IMAGE RESOURCES NL — Capital/Financing Update 2006

Jul 11, 2006

ASX Release 12 July 2006

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

NEW NORTH PERTH BASIN MINERAL SANDS TENEMENT ACQUISITIONS

Image Resources has applied for two strategically located tenements, E70/3032 and E70/3033, south of its Bidaminna project increasing its landholding from 320km² to 520km² in the North Perth Basin. These new tenements occur to the south and west of the high-grade Iluka-owned operating Gingin mine (8.4Mt @ 16.7% HM, 1.4Mt contained HM). These tenements cover a large spectrum of potential strands ranging from the younger 0 to 35m RL to the older 48 to 115m RL at Gingin.

Historical exploration completed in the area of the new tenements includes an aeromagnetic survey with some limited wide-spaced drilling. The airborne survey clearly shows the mineral strand being mined at Gingin and also identifies an additional eight targets, as shown on the attached map, which remain untested. The digital elevation model (DEM) topographic trends shown on the map correlate in part with several of these aeromagnetic targets, suggesting that they could be associated with mineralised paleo shorelines. Further data is being sought in order to complete the DEM coverage over the new Image tenements.

Image, subject to completion of land access agreements, plans to carry out ground magnetic mapping surveys to validate the aeromagnetic targets and also help define other mineralised shorelines within the tenements. The current portfolio of mineral sand tenements in the North Perth Basin and Eucla Basin form an important focus of the company.

Image is currently drilling the 35 AHD strand at Cooljarloo looking to define high grade shallow resources similar to the operating Gingin mine.

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 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 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.

Gingin Prospect - Aeromagnetic Interpreted Strandlines and DEM trends