IMAGE RESOURCES NL — Capital/Financing Update 2009

Aug 9, 2009

ABN 57 063 977 579

ASX Release 10 August 2009

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

ZIRCON TONNES UP 120% AND HM TONNES UP 40% AT ATLAS RESOURCE

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Image Resources is pleased to announce a significant upgrade to the Atlas resource at Cooljarloo. The major highlights include:

• Change in resource category of heavy minerals and mineralisation to Indicated from a mix of Inferred and Indicated.

• Over 120% increase in tonnes of contained zircon from 46,000 tonnes to 102,000 tonnes.

• 40% Increase in tonnes of contained heavy minerals from 650,000 to 910,000 tonnes.

• 11% increase in grade from 5.8%HM to 6.2%HM

The following tables compare the updated resource with the initial estimate announced in May 2008.

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Table 1

Atlas: Resource Estimate Heavy Minerals and Mineralisation

	Category	Cut Off Grade %HM	Tonnes	Grade %HM	Slimes %	t HM
			August 2009
	Indicated	2.5	14,600,000	6.2	15.6	910,000
			May 2008
	Inferred	2.5	1,900,000	4.7	13.5	90,000
	Inferred	2.5	9,700,000	5.8	13.8	560,000
	Ind + Inf	2.5	11,600,000	5.6	13.7	650,000

Table 2

Atlas: Resource Estimate Heavy Mineral Suite

	Category	Ilmenite	Leucoxene + Rutile	Zircon	Other
		August 2009
	Inferred	555,000t	66,000t	102,000t	186,000t
	Inferred	61.0%	7.3%	11.2%	20.4%
		**May **	2008
	Inferred	350,000t	61,000t	46,000t	70,000t
	Inferred	53.8%	9.4%	7.1%	10.8%

These changes represent a significant upgrade to the Atlas resource, which is expected to markedly increase the net present value of the project. Atlas is 7km long and up to 400m wide and is one of the better high grade resources identified in the North Perth Basin project to date.

The sample density is sufficient to support an indicated resource category for the tonnes of heavy mineral and mineralised material. However, as there is limited mineral assemblage data available, the tonnes of contained ilmenite, rutile, and zircon are classified as Inferred. Many more samples will be analysed, allowing the resource estimate for the mineral suite to be upgraded to Indicated. Systematic analysis of the suitability of the Atlas ilmenite for synthetic rutile feed will also be addressed.

Whilst the Atlas resource represents the company’s most advanced resource, it is only a small portion of its resource base which is targeted to expand by a factor of at least two after the company drills out the remaining 300km of targets identified to date.

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 Scott Carruthers BSc,MSc who is a member of the Australasian Institute of Mining and Metallurgy. Scott Carruthers is an employee of Image Resources NL. He 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’. Scott Carruthers consents to the inclusion of this information in the form and context in which it appears in this report.

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