IMAGE RESOURCES NL — Capital/Financing Update 2009

Dec 16, 2009

ASX Release ASX code: IMA 17 December 2009

2nd Floor, 16 Ord Street 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

RESOURCE TARGETS INCREASED FROM 1.1KM TO 6.8KM AT COOLJARLOO SOUTHEAST

____________________________________________________________________________________

Following additional detailed ground magnetic surveys in the south eastern part of the Cooljarloo heavy mineral project (Image 70%), a revised interpretation has more clearly defined drilling targets along strike from existing defined resources. The potential to increase these resources is substantial because the total length of the targets strand lines is now 6.8km compared to the 1.1km strike length of the known mineralisation within the existing resources (see attached map).

This major target (previously referred to as the “new high grade strand” in ASX release 12 April 2007) is now called Rhea. The adjacent targets to the west of Rhea are the northwest extension of Tiwest’s Middle Strand resource and will retain that name. The drill hole results from this area are summarised in the 12 April 2007 ASX release.

A 6,000m drilling programme on 100m line spacings is proposed on those parts of the target strands currently accessible, as shown on the attached map. Permitting for this drilling is in progress. This drill density should be adequate to define measured resources within the mineralised strands. In addition, four new channel targets are planned to be tested in the proposed programme, following up previous drilling on known channels where thick intersections up to 70m @1.7% heavy minerals occur.

The strand targets form part of the group of interpreted strand lines that have been magnetically mapped in detail and which have associated mineralisation indicated from previous drilling by Image Resources or other explorers. The Gingin and Bidaminna projects have similar high priority targets which will also be followed up early next year with drilling densities sufficient to outline resources within the mineralised target areas. This drilling is part of Image’s objective to build a resource base of global significance 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 is based on information compiled or reviewed 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 mineralisation 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.

==> picture [560 x 416] intentionally omitted <==

Cooljarloo, South East Target Areas