IMAGE RESOURCES NL — Capital/Financing Update 2005

Jul 14, 2005

IMAGE RESOURCES NL

ASX Release 15 July 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

IMAGE MAKES FORAY BACK INTO NORTH PERTH BASIN MINERAL SANDS

Image Resources is pleased to announce acquisition of the 73sq km Bidaminna tenement E70/2825, 65km south of the world-class Cooljooloo mineral sands mine in the North Perth Basin. The North Perth Basin, which also includes the world-class Eneabba mine, produces close to 50% of the world's chloride ilmenite and close to 25% of the world's zircon. E70/2825 contains known drill intersections of valuable heavy minerals (HM), with at least two large coherent strandlines (totalling 18.4km in length) having been identified from recently flown low level (30m height) aeromagnetic surveys.

The main HM strand in E70/2825 is 15km in length and forms the southern part of the 30km-long north-northwest trending Bidaminna strand. The Bidaminna deposit, situated 5km north of E70/2825, is reported to contain an Inferred Resource of 44Mt at 3% HM (Magnetic Minerals Ltd 2002 prospectus). A number of wide-spaced reconnaissance drill lines have been completed previously, predominantly to the south of the outlined Bidaminna strand. Several intersections including 12m $@$ 3.3%HM and 21m $@$ 3.2%HM have been recorded in the southern part of the Bidaminna strand and intersections of 4m $@$ 3.6%HM and 4m $@$ 4.5%HM in areas to the south of the strand, all within E70/2825.

Image believes the stage of drilling and exploration on the Bidaminna tenement is similar to when former subsidiary Magnetic Minerals Ltd first began work on its Dongara project in early 2000 and that detailed ground magnetic surveys (cesium vapour) and tighter drill densities are necessary for the identification of highgrade HM deposits.

The average aeromagnetic amplitude for the Bidaminna deposit is 0.53 nano Tesla (nT), while the southernmost part of the Bidaminna strand (6km x 200m) averages 0.84nT. A subsidiary north-south strand (3.4km x 200m) averages 1.3nT. A strong relationship between the average percentage of heavy minerals and ground magnetic anomaly amplitude has been shown to exist at Dongara (Magnetic Minerals Prospectus 2000). Thus the average aeromagnetic amplitudes increasing from 0.53nT to 1.3nT within application E70/2825 imply a greater chance of locating higher grade HM deposits.

The Dongara HM strands show higher zircon grades in the southernmost parts of the strands and in younger crosscutting strands (Magnetic Minerals 2002 Annual Report). By analogy to the Dongara strands, the southernmost part of the Bidaminna strand and also several smaller crosscutting strands are where a higher zircon content might be expected to occur.

No detailed ground magnetic (cesium vapour) mapping has been completed by previous explorers on E70/2825. Image proposes to use this magnetic mapping technique to identify potentially higher grade HM within the defined shorelines. Drilling will be targeted within the stronger ground magnetic anomaly areas which will allow a more focused approach and make for cost effective exploration. The southern part of the Bidaminna strand and the younger crosscutting strands will be investigated for their zircon contents bearing in mind the zircon price is close to a record high of US\$700/tonne. Maps showing the strand lines are in preparation and will be included in Image's June quarterly report due for release soon.

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 exploration results 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 (not fulltime) of Image Resources NL. George Sakalidis has sufficient experience which is relevant to the style of mineralisation 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.