IMAGE RESOURCES NL — Capital/Financing Update 2008

Jan 13, 2008

ASX Release ASX code: IMA 14 January 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 www.imageres.com.au

ABN 57 063 977 579

EUCLA BASIN TENEMENTS GRANTED AND NORTH PERTH BASIN HOLDINGS INCREASED

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The Serpentine Lake tenements E69/2033, 2034, 2035 covering some 466km² on the WA side of the Eucla Basin have recently been granted, paving the way forward for heritage clearances and then ground magnetic surveys and exploration drilling to commence. These tenements have been previously highlighted following the zirconenriched heavy mineral grades encountered nearby by Diatreme Resources Limited and announced in previous Image ASX releases of 17 July 2007 and 17 October 2007.

An 80 line-km ground magnetic survey has been completed over the southern part of the adjacent Diatreme tenement and revealed a correlation of high amplitude linear NW ground magnetic targets with the higher grade mineralisation intersected by Diatreme in at least 6 separate targets (see attached map). This verifies the interpretation that 3 palaeo coastlines pass into the Image tenement and gives Image the confidence to carry out ground magnetic surveys to search for the continuation of the mineralisation strands intersected by Diatreme. The target zone is very large being up to 9km wide by 28km in length, and Image is planning to begin heritage clearances, ground magnetic surveys and drilling at the end of the first quarter of this year.

In addition, Image has increased its land holdings to 2047km² in the North Perth Basin following application for 4 new tenements (see attached map). Several of these tenements have aeromagnetic targets identified by a recent survey and highlight their prospectivity. Image is now preparing ground magnetic programmes similar to those carried out over its existing tenements. This will prioritize targets for follow up drilling when the new tenements are granted.

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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Eucla Basin Ground Magnetic Targets

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Location of Image Resources Mineral Sands Tenement Holdings January 2008