IMAGE RESOURCES NL — Capital/Financing Update 2008

Dec 17, 2008

ASX Release 18 December 2008

ASX code: IMA

==> picture [101 x 113] intentionally omitted <==

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

NEW JV ON GINGIN SCARP INCREASES LANDHOLDINGS TO 2,330SQ KM

ABN 57 063 977 579

_________________________________________________________________________

Image Resources is pleased to announce a new joint venture on a 107sq km tenement (E70/2742) with unlisted Derby Mines Pty Ltd, increasing its tenement holdings in the North Perth Basin to approximately 2,330sq km. The joint venture tenement (see attached map) is strategically located on the productive Gingin Scarp between Iluka’s operating Gingin mine and the Bullsbrook 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.

Significantly, the joint venture tenement is believed to host potentially economic mineralisation at the Muchea HM deposit where previous work outlined a mineralised zone with dimensions of 100m x 1,500m and a depth of 10m, reported to contain 2.25 million tonnes averaging 8.5%HM (Westralian Sands Limited Technical Report TR-99/21 March 1999). Image has yet to verify these estimates but is most encouraged by the potential of the area. Image is planning geophysical surveys to define the extent of the mineralisation and other targets within this prospective Gingin shoreline.

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 five projects in the vicinity including 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 an 80% interest in the joint venture tenement by expenditure of $350,000 within a six year period, subject to completing certain access agreements. Discussions with landowners regarding access is underway.

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).

==> picture [402 x 568] intentionally omitted <==

Chandala JV (E70/2792) showing the Gingin Scarp Topography and Deposits

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.