IMAGE RESOURCES NL - Capital/Financing Update 2011

ASX Release 15 September 2011

ASX code: IMA

2[nd] Floor, 16 Ord Street West Perth WA 6005 PO Box 644 West Perth WA 6872 Telephone 08 9485 2410 Facsimile 08 9485 2840 [email protected] www.imageres.com.au

ABN 57 063 977 579

UP TO 70% ZIRCON AT THE 12.5KM BOONANARRING TARGET

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HIGHLIGHTS

Enrichments of up to 70% zircon occur at the 1.9km-long Boonanarring Measured Resource (3.1Mt @ 7.2% HM containing 221,000t HM at a 2.5% cut-off).
Deposit and target length increased to 12.5km long x 400m wide.
The zircon-rich zone is open along strike and corresponds with the highest heavy mineral grades.
Drilling of a largely untested 2.3km strike length to the south of Boonanarring Resource is currently being permitted.
Drilling is planned on at least two strong magnetic zones within a 7.7km target to the north of the Boonanarring Resource.

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Figure 1

Boonanarring Resource, Mineralisation Trends

Zircon Grades and Trends

Detailed examination of the mineral assemblages determined by previous explorers has shown that the zircon content of the Boonanarring Measured Resource includes intersections of up to 70% zircon within the heavy mineral fraction (drill hole GG2196, 27-30m). 38% of the reported composite samples average more than 15% zircon in the HM and 31% of the reported composite samples average more than 20% zircon. This is well and truly above the average 10% to 13% zircon grade for the North Perth Basin. There is also a strong north south distribution of zircon grade, with the zircon content increasing to the south, correlating with increased HM grades, as shown in Figure 1. The Boonanarring zircon grade compares favourably with Image’s Cyclone Extended zircon deposit in the Eucla Basin which has an average zircon grade of 21%.

Potential Extensions

The Measured Boonanarring Resource is approximately 1.9km in length (see Figure 2) and remains open both to the north and south. Previous explorers have not been able to fully test the extensions because of land access issues. Image has now reached an agreement to access the land to the south of the deposit. Figure 2 shows the interpreted extent of the mineralisation on this property. The grade and zircon trends apparent in Figure 1 imply that this target area will contain elevated zircon levels (>15% of HM). Applications for permits to drill this area are in progress.

North of the Boonanarring Measured Resource Image has used its magnetic mapping technique to identify a potentially high grade strand extending for 7.7km through three properties. This target includes at least two strong magnetic zones warranting priority drill testing. Two historical wide-spaced drill lines within this northern extension have partially tested the western margin of this target and confirmed the presence of heavy mineral concentrations warranting detailed drill follow up. An access agreement has been concluded with one of the landowners and negotiations are in progress with the remaining two. Subject to access, drilling is scheduled to start in early October.

Taking into account all of the available data, the Boonanarring Measured Resource has the potential to increase in strike length from 1.9km to 12.5km, with at least the southern half of the extensions showing promise for high value mineral assemblages and HM grades.

The Boonanarring resource is centrally located within the 65km Gingin Scarp target area described in Image’s ASX Release of 9 March 2011. It was not included in the Scoping Study described in the 25 August 2011 release as there was insufficient drilling completed. Image expects with further extensions within the target zones identified outside the current resource that Boonanarring will add to the resource inventory, with potential to add significant economic value to the North Perth Project.

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 by Paul Leandri BAppSc who is a member of the Australasian Institute of Mining and Metallurgy. Paul Leandri 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’. Paul Leandri consents to the inclusion of this information in the form and context in which it appears in this report.