IMAGE RESOURCES NL — Capital/Financing Update 2006

Apr 11, 2006

ASX Release 12 April 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

DRILLING STARTS AT BIDAMINNA HEAVY MINERALS PROJECT

As foreshadowed in Image's December 2005 quarterly report, aircore drilling has commenced at the 100%-owned Bidaminna heavy minerals (HM) project situated 30km northwest of Gingin in the North Perth Basin. The 100-hole programme (on approximately 40m x 400m spacing) will test the northern parts of the Callisto and Ganymede strands and adiacent sub-strands where access agreements and environmental permitting have been completed. The drilling will target interpreted HM strands 100-250m in width and with magnetic amplitudes ranging from 1.2 to 3.2 nano Teslas as defined by Image's detailed ground magnetic surveys.

Upon completion of this initial programme, and subject to finalisation of an access agreement, it is anticipated that a 330-hole aircore drilling programme will commence at the Cooliarloo HM project about 100km to the north where Image is earning up to a 70% interest. The drilling will focus on the northern extensions of the 25000, Lone, Middle and Reserve strands into the joint venture area where linear high-amplitude magnetic anomalies provide attractive drilling targets. In addition the drilling will test parts of the 28000 strand and Mid-level mineralisation where HM concentrations are known to occur.

Image has recently completed 35 line-km of detailed ground magnetic surveys over a 3.5km strike length of the 35AHD strand at Cooliarloo north along strike of where highamplitude magnetic responses were previously reported (ASX release 28 February 2006). The results of this survey are currently being assessed.

The Bidaminna and Cooljarloo drilling programmes are estimated to take two months to complete, however it is envisaged that results will be progressively released as they become available.

For more information on the company visit www.imageres.com.au

Please direct enguiries 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 Roger Thomson BSc, ARSM, MAusiMM, who is a Member of the Australian Institute of Geoscientists. Roger Thomson is an employee of Image Resources NL. Roger Thomson 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 of Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Roger Thomson consents to the inclusion of this information in the form and context in which it appears in this report.