BRR - Straight from the source

PRESENTATION BY JOHN BISHOP, MANAGING DIRECTOR OF ICON RESOURCES LIMITED (III)

“III - Excellence in Mining and Exploration Presentation”

http://www.brr.com.au/event/51302

MONDAY, SEPTEMBER 15, 2008, 10:30 AM.

            III          Good afternoon, ladies and gentlemen. Listening to Dan Denning’s excellent talk earlier on, it occurred to me that Icon Resources was certainly one of

10                    Dan’s good little Aussie stocks that you should be looking for if not the standout pick for the day. I would like to demonstrate to you why that is the case, the people, the project and the partners.

                        That is the disclaimer. We tried to make that interesting with one of our

15                    Tasmanian zinc projects.

                        The people. We, the three directors, and Darcy Milburn, our Exploration Manager, we are all here, all four of us. We are all trained as geologists. Some of us, you heard Steve Bartrop speak earlier today, have gone on and

20                    included financial and market acumen in their portfolio. So you have got the people, some of them a little bit younger than me, some are a little bit older. We are doing geology. We are doing exploration because that is what we like to do. That is what we are good at. We have a great team.

25                    The other thing that Dan mentioned was that you should invest in a company that the net tangible value of the asset of the company is far in excess of the market capitalisation. Certainly, that is true of Icon Resources. We are around about the 20-cent mark; 18.5 on Friday. I think I can demonstrate to you that… if you come to our booth, we will certainly talk to you long and hard that

30                    our project is worth something at the order of at least $100 million, giving you 10-fold. There are about 50 million shares out, giving you a net tangible value of around about $2 on the share from around 20 cents.

                        What are our projects? They are all in Eastern Australia. Our lead project is

35                    Mt. Carbine, a tungsten mine which I am going to talk about most of all. But you will see from this slide that we are a diversified explorer. We have gold. Mt. Carbine tungsten, tungsten is one of Dan’s steel alloys. He did not mention tungsten specifically, but that is the use and it is put to its use for hardening steel so it gets that thick. I would like you to, as I keep going, think

40                    of the Dan (inaudible) (0:02:17) as we go through our projects. We have got a large holding. I am going to mainly talk about Mt. Carbine but very quickly on a few others.

                        The list there talks about some of the things that we are going to do with the

45                    other projects. But I will move along and quickly go to the northwest where we have a large land holding which covers IOCGU which is the Olympic dam style, the iron oxide, copper-gold, uranium. Burketown has got a near coincident gravity anomaly with it with that magnetic anomaly and that is very much an Olympic dam look-alike. That has just about got through it cultural heritage clearance, sacred site process. It is just about ready to do some geophysics. Leichhardt has been granted and that is also ready to go. In yellow, we have got a large holding of base metal zinc projects. You can see the Century mine down there in the bottom left-hand corner. Elizabeth Creek

5                      is JV’d with OZ Minerals, but the western side of Elizabeth Creek contains the Constance Range iron ore deposit. A couple of other companies own parts of the Constance Range. We are in the process now of putting that together to become Queensland’s premier iron ore producer. That is a little bit down the track.

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                        Come a little bit further south into Central Queensland and there we have got a VMS deposit of a reasonable grade. It is around about 2.3% copper equivalent. If we can double the tonnage, we will have a small mine, we believe, of about 4 million to 5 million tonnes and we think that is readily

15                    achievable. Again, that is ready for some more geophysics as we speak.

                        Come further south, just south of the border, we have got quite a large holding in the Peel Fault, mainly gold but also some nickel and PGE and even if you will some diamonds, but we are concentrating on the gold. The little

20                    yellow dots in that diagram are the old gold workings in the area. Because everyone seems to think all of the gold in Australia is in WA, it has had practically no exploration whatsoever. That is one of Icon’s… We really have two philosophies for picking up ground. One is underexplored areas of known mineralisation and the other one is conceptual. I just talked about Burketown.

25                    That is a conceptual play. Here you have got a large land holding of very little looked at old gold deposit. There is a tonne of gold that has come out of the one… Probably our prime project in Peel is Crow King. It has had a tonne of gold out of it. It has had a little bit of couple of holes put in it in the 1980s and that is it. We have done a lot of geochemistry. We have done a lot of

30                    geophysics. It is another target ready to go.

                        Come a little bit further south to Central New South Wales, we have got a very large tin project and that shows a large gravity anomaly with some holes.

35                    I better move onto the main one before I run out of time, which is Mt. Carbine Tungsten Mine. This was one of Australia’s largest, certainly moved the most dirt in the 1970s and 1980s. It was opened by the Roach Brothers, and along with just about all of the other tungsten mines in the whole of the western world, it closed down in the mid 1980s due to flooding of Chinese tungsten.

40                    We have got the rights for 100% of the deposit. At the time of closure, it was about to go underground to investigate the resource.

                        Why is it such a good deposit? This shows we have a mine lease. It is a granted mine lease with about 14 years to run. It has got a sealed road. It is

45                    the Atherton-Cooktown sealed road. It has got a high voltage line next to the road. The road and the power line run through the lease. It has got a low voltage off-take. It has got an inferred JORC resource. So it sticks to all of those boxes. On that point, it has got a net present value of the order of $100 million, come to the booth and we will talk about it, giving a net value of around about $2 a share.

                        We got a three-stage development project. Firstly is to develop the tailings.

5                      This will give us a quick entry. We hope to be producing by the end of next year and that will be a low CAPEX, around about $6 million to $7 million to re-treat the old tailings. While we are doing that, we will dewater the open cut, which you see in the bottom of the slide there, and access the 1 million to 3 million tonnes of depending on whether you go into the underground resource

10                    or not. Also, while we are doing that… Can I go back one, please? Is it possible? The yellow dots that you can see on the northern part of the lease there are the old workings. Around about the turn of the last century, people were just working it near surface. There has been practically no drilling along any of the area away from the open cut. So it really is an exciting exploration

15                    play to develop. Most of the known resources below the open cut is an underground mine. Nobody knows anything about what is underneath the yellow dots. There are also yellow dots to the north out of our mine lease and to the southeast, which is held by Kangaroo Metals and we are in discussion with them to joint venture.

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                        So that is our strategy. To get in there by the end of next year. That is a picture of the tailings. What we have done already is we have got a project manager, a certified Queensland mine manager, who is working. We have taken bulk samples from the tailings. That picture there is the grade times the

25                    thickness of the tailings, and we have taken a number of bulk samples to see which is the best way to treat them, whether we go for a larger amount with a lower grade or a smaller amount with a high grade, etc. That is in progress now. We have done some preliminary flow sheet processes and costing.

30                    That is the two-and-a-half-year time development. We think we will get going by the end of next year. We will mine the tailings for about a year to a year-and-a-half, during which time we will finalise the rest of the plant so that by mid 2010 we start mining the open cut and we will have full plant in position. Projection is around about 15 million net on a 10-year life.

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                        Tungsten is a very little known element. It is used in steel hardening. That is the price. It came up about four-fold four or five years ago. The Chinese owned about 60% of it. There is quite a concern amongst non-Chinese off-takers to secure a non-Chinese supply. The Chinese have actually just

40                    declared it as a strategic mineral and put an export tax on it. The Chinese themselves are seeking non-Chinese sources. For example, (inaudible) (0:09:39) has just gone into King Island Scheelite announced last week.

                        That is its uses. That is a picture of a drill bit for… one of the common uses. I

45                    used to have a picture of golf clubs up there, if you are an expensive golfer. Because of the high density -- the metal has got the same density as gold.

                        That is it. I am finished. Please come and see us at the booth.

PRESENTATION CONCLUDED

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