IMAGE RESOURCES NL — Capital/Financing Update 2019

Jul 14, 2019

15 July 2019

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IMAGE RESOURCES CONFIRMS EXISTENCE OF HIGH-GRADE CORE IN EASTERN STRAND AT BOONANARRING

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Image Resources NL (ASX: IMA) (“Image” or “the Company”) is pleased to advise that close-spaced infill drilling has confirmed the existence of a very high-grade core within the eastern strand of its 100%-owned, high-grade, zircon-rich Boonanarring mineral sands project located 80 km north of Perth in the infrastructure-rich North Perth Basin in Western Australia.

This confirmation of the high-grade core in the eastern strand comes from initial assay results for drilling in Block C at Boonanarring (current mining block). These results are only part of a larger drilling program designed to re-assess the Mineral Resources and Ore Reserve at Boonanarring, as announced to the ASX on 14 March 2019 (Targeting Ore Reserve Upgrade at Boonanarring in Response to Higher than Expected Ore Grades). The full drilling program will include close-spaced, infill drilling to delineate the full extent of the high-grade core in the eastern strand across Blocks A, B, C and D.

The close-spaced infill drilling program commenced on 2 April 2019 and has continued through to the end of June, with a total of 14,750m (68%) completed out of a total of 21,600m of planned air-core (AC) drilling. All of drilling in Block C has been completed and 55% of the assays have been received and are summarised in this report.

These initial results from Block C close-spaced (5m) infill drilling are very positive and appear to corroborate mining and processing results from the 2019 March Quarter indicating the actual heavy mineral (HM) ore grade was substantially higher than estimated in the Mineral Resources and Ore Reserve. These results also support the Company’s belief that the highgrade core was not adequately delineated by the routine 15-20m drill hole spacings used for the determination of Mineral Resources and Ore Reserve, and that the Ore Reserve may have been understated.

Results from this initial set of assays is presented by means of five cross-sections showing assay results from the initial Ore Reserve drilling and the updated assay results from the infill drilling. The locations of the five cross-sections are shown in Figure 1 which is a gradethickness map generated from the original Ore Reserve drilling and which shows the presence of a high-grade core running largely the full length of the eastern strand of the Boonanarring deposit.

These cross-section comparisons (Figures 2-6) showing HM grades before and after the infill drilling, clearly show the presence of substantial high and very high-grade core material that was not identified in the initial Ore Reserve drilling results. Field assays (HM panning) indicate similar comparisons in other sections of the deposit, however laboratory assays are required to confirm these results. These initial results should not be considered to be representative of results for the balance of the deposit as other parts of the deposit could be materially different, and these initial results should not be used to imply any potential quantitative change to the Mineral Resources and Ore Reserve. The target date for re-estimation of the

Image Resources NL ABN 57 063 977 579 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312 www.imageres.com.au

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

Page 1 of 27

Mineral Resources and Ore Reserve has been extended due to additional infill drilling requirements. The current estimate for completion is late in the September Quarter 2019.

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Figure 1. Boonanarring Deposit showing grade-thickness contours, mining Blocks and locations of cross-sections

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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Figure 2. Section 31125mN Eastern Strand comparison of before and after infill drilling showing greater extent of high-grade core

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

Page 3 of 27

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Figure 3. Section 3100mN Eastern Strand comparison of before and after infill drilling showing greater extent of high-grade core

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

Page 4 of 27

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Figure 4. Section 30900mN Eastern Strand comparison of before and after infill drilling showing greater extent of high-grade core

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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Figure 5. Section 30800mN Eastern Strand comparison of before and after infill drilling showing greater extent of high-grade core

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

Page 6 of 27

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Figure 6. Section 29000mN Eastern Strand comparison of before and after infill drilling showing greater extent of high-grade core

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

Page 7 of 27

Table 1 shows 168 intersections greater than 10%HM from previous drilling in Block C and used for the Mineral Resources and Ore Reserve and Table 2 shows an additional 52 intersections greater than 10%HM from the current close-spaced infill drilling program.

These initial results returned numerous very high-grade laboratory assays from Block C. Out of 965 assays received to date, 158 assays are >10% HM including 41 >30% HM, 31 >40% HM, 24 >50% HM, 12 >60% HM, 8 >70% HM and 4 >80% HM.

Table 1. Pre infill Drilling Block C- Significant Intersection > 10% HM

Hole ID	Northing m	Easting m	From m	To m	width m	Lab HM %
GG1173	31595	11192	40	42	2	30.3
GG1174	31600	11151	43	49	6	20.1
GG1178	31786	11157	42	48	6	13.7
GG1182	31395	11141	47	49	2	15.8
GG1183	31396	11189	41	44	3	18.3
GG1186	31193	11146	45	51	6	21.9
GG1189	31194	11187	43	46	3	19.3
GG1191	30994	11095	30	31	1	10.0
GG1193	30996	11133	50	51	1	31.6
GG1194	30994	11185	44	45	1	14.1
GG1206	30191	11163	27	29	2	19.8
GG1207	30189	11202	21	23	2	13.5
GG1212	29788	11156	24	31	7	12.1
GG1213	29786	11199	23	24	1	12.9
GG1215	29383	11111	37	38	1	15.6
GG1216	29383	11145	37	40	3	23.3
GG1220	28985	11141	39	41	2	20.5
GG1229	31790	10956	36	37	1	12.4
GG1230	31796	10996	36	37	1	12.8
GG1231	31800	11035	37	39	2	27.4
GG1232	31801	11018	37	39	2	16.9
GG1235	31787	11175	42	48	6	34.9
GG1237	31599	11130	44	45	1	13.2
GG1240	31396	11162	43	50	7	23.0
GG1244	31194	11163	41	42	1	12.7
			48	51	3	46.8
GG1248	30998	11155	45	52	7	36.6
GG1252	30192	11150	24	28	4	19.6
GG1253	30190	11185	9	10	1	11.2
GG1254	29790	11137	24	25	1	23.8

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

Page 8 of 27

Hole ID	Northing m	Easting m	From m	To m	width m	Lab HM %
GG1255	29787	11173	28	29	1	22.5
GG1256	29382	11132	36	39	3	23.6
GG1257	29384	11166	38	41	3	20.3
GG1258	28985	11121	36	38	2	19.2
GG1260	31598	11171	42	51	9	40.6
GG1265	31401	10992	36	37	1	12.8
GG1266	31397	11031	36	38	2	18.6
GG1269	30997	10944	35	37	2	12.6
GG1270	30995	10983	38	39	1	19.4
GG1277	30596	11013	34	38	4	13.5
GG1278	30596	11052	35	39	4	14.5
GG1282	30192	11005	25	26	1	13.8
GG1287	29791	11034	24	25	1	19.5
GG1288	29790	11079	24	25	1	31.4
GG1296	28986	11019	35	36	1	18.5
GG1302	28794	11115	36	41	5	13.4
GG1305	28792	11177	36	37	1	10.2
GG1306	28799	11196	35	36	1	39.2
GG1308	29197	10983	37	38	1	10.2
GG1313	29207	11104	39	40	1	10.3
GG1314	29200	11125	36	39	3	16.5
GG1315	29201	11146	36	42	6	20.2
GG1316	29195	11163	39	41	2	41.0
GG1317	29198	11190	34	36	2	18.7
GG1325	29601	11130	29	32	3	16.9
GG1326	29597	11153	31	36	5	22.0
GG1331	29996	11158	20	23	3	13.4
GG1336	30398	11123	21	22	1	10.1
GG1339	30387	11064	34	36	2	16.7
GG1340	30379	11045	34	35	1	14.7
GG1341	30404	11142	18	21	3	12.3
			35	39	4	12.4
GG1342	30411	11164	22	23	1	11.1
GG1343	30417	11182	35	36	1	11.5
GG1344	30397	11211	33	34	1	10.3
GG1353	30801	11032	38	40	2	15.0
GG1355	30796	11119	42	48	6	19.0
			49	50	1	14.2
			55	65	10	22.3

Image Resources NL ABN 57 063 977 579 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312 www.imageres.com.au

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

Page 9 of 27

Hole ID	Northing m	Easting m	From m	To m	width m	Lab HM %
GG1355	30796	11119	66	71	5	11.8
			73	74	1	22.8
GG1362	31197	11000	38	40	2	18.3
GG1363	31194	11036	39	42	3	19.1
GG1365	30802	10952	30	31	1	11.0
GG01480	31601	10947	34	35	1	14.4
GG01481	31601	10988	35	37	2	17.6
GG01483	30899	11057	41	42	1	12.1
GG01485	30892	11113	46	47	1	11.9
GG01486	30889	11134	44	50	6	16.0
GG01487	30890	11150	48	51	3	34.1
GG01492	30801	11011	38	39	1	14.3
			40	41	1	10.9
GG01493	30795	11055	38	40	2	14.9
GG01494	30699	11044	37	39	2	12.3
GG01495	30696	11024	37	40	3	12.0
GG01496	30699	11003	36	37	1	19.9
GG01497	30698	11073	43	44	1	11.1
GG03002	30700	11190	44	45	1	11.0
GG03007	30411	11002	31	32	1	10.1
GG03008	30403	11023	33	35	2	12.7
GG03010	30801	11119	46	50	4	18.1
			61	65	4	14.7
GG03011	30298	11167	34	35	1	10.1
GG03012	30299	11142	30	34	4	15.5
GG03015	29199	11153	40	43	3	21.7
GG03016	30197	11005	25	26	1	18.3
GG03017	30193	11024	25	26	1	15.3
GG03022	30010	11031	22	23	1	13.2
GG03025	31399	10993	35	36	1	13.1
GG03027	30992	11167	49	54	5	30.5
GG3040	31203	10978	38	39	1	12.3
GG3041	31203	11015	36	37	1	11.7
GG3042	31200	11035	37	38	1	10.0
			41	44	3	10.4
GG3045	30482	11171	40	41	1	11.2
GG3046	30481	11113	30	31	1	14.9
GG3048	30299	11191	12	14	2	12.2
GG3057	28799	11027	37	40	3	21.9

Image Resources NL ABN 57 063 977 579 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312 www.imageres.com.au

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

Page 10 of 27

Hole ID	Northing m	Easting m	From m	To m	width m	Lab HM %
GG3058	31799	11035	37	40	3	22.7
GG3059	31787	11174	44	49	5	17.3
GG10046	29603	10988	30	31	1	10.4
GG10048	29600	11008	30	31	1	18.1
IM00023	30998	10930	35	36	1	11.2
IM00024	30995	11003	40	41	1	11.6
IM00027	28986	11110	39	40	1	11.2
IM00104	30596	11035	37	38	1	12.0
IM00106	30707	10979	34	35	1	10.6
IM00118	31682	10958	35	36	1	13.1
IM00119	31675	10980	35	38	3	11.4
IM00120	31675	11000	36	37	1	20.6
IM00122	31675	11040	37	39	2	15.4
IM00127	31680	11160	42	50	8	22.9
IM00128	31675	11180	37	41	4	16.9
			46	49	3	35.7
IM00130	31525	10960	33	35	2	12.2
IM00131	31525	10980	33	36	3	12.8
IM00132	31525	11000	33	36	3	17.0
IM00138	31525	11140	47	48	1	11.1
IM00139	31525	11160	42	50	8	31.8
IM00140	31525	11180	39	49	10	12.4
IM00143	31450	10960	34	35	1	12.5
IM00145	31450	11000	34	36	2	12.9
IM00147	31450	11040	36	38	2	14.9
IM00151	31450	11120	44	45	1	10.4
IM00152	31450	11140	44	45	1	18.9
IM00153	31450	11162	43	50	7	36.9
IM00154	31450	11180	40	42	2	16.7
			48	49	1	16.0
IM00158	31350	10982	34	36	2	12.5
IM00159	31350	11000	36	38	2	16.2
IM00166	31350	11140	47	49	2	13.7
IM00167	31350	11160	39	40	1	10.4
			44	50	6	41.6
IM00168	31350	11180	41	44	3	14.7
IM00169	31350	11200	43	44	1	21.9
IM00172	31275	10980	35	37	2	11.7
IM00173	31275	11000	36	37	1	13.6

Image Resources NL ABN 57 063 977 579 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312 www.imageres.com.au

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

Page 11 of 27

Hole ID	Northing m	Easting m	From m	To m	width m	Lab HM %
IM00174	31275	11020	38	39	1	14.7
IM00179	31276	11140	43	50	7	12.0
IM00180	31275	11160	45	53	8	32.4
IM00181	31275	11180	41	45	4	19.5
IM00186	31125	10980	37	39	2	35.5
IM00187	31124	11000	39	40	1	13.8
IM00189	31125	11038	39	42	3	20.5
IM00193	31125	11140	46	52	6	16.0
IM00195	31125	11180	45	46	1	18.9
IM00197	31050	10940	34	36	2	14.9
IM00199	31050	10980	38	39	1	19.3
IM00200	31050	11000	39	40	1	22.2
IM00201	31050	11020	39	40	1	25.8
IM00202	31050	11042	39	42	3	15.6
IM00206	31050	11119	46	48	2	12.8
IM00207	31050	11140	45	51	6	20.5
IM00208	31050	11160	41	53	12	18.2
IM00212	30900	10980	38	39	1	12.7
IM00213	30900	11000	34	39	5	10.7
IM00214	30900	11020	39	40	1	19.9
IM00215	30900	11040	39	42	3	18.0

Table 2. Infill Drilling Block C - Significant Intersection > 10% HM

HoleID	North m	East m	From m	To m	Width m	HM_Lab %
IM00303	31047	10971	32	33	1	10.7
IM00304	31048	11033	26	32	6	13.7
IM00305	31050	11135	26	27	1	15.0
IM00306	31050	11145	25	32	7	15.0
IM00307	31050	11150	25	32	7	23.7
IM00308	31050	11155	24	31	7	27.7
IM00309	31050	11165	25	30	5	19.8
IM00310	31050	11170	31	32	1	11.7
IM00311	31050	11176	19	20	1	11.2
			28	30	2	39.5
IM00312	31051	11185	21	22	1	11.0
IM00313	31051	11193	20	24	4	16.7
IM00314	31050	11198	20	23	3	15.6

Image Resources NL ABN 57 063 977 579 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312 www.imageres.com.au

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

Page 12 of 27

HoleID	North m	East m	From m	To m	Width m	HM_Lab %
IM00317	31123	11130	21	22	1	12.2
IM00318	31123	11135	19	22	3	12.4
IM00319	31124	11145	15	22	7	18.3
IM00320	31124	11150	16	22	6	24.3
IM00321	31124	11155	15	22	7	31.9
IM00322	31124	11165	17	24	7	36.5
IM00323	31123	11170	17	22	5	48.7
IM00324	31125	11175	17	23	6	41.2
IM00325	31125	11010	19	21	2	17.0
IM00327	31123	11050	18	20	2	18.6
IM00328	31123	11184	11	13	2	18.7
IM00329	31122	11192	9	13	4	14.1
IM00332	30899	10990	30	31	1	11.4
IM00333	30900	11170	30	31	1	14.4
			37	40	3	33.7
IM00334	30900	11160	31	32	1	15.5
			37	41	4	48.0
IM00335	30900	11155	37	41	4	50.8
IM00336	30900	11145	35	41	6	24.9
IM00338	29406	11154	35	38	3	33.9
IM00339	29406	11148	33	35	2	25.9
IM00340	30902	11102	41	43	2	21.4
IM00343	30903	11047	38	40	2	28.7
IM00344	30899	11165	37	40	3	58.5
IM00345	30900	11175	36	38	2	33.2
IM00346	30899	11180	28	29	1	12.7
IM00349	29205	11159	40	43	3	36.0
IM00350	29205	11155	41	46	5	18.0
IM00351	29205	11150	40	45	5	18.1
IM00352	29400	11171	42	43	1	10.8
IM00353	29000	11130	36	42	6	22.6
IM00354	29000	11135	36	42	6	21.6
IM00355	29000	11145	38	40	2	10.5
IM00357	29001	11165	37	38	1	21.4
IM00358	28800	11180	36	37	1	11.1
IM00359	28800	11185	35	36	1	15.4
IM00360	28800	11190	35	36	1	11.2
IM00363	29971	11153	20	23	3	20.5

Image Resources NL ABN 57 063 977 579 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312 www.imageres.com.au

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

Page 13 of 27

Boonanarring Project Background Information

The Boonanarring Project is arguably one of the highest heavy mineral grades, zircon-rich, mineral sands projects in Australia. Project funding was finalised and construction commenced in April-May 2018. Construction was completed on-time and on-budget in six months followed by successful commissioning of the processing plant in October-November 2018. Production commenced 1 December 2018 and HMC production ramped-up to fullscale in only the second month of operation (January 2019). First revenue was received in January 2019 and overall performance for Q1 exceeded the budget in all major categories resulting in higher revenue and significantly lower costs than budgeted. Q1 results demonstrated profitability and plotted a firm path to positive cashflow and the goal of sustainable profitability.

For further information, please contact:

Patrick Mutz

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

Or

George Sakalidis Exploration Director M: +61 411 640 337 george@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

Page 14 of 27

COMPETENT PERSON’S STATEMENTS – EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES

Information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves (other than Boonanarring and Atlas Mineral Resources and Ore Reserves) is based on information compiled by George Sakalidis BSc (Hons) who is a member of the Australasian Institute of Mining and Metallurgy. At the time that the Exploration Results, Mineral Resources and Ore Reserves were compiled, George Sakalidis was a director 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’. George Sakalidis 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.

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

Page 15 of 27

Boonanarring and Atlas Projects Ore Reserves as at 21 August 2017

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High Grade Ore Reserves - Strand Deposits; in accordance with the JORC Code (2012)
Project/Deposit Category Volume Tonnes % HM % Slimes HM Tonnes VHM Ilmenite Leucoxene Rutile Zircon
(million) (million) (million) (%) (%) (%) (%) (%)
Boonanarring1 Proved 5.0 9.3 8.6 14.3 0.8 76.1 48.9 1.8 2.2 23.2
Boonanarring1 Probable 5.6 10.5 5.9 17.6 0.6 78.7 52.3 1.8 2.7 21.9
Total Boonanarring 10.6 19.9 7.2 16.1 1.4 77.2 50.4 1.8 2.4 22.7
Atlas2 Probable 5.0 9.5 8.1 15.5 0.8 73.3 50.7 4.5 7.5 10.6
Total Atlas 5.0 9.5 8.1 15.5 0.8 73.3 50.7 4.5 7.5 10.6
Total Ore Reserves 15.6 29.3 7.5 15.9 2.2 75.8 50.5 2.7 4.2 18.4
1. COMPLIANCE STATEMENT - Boonanarring Ore Reserves
The Ore Reserves statement has been compiled in accordance with the guidelines of the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (The JORC Code – 2012 Edition). These results were previously announced to the ASX on 10 April 2017
'Updated Ore Reserve for Boonanarring Project Increases Ore Tonnes by 39%' as well on 21 August 2017 '60% Increase in Ore Tonnes in
"Proved" Category Ore Reserves at Boonanarring'.
1. COMPLIANCE STATEMENT - Atlas Ore Reserves
The Ore Reserves statement has been compiled in accordance with the guidelines of the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (The JORC Code – 2012 Edition). These results were previously announced to the ASX on 30 May 2017 'Ore
Reserves Update for 100% Owned Atlas Project'.
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JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling techniques	• Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. • In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	• All drill holes reported in this release are vertically oriented, reverse-circulation air-core (RCAC) drill holes.
Drilling techniques	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc).	• All RCAC drill holes are drilled vertically using an NQ-sized (63.5 mm diameter) drill bit. • Water injection is used to convert the sample to a slurry so it can be incrementally sampled by a rotary splitter.

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JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Drill sample recovery	• Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. • In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	• At the drill site, Image’s geologist estimates sample recovery qualitatively (as good, moderate or poor) for each 1 m down hole sampling interval. Specifically, the supervising geologist visually estimates the volume recovered to sample and reject bags based on prior experience as to what constitutes good recovery. • Image found that of the 158 samples that have a grade ≥ 10% HM that are the subject of this release, all 158 (100%) have good recovery.

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JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Logging	• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. • The total length and percentage of the relevant intersections logged.	• Image’s supervising geologist logs the sample reject material at the rig and pans a small sub sample of the reject, to visually estimate the proportions of sands, heavy mineral sands, ‘slimes’ (clays), and oversize (rock chips) in each sample, in a semi-quantitative manner. • The geologist also logs colour, grainsize, an estimate of induration (a hardness estimate) and sample ‘washability’ (ease of separation of slimes from sands by manual attrition). • To preclude data entry and transcription errors, the logging data is captured into a digital data logger at the rig, which contains pre-set logging codes. No photographs of samples are taken. • The digital logs are downloaded daily and emailed to Image’s head office for data security and compilation into the main database server. • Samples visually estimated by the geologist to contain more than 0.5% HM (by weight) are despatched for analysis along with the 1 m intervals above and below the mineralised interval. • The level and detail of logging is of sufficient quality to support any potential future Mineral Resource Estimates. • All (100%) of the drilling is logged. • Geotechnical logging is not possible for the style of drilling used, however the logging is acceptable for metallurgical sample selection if required.

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JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sub-sampling techniques and sample preparation	• If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled.	• All drilling samples are collected over 1 m down hole intervals, with sample lengths determined by 1 m marks on the rig mast. • For exploration style drilling, two (replicate) 1/8 mass splits (each1.25 kg) are collected from the rotary splitter into two pre-numbered calico bags for each 1 m down hole interval. A selection of the replicate samples are later collected and analysed to quantify field sampling precision, or as samples contributing to potential future metallurgical composites. • Image considers the nature, quality and size of the sub samples collected are consistent with best industry practices of mineral sands explorers in the Perth Basin region.

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JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Quality of assay data and laboratory tests	• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	• The laboratory despatch samples are prepared by Western Geolabs (in Bellevue Western Australia) by drying the sample for 5 to 8 hrs in an oven at 110C. The dry weight is recorded using a laboratory digital scale. • The dried sample is then crushed (using manual pummelling) until all clay and sand materials in the sample pass through a 3.3 mm screen. In samples where (>3.3 mm) rock fragments are found after pummelling and screening, the mass of the fragments is recorded, and the material discarded. • The <3.3 mm sample is then hand mixed prior to splitting through a single tier riffle splitter (16 chutes each with 8 mm aperture), as many times as required to prepare a 100 g ± 5 g sub sample. The actual mass retained is recorded using a laboratory digital scale. • The riffle splitter sub sample is then wetted, undergoes further manual attrition to break up clays, before the <63m clays (slimes) are washed from the sample (de-sliming) using a jet wash and 63m screen. • The <63m slimes (clays) are discarded and the >63m sub sample is placed in a metal tray and oven dried. When dry, the >63m sub sample is put through a 1 mm sieve and the mass of the screen oversize (>1 mm) is recorded on a digital balance. The oversize is then discarded. • The de-slimed sand fraction (>63m & < 1mm) sub sample is then weighed on a digital scale before being separated into two fractions by mixing the sample in a glass separation funnel with a heavy liquid (TBE) of density 2.95 g/cm3. • Once sufficient time has passed to allow the sample to separate and settle, the <2.95 g/cm3, ‘floats’ fraction is collected and discarded. • The <2.95 g/cm3, ‘sinks’ fraction is collected from the funnel into a filter paper, then washed with acetone to remove the TBE. The sinks are then dried and the mass recorded on a digital scale.

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JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
		• From the process above the laboratory reports the wet mass received, dry received mass, the mass of (>3.3 mm) rock fragments or coarse oversize (if any), the mass of the 100 g± 5 g, sub sample, and the mass of the (HM) sink fraction. • The procedure can be considered a total analysis for mass concentration of heavy minerals in each sample. The method is also consistent with best industry practices employed by mineral sands explorers in the Perth Basin region. • For quality control the laboratory: • Uses certified masses to verify daily the accuracy of all laboratory mass scales. • Prepares a replicate sample at a frequency of 2 for every 25 routine samples analysed. • Uses a hydrometer to test daily the density of the TBE used for HM separation • For each laboratory despatch (ranging from150 to350 samples) Image includes blind standard reference samples (SRMs) that contain known (to Image) concentrations of heavy and valuable heavy minerals. Image inserts the SRMs, at a frequency of 1 in 30 sample submitted to the laboratory for resource style drilling. Image submitted 3 SRM’s for the resource style drilling subject to this release. • Image selected and submitted for analysis 7 field-replicate samples from field-sample replicates collected to quantify field sampling precision. • Blanks samples for testing of cross contamination are not deemed necessary for the style of mineralisation under consideration.

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JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Verification of sampling and assaying	• The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data.	• The logging of significant intersections reported in this release has been verified by alternative company personnel. • No twin holes have been drilled in the current programme. • Logging is captured at the rig using a data recorder, downloaded daily and emailed to head office data services for incorporation into the main database. • Assay results from the laboratory are received by email in standard spreadsheet templates and merged with logging results in-house. • There are no adjustments to original laboratory results.
Location of data points	• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	• The drill hole collar locations are captured by one of Image’s rig team following the completion of each drill hole, using a handheld GPS with nominal accuracy of±15 m. Elevations have also been determined with hand-held GPS and this adjusted post drilling using DEM data. More accurate locations will be determined in future by a registered surveyor using DGPS equipment where necessary. • The grid system for reporting results is the MGA Zone 50 projection and the GDA94 elevation datum. • No topographic control has been considered at this time.
Data spacing and distribution	• Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied.	• The drill holes reported in this release are located at several prospects on varied spaced drill lines (between 50 m and 100 m) along the strike of mineralised strands. • No sample compositing has been applied – all results are from 1 m long down hole sample intervals.

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JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Orientation of data in relation to geological structure	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	• All drill holes are vertical and intersect sub-horizontal strata. As such Image considers that it is highly unlikely that the orientation of drilling relative to the well understood structure of minerals sands strands, would result in a sampling bias.
Sample security	• The measures taken to ensure sample security.	• All samples are collected from site by Image’s staff as soon as practicable once drilling is completed and then delivered to Image’s locked storage sheds. • Image’s staff also deliver samples to the laboratory and collect heavy mineral floats from the laboratory, which are also stored in Images locked storage. • Image considers there is negligible risk of deliberate or accidental contamination of samples. Occasional sample mix-ups are usually corrected using Images checking and quality control procedures.
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	• The results and logging have been reviewed internally by Images senior exploration personnel including checking of masses despatched and delivered, checking of SRM results, and verification logging of significant intercepts.

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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria		JORC Code explanation	Commentary
Mineral tenement and land tenure status	• •	Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	• The Boonanarring deposit is within mining leases M70/1194 (expiry 15/12/2026) and M70/1311 (expiry 11/03/2034), and general-purpose licence G70/250 (expiry 7/05/2034). • Image has a 100% interest in each of these licences. • M70/1311 abuts Bartlett’s Well and Boonanarring Nature Reserves and Image has allowed for a 50 m buffer zone (of no • mining activity) adjacent to these reserves.
Exploration done by other parties	•	Acknowledgment and appraisal of exploration by other parties.	• The Boonanarring deposit is within mining leases M70/1194 (expiry 15/12/2026) and M70/1311 (expiry 11/03/2034), and general-purpose licence G70/250 (expiry 7/05/2034). The southern 1km of the Boonanarring deposit was discovered by Iluka, who drilled out this area to a Measured Resource status. The work is well documented in reports from Iluka, prior Mineral Resource estimators McDonald Speijers (2005) and Widenbar and Associates (2013), and Harlequin Consulting Pty Ltd (2014 and 2015).
Geology	•	Deposit type, geological setting and style of mineralisation.	• Boonanarring is hosted in the Perth Basin, in the Pleistocene Yoganup Formation on the eastern margin of the Swan Coastal Plain. • The Yoganup Formation is a buried pro-graded shoreline deposit, with dunes, beach ridge and deltaic facies. This formation lies unconformably over the Lower Cretaceous Leederville Formation and is overlain by the Pleistocene Guildford Formation and the Quaternary Bassendean Sand. • The Yoganup Formation consists of unconsolidated poorly sorted sands and gravels, with local interstitial clay and heavy minerals that occur sporadically along the Gingin Scarp, which is interpreted to be an ancient shoreline that was stable during a period of marine regression. • Boonanarringhastwo majorstrandlinesof heavy

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Criteria		JORC Code explanation Commentary	JORC Code explanation Commentary
			minerals, which are interpreted to have been deposited during the Pleistocene in a notch in the local basement rock that may represent an ancient sea cliff. Lower grade mineralisation is present in the sands overlying the higher-grade strandlines. • The basement to the strandline mineralisation is identified by the increased slimes content of the Leederville Formation or at the base of the Yoganup Formation. • Mineralisation within this has high zircon concentrations.
Drill hole Information	• o o o o o •	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: easting and northing of the drill hole collar elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar dip and azimuth of the hole down hole length and interception depth hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	• Refer to table and Figures in the text of this release.
Data aggregation methods	• • •	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low- grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated.	• No weighting or cutting of HM values, other than averaging of duplicate and repeat analyses.
Relationship between	•	These relationships are particularly important in the reporting of Exploration Results.	• The geometry of the Boonanarring mineralisation is effectively horizontal and the vertical drillholes give

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Criteria		JORC Code explanation Commentary	JORC Code explanation Commentary
mineralisation widths and intercept lengths	• •	If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	the approximate true thicknesses of mineralisation.
Diagrams	•	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	• Refer to text.
Balanced reporting	•	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced avoiding misleading reporting of Exploration Results.	• Plus 10% HM intersections from the AC drilling have been reported in this release outlining the high=grade core of the eastern strand.
Other substantive exploration data	•	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	• Feasibility Study results for the Boonanarring Deposit were announced on the 30th May 2017 and a 60% increase in Ore Tonnes in “Proved” Category Ore Reserves at Boonanarring was announced on 21st August 2017.
Further work	• •	The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	• 118 holes for 4555m have been completed to date on Block C. This report summarises 965 assays (55%) that have been received to date for Block C. There is a total of 21600m planned for Blocks A, B. C and D covering 13km of strike and is expected to be completed in July.

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