IMAGE RESOURCES NL — Capital/Financing Update 2009

Feb 22, 2009

ASX Release 23 February 2009

ASX code: IMA

1.6KM ENHANCEMENT OF RESOURCE (UP TO 79% HM) CONFIRMED AT COOLJARLOO

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2ndnd Floor, 35 Outram St
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2ndnd 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

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HIGHLIGHTS

A substantial proportion of the following high grade results occur outside the current Atlas resource model over a strike length of about 1.6km. This indicates the likelihood of a significant increase in both the size and grade of the presently identified resource.

The following high grade results have been achieved from recent drilling on part of the Atlas heavy mineral resource at Cooljarloo:

• 14m @ 22.5% HM from 1m, including 5m @ 50.0% HM from 6m

• 7m @ 27.5% HM from 3m, including 5m @ 37.3% HM from 4m

• 4m @ 47.4% HM form 3m, including 1m @ 78.7% HM from 6m

• 6m @ 27.8% HM from 3m, including 1m @ 67.%HM from 6m

• 12m @ 13.8% HM from surface, including 4m @ 30.9% HM from 3m

• 6m @ 26.4% HM from surface, including 4m @ 37.0% HM from 1m

• 7m @ 20.9% HM from surface, including 3m @ 44.7% HM from 3m

As reported in Image’s December 2008 quarterly report, an infill aircore drilling programme has been carried out on the southern extent of the Atlas resource at Cooljarloo (Image 70%) with the aim of closing the drill spacing to 200m x 20m to provide greater confidence in the grade and continuity of the mineralisation and to upgrade the status of the resources. The Atlas resource currently comprises an Inferred Resource of 9.7Mt at 5.8% HM (2.5% HM cut off) and an Indicated Resource of 1.9Mt at 4.9% HM (2.5% HM cut off) containing a total of 660,000t of HM. Approximately one third of the samples from a 370-hole, 4,535m drilling programme have been received, including some high-grade results summarised in the attached table.

ASX Release 23 February 2009

ASX Code: IMA

A substantial proportion of the high grade results occur outside the current Atlas resource model and covers a strike length of about 1.6km, indicating the likelihood of a significant increase in both the size and grade of the presently identified resource.

The remaining two thirds of the samples, covering a strike length of about 2.2km, are expected to be processed over the next month with a further release of results expected at that time. Following receipt of all the results, it is planned to carry out further test work on the Atlas mineral assemblage, followed by an update of the Atlas resource model, which is expected to be completed during the June 2009 quarter.

In addition to the drilling described above, Image has completed a further 60 aircore holes at Atlas to test additional infill and new parallel targets. Drilling has now commenced at Cataby West (some 50km south of Cooljarloo) to test a number of new targets identified by ground geophysical surveys. The Cataby West drilling forms part of Image’s ongoing systematic testing of numerous targets totalling some 292km of strike identified to date on the North Perth Basin project.

		Atlas Aircore Drilling Results
Hole Number	MGA East		MGA North	From m	To m	Interval m	HM %
1428	331959		6617194	2	5	3	4.7
1429	331943		6617191	3	5	2	5.7
1430	331920		6617193	3	4	1	3.0
1438	331680		6617195	3	4	1	2.8
1441	331620		6617205	4	5	1	2.0
1442	331599		6617202	4	5	1	4.8
1443	331579		6617203	4	5	1	5.4
1444	331560		6617204	4	7	3	3.7
1445	331551		6617205	4	7	3	6.2
1446	331539		6617205	4	7	3	8.4
1447	331521		6617201	5	8	3	7.9
1448	331501		6617200	6	9	3	8.2
1450	331462		6617193	8	13	5	4.8
1451	331440		6617190	11	12	1	27.3
1452	331421		6617190	11	12	1	8.6
1479	332063		6617416	3	6	3	5.6
1499	330720		6617402	11	12	1	2.1
1502	332400		6617601	4	5	1	2.1
1516	331711		6617584	4	5	1	16.2
1517	331700		6617593	4	5	1	10.1

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ASX Release 23 February 2009

ASX Code: IMA

		Atlas Aircore Drilling Results
Hole Number 1518	MGA East 331679		MGA North 6617592	From m 4	To m 7	Interval m 3	HM % 4.2
1519	331669		6617596	4	7	3	5.1
1520	331660		6617605	4	8	4	18.8
1521	331650		6617602	5	10	5	20.4
1522	331640		6617598	5	9	4	15.5
1523	331620		6617599	7	10	3	10.8
1524	331601		6617605	8	13	5	10.7
1526	331560		6617610	10	12	2	19.9
1527	331539		6617609	10	12	2	15.2
1530	331411		6617604	9	12	3	4.7
1531	331400		6617608	9	12	3	3.3
1532	331381		6617607	9	11	2	2.8
1533	331322		6617603	9	10	1	2.6
1534	331302		6617598	9	11	2	3.4
1535	331282		6617601	8	9	1	3.2
1563	331760		6617812	5	6	1	2.5
1564	331749		6617809	4	6	2	2.8
1565	331739		6617810	5	6	1	2.2
1566	331730		6617808	4	6	2	3.6
1567	331710		6617807	3	7	4	6.3
1568	331701		6617807	4	7	3	23.4
1569	331690		6617807	5	8	3	21.2
1570	331680		6617800	5	11	6	13.6
1571	331661		6617806	5	8	3	9.5
1573	331620		6617805	7	13	6	8.1
1574	331601		6617811	8	11	3	16.2
1575	331579		6617807	9	10	1	10.2
1582	331321		6617813	7	9	2	3.3
1583	331301		6617807	8	12	4	3.4
1584	331280		6617801	10	11	1	2.5
1585	331259		6617803	10	11	1	2.6
1587	331361		6617811	9	10	1	2.3
1589	332581		6618001	10	11	1	4.3
1591	332499		6617999	9	11	2	6.9
1596	331799		6617986	3	4	1	4.7
1598	331769		6617990	3	5	2	3.6
1599	331759		6617984	3	5	2	3.4

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ASX Release 23 February 2009

ASX Code: IMA

		Atlas Aircore Drilling Results
Hole Number 1600	MGA East 331742		MGA North 6617986	From m 3	To m 5	Interval m 2	HM % 3.7
1601	331720		6617990	4	6	2	3.6
1602	331700		6617995	4	8	4	6.4
1603	331679		6617997	5	8	3	3.5
1604	331661		6617995	7	8	1	13.8
1605	331639		6617998	7	8	1	16.9
1606	331619		6618000	3	8	5	4.5
1607	331599		6618001	3	8	5	2.9
1608	331581		6618007	8	10	2	7.6
1609	331560		6618010	8	10	2	5.5
1610	331540		6618010	8	9	1	4.4
1612	331360		6617992	8	10	2	4.6
1618	332481		6618207	7	8	1	2.1
1622	331801		6618207	2	4	2	4.0
1623	331783		6618209	0	5	5	9.7
1624	331771		6618209	0	6	5	20.4
1625	331762		6618209	3	6	3	29.5
1626	331740		6618204	3	7	4	10.1
1627	331719		6618204	3	5	2	3.1
1628	331702		6618203	8	9	1	2.0
1629	331682		6618203	6	7	1	9.9
1630	331660		6618202	7	8	1	13.9
1631	331640		6618201	7	8	1	8.0
1632	331581		6618202	2	4	2	4.5
1635	331460		6618202	8	10	2	2.6
1636	331441		6618204	10	11	1	2.9
1637	331381		6618205	8	11	3	3.7
1638	331359		6618201	9	12	3	4.4
1642	331401		6618202	9	11	2	2.8
1643	331482		6618200	9	10	1	3.8
1644	332521		6618211	12	13	1	2.1
1647	331918		6618390	2	4	2	7.8
1650	331841		6618406	0	7	7	18.8
1651	331830		6618402	0	6	6	22.6
1652	331821		6618399	0	6	6	26.4
1653	331800		6618398	3	7	4	47.4
1654	331779		6618399	3	7	4	22.2

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ASX Release 23 February 2009

ASX Code: IMA

		Atlas Aircore Drilling Results
Hole Number 1655	MGA East 331760		MGA North 6618400	From m 4	To m 8	Interval m 4	HM % 4.4
1656	331722		6618400	8	9	1	8.5
1657	331700		6618399	6	10	4	13.7
1658	331689		6618398	3	10	7	10.1
1659	331680		6618399	7	9	2	7.2
1660	331661		6618398	7	8	1	2.6
1661	331443		6618397	8	9	1	3.0
1662	331360		6618404	8	10	2	3.3
1664	332680		6618602	1	2	1	2.0
1666	332280		6618595	4	5	1	2.5
1670	331939		6618596	0	5	5	8.0
1670	331939		6618596	0	2	2	3.9
1671	331919		6618593	0	5	5	6.3
1672	331900		6618597	0	6	6	13.5
1673	331890		6618598	0	7	7	20.9
1674	331880		6618597	1	7	6	22.5
1675	331860		6618598	1	8	7	15.2
1676	331840		6618601	3	7	4	19.7
1677	331831		6618599	3	10	7	27.5
1678	331820		6618599	3	9	6	27.8
1679	331801		6618597	4	9	5	14.0
1680	331782		6618598	4	9	5	7.2
1681	331756		6618600	7	9	2	22.1
1682	331741		6618604	9	10	1	15.4
1683	331723		6618604	7	9	2	16.2
1684	331700		6618604	7	10	3	5.1
1685	331680		6618605	2	9	3	6.8
1688	331579		6618598	7	9	2	2.7
1689	331517		6618607	8	9	1	2.4
1690	331478		6618603	8	9	1	4.2
1692	331399		6618600	8	12	4	1.8
1700	332240		6618807	3	9	6	2.7
1704	331981		6618826	0	4	4	2.4
1705	331971		6618822	0	2	2	2.5
1706	331961		6618823	0	4	4	2.8
1707	331938		6618818	0	5	5	9.3
1708	331921		6618816	0	6	6	13.0

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ASX Release 23 February 2009

ASX Code: IMA

		Atlas Aircore Drilling Results
Hole Number 1709	MGA East 331901		MGA North 6618813	From m 0	To m 5	Interval m 5	HM % 3.8
1710	331882		6618810	0	12	12	13.8
1711	331860		6618804	1	15	14	22.5
1712	331801		6618805	3	10	7	4.7
1713	331779		6618813	3	9	6	6.7
1m	or 2m samples, HM grade determined by				TBE heavy liquid separation

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 Scott Carruthers BSc, MSc, MAusIMM. Scott Carruthers is a full time employee of Image Resources NL. Scott Carruthers 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 of 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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