IMAGE RESOURCES NL — Capital/Financing Update 2004

Dec 19, 2004

ASX Release 17 December 2004 ASX code: IMA

IMAGE RESOURCES NL

WOONGARING NICKEL-COPPER

ANOMALIES

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

As recently announced, Image Resources completed a 7,000m RAB drilling programme to test a 10km-long corridor of anomalous soil geochemistry at its Woongaring project situated 140km NW of Southern Cross. The drilling encountered a sequence of ultramafic, mafic and granitic rocks beneath transported cover, confirming the presence of a previously unrecognized soil covered greenstone belt which potentially extends over a 30km strike length.

Composite sampling from this 100m x 500m wide-spaced 171-hole scout programme identified two zones of coincident elevated nickel and copper values associated with ultramafic rocks interpreted from the drill data and from ground and airborne magnetics.

The northern nickel anomaly includes peak intercepts of 4m at 0.77% Ni and 138ppm Cu from 8m hole in WGRB-01 and 6m at 0.23% Ni and 277ppm Cu from 18m in hole WGRB-32. These holes are 500m apart along strike and situated about 5km north of the southern nickel anomaly with a peak intercept of 4m at 0.19% Ni and 142ppm Cu from 18m in hole WGRB-94. The coincidence of elevated nickel and copper values in weathered ultramafic rocks suggests a potential for nickel sulphides, however the full significance of these results is yet to be determined.

Image has been sufficiently encouraged by the results to apply for a further 330sg km of tenements covering other interpreted ultramatic sequences in the district, increasing the Woongaring project to 750sg km in area within the poorly exposed and under-explored Woongaring greenstone belt. Interpretation of magnetic data indicates that the ultramafic sequence extends over a 30km strike length.

In addition to the Ni-Cu results, elevated copper values up to 379ppm Cu (6m composite samples) have been encountered in 100m-spaced drill holes within weathered granitic and granodioritic rocks. The source of anomalous gold values in soils in the area has not yet been determined by the drilling.

Woongaring is one of four projects in joint venture with Troy Resources. Under the terms of the joint venture Troy may earn a 60% interest (Image 40%) by sole funding \$2 million of expenditure by mid-2008. Follow-up sampling of the RAB drilling samples is in preparation and subject to joint venture approval, further drilling is planned early in the new year.

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

Please direct enquiries to: Roger Thomson Managing Director Phone (08) 9485 2410 Mob 0419 969 183

George Sakalidis Executive Director - Exploration Phone (08) 9485 2410 Mob 0411 640 337

The information on mineralisation contained in this report accurately reflects the information compiled by Mr Roger Thomson BSc, MAustMM, 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.