IMAGE RESOURCES NL — Capital/Financing Update 2008

Dec 28, 2008

ASX Release 29 December 2008

ASX code: IMA

ANOTHER JV ON THE GINGIN SCARP INCREASES LANDHOLDINGS TO 2,410SQ KM

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2nd 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

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Image Resources is pleased to announce a new joint venture on an 85sq km tenement (E70/3041) with unlisted Kingsreef Pty Ltd, increasing its tenement holdings in the North Perth Basin to approximately 2,410sq km. The joint venture tenement is strategically located on the productive Gingin Scarp between Iluka’s operating Gingin mine and the Regans Ford heavy mineral (HM) deposit. The Gingin Scarp is a major feature of the Perth Basin, reflecting an extensive paleo coastline known to host major HM deposits such as Eneabba and those at Capel. Image is planning geophysical surveys to define the extent of any mineralisation and other targets within this prospective Gingin shoreline.

Significantly, the Regans Ford tenement covers the strike extensions of high-grade mineralisation identified by Westralian Sands Ltd (now Iluka Resources Ltd) in 1998 where a best drill intersection of 3m @ 12.0% HM from 21m was reported.

Also of significance is the close proximity of the large Tiwest operation at Chandala, comprising a dry separation plant and a synthetic rutile plant. Image now has six projects in the vicinity including Regans Ford (E70/3041), Chandala E70/2742, Gingin E70/3032, McKinley E70/3033, Bootine E70/3192 and Bryalana E70/3494. A drilling programme has commenced at Gingin and is planned to continue in the New Year.

Under the terms of the agreement Image has the right to earn a 75% interest in the joint venture tenement by expenditure of $300,000 within a six year period, subject to completing certain access agreements.

The outlook for heavy minerals remains positive with expected price increases for both zircon and high grade titanium products in the short to medium term, due to supply not keeping pace with the demand (TZMI conference, Singapore, November 2008).

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 that relates to geophysics 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 a director of Image Resources NL. George Sakalidis 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 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.