IMAGE RESOURCES NL - Capital/Financing Update 2007

IMAGE RESOURCES NL

ASX Release 7 March 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 [email protected] www.imageres.com.au

ABN 57 063 977 579

SUPER HIGH-GRADE STRAND EXTENDED AND ENHANCED BY LABORATORY RESULTS AT COOLJARLOO NORTH

The high-grade core of the shallow heavy mineral (HM) strand recently discovered at Cooljarloo North(Target 1, ASX release 7 February 2007)) has now been drilled and extended from 2km to at least 2.5km in length within a strand which is 4.2km long and 100m wide (see attached map). The high-grade core of this strand is on average 40-80m in width and often between 4-8m in thickness at shallow depths of 2-6m from surface with mineralised overburden (refer to attached sections). The laboratory grades as shown in the following highlights and attached table are exceptionally high and are between 5 to 10 times the average grades being mined at the nearby world-class Tiwest Cooliarloo Mine, where the dry mining operations average between 4 to 5% HM. The laboratory results have been compared to the previously reported visual estimates (ASX release 7 February 2007) and have proved to be even higher in tenor as shown in the following highlights:

Hole		Intersection	From
No		ΗМ
CN31		10m @ 20.7%	2m
	including	4m @ 29.3%	4m
CN38		4m @ 14.7%	6m
	including	2m @ 25.1%	6m
CN39		6m @ 19.3%	2m
	including	4m @ 31.5%	4m
CN40		6m @ 31.7%	4m
	including	4m @ 45.2%	4m
$\overline{C}$ N52		12m @ 16.8%	0m
	including	4m @ 37.6%	6m
	including	2m @ 54.8%	6m
CN60		8m @ 26.8%	4m
	including	4m @ 43.2%	6m
CN61		8m @ 16.6%	2m
	including	2m @ 29.9%	8m
CN79		6m @ 41.7%	4m
	including	4m @ 52.1%	6m
CN80		4m @ 18.6%	6m
CN108		6m @ 36.7%	2m
	including	4m @ 49.3%	4m
CN117		2m @ 15.4%	6m
CN140		2m @ 18.1%	8m
CN143		4m @ 22.0%	8m
	including	2m @ 35.0%	8m

COOLJARLOO NORTH DRILLING HIGHLIGHTS

CN149	4m @ 24.5%	8m
CN198	2m @ 54.2%	2m
CN198	6m @ 23.5%	8m

Target 1 has been drilled on a 200m line spacing (see attached sections) and currently Target 2 is being drilled on the same spacing. Target 2 has been drilled in the past (ASX release 24 October 2006) and the current programme is designed to test higher amplitude magnetic targets similar to Target 1 (which have converted to very high grade results). The historical drilling is considered not to have adequately tested these higher amplitude targets. This drilling programme is expected to be completed by late March.

Image Resources has to date outlined over 12 km of high-grade near-surface strands at Cooljarloo (35AHD and 28000 strands) and Cooljarloo North (Target 1). Considering Image's excellent conversion of magnetic targets to new high-grade shallow strands, the number and length of new discoveries is expected to increase with approximately 40km of high amplitude targets remaining to test at Cooliarloo and a further 8 km to test at Cooliarloo North.

Further laboratory results are now expected for both Cooljarloo North (Targets 2, 3 and 4) and at Cooliarloo where both high amplitude strand targets and channel targets were investigated by recent drilling.

Hole No	Collar Coordinates		From	To	Interval	HM Grade
	Northing	Easting	m	m	m	%
CN005	32400	29270	8	10	$\overline{2}$	12.4
CN006	32400	29290	$\overline{6}$	10	4	12.2
	including		$\overline{\mathbf{8}}$	$\overline{10}$	$\overline{2}$	19.2
CN019	32200	29300	$\overline{8}$	$\overline{12}$	4	11.9
	including		$\overline{\mathbf{8}}$	10	$\overline{2}$	19.9
CN030	32000	29365	$\overline{6}$	$\overline{8}$	$\overline{2}$	7.7
CN031	32000	29385	$\overline{2}$	12	10	20.7
	including		4	10	6	29.3
CN038	31800	29430	4	$\overline{8}$	4	14.7
	including		$\overline{6}$	$\overline{\overline{\overline{8}}}$	$\overline{2}$	25.1
CN039	31800	29450	$\overline{2}$	8	$\overline{6}$	19.3
	including		$\overline{4}$	$\overline{8}$	4	31.5
CN040	31800	29470	$\overline{4}$	$\overline{10}$	$\overline{6}$	31.7
	including		4	8	4	45.2
CN041	31800	29490	$\overline{2}$	4	$\overline{2}$	4.1
CN050	31600	29505	$\overline{s}$	10	$\overline{2}$	15.8
CN052	31600	29525	0	12	12	16.8
	including		6	10	4	37.6
	including		$\overline{6}$	$\overline{8}$	$\overline{2}$	54.8
CN053	31600	29545	$\overline{6}$	10	4	4.2
CN059	31400	29555	$\overline{10}$	$\overline{12}$	$\overline{2}$	4.8
CN060	31400	29575	4	$\overline{12}$	$\overline{8}$	26.8
	including		6	10	4	43.2
CN061	31400	29595	$\overline{2}$	10	$\overline{8}$	16.6
	including		$\overline{\mathbf{8}}$	10	$\overline{2}$	29.9
CN078	31200	29613	$\overline{\mathbf{8}}$	10	$\overline{2}$	10.5
CN079	31200	29635	4	10	$\overline{6}$	41.7
	including		6	10	4	52.1
CN080	31200	29655	$\overline{6}$	10	$\overline{4}$	18.6

Cooljarloo North Aircore Drilling Results

Hole No	Collar Coordinates		From	Tо	Interval	HM Grade
	Northing	Easting	m	m	m	%
CN096	31000	29710	$\overline{\mathbf{8}}$	10	$\overline{2}$	11.2
CN097	31000	29730	$\overline{6}$	$\overline{8}$	$\overline{2}$	$\overline{3.1}$
CN107	30800	29750	$\overline{\mathbf{8}}$	10	$\overline{2}$	4.7
CN108	30800	29770	$\overline{2}$	$\overline{8}$	$\overline{6}$	36.7
	including		4	$\overline{8}$	$\overline{4}$	49.3
CN109	30800	29790	0	$\overline{4}$	4	4.8
CN ₁₁₇	30600	29795	$\overline{6}$	$\overline{s}$	$\overline{2}$	15.4
CN139	30975	29710	$\overline{6}$	10	4	12.6
	including		8	10	$\overline{2}$	20.7
CN140	31000	29725	$\overline{\mathbf{8}}$	10	$\overline{2}$	18.1
CN141	31400	29625	$\overline{0}$	4	4	6.7
CN143	32445	29250	$\overline{8}$	$\overline{12}$	4	22.0
	including		$\overline{8}$	10	$\overline{2}$	35.0
CN144	32445	29270	$\overline{\overline{\overline{8}}}$	10	$\overline{2}$	14.5
CN145	32445	29290	$\overline{4}$	$\overline{8}$	$\overline{4}$	13.1
CN146	32445	29310	4	8	4	11.1
CN149	32600	29200	$\overline{10}$	$\overline{12}$	$\overline{2}$	6.3
CN149	32600	29220	$\overline{\mathbf{8}}$	$\overline{12}$	4	24.5
CN154	32800	29145	8	14	6	7.2
CN155	32800	29165	10	14	4	10.1
CN156	32800	29185	10	$\overline{12}$	$\overline{2}$	8.5
CN163	33200	29060	$\overline{2}$	$\overline{6}$	$\overline{4}$	3.8
CN164	33200	29080	$\overline{2}$	$\overline{6}$	4	4.4
CN167	33200	29040	$\overline{2}$	$\overline{\mathbf{8}}$	$\overline{6}$	5.2
CN169	33400	28960	4	10	$\overline{6}$	4.6
CN170	33400	29010	$\overline{4}$	10	$\overline{6}$	9.2
CN171	33400	29040	$\overline{2}$	$\overline{8}$	$\overline{6}$	6.0
CN178	33800	28850	$\overline{2}$	8	6	6.7
CN179	33800	28870	$\overline{2}$	$\overline{8}$	$\overline{6}$	4.7
CN195	33800	29375	$\overline{4}$	10	$\overline{6}$	9.2
CN198	32600	29210	$\overline{2}$	$\overline{4}$	$\overline{2}$	54.2
CN198	32600	29210	8	14	$\overline{6}$	23.5
	including		10	$\overline{12}$	$\overline{2}$	44.5

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. 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 consent information in the form and context in which it appears in this report.