* Down hole interval, true width not known. (These assay results were prepared and first disclosed under the JORC Code 2004. They have not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported).

Historical Exploration Data Review

During the quarter Fortescue continued the assessment of historic drill holes from the Titan, and Marathon prospects to further refine geological interpretations and vector toward mineralisation. Drill core from earlier Vulcan Prospect drilling is continually being reinterpreted and compared with the recently drilled Vulcan dill core.

Geophysics

Analysis and reinterpretation of pre-existing geophysical data including gravity, IP, Seismic, and AMT surveys is ongoing. Contractors used for data collection have been contacted where necessary to access missing raw data. Preliminary target generation and geophysical modelling from the datasets is ongoing across the prospect.

Geochemistry

Fortescue has continued conducting a geochemical statistical vectoring analysis of existing assay data to quantify the copper-mineralisation potential of different areas of the Vulcan IOCG system. The results of these analyses are being compared to the HyLogger hyperspectral scanning results and iron-oxide speciation results to produce a three-dimensional vector toward prospective zones of the Vulcan IOCG system.

All Vulcan drill holes have been HyLogged, including the recently drilled VUD0018 and VUD0019. Internal analysis of HyLogged holes is ongoing.

Program for the December Quarter

Work planned for the December quarter by Fortescue includes:

• Continued geophysical modelling, interpretations, and target generation

• Continued HyLogger interpretations and modelling for target generation

• Continued target generation over the tenure at both the recently drilled Vulcan North area, Vulcan South and other target areas

• Diamond drilling at Vulcan South target area pending final approval from all stakeholders

3

Report for September Quarter 2021

==> picture [65 x 25] intentionally omitted <==

INVESTMENT IN EDEN INNOVATIONS LTD (ASX Code: EDE)

Tasman through its wholly owned subsidiary, Noble Energy Pty Ltd, holds 684,534,029 fully paid shares in Eden (representing 31.24% of the total issued capital of Eden) and 26,328,233 EDEO options in Eden.

The board of Tasman believes there is potentially significant upside in its investment in Eden and as a major part of Tasman’s investment strategy it intends to continue to hold the Eden shares as a long term investment.

	Sales	Sales	Sales
	30 September	30 September	%
	2021	2020	Change
	A$000’s	A$000’s
EdenCrete®	470	405	+16%
OptiBlend®	998	348	+187%
Total forQ1	1,468	753	+95%

HIGHLIGHTS

• Growing interest in Eden’s low CO2 emissions technologies and products.

• • Encouraging sales growth across all products.

Further details of progress made by Eden during the quarter are included in the Eden quarterly activities report.

INVESTMENT IN CONICO LTD (ASX Code: CNJ)

Tasman holds 99,302,539 fully paid shares and 12,500,000 unlisted 7 cent options in Conico Ltd (“Conico”), representing 9.93% of the total issued capital of Conico.

The highlights of progress made by Conico during the quarter are included in the Conico quarterly activities report.

Greg Solomon Executive Chairman

Disclaimer

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.

It should not be assumed that the reported Exploration Results will result, with further exploration, in the definition of a Mineral Resource.

Competent Persons Statements

The information in this quarterly report that relates to Exploration Results is based on and fairly represents information compiled by Michael J. Glasson, a Competent Person who is a member of the Australian Institute of Geoscientists. Mr Glasson is a part time employee of the company. Mr Glasson is a share and option holder. .Mr Glasson has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Glasson consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

4

==> picture [65 x 25] intentionally omitted <==

Report for September Quarter 2021

Exploration

Exploration expenditure for the quarter was $15k and was mainly related to the recently completed drilling program at Pernatty. There were no mining production or development activities during the quarter.

Description of Payments to related parties of the entity and their associates (LR 5.3.5)

1. Management Fees, as per agreement, were paid during the quarter to a company of which Mr GH Solomon and Mr DH Solomon are directors.

2. Director Fees and superannuation.

5

Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity	Name of entity
Tasman Resources Ltd
ABN		Quarter ended (“current	quarter”)
85 009 253 187		30 September 2021
Consolidated statement of cash flows		Current quarter	Year to date (3
		$A’000	months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers	2	2
1.2	Payments for
	(a) exploration & evaluation	(15)	(15)
	(b) development	-	-
	(c) production	-	-
	(d) staff costs	(63)	(63)
	(e) administration and corporate costs	(84)	(84)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	-	-
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operating	(160)	(160)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a) entities	-	-
	(b) tenements	-	-
	(c) property, plant and equipment	-	-
	(d) exploration & evaluation	-	-
	(e) investments	-	-
	(f) other non-current assets	-	-

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 1

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date (3	Year to date (3
		$A’000	months)
			$A’000
2.2	Proceeds from the disposal of:
	(a) entities	-		-
	(b) tenements	-		-
	(c) property, plant and equipment	-		-
	(d) investments	-		-
	(e) other non-current assets	-		-
2.3	Cash flows from loans to other entities	-		-
2.4	Dividends received (see note 3)	-		-
2.5	Other (Eden)	(1,298)	(1,298)
2.6	Net cash from / (used in) investing	(1,298)	(1,298)
	activities
2.5 –	Relates to net cashflows of Eden Innovations Ltd, an ASX listed company of which Tasman has a			31.24%
	interest in and is consolidated into Tasman.
3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities
	(excluding convertible debt securities)	-		-
3.2	Proceeds from issue of convertible debt	-		-
	securities
3.3	Proceeds from exercise of options	-		-
3.4	Transaction costs related to issues of equity	-		-
	securities or convertible debt securities
3.5	Proceeds from borrowings	-		-
3.6	Repayment of borrowings	-		-
3.7	Transaction costs related to loans and	-		-
	borrowings
3.8	Dividends paid	-		-
3.9	Other (provide details if material)	-		-
3.10	Net cash from / (used in) financing	-		-
	activities
4.	Net increase / (decrease) in cash and
	cash equivalents for the period
4.1	Cash and cash equivalents at beginning of	6,011		6,011
	period
4.2	Net cash from / (used in) operating	(160)		(160)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	(1,298)	(1,298)
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	-		-
	(item 3.10 above)

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 2

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date (3
		$A’000	months)
			$A’000
4.5	Effect of movement in exchange rates on	-	-
	cash held
4.6	Cash and cash equivalents at end of	4,553	4,553
	period
5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A’000	$A’000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	2,518	3,836
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (held by Eden Innovations Ltd)	2,035	2,175
5.5	Cash and cash equivalents at end of	4,553	6,011
	quarter (should equal item 4.6 above)

• 5.4 – Relates to cash held by Eden Innovations Ltd, an ASX listed company of which Tasman has a 31.24% interest in and is consolidated into Tasman for accounting purposes. Tasman does not have access to cash held by Eden Innovations Ltd.

6.	Payments to related parties of the entity and their	Current quarter
	associates	$A'000
6.1	Aggregate amount of payments to related parties and their	112
	associates included in item 1
6.2	Aggregate amount of payments to related parties and their	-
	associates included in item 2

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.

6.1

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 and superannuation paid during the period.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 3

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

7.	Financing facilities Total facility	Amount drawn at
	Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. amount at quarter end $A’000	quarter end $A’000
7.1	Loan facilities -	-
7.2	Credit standby arrangements -	-
7.3	Other (please specify) -	-
7.4	Total financing facilities -	-
7.5	Unused financing facilities available at quarter end	-
7.6	Include in the box below a description of each facility above, including the lender, interest
	rate, maturity date and whether it is secured or unsecured. If any additional financing
	facilities have been entered into or are proposed to be entered into after quarter end,
	include a note providing details of those facilities as well.
8.	Estimated cash available for future operating activities	$A’000
8.1	Net cash from / (used in) operating activities (item 1.9)	(160)
8.2	(Payments for exploration & evaluation classified as investing	-
	activities) (item 2.1(d))
8.3	Total relevant outgoings (item 8.1 + item 8.2)	(160)
8.4	Cash and cash equivalents at quarter end (item 4.6)	2,518*
8.5	Unused finance facilities available at quarter end (item 7.5)	-
8.6	Total available funding (item 8.4 + item 8.5)	2,518*
8.7	Estimated quarters of funding available (item 8.6 divided by item 8.3)	15.7
	Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”.
	Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7.
	* - Excluding funds held by Eden Innovations Ltd
8.8	If item 8.7 is less than 2 quarters, please provide answers to the following questions:
	8.8.1 Does the entity expect that it will continue to have the current	level of net operating
	cash flows for the time being and, if not, why not?
	Answer:
	8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further
	cash to fund its operations and, if so, what are those steps and how likely does it
	believe that they will be successful?
	Answer:

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 4

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

• 8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

• Answer:

Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

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

Date: 28 October 2021

Authorised by: Aaron P Gates

(Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, 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. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 5