IMAGE RESOURCES NL — Capital/Financing Update 2008

Feb 24, 2008

ASX Release 25 February 2008

ASX code: IMA

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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

IMAGE COMPLETES STRATEGIC ACQUISITION OF THE BIDAMINNA RESOURCE

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Image Resources is pleased to announce that it has entered into an agreement to acquire a 90% interest in exploration licence E70/3298, which hosts a significant part of the Bidaminna heavy mineral (HM) resource in the North Perth Basin. The remainder of the resource and its potential northern extension is held on Image’s 100%-owned tenements as shown in the attached map.

The defined Bidaminna Inferred Resource of 1.3Mt of HM concentrate (44Mt @ 3% HM) was previously drilled out by Geopeko and is 6km in length and 40m in width. Image has outlined at Bidaminna more than 30km of additional targets including a 6km extension of the Bidaminna Resource and an 18km-long potential channel (as announced in the December 2007 quarterly report).

The previous work by Geopeko indicates that the Bidaminna resource comprises two stacked strands with the upper strand containing ilmenite with characteristics suitable for local processing to synthetic rutile and a lower strand more suitable for processing to titanium dioxide via the sulphate route.

In the last year the sulphate ilmenite price has risen from US$85/tonne to more than US$100/tonne following strong demand from Chinese processors. Global titanium dioxide pigment demand is forecast to be strong until at least 2012.

The Bidaminna acquisition is seen to be a significant strategic addition to Image’s expanding resource inventory in the North Perth Basin.

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 an employee 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.

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