IMAGE RESOURCES NL — Capital/Financing Update 2005

Jun 9, 2005

IMAGE RESOURCES NL

ASX Release 10 June 2005 ASX code: IMA

NEW NICKEL, COPPER-ZINC AND GOLD TARGETS ACQUIRED IN WA

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

Following Image Resources' recent announcement (26 May 2005) on the acquisition of 1800sg km of tenements, mainly over nickel targets in the southern Yilgarn region, Image has applied for a further five exploration licences totalling about 736sq km in the Nepean and Merredin areas of Western Australia.

Continued interpretation of recently released Department of Industry and Resources aeromagnetic data has identified the possible eastern extension of the prospective Nepean ultramafic sequence. A 140sq km exploration licence has been applied for over the entire extent of an interpreted 12km x 7km domal structure flanked by ultramafic rocks considered to be prospective for Nepean-style nickel sulphides. The Nepean nickel deposit (42,000t contained Ni) situated 25km southeast of Coolgardie was a relatively high-grade producer and this style of deposit forms an attractive exploration target for Image.

In addition, following the recent release of multi-element data from previous regional geochemical surveys, Image identified three large geochemically anomalous areas in the wheatbelt near Merredin. The first area comprises three exploration licences centered about 25km eastsoutheast of Bruce Rock (some 45km south of Merredin) covering a group of elevated gold values over a 15km distance and situated about 25km north of the Tampia Hill gold prospect held by other parties near Narembeen where an inferred resource of 3.5Mt at 2.1g/t gold (230,000oz) has been reported. The anomalous gold values occur close to a number of north-striking shear zones interpreted from the recently released government aeromagnetic data and appear to be along strike from Tampia Hill. The other two areas are situated 30km north of Merredin and 35km northwest of Merredin covering groups of coincident copper and zinc-anomalous samples each extending over a 10km strike length. Both of these anomalous trends are situated on major north-northeast trending lineaments evident on the recently released aeromagnetic data.

The recently released geochemical data is derived from the analysis of surface material taken at wide-spaced intervals (1 to 3km) over many thousands of square kilometres in the central Yilgarn region. Similar geochemical surveys have proved most effective in identifying large base metal deposits such as Golden Grove and large gold deposits such as Boddington. Image plans to carry out infill sampling to confirm the extent of the anomalous zones once landowner agreements have been negotiated. Image is also planning extensive geochemical reconnaissance programmes (where considered appropriate) over the numerous aeromagnetic targets recently acquired using the new aeromagnetic data.

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, ARSM, MAustMM, MAIG, 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.