IMAGE RESOURCES NL — Capital/Financing Update 2013

Apr 14, 2013

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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 info@imageres.com.au www.imageres.com.au

ABN 57 063 977 579

ASX Code: IMA 15 April 2013

IMAGE CONTINUES TO DELIVER, WITH A NEW HIGHER GRADE RESOURCE EXTENSION AT BOONANARRING

HIGHLIGHTS

• New drilling confirms extension of the Boonanarring heavy mineral (HM) deposit resulting in an additional JORC Indicated Resource at Block A of 1.36Mt @ 18.2% HM , containing 243kt of HM at a 2.5% HM cut-off.

• An additional Inferred Resource of 750kt @ 10.6% HM containing 79kt of HM has also been defined.

• At 15.4%HM, the overall resource in Block A is double the HM grade of the previously released resources for Blocks B, C and D, which average 7.5% HM at the same cut-off .The grades for Blocks B, C and D are already higher than most mineral sand deposits.

• Block A also has significant Zircon credits, with Zircon grade averaging 25.9% of the HM, compared to an average of 19.6% for Blocks B, C and D.

• This discovery brings the currently defined Boonanarring total JORC Resources to 20.9Mt @ 8.3% HM containing 1.7Mt of HM at a 2.5% HM cut-off (see Table 3 for full details of the combined Measured, Indicated and Inferred Resources).

• The average 85% Valuable Heavy Mineral (VHM) content of the HM is another highly positive attribute for the resource, increasing the overall Boonanarring VHM content to 79% of the HM.

• Ground magnetics survey work to test the potential for northern extensions of the Block A high grade zones has commenced.

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Summary

The average Zircon content of this new JORC Resource has increased from the conservative estimate of 11% of HM, which was used in the preliminary analysis work carried out in May and June 2012, to 25.9% of HM, at a cut-off grade of 2.5% HM.

As with Blocks B and C to the south, geological analysis shows two strandlines (see Figures 5a and 5b). The eastern strandline contains continuous zones of very high HM and Zircon grades. At a cut-off grade of 2.5% HM, the eastern strandline contains an Indicated Resource of 1.3Mt @ 19.2% HM with 26.4% of the HM being Zircon (refer to Table 2).

The western strandline, which is generally lower grade at Boonanarring, appears to be less well developed on Block A and is truncated to the North West by the gas pipeline easements and the Brand Highway. More work is planned to better define this strand.

The currently defined Resources extend over a strike length of 9.7km in Blocks A, B, C and D. (see Figure 1).

Block A Resource Estimate

The Boonanarring deposit, located 90km north of Perth, forms part of Image’s North Perth Basin mineral sands project.

Using its in-house magnetic expertise, Image identified the potential for a significant enlargement of the Boonanarring deposit, previously covered only by Mining Lease M70/1194 (acquired from Iluka Resources Limited in March 2011). With the drilling of this extension, the deposit has been demonstrated to span over 12km (see Figure 1). All of the assay and mineralogical results have been received for the 9.7km strike length within Blocks A, B and C which are located immediately north of the M70/1194 and within the new Mining Lease M70/1311 granted to Image in March 2013 (see Figure 1). Results from infill drilling on Blocks C West, D and E are still pending.

The recently received results from Block A have enabled Image, working with Lynn Widenbar and Associates, to define a maiden JORC Indicated and Inferred Resource for the Boonanarring Block A totalling 2.1Mt @ 15.4%HM containing 323kt of HM at a 2.5% HM cutoff.

Of particular interest are the extremely high HM and Zircon grades in the eastern strandline (see below). Table 1 summarises the resource estimate and Table 2 shows the corresponding mineral content.

Figure 5(a) shows the variation in HM grades along the strike of the model for both the western and eastern strandlines and Figure 5(b) shows the corresponding variation in Zircon grade as modelled for both strandlines.

Appendix 1 tabulates the Block A resource estimate at various cut-off grades. Appendix 2 defines the criteria used to determine the resource status.

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Table 1

Boonanarring Block A Resource dated 12 April 2013

	Table 1 Boonanarring Block A Resource dated 12 April 2013
INDICATED RESOURCES	Volume k BCM) Tonnage (kt) HM (%) VHM (%) VHM Contained (kt) Slimes (%) OS (%)
West Strand East Strand	40 90 3.2 2.8 2 20.7 4.9 590 1,270 19.2 16.3 210 21.6 8.0
Total Indicated	630 1,360 18.2 15.4 212 21.5 7.8
INFERRED RESOURCE
West Strand East Strand East 230 Zone	130 250 4.7 3.8 10 16.1 5.2 160 340 17.9 15.2 50 20.0 3.9 80 160 4.1 3.0 5 14.6 5.1
Total Inferred	370 750 10.6 8.8 65 17.5 4.6
Total Resource	1,000 2,110 15.4 13.0 277 20.1 6.6

Notes: 2. 5% HM cut-off Slimes: minus 63micron fraction OS: oversize, plus 1mm fraction. Values rounded to reflect uncertainty of estimates.

Table 2

~~B~~ oonanarring Block A Resource, % Mineral Content of HM

INDICATED RESOURCES West Strand East Strand	HM Contained (kt)1 ILMENITE (%) LEUCOXENE (%) RUTILE (%) ZIRCON (%) VHM Total (%) 3 67.1 4.0 2.5 11.8 85.4 240 55.0 2.0 1.6 26.4 85.0
Total Indicated	243 55.2 2.0 1.6 26.2 85.0
INFERRED RESOURCES
West Strand East Strand East 230 Zone	12 58.7 2.1 1.3 18.8 81 60 48.4 5.6 2.8 27.8 85 7 57.4 2.5 1.9 10.3 28
Total Inferred	79 51 4.8 2.5 25.0 83.0
TOTAL	323 54.1 2.7 1.8 25.9 84.5

Notes: Total tonnage values rounded to reflect uncertainty of estimates.

Geology

The Boonanarring deposit and its extensions consist of two strandlines deposited in a historical shoreline environment along the Gingin Scarp, formed during a rise in sea level during the Pleistocene period. The western strandline sits at a base elevation of 65m - 67m AHD. The base elevation of the higher grade eastern strandline is slightly higher, lying between 67m and 69m AHD. This strandline is distinguished by its high Zircon content and in Block A the eastern strand is consistently 40 – 80m wide with very high heavy mineral grade. The deposits lie on a base of grey clays, silts and sands interpreted to be Cretaceous Leederville Formation. A younger sequence of sand, clay and Laterite has covered and preserved the strand units. Within the central section of the Eastern strand of Block A there is a low grade HM accumulation on top of the main high grade mineralisation, which has been shown to contain a higher Ilmenite content and lower Zircon content than the underlying

ASX Release 15 April 2013

strand. This zone averages 4m thick and has been modelled as a separate entity with the zone code East_230. It is intersected in three drill lines and has been defined as an Inferred resource in the current estimate (see Tables 1 and 2 and Appendix 1).

Mineralogy

The mineral assemblage of the resource estimate is based upon the analysis of 36 HM composite samples taken from every drill section over the length of the resource area and which were subjected to XRF mineralogical analysis. The composites were designed to reflect the geological interpretation of the strandlines and were created by compositing the concentrate from between 3 and 30 individual metre drill samples (with an average of 10 concentrate samples per composite). Each composite was analysed using single bead XRF and the mineral composition was calculated using a combination of industry standard elemental abundances and elemental compositions derived from testwork.

In addition, the mineralogy was assessed qualitatively by a consultant with extensive experience in the mineralogy, processing characteristics and product quality of Western Australian mineral sands deposits. Further work is planned to refine the breakdown between Ilmenite, Leucoxene and Rutile composition of the mineral assemblage. The current split is regarded as being conservative in terms of ore value.

Overall Boonanarring Resource

Using drilling and mineralogical data supplied by Iluka on Mining Lease M70/1194 (Block D), Image originally estimated a total Measured Resource for Boonanarring of 3.1Mt at 7.2% HM at a 2.5% HM cut-off, containing 220kt of HM (refer IMA ASX Release dated 9 March 2011). The resource inventory was increased in October 2012 to incorporate Indicated Resources for Block B (refer IMA ASX Release dated 4 October 2012) and further augmented in March 2013 with a maiden Indicated and Inferred resource for Block C (refer IMA ASX Release dated 8 March 2013).

This new resource estimate for Block A has increased the JORC Resource inventory at Boonanarring to 20.9Mt @ 8.3% HM containing 1.7Mt of HM at a 2.5% HM cut-off segregated into Measured, Indicated and Inferred categories as shown in Table 3. This is within the target range of 20 to 25 Mt of JORC Resources at Boonanarring set in mid 2012, with Block C West Infill, Block D infill and the maiden Block E JORC resources still to be finalised.

		Table 3	Table 3
Overall Boonanarring HM Resource dated 12 April				2013. Blocks A,B,C		**and D only. **
CLASSIFICATION	HM	Volume	Tonnage	HM	VHM	Slimes	HM
	CUTOFF	(million	(Mt)*	(%)	(%)	(%)	(kt)
	(%)	cubic metre)
MEASURED	2.5	1.7	3.1	7.2	4.8	9.9	220
INDICATED	2.5	6.7	13.6	9.1	8.3	17.3 1,240
INFERRED	2.5	2.1	4.2	6.5	5.8	17.4	270
TOTAL	2.5	10.5	20.9	8.3	6.6	16.2 1,730

*Note Values rounded to reflect accuracy of estimates.

The new resource adds another 83,000 tonnes of Zircon to the previously defined 277,000 tonnes, bringing the total Zircon endowment at the Boonanarring project to 360,000 tonnes.

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Image is very encouraged by this major resource upgrade, which has now been defined to JORC Indicated Resource status over 9.7km of the 12km prospective strike length of the deposit.

Other Key Activities

Other key feasibility study activities include the following.

• Test samples of Boonanarring Ilmenite have been sent to selected customers.

• Test samples of Atlas Ilmenite have been prepared and dispatch to selected customers has commenced.

• All environmental field work has been completed. No major or unexpected issues have been identified.

• All hydrological test and production bore drilling has been completed. Early indications are that the deep production bore, located within 100m of the proposed plant site, can provide adequate flow rates to support a mining operation. This is subject to grant of the necessary licences and approvals. Pump testing of this bore will be completed by end April.

• Mine planning and scheduling work has commenced.

• Process flowsheet design work has been completed and other processing plant design work is on schedule.

• Logistics and infrastructure studies are progressing.

• Preliminary independent expert review of the resources, mining and processing Feasibility Study work is in progress, with no major issues identified to date.

• A detailed “bankable” economic model is being prepared, ready for announcement of maiden economic estimates for Boonanarring in May 2013.

• The feasibility study work is on budget and on schedule for completion in July 2013.

Future Work

Infill drilling on Blocks C West, D and E as required to bring all these resources to JORC Indicated status was completed in late February 2013. Assay work is expected to be finalised mid-April 2013. Once all HM and mineralogy results have been received, further JORC Indicated Resources are expected to be announced for these blocks, over the full 12km strike length, by mid-May 2013.

The need for further infill drilling to bring the remaining Inferred resources up to Indicated status has been identified in parts of Blocks A and C and this will be completed in April 2013 via a ten day drilling programme.

Work has commenced, using Image’s successful ground magnetics techniques, to test for extensions of high grade zones north of Block A, within the existing exploration tenements.

Planning has also commenced for a return to exploration drilling at the large medium grade Bidaminna deposit, west of Boonanarring to test known targets and resource extensions.

Concluding Comments

Image Resources Managing Director, Peter Davies, said “Given Image’s track record to date in converting early ground magnetics results into high grade mineral sands JORC resources, this result is not unexpected. However, the grade of the JORC resources in Block A is far higher than we predicted and this adds further to our confidence in the potential of the Boonanarring project. ”

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“It is also encouraging to see the expansion of the exploration efforts into areas of Bidaminna and north of Boonanarring which have potential to add significantly to the Company’s resources portfolio”, Mr Davies said.

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Figure 1

Boonanarring Exploration Targets and Drilling April 2013

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Figure 2 Section on Line 35 400N (Refer to Figure 1 for location)

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Figure 3

Section on Line 35 000N (Refer to Figure 1 for location)

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Figure 4

Section on Line 34 600N (Refer to Figure 1 for location)

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Figure 5 :

Perspective view of Block A & Block B strandlines. Blocks coloured by (a) Interpolated HM Grade and (b) Interpolated Zircon Grade as % of HM

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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 presentation.

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 MAusIMM MAIG 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 presentation.

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 report.

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.

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Appendix 1 Block A Indicated Resource by Cut-off Grade

Table A1: Indicated Resource Tonnes and Grade

		Volume	Resource	HM	VHM	SLIMES	OS	VHM
Strand	Cut-Off	(k BCM)1	(kt)1	(%)	(%)	(%)	(%)	(kt)1
WEST STRAND	10.0	0	0	0.0	0.0	0.0	0.0	0
WEST STRAND	5.0	0.5	1	5.6	4.8	19.6	0.9	0.05
WEST STRAND	4.0	7	15	4.5	3.9	20.7	3.1	0.6
WEST STRAND	3.0	20	43	3.8	3.2	21.0	4.0	1
WEST STRAND	2.5	40	90	3.2	2.8	20.7	4.9	2
WEST STRAND	2.0	70	140	2.9	2.4	21.6	4.4	3
WEST STRAND	1.0	110	230	2.4	2.0	20.0	5.7	5
EAST STRAND	10.0	400	870	24.7	21.5	17.2	7.9	190
EAST STRAND	5.0	560	1,210	20.0	17.0	20.8	8.0	210
EAST STRAND	4.0	580	1,250	19.4	16.5	21.4	8.0	210
EAST STRAND	3.0	590	1,270	19.2	16.3	21.6	8.0	210
EAST STRAND	2.5	590	1,270	19.2	16.3	21.6	8.0	210
EAST STRAND	2.0	590	1,270	19.2	16.3	21.6	8.0	210
EAST STRAND	1.0	590	1,270	19.2	16.3	21.6	8.0	210
TOTAL	10.0	400	870	24.7	21.5	17.2	7.9	190
TOTAL	5.0	560	1,210	20.0	17.0	20.8	8.0	210
TOTAL	4.0	590	1,270	19.2	16.4	21.3	7.9	210
TOTAL	3.0	610	1,310	18.7	15.9	21.6	7.8	210
TOTAL	2.5	630	1,360	18.2	15.4	21.5	7.8	212
TOTAL	2.0	660	1,410	17.6	14.9	21.6	7.6	210
TOTAL	1.0	700	1,500	16.7	14.2	21.3	7.6	215

Note:

1. Figures rounded to reflect uncertainty of estimate.

2. Slimes <63 micron

3. OS > 1mm

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Table A2: Indicated Resource VHM Grades as % of Total HM

		HM		ILMENITE	LEUCOXENE	RUTILE	ZIRCON	VHM
Strand	Cut-Off	(kt)1		(%HM)	(%HM)	(%HM)	(%HM)	(%HM)
WEST STRAND	10.0		0	0.0	0.0	0.0	0.0	0.0
WEST STRAND	5.0		0	67.1	4.0	2.5	11.8	85.4
WEST STRAND	4.0		1	67.1	4.0	2.5	11.8	85.4
WEST STRAND	3.0		2	67.1	4.0	2.5	11.8	85.4
WEST STRAND	2.5		3	67.1	4.0	2.5	11.8	85.4
WEST STRAND	2.0		4	67.1	4.0	2.5	11.8	85.4
WEST STRAND	1.0		5	67.1	4.0	2.5	11.8	85.4
EAST STRAND	10.0		220	54.1	1.9	1.5	29.2	86.8
EAST STRAND	5.0		240	54.9	2.0	1.6	26.7	85.2
EAST STRAND	4.0		240	55.0	2.0	1.6	26.5	85.0
EAST STRAND	3.0		240	55.0	2.0	1.6	26.4	85.0
EAST STRAND	2.5		240	55.0	2.0	1.6	26.4	85.0
EAST STRAND	2.0		240	55.0	2.0	1.6	26.4	85.0
EAST STRAND	1.0		240	55.0	2.0	1.6	26.4	85.0
TOTAL	10.0		220	54.1	1.9	1.5	29.2	86.8
TOTAL	5.0		240	54.9	2.0	1.6	26.7	85.2
TOTAL	4.0		241	55.0	2.0	1.6	26.4	85.0
TOTAL	3.0		242	55.1	2.0	1.6	26.3	85.0
TOTAL	2.5		243	55.2	2.0	1.6	26.2	85.0
TOTAL	2.0		244	55.2	2.0	1.6	26.2	85.0
TOTAL	1.0		245	55.3	2.0	1.6	26.1	85.0

Note:

1. Figures rounded to reflect uncertainty of estimate.

2. All VHM expressed as percentage of HM

ASX Release 15 April 2013

Table A3: Inferred Resource Tonnes and Grades

		Volume	Resource	HM	VHM	SLIMES	OS	VHM
Strand	Cut-Off	(k BCM)1	(kt)1	(%)	(%)	(%)2	(%)3	(kt)1
WEST STRAND	10.0	0	0	0.0	0.0	0.0	0.0	0
WEST STRAND	5.0	50	100	6.3	5.2	14.8	5.2	5
WEST STRAND	4.0	80	157	5.7	4.6	15.3	5.0	7
WEST STRAND	3.0	110	220	5.0	4.1	15.5	5.4	10
WEST STRAND	2.5	130	250	4.7	3.8	16.1	5.2	10
WEST STRAND	2.0	150	300	4.4	3.5	16.6	4.9	10
WEST STRAND	1.0	160	330	4.1	3.3	17.0	4.7	10
EAST STRAND	10.0	90	210	25.4	22.0	18.2	4.1	46
EAST STRAND	5.0	140	310	19.4	16.6	19.2	3.9	50
EAST STRAND	4.0	150	330	18.4	15.6	19.7	3.9	50
EAST STRAND	3.0	160	340	17.9	15.2	20.0	3.9	50
EAST STRAND	2.5	160	340	17.9	15.2	20.0	3.9	50
EAST STRAND	2.0	160	350	17.8	15.1	20.0	3.9	50
EAST STRAND	1.0	160	350	17.7	15.0	20.0	3.9	50
EAST_230	10.0	2	3	12.6	10.2	18.7	2.9	0.3
EAST_230	5.0	20	30	6.9	5.5	20.0	6.5	2
EAST_230	4.0	30	60	5.8	4.4	17.5	6.7	3
EAST_230	3.0	60	120	4.7	3.4	15.2	5.8	4
EAST_230	2.5	80	160	4.1	3.0	14.6	5.1	5
EAST_230	2.0	90	170	4.1	3.0	14.7	5.0	5
EAST_230	1.0	90	170	4.1	2.9	14.7	5.0	5
TOTAL	10.0	90	210	25.2	21.9	18.2	4.1	46
TOTAL	5.0	210	440	15.5	13.2	18.3	4.4	57
TOTAL	4.0	260	550	13.3	11.2	18.2	4.5	60
TOTAL	3.0	330	680	11.5	9.6	17.7	4.7	64
TOTAL	2.5	370	750	10.6	8.8	17.5	4.6	65
TOTAL	2.0	400	820	10.1	8.4	17.6	4.5	65
TOTAL	1.0	410	850	9.7	8.0	17.8	4.4	65

Note:

1. Figures rounded to reflect uncertainty of estimate.

2. Slimes <63 micron

3. OS > 1mm

ASX Release 15 April 2013

Table A4: Inferred Resource VHM Grades as % of Total HM

		HM		ILMENITE	LEUCOXENE	RUTILE	ZIRCON	VHM
Strand	Cut-Off	(kt)1		(%HM)	(%HM)	(%HM)	(%HM)	(%HM)
WEST STRAND	10.0		0	0.0	0.0	0.0	0.0	0.0
WEST STRAND	5.0		6	57.8	1.9	1.2	20.6	81.6
WEST STRAND	4.0		9	58.0	1.9	1.2	20.2	81.4
WEST STRAND	3.0		11	58.1	2.0	1.3	19.5	80.9
WEST STRAND	2.5		12	58.7	2.1	1.3	18.8	81.0
WEST STRAND	2.0		13	59.2	2.2	1.4	18.2	81.0
WEST STRAND	1.0		14	59.5	2.3	1.5	17.8	81.0
EAST STRAND	10.0		50	48.5	7.1	3.2	28.0	86.8
EAST STRAND	5.0		60	48.2	6.0	2.9	28.2	85.2
EAST STRAND	4.0		60	48.5	5.7	2.8	27.7	84.8
EAST STRAND	3.0		60	48.4	5.6	2.8	27.8	84.6
EAST STRAND	2.5		60	48.4	5.6	2.8	27.8	84.6
EAST STRAND	2.0		60	48.3	5.6	2.8	28.0	84.6
EAST STRAND	1.0		60	48.2	5.5	2.8	28.2	84.7
EAST_230	10.0		0.4	62.8	3.8	2.4	12.5	18.6
EAST_230	5.0		2	62.2	3.6	2.3	12.1	19.8
EAST_230	4.0		4	59.3	3.2	2.2	11.7	23.6
EAST_230	3.0		6	57.5	2.7	2.0	10.8	27.0
EAST_230	2.5		7	57.4	2.5	1.9	10.3	27.9
EAST_230	2.0		7	57.5	2.5	1.9	10.3	27.9
EAST_230	1.0		7	57.5	2.5	1.9	10.2	27.9
TOTAL	10.0		50	48.6	7.1	3.2	27.9	86.7
TOTAL	5.0		68	49.5	5.6	2.7	26.9	84.7
TOTAL	4.0		73	50.2	5.1	2.6	26.0	83.9
TOTAL	3.0		77	50.4	4.9	2.5	25.4	83.3
TOTAL	2.5		79	50.7	4.8	2.5	25.0	83.0
TOTAL	2.0		80	50.8	4.8	2.5	25.0	83.0
TOTAL	1.0		81	50.8	4.7	2.5	24.9	83.0

Notes:

1. Figures rounded to reflect uncertainty of estimate.

2. All VHM expressed as percentage of HM

ASX Release 15 April 2013

Appendix 2

Boonanarring North Extension Resource Classification Criteria

Criteria	Explanation
SAMPLING TECHNIQUES AND DATA
Sampling Techniques	Air core drilling samples
Drilling techniques.	Vertical NQ air core holes
Drill sample recovery.	Sample quality is logged at time of drilling. No relationship between grade and recovery is known to exist
Logging.	Chip samples are logged for colour, grainsize, presence of induration and estimates are made of HM,Slimes and Oversize content usinghydraulicpanning.
Sub-sampling techniques and samplepreparation.	Samples were rotary split on site to reduce the sample size from about 8kg to 1.5 kg.
Quality of assay data and laboratory tests.	Samples were assayed by Diamond Recovery Services. DRS conduct routine duplicate assaying of 4% of samples.
Verification of sampling and assaying.	Replicate samples taken at rate of 1 in 50 for check assay at original laboratory. Separate replicate samples taken at 1 in 100 for umpire assayat different laboratory
Location of data points.	Collars were surveyed by differential GPS. The rig mast is set up vertical and holes are assumed to be drilled vertical.
Data spacing and distribution.	Drill holes are spaced at 20 metres apart within the resource area and 40 to 80m apart on the edges. Drill lines are approximately 200 m apart. Assay results have only been completed for samples estimated to contain >0.5%HM. Some lines spaced at 400m due to heritage buffers and infrastructure buffers. The sampling interval was 1 metres. Sample compositing only took place for mineral assemblage determinations with between 1 and 12 samples composited into individual mineralogical composites.
Orientation of data in relation to geological structure.	Drill lines are oriented at approximately 90 degrees to the strike. No biased sampling of structure has occurred.
Audits or reviews.	CSA Global has been engaged to undertake independent audits. To date the review and auditprocess has not identified anymaterial deficiencies.
Mineral tenement and land tenure status.	The area for the new resource lies within granted Mining Lease licence M70/1311, held 100% by Image Resources. Land tenure is freehold land owned by one landowner. Previously reported Indicated and Inferred Resources now also lie on M70/1311. Previously reported Measured Resource is located on granted Mining Lease M70/1194, for which land tenure is freehold land held bythreeparties.
Exploration done by other parties.	None for this resource estimate. Exploration done by Iluka used as the basis for resource estimate in M70/1194, which comprises ~16% of overall resource.
Geology.	The deposit is a typical strandline hosted mineral sand deposit with later cover sands and clays.
ESTIMATION AND REPORTING OF MINERAL RESOURCES
Database integrity.	All of the samples were logged electronically using an industry standard logging program designed to preclude transcription errors. Assay data is presented electronically and both manually and electronically checked prior to loading into the database. The database is validated for missing intervals, duplicate samples, missing coordinates, hole name mismatches and EOH mismatch between collar and downhole data.
Geological interpretation.	The dataqualityaffords a high degree of confidence in thegeological interpretation.
Dimensions.	Within Block A, the deposit is 1.7km long. The Eastern Strand is 40-80m wide and 5-20m thick. The Western strand varies between 40 and 100m wide and 3 – 15m thick. For the dimensions of the deposit in Blocks B and C, please refer to previous ASX announcements.
Estimation and modelling techniques.	Ordinary Kriging interpolation for HM, Slimes and OS, nearest neighbour for assemblage data. Model and data constrained by mineralisation wireframe solids with initial search radius of 250m x 50m x 3m, minimum 2 samples, max 12. Assemblage data and hardness estimated by nearest neighbour. Considered suitable for type of deposits and level of information.
Moisture.	The tonnage is estimated on a dry basis.
Cut-off parameters.	2.5% HM for “high grade” mineral envelope. Various geological parameters for basement and lithologyzones.
Miningfactors or assumptions.	The deposit is likelyto be mined byelevatingscrapers or dozerspushingto traps.

ASX Release

15 April 2013

ASX Release 15 April 2013
Criteria	Explanation
Metallurgical factors or assumptions.	Testwork indicates that the mineralisation can be efficiently processed by traditional mineral sands methods, i.e. spirals, attritioning and magnetic/electrostatic separation.
Bulk density.	Assumed according to formula using grade of HM, slime and oversize as inputs.