IMAGE RESOURCES NL — Capital/Financing Update 2016

Oct 30, 2016

31 October 2016

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FEASIBILITY STUDY UPDATE

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Image Resources NL (ASX: IMA) (“Image” or “the Company”) is pleased to announce work on the feasibility study for the development of the Company’s 100%-owned, high-grade, Boonanarring and Atlas mineral sands deposits in the North Perth Basin in WA is progressing on-time and on-budget .

Preliminary results continue to indicate positive project economics despite current weak mineral sands commodity prices. Accordingly, the Company has committed to completing the feasibility study as quickly as practicable, with a target of March 2017.

Assuming the outcome of the study is positive as anticipated, the Company intends to fast-track development of the project with first production targeted for early 2018 .

Additional Ore

A final determination of a new mineral resource estimate (JORC 2012), by Perth-based resources consulting and advisory group Optiro Pty Ltd , for the Boonanarring deposit is pending confirmatory mineral assemblage analysis. However, preliminary findings include a substantial increase (>50%) in the total inventory of ore, due in large part to the inclusion of additional drill results. Preliminary mine modelling indicates this additional ore will provide for longer mine life and/or a higher production rate, which improves project economics .

In addition, Optiro has identified a significant layer of mineralisation overlying the high-grade mineralised strands at Boonanarring . Inclusion of the higher-grade sections of this overlying layer in the mine design will reduce the overall strip ratio and will also support longer mine life and/or a higher production rate .

Wet Concentration Plant Extra Capacity

The wet concentration plant (WCP), acquired from Murray Zircon under the Asset Sale and Purchase Agreement, has 60-70% extra processing capacity beyond the processing rate recommended in the Company’s 2013 feasibility study. Consequently, given the flexibility afforded by the resource expansion, preliminary mine modelling is being conducted at a higher processing rate than assumed in the 2013 feasibility study, which has a positive effect on project economics .

Mineral Sands Commodity Prices

Evidence has been emerging of a strengthening of mineral sands commodity prices in recent months . For example, the price for Ilmenite increased 16% between June and October 2016 (Source: Ruidow) signalling the potential of a strong rebound off the bottom of a long price decline. During this same period, pricing for rutile and leucoxene remained steady.

Zircon pricing remained flat during this period, however effective 1 October, Guangdong Orient Zirconic ( OZC ) of China, one of China’s largest zircon processors, announced price increases (approximately 10%) for its zirconium-based final products in response to strengthening

Image Resources NL ABN 57 063 977 579

Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872

T: 08 9485 2410 | F: 08 9486 8312 www.imageres.com.au

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demand (Source: OZC SZ announcement 30/9/2016). Strengthening demand for final products is generally viewed as a leading indicator of a rise in commodity prices .

For further information, please contact:

Patrick Mutz Managing Director +61 8 9485 2410 info@imageres.com.au www.imageres.com.au

Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312

www.imageres.com.au

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