IMAGE RESOURCES NL — Capital/Financing Update 2005

Dec 5, 2005

ASX Release 6 December 2005 ASX code: IMA

2^nd 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

36KM OF MINERAL SAND STRANDS OUTLINED AT BIDAMINNA

The first phase of ground magnetic surveys totalling 152 line-km has now outlined a very large strike length (36km) of potentially high-grade heavy mineral strands within the Bidaminna project (see attached location map). This significantly increases the strike extent of the strands from the previously announced estimate of 16km. In addition two new strands. Europa and Amalthea, have been identified taking the total number of strands identified to date to five.

As mentioned previously (ASX release 27 October 2005), the higher than average magnetic amplitudes and lengths of these five new strands indicate the possibility for highgrade mineral strands when compared to the known Bidaminna strand (44Mt at 3.0% HM) which is 6km long and only averages 0.9 nano Teslas (nT) in magnetic amplitude. By comparison:

Ganymede strands; 9.0km length, average 2.2nT; Callisto strands; 14.5km length, average 1.8nT; Europa strands; 4.0km length, average 1.9nT; Amalthea strands: 4.4km length, average 1.6nT; lo strands: 4.1km length, average 2.4nT

These interpreted strands total 36km in strike length (see attached project map) with potential for further extensions following the completion of an additional planned 50 linekm of ground magnetics. By comparison, Image's previous subsidiary Magnetic Minerals defined nine strands totalling 45km with an Inferred Resource of 182Mt at 5.0% HM at its Dongara project. Drilling programmes to test the Bidaminna South strands are currently being designed on 40m x 400m spacings, over the lengths of the strands with the aim of outlining a resource on exploration licence E70/2825.

In addition, the 21 November 2005 ASX release summarised the Cooliarloo JV where three strands have been outlined with an Inferred Resource of 80Mt at 3.0% HM. Ground magnetic surveys followed by drilling are contemplated at Cooljarloo with the aim of outlining higher grades and additional resources.

Both the Cooliarloo and Bidaminna projects are part of Image's plan to identify strategic. large, high-grade resources near existing operations at Cooliarloo (TiWest JV). Gin Gin (lluka) and south of Eneabba (lluka) where approximately 25% of the world's zircon is mined and where existing infrastructure is already in place and in a region where two synthetic rutile plants are operating. After its initial drilling campaigns on both projects, Image aims to concentrate on the higher grade strands with the greater zircon contents to take advantage of the high zircon prices which are expected to be maintained over the next few years.

Ganymodo Strand

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Zone	Length	Width	Amplitude
	km	m
Ganymede 1	4.0	250
Ganymede 2	1.3	120
Ganymede 3	2.0	100
Ganymede 4		100
TOTAL	9.0	170	つつ

Callisto Strand

Zone	Length	Width	Amplitude
	km	m
Callisto 1	12.0	200	-9
Callisto 2	1.5	150
Callisto 3	l.O	200	-5
TOTAL	14.5	196	.8

Europa Strand

Zone	Length km	Width m	Amplitude
Europa 1	1.5	180
Europa 2	1.5	100
Europa 3	.U	120	.6
TOTAL	4.0	155	.9

Amalthea Strand
Zone	Length	Width	Amplitude
	km	m
Amalthea 1	4.4	20C	.6

lo Strand
Zone	Length km	Width	Amplitude
		m	nТ
lo 1	0.8	200	2.4
lo 2	0.8	130	2.6
$\overline{103}$	1.3	170	2.9
$\log 4$	1.0	90	1.5
10 5	0.2	130	2.4
TOTAL	4.1	140	2.4

For more information on the company visit www.imageres.com.au Please direct enquiries to: Roger Thomson Managing Director
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 in this report is based on information compiled by George Sakalidis BSc (Hons), who is a member of the Australasian Institute of Mining and Metallurgy. George Sakalidis is an employee of Image Resources NL. Reporting of Exploration Results, Mineral Resources and Ore Reserves'. George Sakalidis consents to the inclusion of this information in the form and context in which it appears in this report.

Location of Bidaminna Project

Bidaminna Prospect - Aeromagnetic Interpreted Strandlines and Historical Drilling Results