IMAGE RESOURCES NL — Capital/Financing Update 2005

Oct 26, 2005

IMAGE RESOURCES NL

ASX Release 27 October 2005 ASX code: IMA

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

16KM OF POTENTIALLY HIGH GRADE HEAVY MINERAL STRANDS AT BIDAMINNA, GINGIN, WA

Following the success of Image's former subsidiary Magnetic Minerals Limited at Dongara in the northern part of the North Basin, Image Resources is pleased to announce early encouragement from its Bidaminna project near Gingin in the southern part of the North Perth Basin where 70 line-km of a detailed 200m-spaced cesium vapour ground magnetic survey has been completed. This forms approximately one third of the 200 line-km survey planned for the southern part of the Bidaminna project.

Three large heavy mineral (HM) strands have been outlined to date based on the results of the ground magnetic surveys. The length and average magnetic amplitude of these strands (Ganymede 6.7km and 3.2nT, Callisto 5.6km and 1.8nT and Io 4.1km and 2.4nT - refer to the table below and to the attached map), indicate the possibility for high grade mineral strands when compared to the Bidaminna deposit (44Mt at 3% HM) which is 6km long but which only averages 0.9nT in magnetic amplitude. These interpreted strands total some 16km in strike length with potential for extensions indicated from aeromagnetic data.

Of particular interest is the southern part of the higher amplitude (4.3nT) Ganymede 1 strand which is open to the south for 1.6km where it links with the Callisto strand. Both the Ganymede 1 and Ganymede 2 strands are open to the north for a further 0.7km. The Ganymede strand appears to be a multi-strand feature and in total represents an attractive target made up of 6 individual strands with a central core 750m in width and 4.3km in length.

In previous announcements Image has indicated that there is a strong relationship between the average percentage of HM and ground magnetic anomaly amplitude of mineral strands in the North Perth Basin. Previous scout drilling, with recorded intersections of 12m @ 3.3% HM, 21m @ 3.2% HM and 4m @ 4.5% HM, is considered to be too wide-spaced to effectively test the potential of the strands, particularly as the higher amplitude Ganymede strands have not been drilled. High resolution ground magnetic surveying has the ability to identify the high grade parts of mineral strands, which will be the targets of Image's drilling.

In the last few months Image has increased its land holding at Bidaminna from 73sgkm (E70/2825) to 204sqkm with new applications E70/2844 and E70/2845 just 65km south of the world-class Cooljooloo mineral sands mine. The North Perth Basin, which also hosts the world-class Eneabba mine, produces 50% of the world's chloride ilmenite and close to 25% of the world's zircon. The zircon content of the strands, particularly those defined by the ground magnetic surveys, will be investigated as zircon prices are close to a record high of US\$800/tonne. Image is highly encouraged by these early results and has given a high priority to completing the ground magnetic surveys and to commencing follow-up drilling.

BIDAMINNA GROUND MAGNETIC SURVEY RESULTS

	Length km.	Width m	Amplitude (nT)	Extension (from aeromagnetic data)
Ganymede 1	2.0	150	4.3	1.6km south, 0.7km north
Ganymede 2	1.2	100	4.5	0.7km north
Ganymede 3	0.6	120	3.3	0.7km north
Ganymede 4	1.0	80	2.6	0.7km north
Ganymede 5	0.9	120
Ganymede 6	1.0	50	2.1
TOTAL	6.7	110	3.2	4.4km

Ganymede Strand

Callisto Strand

	Length km	Width m	Amplitude (nT)	Extension (from aeromagnetic data)
Callisto 1	3.4	170.	1.8	1.7km in centre, 0.7km south
Callisto 2	0.6	150		0.5km north, 0.7km south
Callisto 3	1.4	150	1.6.	1km south
Callisto 4	0.2	150	2.9	0.7km north, 1km south
TOTAL	5.6	160	1.8	5.8km

Io Strand

	Length km	Width m	Amplitude (nT)	Extension (from ground magnetic data)
lo 1	0.8	200	2.4	open to south
$\overline{10}$ 2	0.8	130	2.6	open to south
$\overline{103}$	1.3	170	2.9	open to south and north
$\log 4$	1.0	90	1.5	open to north
$\overline{105}$	0.2 1	130	2.4	open to north
TOTAL	4.1	140	24	Distance not measured (no airborne surveys)

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 in this report that relates to geophysics 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. George Sakalidis has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the 'Australasian Code for 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.

BIDAMINNA PROJECT