Tasman Resources : Second Quarter Activities and Cashflow Reports

ASX QUARTERLY REPORT for the Period Ended 31st December 2016 SUMMARY EDEN INNOVATIONS LTD (ASX Code: EDE)

• Tasman through its wholly owned subsidiary, Noble Energy Pty Ltd, holds 493,198,298 fully paid shares in Eden (representing 39.28% of the total issued capital of Eden) and 101,356,779 EDEO options representing 47.58% of the issued EDEO options. Based on the closing prices on the ASX of EDE ($0.31) and EDEO ($0.29) on 30 January 2017, this investment had a market value of $182 million, which is equivalent to 47.8 cents for every currently issued TAS share.
• Highlights of Eden's progress during the quarter are set out in the details following. PARKINSON DAM EPITHERMAL GOLD-SILVER PROJECT
• No further exploration activities were conducted at this project. LAKE TORRENS COPPER-URANIUM-GOLD PROJECT
• Between June and November 2016, a detailed review by a major international mining company took place but in November 2016 Tasman was advised that they did not wish to proceed a possible joint venture.
• No further exploration activities were conducted at this project.

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Website: www.tasmanresources.com.au

DETAILS INVESTMENT IN EDEN INNOVATIONS LTD (ASX Code: EDE)

Tasman through its wholly owned subsidiary, Noble Energy Pty Ltd, holds 493,198,298 fully paid shares in Eden (representing 39.28% of the total issued capital of Eden) and 101,356,779 EDEO options representing 47.58% of the issued EDEO options. Based on the closing prices on the ASX of EDE ($0.31) and EDEO ($0.29) on 30 January 2017, this investment had a market value of

$182 million, which is equivalent to 47.8 cents for every currently issued TAS share.

The board of Tasman believes there is potentially significant further 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 and options as a long term investment.

The Highlights of progress made by Eden during the quarter are as follows:

EdenCrete®

• Eden received and shipped its first European order for 1,000 gallons of EdenCrete®, worth US$25,000.

• By the end of the quarter, more than 30 commercial trials had been commenced or were scheduled to occur in 2017 across USA for many possible applications, including:

  • Pervious concrete Pre-cast/ pre-stressed bridge beams

  • Other pre-cast applications

  • Ready mix concrete

  • Low shrinkage concrete suitable for dams

  • Highly abrasion resistant concrete

  • Shotcrete

• Additional trials for a range of possible customers and applications are expected to continue to occur on an ongoing basis as an integral part of the process of securing new customers.

• ASTM C494 "S" Test Programme for EdenCrete®, which over a 12 month period measured the changes in performance of a standard concrete mix when EdenCrete® was added, has been successfully completed. The final compressive strength test of concrete continued the earlier trend and showed an impressive 37% increase in compressive strength at 365 days, compared with identical concrete of the same age without EdenCrete®.

• Progress on first GDOT and MARTA commercial tenders including provisions enabling EdenCrete® to be used.

• Applications made for approval of EdenCrete® by a considerable number of other US State Departments of Transport, and also under NTPEP.

• Installation of on-site bulk EdenCrete® storage / dispensing equipment in Denver ready mix plant completed.

• First commercial project for the floor of a warehouse, completed in November 2016.

• The expansion of Eden's Colorado based production capability of EdenCrete® to a targeted maximum of 2-2.4 million gallons per year is now expected to be operational late in March or early-mid April 2017.

• Eden entered into a contract to purchase an adjoining property to its existing Colorado plant for US$1.525 million secure and the additional space to facilitate further increasing the EdenCrete® production capacity in Colorado. This purchase has now been completed since the end of the quarter.

• The election in November 2016 of US President-elect Donald Trump and the approval by Georgia of increases in sales taxes to fund improvements to roads and upgrade of the bus and rail system, significantly raise US infrastructure market prospects for EdenCrete®.

• Purchase of Colorado Production Facility Completed.

• Work commenced on clearing the access road to the proposed Augusta, Georgia EdenCrete® plant.

  Optiblend™ Dual Fuel

• Two orders received in the USA during the quarter for two units (approx. US$50,000.)

  Corporate

• Eden completed the second tranche, A$6 million, of the placement of A$15 million additional capital through Bell Potter, with the majority to 4 Australian institutions.

• Re-branding of "Eden Energy" to "Eden Innovations", to reflect the future focus of the Group, approved at the Annual General Meeting on 28 October 2016.

Please refer to Eden Innovations Ltd (ASX Code: EDE) Quarterly Report published on 30 January 2017 for full details.

PARKINSON DAM GOLD-SILVER EPITHERMAL PROJECT, SOUTH AUSTRALIA, EL 5602 (TASMAN 100%)

No further field exploration or drilling was conducted at Corrie Dam Prospect during the quarter (Figure 1). Previous air core drilling at the prospect has intersected anomalous lead, silver and copper mineralisation at shallow depths, including 25m downhole from 60m averaging 0.36% Pb and 1.4g/t Ag in hole CDAC015 and 15m down hole from 55m at 6.6g/t Ag, 0.17% Cu and 0.11% Pb in drill hole CDAC 030 (true widths are not known). These results were reported previously to the ASX on 8th April 2015 and on 21 May 2015.

In light of the current modest upturn in commodity prices, further exploration including a possible IP geophysical survey over the area containing the earlier gold-silver discoveries at Parkinson Dam, including drill hole PD 63 (see Figure 1), and /or drilling at Corrie Dam including possible deeper RC holes, is currently being considered.

EL 5602

Figure 1: Plan of Tasman's Parkinson Dam Project (EL 5602) showing area of previously defined mineralisation and Corrie Dam Prospect adjacent to the Gawler Range Volcanics (GDA 94; Zone 53).

LAKE TORRENS PROJECT, SOUTH AUSTRALIA (TASMAN 100%)

The Lake Torrens IOCGU Project is located approximately 15km north of Olympic Dam, and has been the focus of a significant exploration effort by Tasman over a number of years. During the Quarter, no further field exploration was conducted on this Project.

Between June and November 2016, a detailed 5 month review by a major international mining company took place but in November 2016 Tasman was advised that they did not wish to proceed a possible joint venture.

Tasman is continuing to actively seek a suitable joint venture partner to continue the exploration on this deep, but very prospective project.

In light of the current modest upturn in commodity prices, Tasman is currently reviewing the prospect of conducting one or more geophysical surveys, gravity focused, in a very anomalous and prospective area between Vulcan prospect and the similar style copper-uranium-gold discovery at Titan, about 16km to the northwest.