IMAGE RESOURCES NL — Capital/Financing Update 2008

Mar 17, 2008

==> picture [100 x 113] intentionally omitted <==

ASX Release 18 March 2008

ASX code: IMA

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

PHOSPHATE POTENTIAL ON IMAGE’S 1100sq km NORTH PERTH BASIN PROJECT

ABN 57 063 977 579

______________________________________________________________________________

As previously announced (ASX Release 17 January 2007), Image substantially expanded the scope of its North Perth Basin heavy mineral sand exploration to cover targets in older Mesozoic sediments forming the basement to younger Pleistocene sediments which host most of the heavy mineral mines in the region.

Significantly, Image’s 1,100sq km Mesozoic project covers part of the Dandaragan Trough which is known to host shallow phosphate sands. Unlike other major rock phosphate projects in Australia, these phosphate sands can be unconsolidated and potentially easy to mine with phosphate occurring as nodules and precipitates in Upper Cretaceous sedimentary formations. Of nine recorded outcropping phosphate occurrences in the Dandaragan area, three occur on Image’s tenements .

Also of significance, rapidly rising global demand for rock phosphate has driven world prices from US$50/tonne a year ago to more than US$200/tonne today making shallow phosphate-bearing horizons in an area of good infrastructure an attractive exploration target.

Historical phosphate exploration in the Dandaragon Trough (BHP in the 1970’s and Wesfarmers/Australian Fertilisers JV in the 1980’s) has demonstrated the presence of economically significant phosphate grades and thicknesses within the Poison Hill Greensand and Molecap Greensand sedimentary units. A Wesfarmers/Australian Fertilisers JV drilling programme gave a best intercept of 19m @ 4.2% P2O5 from 20m depth some 5km east of Image’s tenements within a structural zone trending SSW into Image’s tenements. Preliminary tests by the Wesfarmers/Australian Fertilisers JV indicated that phosphate drill sample material was amenable to beneficiation by grinding and flotation to produce a concentrate of up to 23% P2O5.

Image is encouraged by the potential for large tonnages of phosphate sands to occur on its tenements in an area of good infrastructure close to a railway and ports. A programme of systematic data compilation is in progress to allow Image to more fully assess the phosphate potential of its tenements while continuing to progress its mineral sand project to the next stage.

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 exploration results is based on information compiled by Roger Thomson BSc, ARSM, MAusIMM, who is a Member of the Australian Institute of Geoscientists. Roger Thomson is an employee of Image Resources NL. Roger Thomson 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 of Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Roger Thomson consents to the inclusion of this information in the form and context in which it appears in this report.