IMAGE RESOURCES NL — Capital/Financing Update 2012

Nov 5, 2012

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ASX Code: IMA 6 November 2012

Image Resources NL Level 2, 16 Ord St West Perth WA 6005 PO Box 644 West Perth WA 6872 Telephone +61 8 9485 2410 Facsimile +61 8 9485 2840 info@imageres.com.au www.imageres.com.au ABN 57 063 977 579

NORTH PERTH BASIN PROJECT FEASIBILITY STUDY FULLY FUNDED

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• Image to raise up to $7M through placement to institutional and sophisticated investors subject to shareholder approval.

• Funds to be used to complete the Feasibility study on the North Perth Basin mineral Sands project.

Image Resources NL has mandated CPS Securities to raise up to $7M via the issue of fully paid ordinary shares at 20 cents each. CPS has confirmed to the Company that it has already secured commitments to this placement in an amount exceeding $6.5M.

To facilitate the placement, a General Meeting of shareholders will be held in early December to consider a resolution to allow the placement to proceed.

The Company intends to complete the issue in December.

The funds to be raised, together with current working capital, will exceed the current estimated costs for Image to complete a Bankable Feasibility Study on its Boonanarring and Atlas mineral sands project in the North Perth Basin. The work is scheduled to be completed in July 2013 including an independent expert review.

The funds raised will cover costs related to technical studies, environmental and mining approvals at Boonanarring and augment general working capital. The raising is budgeted to also fund exploration at the Boonanarring area and other high priority project areas.

“With this raising, Image will continue to move toward the important milestone of delivering production in 2014 and we can now focus on the main feasibility study and associated environmental and approvals work”, said Peter Davies, Managing Director of Image Resources.

Image is pleased to have a new group of investors coming on board and looks forward to their support.

Next steps will be completion of the additional resource estimates at Boonanarring, commencement of process test work and preparation of marketing samples of zircon and ilmenite.”

Image has a 10.5 Mt JORC Measured and Indicated Resource at Boonanarring as part of 52.9 Mt overall in the North Perth Basin (refer Appendix A). Resource upgrades are expected to bring the Boonanarring deposit alone to 15-25 Mt depending on the cut-off grade used. The North Perth Basin project contains a high grade resource, with the majority on cleared freehold farmland. Infrastructure in the area is excellent with the Brand Highway, power and gas lines all crossing the

project area. Image plans to construct a 3.3 Mt per annum single mine and wet plant operation at Boonanarring with production to commence in 2014. Image also holds a number of other major deposits in the North Perth Basin project with significant upside potential including at Atlas, Red Gully and Gingin South.

This is the announcement intended to lift the voluntary suspension in trading of the Company’s securities.

For more information on the company visit www.imageres.com.au

Please direct enquiries to: Peter Davies George Sakalidis Managing Director Executive Exploration Director Phone +61 8 9485 2410 Phone +61 8 9485 2410 Mob +61 409 296 676 Mob +61 411 640 337

COMPETENT PERSON’S STATEMENT – EXPLORATION RESULTS

The information in this presentation 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 announcement.

COMPETENT PERSON’S STATEMENT – EXPLORATION RESULTS FOR THE ERAYINIA JV

The information in this report that relates to exploration results for the Erayinia JV is based on information compiled by Roger Thomson BSc, ARSM, MAusIMM, who is a Member of the Australian Institute of Geoscientists. Roger Thomson is a Director of Image Resources NL. Roger Thomson 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’. Roger Thomson consents to the inclusion of this information in the form and context in which it appears in this announcement.

COMPETENT PERSON’S STATEMENT – RESOURCE ESTIMATES

The information in this presentation that relates to mineral resources is based on information compiled by Lynn Widenbar BSc, MSc, DIC, MAIG, MAusIMM employed by Widenbar & Associates who is a consultant to the Company. Lynn Widenbar 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’. Lynn Widenbar consents to the inclusion of this information in the form and context in which it appears in this announcement.

COMPETENT PERSON’S STATEMENT – PROJECT EVALUATION

The information in this presentation that relates to project evaluation is based on information compiled by Peter Davies BSc Eng (Hons) ARSM, C.Eng. MIMMM, FAusIMM FRSA, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Peter Davies is Managing Director/Project Manager of Image Resources NL. Peter Davies 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’. Peter Davies consents to the inclusion of this information in the form and context in which it appears in this announcement.

FORWARD LOOKING STATEMENTS

Certain statements made during or in connection with this communication, including, without limitation, those concerning the economic outlook for the mining industry, expectations regarding prices, exploration or development costs and other operating results, growth prospects and the outlook of Image’s operations contain or comprise certain forward looking statements regarding Image’s operations, economic performance and financial condition. Although Image believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct.

Accordingly, results could differ materially from those set out in the forward looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes that could result from future acquisitions of new exploration properties, the risks and hazards inherent in the mining business (including industrial accidents, environmental hazards or geologically related conditions), changes in the regulatory environment and other government actions, risks inherent in the ownership, exploration and operation of or investment in mining properties, fluctuations in prices and exchange rates and business and operations risks management, as well as generally those additional factors set forth in our periodic filings with ASX. Image undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today’s date or to reflect the occurrence of unanticipated events.

Appendix A :: Resource Statement at North Perth Basin Project

High Grade Resources
Resource	Resource	BCM	TONNES	% HM	% SLIMES	HM TONNES	VHM	Ilmenite	Leucoxene	Rutile	Zircon
	Category						(%)	(%)	(%)	(%)	(%)
Atlas	Indicated	520,000	1,080,000	3.2	19.2	34,000	74	53	8	7	6
Atlas	Measured	4,810,000	9,700,000	8.5	15.3	822,000	76	52	5	8	11
Atlas Total		5,330,000	10,780,000	7.9	15.7	856,000	76	52	5	8	10
Boonanaring	Indicated	3,740,000	7,450,000	7.0	14.9	520,000	80	48	11	3	17
Boonanaring	Measured	1,680,000	3,060,000	7.2	9.9	220,000	67	49	1	3	15
Boonanaring
Total		5,420,000	10,510,000	7.1	13.4	740,000	76	48	8	3	17
Gingin Nth	Indicated	680,000	1,320,000	5.7	15.7	75,000	75	57	9	3	5
Gingin Nth	Inferred	580,000	1,090,000	5.2	14	57,000	78	57	11	4	6
Gingin Nth
Total		1,260,000	2,410,000	5.5	15.0	132,000	77	57	10	3	6
Gingin Sth	Indicated	3,240,000	5,820,000	6.5	7.1	377,000	91	68	10	5	8
Gingin Sth	Inferred	400,000	730,000	6.5	8.4	48,000	92	67	8	6	11
Gingin Sth	Measured	870,000	1,530,000	4.4	7.2	67,000	79	51	15	6	8
Gingin Sth
Total		4,510,000	8,080,000	6.1	7.3	492,000	89	65	10	5	8

High Grade Resources
Helene	Indicated	5,600,000	11,500,000	4.6	18.6	523,000	84	70	1	3	11
Hyperion	Indicated	1,800,000	3,700,000	7.8	19.3	290,000	71	56	0	6	9
Red Gully	Indicated	1,930,000	3,410,000	7.8	11.5	267,000	90	66	8	3	12
Red Gully	Inferred	1,455,000	2,570,000	7.5	10.7	192,000	90	66	8	3	12
Red Gully
Total		3,385,000	5,980,000	7.7	11.2	459,000	90	66	8	3	12
Grand Total		27,305,000	52,960,000	6.6	14.3	3,492,000	80.4	58.3	6.0	4.7	11.4