IMAGE RESOURCES NL — Capital/Financing Update 2003

Mar 9, 2003

IMAGE RESOURCES NL

ASX Release 28 February 2003

Floor, 35 Outram St West Perth WA 6005 PO Box 644 West Perth WA 6872 Telephone 08 9485 2410 Facsimile 08 9485 2840 info@imageres.com.au www.imageres.com.au

ABN 57 063 977 579

NEW TARGETS AT EMU LAKE NICKEL \$1.2 MILLION CASH ANTICIPATED FROM MAGNETIC MINERALS TAKEOVER

Emu Lake (Image 90%)

Scout rotary airblast (RAB) and air core drilling now cover 5km of favourable ultramafic contact, along strike from the nickel gossan zone, with intervals between drill lines ranging from 300m to 500m. Check sampling of the recently completed RAB drilling has confirmed anomalous nickel, copper, platinum and palladium values close to the ultramafic contact about 1,400m SSE of the gossan zone where high-grade nickel values of up to 7.5% Ni have been intersected by previous exploration. The anomalous values occur in weathered ultramafic in drillhole ELRB70 in the downhole interval from 7m to 39m with peak values of 0.37% Ni, 485ppm Cu, 38ppb Pt and 63ppb Pd. The contact is open along strike for 300m to the NNW and 400m to the SSE.

In addition, a previously drilled reverse circulation (RC) hole situated on the ultramafic contact 2,200m SSE of ELRB70 intersected anomalous values over the 28m interval between 26m and 54m, averaging 0.34% Ni, 450ppm Cu, 34ppb Pt and 81ppb Pd. The contact is open along strike for 150m to the NNW and 450m to the SSE.

Both of these anomalous intersections could indicate the presence of nickel sulphide mineralisation at depth below the weathered zone. It is proposed to follow up these potentially significant intercepts with further drilling in the next month.

At the nickel gossan zone, RC drillhole ELRC12A completed in late 2002 is interpreted to have intersected a felsic intrusion in the vicinity of the target EM anomaly. A downhole EM survey in this hole confirmed the presence of a nearby off-hole EM anomaly, however the size potential of the target is considered to have been reduced by the felsic intrusion and attention has now been focused on a strong off-hole anomaly at depth in nearby drillhole ELD01. This hole was terminated at a depth of 363m close to the ultramafic contact with a downhole EM survey indicating a strong conductor near the base of the hole, in the footwall of the ultramafic. It is proposed to deepen this diamond drillhole a further 50m into the footwall within the next two months and carry out a downhole EM survey to complete the definition of this target and to confirm that further drilling of this target is warranted.

Wilthorpe (Image 90%)

Prior to the proposed RAB drilling programme in March, an induced polarisation geophysical survey is being carried out over areas of known gold mineralisation, in order to better define the drilling targets. Early results have been encouraging and the survey is being extended over the geochemically anomalous gold zone in the unexplored southern part of the tenement.

Doolgunna (Image 51%, earning to 60%)

An induced polarisation survey is planned over the previously reported arsenic-gold anomaly. This geophysical survey is designed to improve the targeting of a drilling programme scheduled for next month.

Adam Range (Image 100%)

Interpretation of aeromagnetic data has identified several target areas favourable for gold mineralisation at this project situated 25km NNE of Laverton in the Laverton Tectonic Zone. A 700-hole geochemical vacuum drilling programme is currently in progress to sample these target areas. Ultramafic rocks with potential for nickel sulphide mineralisation are interpreted to occur within the project and are being tested for nickel.

Woongaring (Image 100%)

Reconnaissance geochemical sampling over poorly exposed greenstone sequences interpreted from aeromagnetics has returned anomalous gold values from this project situated 150km NNW of Southern Cross. Gold values up to 10ppb have been detected over several kilometers of strike, compared to background values of less than 1ppb. The sampling is very wide-spaced (500m $x$ 500m, or 1,000m $x$ 500m centres) and further sampling is being carried out to determine the significance of these anomalies in this poorly understood area.

Tennant Creek (Image 100%)

Eleven targets with potential for copper-gold mineralisation have been identified in the Epenarra and Murchison Range project areas situated 90km SE of Tennant Creek. Five of these targets are currently being investigated using gravity, ground magnetic and geochemical surveys.

Corporate

Image Resources holds a strategic stake of 2.29 million shares in mineral sands explorer Magnetic Minerals Limited. The takeover offer by mineral sands miner Ticor Resources Pty Ltd of 55 cents per share has now been declared unconditional. It is anticipated Image Resources will receive \$1.2 million for its holding in Magnetic Minerals within the next month.

PROJECT LOCATIONS

For more information on the company visit www.imageres.com.au

Please direct enquiries to: Roger Thomson Managing Director Phone (08) 9485 2410

George Sakalidis Executive Director - Exploration Phone (08) 9324 2810

The information on mineralisation contained in this report accurately reflects the information compiled by Mr Roger Thomson BSc, MAusIMM, who is a competent person (as defined by the Australasian Code of Reporting of Identified Mineral Resources and Ore Reserves) with relevant experience in relation to such mineralisation