IMAGE RESOURCES NL — Capital/Financing Update 2014

Jan 13, 2014

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ASX Code: IMA 14 January 2014

Suite 4a, 5 Mumford Place Balcatta WA 6021 PO Box 1075 Balcatta WA 6914 Telephone 08 9485 2410 Facsimile 08 9240 7845 www.imageres.com.au

ABN 57 063 977 579

NEW MAGNETIC TARGETS MAY EXTEND HIGH-GRADE BOONANARRING MINERAL SANDS DEPOSIT

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HIGHLIGHTS

• Magnetic surveys show potential for northern extensions to the existing high-grade Boonanarring JORC Reserves and Resources which are part of the NPB Project

• The three new magnetic targets have a combined accessible strike length of 7.8km

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Image Resources NL (ASX: IMA ) has identified potential multiple extensions north of its 10.5km strike length high grade Boonanarring mineral sands Reserves, which form part of the C ompany’s North Perth Basin Project (NPB Project).

The current Boonanarring Reserves (refer ASX Release dated 16.09.13) contain amongst the highest in ground value per tonne of mineral sands in the world at 8.3% HM, with 24.5% of the HM consisting of high value zircon. Any potential strike or resource extensions at Boonanarring would therefore add significant economic value to the NPB Project.

Image has just completed magnetic mapping between its Boonanarring and Red Gully projects and has identified magnetic features that may host potential extensions to both the high grade Boonanarring Eastern Strand and the medium grade Western Strand.

Image Resources Managing Director Peter Davies said today: “these new targets represent a real opportunity for Image which we are keen to test further. Should the targets discussed in this release be later converted to JORC Resources, this may enable Image to further improve the already strong economics of the NPB Project through a combination of longer mine life at Boonanarring, higher production rates or greater opportunity for optimised grade scheduling. The potential for the Boonanarring mineralisation to extend north to our ” Red Gully project is also something that we are continuing to test .

ASX Release 14 January 2014

A total of three undrilled magnetic targets (see Figure 1) have been identified to the north and west of Boonanarring:

1. A direct linear NW extension of the Eastern Strand at Boonanarring (the Eastern Magnetic Target - see Figure 1) is masked by magnetic noise, but has some minor evidence of magnetic targets which support the potential for mineralisation for a further 1.5km to the north of Block A. This is considered significant, as the Block A mineralisation is the highest grade in the whole of the Boonanarring deposit and has not previously been closed off to the north, where the mineralisation trends under the Dampier to Bunbury Natural Gas Pipeline (DBNGP) and the Brand Highway (Figure 1). This target appears to represent the emergence of the Eastern Strand from under these items of infrastructure. The quoted strike length excludes the areas sterilised by the existing regional infrastructure.

2. Similarly, the Boonanarring Western Strand has been traced by drilling to where it trends under the DBNGP and Brand Highway. These new Western Magnetic Targets (see Figure 1) start just north of the Brand Highway on its western side and extend 1.7km north, until interrupted by the Parmelia Gas pipeline. Due to the angle of the gas pipeline to the strike of the target, the target is not visible in the ground magnetic survey results for a distance of 1.1km, but it then appears to re-emerge for a further 1.8km.

3. A new set of targets parallel to and west of the Boonanarring Western Strand extension (the Parallel Magnetic Targets - see Figure 1) have also been identified. These targets consist of two parallel zones with similar magnetic signatures to the Boonanarring Western Strand and extend for some 2.8km.

It should be noted that these new magnetic targets are conceptual in nature and have been defined by interpretation of geophysical surveys and it is uncertain if further exploration will result in the estimation of a Mineral Resource. However, the drilling of ground magnetic targets in this area has been very successful over a recent 18 month period between November 2011 and April 2013 resulting in the extension of the Boonanarring JORC Resources from 3.1Mt to 21.5Mt at a total exploration cost of less than 15 cents per tonne of additional Resources.

The newly delineated targets have similar characteristics to those of the currently defined Boonanarring Resource and this augurs well for a follow up drilling programme scheduled for the first half of 2014. Prior to finalising the next drill programme, some low cost infill ground magnetic surveying is planned to better define these new targets.

ASX Release 14 January 2014

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Figure 1: Boonanarring Resource and Conceptual Extensions from Magnetic survey Interpretation

ASX Release 14 January 2014

For more information visit www.imageres.com.au

Please direct enquiries to:

Peter Davies Managing Director Phone +61 8 9485 2410 Mob +61 409 296 676

George Sakalidis Executive Director - Exploration Phone +61 8 9485 2410 Mob +61 411 640 337

Media Enquiries Simon Jemison

c/o Collins Street Media Mob +61 408 004 848

C OMPETENT 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 2012 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.

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-look ing statements to reflect events or circumstances after today’s date or to reflect the occurrence of unanticipated events.