IMAGE RESOURCES NL — Capital/Financing Update 2007

Dec 11, 2007

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----- Start of picture text ----- ASX Release ASX code: IMA12 December 2007----- End of picture text -----

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----- Start of picture text ----- 2nd Floor, 35 Outram StWest Perth WA 6005PO Box 644West Perth WA 6872Telephone 08 9485 2410Facsimile 08 9485 2840info@imageres.com.auwww.imageres.com.au----- End of picture text -----

ABN 57 063 977 579

MAJOR INCREASE IN TARGETS TO 120KM AT COOLJARLOO AND COOLJARLOO NORTH

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A programme of 23,000m of aircore drilling has commenced at the Cooljarloo (15,000m) and Cooljarloo North (8,000m) mineral sands projects in the North Perth Basin. A total of 19 new targets are being tested over a total cumulative strike length of 40km. The programme also includes infill drilling within the 35AHD, Hyperion and Target 2 resource areas (refer to attached maps ) . A Wallis aircore rig is booked for the next two months for this work.

These large new target areas include strand and channel targets which have been defined from ongoing interpretation of ground magnetics and from previous drilling programmes. At least 8 of the targets are known to be mineralised as indicated from limited previous drilling. The drilling programme is designed to evaluate the total length of the new target areas and potentially add to the known mineralisation which currently covers a cumulative strike length of 38km comprising 29km of strands and 9km of channels.

It is significant that 40km of new targets are being drilled in this programme as they approximate the length of the known mineralisation on which resource estimates are currently being carried out. A further 42km of targets have been identified on the Cooljarloo tenement, which are being assessed for drilling in the new year after access agreements are finalised. This brings the total length of targets and resources on the above projects to a very substantial 120km. Following Image’s high success rate in identifying and testing these types of targets to date, it expects a good proportion of the new targets to convert to mineralisation.

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

Please direct enquiries to: George Sakalidis Roger Thomson Managing Director Executive Director Phone (08) 9485 2410 Phone (08) 9485 2410 Mob 0411 640 337 Mob 0419 969 183

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.

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Cooljarloo North – Proposed Drilling Programme

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Cooljarloo – Proposed Drilling Programme