IMAGE RESOURCES NL - Capital/Financing Update 2007

12 July 2007

ASX Release ASX code: IMA

2nd Floor, 35 Outram St West Perth WA 6005 PO Box 644 West Perth WA 6872 Telephone 08 9485 2410 Facsimile 08 9485 2840 [email protected] www.imageres.com.au

ABN 57 063 977 579

DRILLING AT COOLJARLOO NORTH EXTENDS LENGTH OF MINERALISED STRANDS TO 37KM

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Recent 200m-spaced drilling at Image's 100%-owned Cooljarloo North project over Target 2, 3 and 5 has demonstrated at least four continuous strands at consistent elevations and coincident with magnetic targets, two of which extend individually over a 4.5km length within the northeast part of E70/2892. This drilling has now outlined a total strike length of at least 28 km of high grade shallow strands at Cooljarloo North and nearby Cooljarloo in addition to a 9km strike length of channel mineralisation. These results complement previous ASX announcements dated 7 March 2007 and 17 May 2007 regarding the super high grade Target 1 strand where it was advised that the laboratory grades were exceptionally high and were between 5 to 10 times the average grades being mined at the nearby world-class Tiwest Cooljarloo Mine, where the dry mining operations average between 4 to 5% HM.. These have the potential to significantly enhance the economics of the Cooljarloo North project. Some of the highlights include:

				Grade
	m	m	m	% HM
	12	18	6	12.8
including	14	18	4	16.2
	14	18	4	11.8
including	16	18	2	19.1
	10	20	10	11.7
				8.0
				9.5
	20	28	8	9.3
including	22	26	4	13.4
	14	18	4	9.3
	14	22	8	8.3
		From 14 12	To 18 16	Interval 4 4

Cooljarloo North Target 2 Laboratory Results

Cooljarloo North Target 2 Visual Results
------------------------------------------	--	--	--	--	--

Hole		From	To	Interval	Grade
No		M	m	m	% HM
CN485		10	14	4	17.5
	including	12	14	2	30.0
CN715		14	18	4	15.0
	including	16	18	2	25.0
CN726		16	18	2	15.0
CN701		14	18	4	13.5
CN494		16	18	2	13.0
CN473		16	20	4	11.0
	including	16	18	2	17.0
CN739		22	24	2	10.0
CN492		10	16	6	8.3
CN751		34	36	2	30.0

Hole		From	To	Interval	Grade
No		m	m	m	% HM
HR0819		24	27	3	19.2
HR0767		15	19.5	4.5	19.1
HR0768		16.5	21	4.5	12.4
HR0574		4	12	8	11.9
	including	4	11	6	14.0
HR0930		10.5	15	4.5	10.5
HR0573		3	11	8	9.6
	including	4	10	6	11.1

Cooljarloo North Target 2 Historical Results

Image has also completed preliminary drilling at Targets 3 and 5 at Cooljarloo North with significant results which are displayed in the attached table of results, including drillhole CN249 with 2m at 17.8% HM from 6 m. Ground magnetics over these targets suggests the length of these targets is greater than 4 km and will be assessed in the next drilling campaign.

The total cumulative length of these shallow mineralised strands at Cooljarloo and Cooljarloo North is now 28 km. Also the thick channel mineralisation has been defined over a further 9km making the total of resource HM strands to 37 km. In addition, a significant 50km of ground magnetic targets will be drilled in subsequent programs. This augurs well as the conversion rate from ground magnetic targets to mineralised strands has been high.

Image is planning to follow up Targets 1 to 5 at Cooljarloo North with a new drilling campaign to enable estimation of resources. Image is currently working on resource estimations on all of its potentially economic prospects. Detailed mineralogical and product quality testwork needed for the estimations is well advanced. These encouraging results continue to add to the economic potential of the Cooljarloo North project

Hole No	North	East		From	To	Interval	Grade
				m	m	M	% HM
CN291	6637203	330830		12	18	6	12.8
			including	14	18	4	16.2
CN364	6635803	331689		14	18	4	11.8
			including	16	18	2	19.1
CN363	6635800	331651		10	20	10	11.7
CN426	6634397	332248		20	22	2	11.4
CN368	6635599	331399		12	14	2	11.1
CN350	6636000	331519		8	12	4	11.0
CN327	6636402	331251		14	18	4	10.8
CN328	6636401	331300		12	16	4	9.5
CN419	6634599	332400		20	28	8	9.3
			including	22	26	4	13.4
CN380	6635402	331511		14	18	4	9.3
CN332	6636201	330789		12	14	2	8.9
CN341	6636001	331049		6	10	4	8.5
CN384	6635400	331863		14	22	8	8.3
CN383	6635399	331780		12	16	4	8.3
CN353	6635799	331161		12	14	2	8.2
CN377	6635407	331391		8	12	4	8.0

Table 1 Cooljarloo North Target 2 Laboratory Results

				From	To	Interval	Grade
Hole No	North	East		m	m	M	% HM
CN406	6634800	331930		22	26	4	7.8
CN307	6636798	331051		12	14	2	7.7
CN388	6635200	331660		12	18	6	7.5
			including	16	18	2	10.8
CN373	6635599	331762		16	20	2	7.3
CN329	6636400	331329		10	16	6	6.3
CN405	6634799	331899		18	24	6	6.2
CN316	6636598	331181		12	16	4	6.1
CN338	6636198	331400		10	14	4	6.0
			including	12	14	2	7.7
CN330	6636400	331357		12	16	4	6.0
CN342	6636000	331080		8	10	2	5.6
CN313	6636601	330929		12	14	2	5.3
CN359	6635801	331452		8	14	6	5.3
			including	12	14	2	6.1
CN424	6634399	332171		16	24	8	5.2
CN314	6636596	330972		12	16	4	5.2
CN360	6635802	331490		8	14	6	5.0
CN355	6635801	331256		8	12	4	4.8
CN347	6636000	331349		4	8	4	4.7
CN333	6636202	330930		12	14	2	4.7
CN378	6635403	331429		10	14	4	4.4
CN324	6636401	331056		12	18	6	4.3
CN346	6636003	331320		8	10	2	4.3
CN308	6636797	331082		12	14	2	4.1

Table 1 Cooljarloo North Target 2 Laboratory Results (Continued)

Table 2 Cooljarloo North Target 2 Visual Results

Hole No	North	East		From m	To m	Interval M	Grade % HM
CN751	6634798	332162		34	36	2	30.0
CN485	6635999	331533		10	14	4	17.5
			including	12	14	2	30.0
CN715	6636599	331145		14	18	4	15.0
			including	16	18	2	25.0
CN726	6635800	331632		16	18	2	15.0
CN701	6637201	330812		14	18	4	13.5
CN494	6636903	330960		16	18	2	13.0
CN473	6635400	331880		16	20	4	11.0
			including	16	18	2	17.0
CN739	6635196	332023		22	24	2	10.0
CN492	6636902	331000		10	16	6	8.3
CN482	6636000	331064		8	10	2	8.0
CN722	6636000	331505		10	14	4	7.5
			including	12	14	2	10.0

Hole No	North	East		From m	To m	Interval M	Grade % HM
CN487	6635998	331584		8	14	6	7.3
CN426	6634397	332248		22	24	2	7.0
CN466	6633795	332679		18	20	2	7.0
CN486	6635998	331564		8	10	2	7.0
CN490	6636795	331067		10	14	4	7.0
			including	12	14	2	8.0
CN717	6636400	330891		16	18	2	7.0
CN771	6633793	332661		18	26	8	6.8
			including	20	22	2	12.0
CN467	6633796	332639		22	24	2	6.0
CN495	6636903	330941		16	18	2	6.0
CN407	6634799	331956		24	26	2	5.5
CN735	6635001	331817		16	20	4	5.5
CN382	6635400	331739		16	18	2	5.0
CN416	6634601	332279		26	28	2	5.0
CN433	6634199	332288		18	20	2	5.0
CN436	6634201	332393		18	20	2	5.0
CN438	6634201	332561		22	24	2	5.0
CN493	6636903	330979		10	12	2	5.0
CN723	6635809	331470		10	12	2	5.0
CN753	6634799	332257		34	36	2	5.0
CN762	6634396	332233		22	24	2	5.0
CN766	6634395	332444		20	22	2	5.0
CN769	6634197	332670		12	14	2	5.0
CN385	6635401	331900		12	14	2	4.6
CN434	6634201	332332		18	20	2	4.5
CN472	6633793	332329		16	18	2	4.5
CN489	6636599	330948		12	16	4	4.5
CN711	6636800	331032		10	12	2	4.5
CN483	6635998	331139		10	12	2	4.4
CN480	6635802	331671		16	18	2	4.3

Table 2 Cooljarloo North Target 2 Visual Results (Continued)

Table 3 Cooljarloo Target 2 Historical Results

Hole No	North	East		From m	To m	Interval M	Grade % HM
HR0819	332012	6634391		24	27	3	19.2
HR0767	331593	6635550		15	19.5	4.5	19.1
HR0580	331172	6635757		9	10	1	14.3
			including	9	10	1	14.3
HR0768	331559	6635528		16.5	21	4.5	12.4
HR0574	331357	6635889		4	12	8	11.9
			including	4	11	6	14.0

				From	To	Interval	Grade
Hole No	North	East		m	m	M	% HM
HR0930	330864	6636746		10.5	15	4.5	10.5
HR0573	331388	6635911		3	11	8	9.6
			including	4	10	6	11.1
HR0815	332146	6634478		27	31.5	4	9.4
HR0796	331542	6635040		13.5	18	4.5	9.0
HR0892	332229	6634056		19.5	22.5	3	9.0
HR0766	331626	6635572		15	18	3	8.9
HR0586	330905	6635581		11	13	2	8.7
HR0931	330830	6636724		13.5	18	4.5	8.2
HR0782	331090	6635223		10.5	12	1.5	8.1
HR0482	330663	6636366		12	15	3	8.1
CR7080	331280	6636300		10	16	6	7.8
HR0489	330783	6636368		14	16	2	7.8
JWB7320	331520	6634691		14	16	2	7.4
HR0495	331022	6636373		15	17	2	7.3
HR0792	331676	6635127		16.5	19.5	3	7.1
HR0888	332364	6634143		21	25.5	4.5	7.0
HR0496	331101	6636375		12	16	4	7.0
JWB7440	331640	6634694		16	20	4	6.7
HR0821 HR0789	331944 331777	6634348 6635192		16.5 13.5	22.5 19.5	6 6	6.4 6.3
HR0583	331005	6635647		11	13	2	6.1
HR0630	330771	6637169		15	18	3	6.1
HR0777	331257	6635332		12	15	3	6.1
HR0578	331239	6635801		4	10	6	6.0
HR0798	331475	6634996		9	18	9	5.9
HR0490	330844	6636369		12	17	5	5.8
HR0491	330863	6636370		12	17	5	5.8
HR0627	330670	6637103		13	17	4	5.8
CR7020	331220	6636300		12	14	2	5.7
HR0582	331038	6635669		10	11	1	5.3
HR0616	330302	6636862		17	18	1	5.3
HR0816	332112	6634457		25.5	30	4.5	5.3
HR0826	331777	6634239		18	19.5	1.5	5.2
CR6840	331040	6636300		12	18	6	5.1
HR0481	330644	6636365		12	15	3	5.0
HR0488	330803	6636368		14	15	1	5.0
CR6430	330630	6636289		12	14	2	4.9
CR6840	331040	6636300		20	21.5	1.5	4.9
HR0626	330638	6637081		15	17	2	4.9
HR0793	331643	6635105		15	16.5	1.5	4.9
HR0893	332196	6634034		19.5	21	1.5	4.9
HR0820	331978	6634370		18	25.5	7.5	4.8
HR0628	330704	6637125		14	15	1	4.4
HR0791	331710	6635149		16.5	18	1.5	4.4

Table 3 Cooljarloo Target 2 Historical Results (Continued)

Hole No	North	East		From	To	Interval	Grade
				m	m	m	% HM
CN195	6634001	329375		4	10	6	9.2
			including	6	8	2	17.8
CN199	6634041	329373		6	10	4	12.1
CN200	6634074	329397		6	8	2	6.7
CN201	6634110	329412		6	8	2	7.4
CN202	6634148	329427		6	8	2	5.1
CN210	6635002	329357		10	14	4	5.7
CN213	6634797	330698		18	22	4	4.9
CN216	6634751	330383		20	22	2	8.8
CN220	6634998	330406		26	29	4	7.2
CN223	6634998	330496		22	24	2	20
CN226	6634998	330595		16	20	4	7.7
CN228	6634997	330624		14	18	4	4.6
CN231	6635197	330485		14	18	4	8.6
CN232	6635198	330516		12	16	4	8.9
CN248	6635395	330160		18	20	2	9.8
CN249	6635402	330253		16	24	6	7.7
			including	20	22	2	14.2
CN251	6635401	330420		16	20	4	6.3
CN254	6635401	330271		18	22	4	7.5

Table 4 Cooljarloo North Targets 3 & 5 Laboratory Results

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

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

The information in this report is based on information compiled by George Sakalidis BSc (Hons), and Scott Carruthers BSc,MSc who are members of the Australasian Institute of Mining and Metallurgy. George Sakalidis and Scott Carruthers are employees of Image Resources NL. Both have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Persons as defined in the 2004 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. George Sakalidis and Scott Carruthers consent to the inclusion of this information in the form and context in which it appears in this report.