IMAGE RESOURCES NL — Capital/Financing Update 2005

May 25, 2005

ASX Release 26 May 2005

ASX code: IMA

IMAGE RESOURCES NL

Major WA Tenement Acquisitions Following New Aeromagnetic Data Release

Floor, 35 Outram 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 Resources is pleased to announce it has applied for 30 tenements totalling 1.800 sq km in the heartland of the nickel-prospective belts within the southern Yilgarn region centred on the Forrestania belt of WA. This now increases Image's landholding in the region to about 4,800 sq km, making it the largest tenement holder - see attached map.

Image Resources applied for the tenements, covering interpreted ultramafic rocks prospective for nickel and gold, immediately after the Department of Industry and Resources released the results of recent 400m-spaced aeromagnetic surveys over five 1;250,000-scale map sheets in the southern Yilgarn region. The new tenements are situated on the following map sheets: Hyden(3); Lake Johnston(10); Boorabin(10); Southern Cross(6) and Kellerberrin(1).

The new government surveys revealed a number of interpreted prospective linear ultramafic trends, some with embayment features, isolated circular bullseye anomalies and possible mafic intrusions associated with large circular regional trends, which were not evident from the previous lower resolution, wide-spaced (1600m) aeromagnetic data based on government surveys carried out between 1956 and 1976. Image has applied for what it considers to be the most significant aeromagnetic features on the currently available ground.

The tenements acquired are near the Forrestania (Ni), Emily Ann (Ni), Nepean (Ni), Victoria Rocks (Ni), Yilgarn Star (Au), Southern Cross (Au) mining centres. Based on detailed interpretation of available aeromagnetic data at Forrestania, Image has identified that the Flying Fox - New Morning nickel contact could fold into Image's ground where it has subsequently delineated two conductors which are planned to be drilled in the near future, subject to drill availability.

Similar work is envisaged over its new tenements and reinforces the company's position that prospective ultramafic belts are more common in the district than previously thought. Some of these ultramafic targets may occur under flat lying granite rocks as shown from drilling at the Flying Fox, New Morning and Daybreak nickel deposits.

Currently, Image is conducting EM surveys at its Jilbadgie nickel project with subsequent surveys planned at its Lake Percy and Woongaring projects. All these projects host anomalous nickel soil anomalies, with anomalous nickel drill intercepts up to 1%Ni at Lake Percy and Woongaring.

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 Ident Reserves) with relevant experience in relation to such mineralisation.