IMAGE RESOURCES NL — Capital/Financing Update 2007

Apr 11, 2007

IMAGE RESOURCES NL

ASX Release 12 April 2007 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@imaderes.com.au

ABN 57 063 977 579

NEW CHANNEL, NEW HIGH-GRADE STRAND, NEW RESOURCE EXTENSIONS AT COOL JARI OO www.imageres.com.au

Following the grant of a new tenement (E70/2898) within the southern part of the Cooljarloo project, a programme of reconnaissance drilling was carried out within Vacant Crown Land along existing access lines in order to test a number of targets generated by previous drilling to the north within adjacent tenement E70/2636 and from targets generated by detailed cesium vapour ground magnetic mapping surveys.

Even though only limited drilling lines were completed, a new impressive channel has been identified which is estimated to be more than 1.1km in length and up to 74m in thickness and is interpreted to be the southern extension of channel B (ASX release 30 November 2006). Secondly, a new near surface high-grade strand which is over 2.8km in length was discovered with a best intersection of $6m$ $@$ 21.7% heavy mineral (HM) from 2 $m$ depth. Thirdly, the Middle Strand resource, which was previously thought to occur south of E70/2898 within the Tiwest JV area, extends into the Cooliarloo project area for 1.1km with results of up to 6m @ 11.8%HM from 14m. This may link to the 28000 Strand shallow. high-grade resource which is currently some 3km in length (refer to attached map). Fourthly, confirmatory high-grade intersections occur within the 35 AHD Strand resource in the western part of $E70/2898$ with grades up to 2m $@$ 50.0%HM from 10m. The highlights of the recent programme are summarised as follows:

Collar Coordinates					Interval	HM Grade
Northing	Easting	Hole	From	То	(m)	$(\%)$
Channel Mineralisation
17605	41325	993	16	66	50	2.7
17620	41352	994	16	90	74	1.7
17569	41278	996	16	38	22	2.3
18460	14285	1113	14	69	55	1.7
18265	41285	984	58	$\overline{76}$	18	3.8
18066	41332	988	16	34	18	1.7
17968	41340	990	18	42	24	1.9
New High-Grade Strand
18251	39638	1060	0	16	16	10.6
		Including	$\overline{2}$	8	6	21.7
18227	39624	1059	$\overline{0}$	$\overline{8}$	$\overline{8}$	12.8
		Including	4	$\overline{8}$	4	22.5
18214	39617	1149	$\overline{0}$	$\overline{8}$	$\overline{8}$	7.7
18460	39280	1071	0	18	18	2.6
Middle Strand Extension
17348	39675	1145	8	14	6	11.8
17346	39660	1017	$\overline{\bf 8}$	12	4	6.8
17650	39322	1040	$\overline{6}$	8	$\overline{2}$	20.0
17636	39315	1147	$\overline{6}$	$\overline{8}$	$\overline{2}$	12.0
35 AHD Strand
17464	31520	1226	10	$\overline{12}$	$\overline{2}$	50.0
17464	31540	1225	8	$\overline{12}$	4	12.5
17464	31560	1224	$\overline{8}$	10	$\overline{2}$	$\overline{15.0}$
17464	31500	1227	$\overline{12}$	14	$\overline{2}$	10.0

HM grades are visual estimates pending receipt of laboratory results.

At this stage 10.8km of near surface high-grade strands have been identified by drilling at Cooliarloo and some 4.5km at Cooliarloo North. A further 45km of high amplitude magnetic targets remain to be tested at these projects.

At least 9km of thick channel targets have been defined by drilling to date and at least a further 30km of targets remain untested.

All the grades announced in this ASX report reflect visual estimates from panning in the field which give a good guide for the HM grade prior to receiving laboratory results. Results from the laboratory are expected shortly for both Cooliarloo and Cooliarloo North. Further ASX releases together with cross sections of the recent drilling will be forthcoming when these laboratory results are received.

RESOURCE EVALUATION

Image Resources is pleased to announce the appointment of Scott Carruthers to the position of Development Manager. With over 20 years experience in mineral sands exploration and mining. Scott has worked for Iluka Resources, Doral Mineral Industries, Cable Sands and others in roles ranging from exploration and mine geologist, mine planner to exploration manager. Scott has extensive experience in exploration and development of mineral sand orebodies. He holds a BSc (Geology) from the University of Western Australia and an MSc (Mineral Economics) from Curtin University.

Scott will manage Image's heavy mineral development, including resource estimation and economic analysis, negotiation of land access agreements, mineral assemblage and product quality determination, environmental permitting and drilling programme planning and supervision, being the various activities leading to prefeasibility studies.

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

Please direct enouiries 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.

Cooljarloo Project - Channel Area Ground Magnetic Interpreted Strandlines with Drilling Results