IMAGE RESOURCES NL — AGM Information 2016

Nov 29, 2016

Boonanarring Mineral Sands Project: The next cab off the mineral sands rank?

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Annual General Meeting of Shareholders 30 November 2016; 1:00 pm The Celtic Club, 48 Ord Street West Perth WA 6005 Patrick Mutz Managing Director Image Resources NL ASX: IMA

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Forward Looking Statement

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Certain statements made in connection with this communication, including, without limitation, those concerning the economic outlook for the mining industry, expectations regarding prices, exploration or development costs and other operating results, growth prospects and the outlook of Image’s operations contain or comprise certain forward looking statements regarding Image’s operations, economic performance and financial condition. Although Image believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct.

Accordingly, results could differ materially from those set out in the forward looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes that could result from future acquisitions of new tenements, the risks and hazards inherent in the mining business (including industrial accidents, environmental hazards or geologically related conditions), changes in the regulatory environment and other government actions, risks inherent in the ownership, exploration and operation of or investment in mining properties, fluctuations in prices and exchange rates and business and operations risks management, as well as generally those additional factors set forth in our periodic filings with ASX. Image undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.

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Forward Looking Statement Company Focus and Target

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Image Resources NL is an Australian based advanced mineral sands exploration company with extensive tenement holdings hosting substantial heavy mineral resources and ore reserves in the North Perth Basin in Western Australia.

Image is actively focused on the development of its 100% owned high-grade, high-zircon flagship Boonanarring and Atlas projects and is targeting transitioning to mineral sands mining and production of zircon, rutile, leucoxene and rutile in early 2018.

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Forward Looking Statement Recent Developments

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Image, as a company is not new ;  Listed on ASX in 2002 and continues to trade as IMA;  Advanced mineral sands explorer.

now has a new However, the company image.  Completion of Asset Sale and Purchase Agreement in June 2016;

• Emerging mineral sands producer.

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Forward Looking Statement Company Highlights

 LOCATION

• North Perth Basin in Western Australia; 60-150 km north of Perth.

• Proven mineral sands address; home of majors Iluka and Tronox.

• Infrastructure rich with paved roads, power, gas pipeline and water available to/on mining lease.

• Local communities and landowners experienced with and accepting of mineral sands mining.

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Forward Looking Statement Company Highlights

• LOCATION

 QUALITY RESOURCES & UPSIDE POTENTIAL

• High HM grade, high VHM, high zircon;

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Reserves and Resources

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High VHM and very high Zircon grade at Boonanarring

Probable Reserves	Ore (Mt)	HM (%)	Slimes (%)	VHM (%)	Zircon (%)	Rutile (%)	Leucoxene (%)		Ilmenite (%)
Boonanarring1	14.4	8.3	17.0	80	24	3	6		47
Atlas1	9.7	8.1	15.5	74	11	7	1		55
TOTAL	24.1	8.2	16.4	78	19	5	4		19
Resources	Ore (Mt)	HM (%)	Slimes (%)	VHM (%)	Zircon (%)	Rutile (%)		Leucoxene (%)	Ilmenite (%)
Boonanarring1	21.5	8.3	16.2	79	21	4		6	49
Atlas1	10.8	7.9	15.7	76	10	8		5	52
Red Gully1	6.0	7.7	11.2	90	12	3		8	66
Gingin North1	2.4	5.5	15.0	77	6	3		10	57
Cooljarloo2	191.6	1.9	17.8	85	10	1		2	71
Chandala/ Gingin1	8.1	6.1	7.3	89	8	5		10	65
Cooljarloo North1	15.2	5.4	18.8	81	10	4		1	67
Bidaminna1	44.6	3.0	3.6	96	5	1		7	82
TOTAL	300.2	3.2	15.1	86	10	2		3	70

1 = 2.5% cut-off. 2 = 1.0% cut-off.

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Boonanarring Project Comparison

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High HM and Zircon grades relative to peers

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HM grade Zircon grade VHM
HM Grade (%) Zircon (%)
14.0% 25%
Image Resources (IMA) VHM Grade Zircon %
Boonanarring project
12.0%
21.5Mt @ 8.3% HM
and up to 24.5% Zircon 20%
10.0%
15%
8.0%
6.0%
10%
H
4.0%
5%
2.0%
0.0% 0%
SFX IMA WTR MRC BSE AZC MZI MDL
IMAGE Tronox (Jurien) ILU (Perth Basin) Murray Zircon Tronox (Dongara) Tronox (Cooljarloo)
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Source: Released on 4[th] May 2015 – Morgan’s Research Note

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Forward Looking Statement Company Highlights

 LOCATION

• QUALITY RESOURCES & UPSIDE POTENTIAL

• High HM grade, high VHM, high zircon;

• 900 km[2] with significant potential for extensions of known resources and discovery of new deposits;

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Boonanarring Deposit Extensions

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Seeking to extend mine life beyond 10 years – 60km prospective target zone

Boonanarring North

• Targeting potential 5.2km extension; drilling1.3km north of the deposit includes14m @ 18% HM & 8m @ 22% HM; 50 drill holes planned (subject to access).

Boonanarring to Gingin North

• Potential for 13km within 3 separate strands parallel and south of the Boonanarring deposit.

Gingin

• Targeting a further 1.3-1.5mt HM @ 5-6% HM; 7km strand; previous drilling includes 6m @ 10% HM from 27m; 13 additional drill holes planned to follow up results along 7km strand.

Red Gully

• Infill drilling proposed to increase grades and upgrade resource category in the southern half of deposit. Zircon grades elevated at 12-15%. The deposit is shallow starting at 15 meters.

Note: The potential quantity and grade of the Exploration Targets are conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

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Forward Looking Statement Company Highlights

• LOCATION

• QUALITY RESOURCES & UPSIDE POTENTIAL

• High HM grade, high VHM, high zircon;

• 900 km[2] with significant potential for extensions of known resources and discovery of new deposits;

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Forward Looking Statement Company Highlights

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 LOCATION

 QUALITY RESOURCES & UPSIDE POTENTIAL

 PROJECT APPROVALS

 Mining Lease & General Purpose Lease

 Part IV, Environmental Protection Act (WA) – PER

 EPBC Act (Commonwealth)

 Landowner agreements

 Groundwater Abstraction Licence (Dept of Water and Dept Parks & Wildlife) Project Management Plan/Radiation Management Plan 50% Complete Works Approval (EPA)

Mining Proposal (includes Mine Closure Plan)

Forward Looking Statement Company Highlights

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 LOCATION

• QUALITY RESOURCES & UPSIDE POTENTIAL

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Project Capital Cost (A$million)
PROJECT APPROVALS
FEASIBILITY STUDY $500
Startup capex
 Original FS announced
$400
16 July 2013 with
$145m NPV and only $300
$64m capital;
$200
 Study is currently
being updated.
$100
$0
Boonanarring Keysbrook D3 Toliara Cyclone Thunderbird Kwale Grande Cote
IMA MZI Sierra Rutile WTR DRX SFX BSE MDL
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 PROJECT APPROVALS

• FEASIBILITY STUDY

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Australia’s next mineral sands miner?

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Key Growth and Transition Milestone

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Effective 8 June 2016

Asset Sale and Purchase Agreement transaction completed with

Murray Zircon Pty Ltd and Guangdong Orient Zirconic Ind Sci & Tech Co., Ltd

 Completion of this transaction allows Image to tick the boxes on a number of critical project development issues and focus squarely on the path to production.

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The NEW Image Resources

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 CAPITAL EQUIPMENT

• All plant & equipment and internal infrastructure items necessary to construct a complete heavy mineral recovery operation; from slurry unit in the mine to wet concentration plant for HMC.

• SHORT TERM FUNDS

• $4M Short-Term loan funds with very favourable terms;

• OFFTAKE AGREEMENT

 Contracted off-take agreement with Orient Zirconic for 90% of zircon at market price (~70% of revenue);

• WORKING CAPITAL

 2ndary working capital loan funds of US$8M following First Production;

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The NEW Image

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 MINERAL SEPARATION SERVICES

• Access to mineral separation services in China;

• Purchase option for a Mineral Separation Plant in SA; and

• Local toll-processing option;

• CORNERSTONE SHAREHOLDER

 New cornerstone shareholder with 20 years zircon processing and global zirconium products sales;

• INDEPENDENT CHAIRMAN

 New very experienced independent Chairman;

• NEW DIRECTORS WITH PRODUCTION EXPERIENCE

 3 new Board members including Managing Director, all with mineral sands operations experience;

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The NEW Image

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 EXPERIENCED MANAGEMENT

 Project development and operations experienced senior management team;

 MINORITY SHAREHOLDER PROTECTIONS

• Contracted protections for two years;

• No interference with 3 incumbent Directors or replacements;

• No vote on merger related issues;

• Mandatory equity raising support for 1 year; and

• Additional board seat for shareholder with >10% shareholding.

 LOW CAPITAL COSTS

• Significantly lower remaining capital requirements with acquisition of wet plant and equipment.

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Plant and Equipment (select examples)

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Wet Concentration Plant

Mineral Separation Plant (Option)

Slurry Booster Stations & pipelines

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Power poles, wires & transformers

HMC Stackers

Mine Slurry Unit

Plus much, much more.

Current Principal Focus

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Bankable Feasibility Study

 Re-assess Mineral Resources in accordance with JORC 2012 ;

 Incorporate additional drill results completed since 2013;

Preliminary results >50% more tonnes

 Conduct geotechnical assessment to optimise pit wall slopes; Completed

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• Optimise mine design based on new resource model, geotechnical analysis and best practices for cost control;

• Update economic model and capital requirements to include:

• newly acquired capital equipment ;

• innovative tailings management practices;

• current favourable pricing for labour, fuel, energy, contractor and mining services rates ;

• more favourable foreign exchange rate ; and

• .

• Updated commodity prices

Well advanced

Boonanarring Project Development Schedule 21

Targeting first production in early 2018*

					2016	2016	2016	2016	2016	2016						2017	2017									2018	2018	2018	2018
	Apr	May	Jun		Jul	Aug	Sep	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun	Jul
Finalisation of Transaction
Complete BFS
Project Approvals
HMC Toll Processing Agreement
Project Financing
WCP & Equipment Relocation
Construction
Pre-Stripping
Ore Mining					Transaction
Plant Commissioning					~~Completed~~ 8 June
Production

• Conditional on feasibility results

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Bidaminna Project

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Bidaminna Park (E70/3298), Bidaminna North (E70/2844), Mimegarra (E70/4779)

• Potential high volume dredge mining target; mineralisation 15-35 metres thick and located below water table; low slimes (34%); strip ratio <1 and coarse grain size (105 microns);

• Atypically high leucoxene grades ranging 27-65% of THM ; increasing to the north;

• higher in-situ value per tonne or ore compared to typical ilmeniterich assemblage;

• Historic Mineral Resources 5.5km in length; 44Mt at 3% THM

• Exploration Target to the north could add another 100-110Mt at 3-4% THM; potential to contain 3-4Mt of HM;

• A further 14km of potential mineralisation estent to the north identified by preliminary magnetic surveys.

• Detailed ground magnetics surveys currently underway to determine further extents of mineralisation in advance of likely follow-on drilling programme.

Note: The potential quantity and grade of the Exploration Targets are conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

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Tronox Royalty

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Potential near term royalty cash flows from Mullering

Royalty deal and extension potential

• A$50,000 cash payment has been received;

• Sliding-scale royalty:

• at 2.5% average grade the royalty will be 1.25%

• at 3.0% average grade the royalty will be 2.50%

• at 3.5% average grade the royalty will be 3.75%

• at 4.0% average grade the royalty will be 5.00%

Arrangement is first of possible future deals with Tronox or others based on extensive dredge potential zone within Image’s tenements in the vicinity of Tronox’s dredge operations.

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Image Corporate SnapshotCorporate Snapshot

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Diverse and experienced Board and Management

Share Code: IMA Share Price: A$0.05 12 Month Price Range: A$0.05 – 0.11 Shares on Issue: 379.5m Market Cap: A$19m Cash on hand: A$1.9m Debt (short-term): A$4.0m Top 20 Shareholders: 68%**

Board of Directors

Bob Besley – Independent Chairman Patrick Mutz – Managing Director Chaodian Chen - Non-Executive Director Aaron Chong Veoy Soo – Non-Executive Dir George Sakalidis – Executive Director Peter Thomas – Non-Executive Director Fei (Eddy) Wu – Non-Executive Director

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Key Management

Patrick Mutz – CEO

George Sakalidis – Exploration Director Collis Thorp – Chief Development Officer John McEvoy – Chief Financial Officer Todd Colton – General Manager – Dev.

* - as at 24 November 2016

* * - as at 31 October 2016

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For further information Contact

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Patrick Mutz Managing Director Image Resources NL

info@imageres.com.au Office: +61 8 9485 2410

Ground Floor, 23 Ventnor Avenue West Perth, WA 6005 PO Box 469, West Perth, WA 6872 www.imageres.com.au