IMAGE RESOURCES NL — Capital/Financing Update 2008

Oct 20, 2008

ASX Release ASX code: IMA 21 October 2008

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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 ww w.imageres.com.au

45KM OF NEW TARGETS AT GINGIN ADJACENT TO EXISTING OPERATIONS

ABN 57 063 977 579

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Image is pleased to announce that the 95 sq km Gingin tenement E70/3032 in the North Perth Basin has been granted and a number of access agreements have already been signed paving the way for a drilling programme to begin in December. Geophysical surveys carried out by Image have identified at least 45km of new targets, one of which is over 8.6km in length and 0.35km wide.

Significantly, these targets are in close proximity to the existing synthetic rutile and separation facilities at Muchea and within trucking distance of other facilities in Bunbury. It is noted that the existing mineral sand mine at Gingin is high grade averaging 16.7%HM containing more than 1.1Mt HM. The mineral sand orebody at the Gingin mine is only 2.5km in length which is significantly smaller than the larger targets identified within Image’s Gingin tenement.

Image has increased the total cumulative length of identified targets on its North Perth Basin project to 292km (up from 247km, ASX release 24 April 2008). This number is expected to grow as ground surveys are progressively carried out on the remaining 66% of Image’s 2,230sq km of tenements which have not yet been surveyed, as shown in the attached map. From previous experience significant proportions of these targets are expected to be mineralised. These geophysical targets are interpreted to comprise a combination of both strand and channel style mineral sand mineralisation. Initially scout drilling will be carried out to verify the validity of each of the targets prior to infill drilling to define resources.

At this stage work programmes outside of Cooljarloo are contemplated over the Gingin, Cataby West, Bidaminna and Wannamal projects (see attached map). Several priority targets have been outlined for drilling on these tenements and are anticipated to form a further stage in significantly expanding Image’s North Perth Basin resource base which currently stands at 6.4Mt of contained HM (ASX release 8 May 2008).

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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.