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IMAGE RESOURCES NL Capital/Financing Update 2020

Jan 29, 2020

65117_rns_2020-01-29_dae48457-ac0a-45ca-94a3-0a8f047d4c0c.pdf

Capital/Financing Update

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30 January 2020

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________________

RECENT DRILLING ENHANCES POTENTIAL FOR ADDITIONAL ORE RESERVES AT BOONANARRING

_________________

Image Resources NL (ASX: IMA) (“Image” or “the Company”) is pleased to provide an update on drilling results from its prioritised program focused on adding new Ore Reserves at its 100%-owned, high-grade, zircon-rich Boonanarring mineral sands project located 80km north of Perth in the infrastructure-rich North Perth Basin in Western Australia. The program was launched in July 2019 with an expanded exploration budget following the achievement of positive cashflow in Q2 2019.

The focus of the program is to identify new Mineral Resources and Ore Reserves in the area that is within 10km from the current location of the Boonanarring wet concentration plant. Specific focus areas include the northern and southern extensions of the current Ore Reserve, as well as adjacent areas to the west associated with a recently announced 50mRL Strandline. See 11 Dec 2019 ASX announcement ‘NEW POTENTIALLY 40KM LONG MINERALISED SHORELINE IDENTIFIED ADJACENT TO BOONANARRING’.

This update involves new drilling results from the northwestern extension of Boonanarring (see Figure 1), which is in the western portion of the larger Boonanarring Northern Extension Area (NEA) and is at the northern end of the previously identified 50mRL Strandline. The exploration results have been prepared and reported in accordance with the JORC Code (2012 Edition).

Exploration Highlights

  • An initial 108-hole totaling 2,952m programme (averaging 27m per hole) at a newly defined area in the northwestern portion of the Boonanarring NEA has been completed with 70% of the assays received to date. The results are very promising and have outlined two shallow high-grade strands of 1.2km in length, which are being followed up promptly with an infill and extension drill programme of 73holes for 1881m, followed by composites for evaluation of the mineral assemblage to be used in a new Mineral Resources study. Due to the promising results within both the Northwestern and Northern Extensions, Image has exercised its land purchase option for Lot 503 owned by Central Stockcare. The purchase will be finalized in early February.

  • An initial programme has also been completed over a 1.3km length of the Boonanarring NEA with 82 holes totaling 3,129m (averaging 38m per hole). This programme has shown that the high-grade core within the eastern strand extends under the Brand Highway. Additional drilling is being planned to determine the exact position of the deposit relative to the Brand Highway and will require drilling along and to the east of the highway. A program of work has been issued for approval by DMIRS along the highway.

  • Under the program to identify new Mineral Resources and Ore Reserves within 10km

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 Page 1 of 29 www.imageres.com.au

of the current Boonanarring wet concentration plant, a total of 12,920m of drilling has been completed and a further 20,777m is planned in the next 5 months (Table 1).

Boonanarring Northwestern Extension

The latest drilling aimed at extending the mine life at Boonanarring has identified two strongly mineralised parallel strands at the Boonanarring Northwestern extension, which are each 1.2km long. A 108-hole 2,952m programme has been completed at the Boonanarring Northwestern Extension (Central Stockcare) and due to the promising shallow results a further 73 holes for 1,881m are planned (Figures 1, 2 and 3).

The two main strands that are each 1.2km in length have been outlined by recent drilling. The western strand has some excellent intersections including 4m @ 14.5% HM from 15m in IM01074, 3m @ 14.3% HM from 17m in IM01078, 5m at 12.2% HM from 13m in IM01076, 4m at 10.9% HM from 11m in IM01000, 2m at 17.1% HM from 16m in IM01003 and 2m at 23.0% HM from 14m in IM1036. The eastern strand has some extremely good shallow intersections including 4m at 23.8% HM from 10m in IM01015, 4m at 27.1% HM from 8m in IM01010, 3m at 14.8% HM from 9m in IM1020 and 2m at 27.1% HM from 9m in IM1084 (Tables 2 and 3). The eastern strand has grades similar to the currently mined Boonanarring Eastern strand and augers well for the follow up drilling programme commencing shortly.

Preliminary microscope work has shown some elevated zircon and some finer grained mineral sands, which are to be checked with quantitative Qemscan analyses of the relevant HM sachets, prior to a new Mineral Resources Estimate for these two strands. A detailed 100m-spaced ground magnetic survey over the Central Stockcare property has mainly been used to help target the two main strands prior to the drilling programmes being carried out.

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 2 of 29

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Figure 1 – Central Stockcare Lot 503 Boonanarring Northern (completed) and Northwestern Extension (70% of the drilling completed) and Proposed Roadside and Deaken drilling.

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 29

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Figure 2 – Central Stockcare Cross Section

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Figure 3 – Central Stockcare Cross Section

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 29

Boonanarring Northern Extension

An initial programme has also been completed over a 1.3km long area in the direct northern extension of the Boonanarring deposit in the NEA with 82 holes totaling 3,129m. The most promising mineralised intercepts in this area were 8m at 16.7% HM from 24m in IM00903 and 4m at 22.8% HM from 28m in IM00902 (Figure 1 and Tables 1 & 2) similar to the high-grade zones in Boonanarring deposit. This programme has shown that the high-grade core within the current Boonanarring Eastern strand likely extends into this area and appears to extend under the Brand Highway and potentially to the east of the Brand Highway. Mineralised intercepts indicate a likely lower strip ratio if Ore Reserves are defined in this area. Due to the promising results within both the Northwestern and Northern Extension drilling outlined above, Image exercised its purchase option for Lot 503 owned by Central Stockcare and the purchase will be finalized in early February.

In addition, a roadside drilling programme of 129 holes totaling 5,160m (subject to Main Roads and POW approval) and a 172-hole 6,880m programme just east of the Brand Highway (subject to access approval) is planned and will help outline the extent of the high-grade core across the full extent of the NEA on the mineralized trend towards Image’s Red Gully deposit, which starts 3- 4km north of the NEA. This prospective high-grade shoreline starting from Red Gully in the north, through the Boonanarring Deposit and ending at Gingin North in the south, is 32km in length.

Table 1 – Latest Drilling Programmes Completed and Planned in next 5 months.

Project # Holes
Complete
Metres
Complete
# Holes
Remaining
Metres
Remaining
Holes
Total
Metres
Total
E70/3720, E703100 Quinns Hill/Blue Lake 108 2,952 73 1,881 181 4,833
E70/3041 Regans Ford South
BlueLake
140 2,800 140 2,800
E70/3041 & E70/4689 Boonanarring West 13 455 13 455
E70/1131 Boonanarring Blocks
A, B & C
100 4,256 100 4,256
M70/1194 Boonanarring Block D 49 1,657 49 1,657
E70/3041 Boonanarring South
Blocks E & F
125 5,196 125 5,196
E70/3041 Gingin North 56 1,551 56 1,551
E70/3298, 2844, 4794,
4779
Bidaminna 28 1,564 78 3,794 106 5,358
E70/4244 Woolka 94 3,760 94 3,760
E7O/2898, 3997,
P70/1516
Atlas 65 631 65 631
E70/3997 Munbinia 160 3,200 160 3,200
Total: 366 12,920 723 20,777 1,089 33,697

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 5 of 29

Table 2 – Drillhole Locations Boonanarring Northwestern Extension.

Hole ID Easting
MGAz50
Northing
MGAz50
Depth
metres
Dip
degrees
Azimuth
degrees
Tenement




IM00987 382792 6556671 33 -90 0 E70/3100
IM00988 382772 6556669 30 -90 0 E70/3100
IM00989 382795 6556595 24 -90 0 E70/3100
IM00990 382776 6556597 24 -90 0 E70/3100
IM00991 382805 6556470 24 -90 0 E70/3100
IM00992 382747 6556673 24 -90 0 E70/3100
IM00993 382756 6556596 24 -90 0 E70/3100
IM00994 382788 6556476 24 -90 0 E70/3100
IM00995 382767 6556476 30 -90 0 E70/3100
IM00996 382745 6556470 30 -90 0 E70/3100
IM00997 382726 6556470 30 -90 0 E70/3100
IM00998 382250 6556401 30 -90 0 E70/3720
IM00999 382228 6556396 30 -90 0 E70/3720
IM01000 382209 6556395 30 -90 0 E70/3720
IM01001 382187 6556392 30 -90 0 E70/3720
IM01002 382169 6556402 30 -90 0 E70/3720
IM01003 382250 6556197 30 -90 0 E70/3720
IM01004 382270 6556200 30 -90 0 E70/3720
IM01005 382289 6556200 30 -90 0 E70/3720
IM01006 382444 6556144 30 -90 0 E70/3100
IM01007 382459 6556145 30 -90 0 E70/3100
IM01008 382478 6556152 30 -90 0 E70/3100
IM01009 382498 6556159 30 -90 0 E70/3100
IM01010 382519 6556163 30 -90 0 E70/3100
IM01011 382538 6556164 30 -90 0 E70/3100
IM01012 382330 6556455 30 -90 0 E70/3720
IM01013 382348 6556461 30 -90 0 E70/3720
IM01014 382369 6556465 24 -90 0 E70/3720
IM01015 382393 6556467 24 -90 0 E70/3720
IM01016 382410 6556469 24 -90 0 E70/3100
IM01017 382516 6556004 30 -90 0 E70/3100
IM01018 382534 6555999 24 -90 0 E70/3100
IM01019 382557 6556000 24 -90 0 E70/3100
IM01020 382573 6556002 24 -90 0 E70/3100
IM01021 382594 6556002 24 -90 0 E70/3100
IM01022 382614 6556000 24 -90 0 E70/3100
IM01023 382638 6556002 27 -90 0 E70/3100
IM01024 382559 6555897 24 -90 0 E70/3100
IM01025 382576 6555898 24 -90 0 E70/3100
IM01031 382592 6555901 24 -90 0 E70/3100
IM01032 382616 6555902 24 -90 0 E70/3100
IM01033 382633 6555902 24 -90 0 E70/3100
IM01034 382410 6555801 24 -90 0 E70/3100
IM01035 382435 6555798 24 -90 0 E70/3100

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 29

Hole ID
IM01036
Easting
MGAz50
382447
Northing
MGAz50
6555803
Depth
metres
24
Dip
degrees
-90
Azimuth
degrees
0
Tenement
E70/3100










*
IM01037 382474 6555802 24 -90 0 E70/3100
IM01038 382496 6555800 24 -90 0 E70/3100
IM01039 382601 6555801 24 -90 0 E70/3100
IM01040 382625 6555799 24 -90 0 E70/3100
IM01041 382644 6555801 24 -90 0 E70/3100
IM01042 382665 6555803 24 -90 0 E70/3100
IM01043 382458 6555683 30 -90 0 E70/3100
IM01044 382479 6555682 27 -90 0 E70/3100
IM01045 382497 6555684 27 -90 0 E70/3100
IM01046 382520 6555686 27 -90 0 E70/3100
IM01047 382550 6555688 27 -90 0 E70/3100
IM01048 382628 6555699 27 -90 0 E70/3100
IM01049 382648 6555700 27 -90 0 E70/3100
IM01050 382668 6555701 24 -90 0 E70/3100
IM01051 382689 6555703 24 -90 0 E70/3100
IM01052 382517 6555587 30 -90 0 E70/3100
IM01053 382536 6555587 30 -90 0 E70/3100
IM01054 382555 6555584 27 -90 0 E70/3100
IM01055 382576 6555581 27 -90 0 E70/3100
IM01056 382591 6555581 27 -90 0 E70/3100
IM01057 382679 6555577 24 -90 0 E70/3100
IM01058 382696 6555575 27 -90 0 E70/3100
IM01059 382718 6555572 27 -90 0 E70/3100
IM01060 382737 6555581 30 -90 0 E70/3100
IM01061 382457 6555800 30 -90 0 E70/3100
IM01062 382425 6555796 30 -90 0 E70/3100
IM01063 382588 6555799 27 -90 0 E70/3100
IM01064 382615 6555800 27 -90 0 E70/3100
IM01065 382652 6555803 27 -90 0 E70/3100
IM01066 382541 6555894 30 -90 0 E70/3100
IM01067 382602 6555901 30 -90 0 E70/3100
IM01068 382496 6556000 30 -90 0 E70/3100
IM01069 382524 6555999 30 -90 0 E70/3100
IM01070 382626 6556000 27 -90 0 E70/3100
IM01071 382436 6556141 27 -90 0 E70/3100
IM01072 382507 6556164 24 -90 0 E70/3100
IM01073 382529 6556166 27 -90 0 E70/3100
IM01074 382260 6556201 27 -90 0 E70/3720
IM01075 382306 6556198 27 -90 0 E70/3720
IM01076 382241 6556199 27 -90 0 E70/3720
IM01077 382155 6556395 30 -90 0 E70/3720
IM01078 382179 6556397 30 -90 0 E70/3720
IM01079 382199 6556393 30 -90 0 E70/3720
IM01080 382310 6556450 27 -90 0 E70/3720

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 29

Hole ID
IM01081
Easting
MGAz50
382320
Northing
MGAz50
6556448
Depth
metres
24
Dip
degrees
-90
Azimuth
degrees
0
Tenement
E70/3720
















*
IM01082 382337 6556455 24 -90 0 E70/3720
IM01083 382379 6556470 24 -90 0 E70/3720
IM01084 382400 6556473 24 -90 0 E70/3720
IM01142 382226 6556303 30 -90 0 E70/3720
IM01143 382241 6556303 30 -90 0 E70/3720
IM01144 382250 6556303 30 -90 0 E70/3720
IM01145 382259 6556304 30 -90 0 E70/3720
IM01146 382274 6556308 30 -90 0 E70/3720
IM01147 382215 6556303 30 -90 0 E70/3720
IM01148 382302 6556140 30 -90 0 E70/3720
IM01149 382325 6556139 30 -90 0 E70/3720
IM01150 382343 6556144 30 -90 0 E70/3720
IM01151 382365 6556138 30 -90 0 E70/3720
IM01152 382383 6556138 30 -90 0 E70/3720
IM01153 382470 6555928 30 -90 0 E70/3100
IM01154 382515 6555800 27 -90 0 E70/3041
IM01155 382564 6555689 27 -90 0 E70/3041
IM01156 382612 6555581 27 -90 0 E70/3041
108AC drillholesfor 2,952m *assays pending

Table 3 – Boonanarring Northwestern Extension Significant Assays > 10% HM

Hole ID Sample ID From
metres
To
metres
Width
metres
HM
%
IM01000 IM24956 12 13 1 13.74
IM01000 IM24957 13 14 1 15.39
IM01001 IM24991 17 18 1 15.11
IM01002 IM25023 19 20 1 13.80
IM01003 IM25050 16 17 1 17.67
IM01003 IM25051 17 18 1 17.46
IM01004 IM25079 15 16 1 15.27
IM01004 IM25080 16 17 1 14.86
IM01004 IM25081 17 18 1 11.92
IM01005 IM25109 15 16 1 12.77
IM01005 IM25110 16 17 1 13.08
IM01006 IM25135 11 12 1 12.50
IM01006 IM25136 12 13 1 14.80
IM01009 IM25224 10 11 1 13.96
IM01009 IM25225 11 12 1 11.41
IM01010 IM25252 8 9 1 21.91
IM01010 IM25253 9 10 1 31.85
IM01010 IM25254 10 11 1 39.54

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 29

Hole ID
IM01010
Sample ID
IM25255
From
metres
11
To
metres
12
Width
metres
1
HM
%
15.25
IM01012 IM25315 11 12 1 15.18
IM01015 IM25398 10 11 1 39.96
IM01015 IM25399 11 12 1 26.35
IM01015 IM25400 12 13 1 18.81
IM01020 IM25524 10 11 1 14.73
IM01020 IM25525 11 12 1 19.55
IM01025 IM25647 10 11 1 12.34
IM01031 IM25825 8 9 1 12.98
IM01031 IM25826 9 10 1 20.48
IM01036 IM25951 14 15 1 27.99
IM01036 IM25952 15 16 1 18.05
IM01039 IM26018 9 10 1 13.20
IM01039 IM26019 10 11 1 14.27
IM01039 IM26020 11 12 1 11.18
IM01064 IM26689 8 9 1 17.84
IM01067 IM26773 8 9 1 14.02
IM01071 IM26895 13 14 1 15.84
IM01072 IM26919 10 11 1 15.31
IM01074 IM26977 17 18 1 29.73
IM01076 IM27030 16 17 1 26.12
IM01076 IM27031 17 18 1 11.98
IM01078 IM27088 17 18 1 16.32
IM01078 IM27089 18 19 1 12.58
IM01078 IM27090 19 20 1 13.95
IM01079 IM27115 14 15 1 11.62
IM01079 IM27116 15 16 1 15.36
IM01079 IM27117 16 17 1 15.80
IM01084 IM27239 9 10 1 16.23
IM01084 IM27240 10 11 1 38.02

Boonanarring Southern Extension

The direct southern continuation of mineralisation of the current Boonanarring Ore Reserve into Block E and F is being evaluated over a 3.5km distance. In addition, the Piggery Strand, which is located just west of the Boonanarring deposit, is being assessed over a 5km length and both strands have just been recently drill tested with laboratory results pending (Fig. 4).

The most eastern strand of the Boonanarring deposit at the 75mRL is open to the south and has been now drill tested over a 3.5km length. The parallel piggery strand is 250m west of the Boonanarring deposit and has its mineralised base at a similar 65mRL, it was infilled as the drill density is too coarse at 20m and sometimes 40m spacings and has now been tested over a 5km length. In total there were 174 holes for 6,853m drilled after all access and POWs were approved, testing both the eastern and the piggery strands, with laboratory results pending.

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 9 of 29

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Figure 4 – Boonanarring Southern Extension Infill Drilling Blocks D and E within Image, Panara Farms and Bosco Mai landholdings.

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 10 of 29

Boonanarring 50mRL Strandline

Drilling aimed at extending the mine-life at Boonanarring has identified a new mineralized shoreline trend to the west of and parallel to the Boonanarring Ore Reserve area and that based on drill sample assays and ground-based magnetic survey results may potentially extend for up to 40km (see 11 December 2019 ASX announcement). Drilling aimed at extending the mine life at Boonanarring is being conducted in target areas to the north, south and west of the current Boonanarring Ore Reserve. Preliminary results have been positive and have led to the identification of this new mineralized shoreline, which has been labelled 50mRL Strandline , as the mineralised base of mineralisation ranges from 4855m RL.

The 50mRL Strandline has been interpreted to extend up to 40km from south of the town of Gingin to north of the Boonanarring Northern Extension area as shown in Figure 5. It includes previously identified mineralisation in the western sections of Image’s Gingin South and Gingin North projects and has now been found to include the recently identified Boonanarring West mineralisation and the Boonanarring Northwestern Extension with promising shallow high-grade results announced recently referred to in this report.

An extensive drilling programme of a total 416 holes for 11,210m is now being planned over the most promising areas identified along this 40km 50mRL Strandline. Access for drilling is available for 50% of the planned holes and the Company is seeking to complete the remaining access with three landholders. Already drilling has started at Boonanarring West, Gingin North and a new access agreement has been completed with Boonanarring Blue Lake. Importantly, all planned drilling is within economic pumping distance of the current Boonanarring wet concentration plant and are considered high priority.

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 11 of 29

==> picture [390 x 569] intentionally omitted <==

Figure 5 – Boonanarring Northern and Southern Extension drilling and new 40km-long 50mRL shoreline.

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 12 of 29

Boonanarring Project Background Information

The Boonanarring Project is arguably one of the highest heavy mineral grades, zircon-rich, mineral sands projects in Australia. Construction and project commissioning were completed ontime and on-budget in 2018. Production commenced December 2018 and HMC production ramped-up to exceed name-plate capacity in only the second month of operation (January 2019). The Company achieved profitability in Q1 and was cashflow positive in Q2 and has now completed its inaugural full year of successful operations, meeting market guidance for CY2019 which was raised twice during the year. The Company published an updated Ore Reserve in December 2019 which resulted in significantly higher heavy mineral and in-situ zircon grades, allowing for an increase in production guidance for 2020 and 2021. In 2020, Image is focused on maintaining profitable operations at Boonanarring and has prioritised a program to rapidly and efficiently identify of new Mineral Resources and Ore Reserves within 10km of the current location of the Boonanarring wet concentration plant, with the goal of extending the mine life at Boonanarring.

This announcement has been authorised for release by Managing Director Patrick Mutz.

For further information, please contact:

George Sakalidis

Exploration Director M: +61 411 640 337 [email protected]

Patrick Mutz

Managing Director +61 8 9485 2410 [email protected] www.imageres.com.au

The Information in this report that relates to:

  1. New Potentially 40km Long Mineralised Shoreline Identified Adjacent to Boonanarring IMA ASX Release 11 December 2019.

  2. Quarterly Activities and Cashflow Report IMA ASX Release 31October 2019

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 13 of 29

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

Information in this report that relates to Exploration Results is based on, and fairly reflects, information and supporting documentation prepared by George Sakalidis BSc (Hons) who is a member of the Australasian Institute of Mining and Metallurgy. Mr Sakalidis is a full-time executive 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 has given his prior written consent 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 14 of 29

Table 4 – Mineral Resources and Ore Reserves as at 01 October 2019

High Grade Ore Reserves - Strand Deposits; in accordance with the JORC Code (2012) High Grade Ore Reserves - Strand Deposits; in accordance with the JORC Code (2012) High Grade Ore Reserves - Strand Deposits; in accordance with the JORC Code (2012) High Grade Ore Reserves - Strand Deposits; in accordance with the JORC Code (2012) High Grade Ore Reserves - Strand Deposits; in accordance with the JORC Code (2012) High Grade Ore Reserves - Strand Deposits; in accordance with the JORC Code (2012) High Grade Ore Reserves - Strand Deposits; in accordance with the JORC Code (2012) High Grade Ore Reserves - Strand Deposits; in accordance with the JORC Code (2012) High Grade Ore Reserves - Strand Deposits; in accordance with the JORC Code (2012) High Grade Ore Reserves - Strand Deposits; in accordance with the JORC Code (2012) High Grade Ore Reserves - Strand Deposits; in accordance with the JORC Code (2012)
Project/Deposit Category Tonnes % HM % Slimes HM Tonnes
VHM
**Ilmenit ** Leucoxen Rutile Zircon
(million) (million) (%) (%) (%) (%) (%)
Boonanarring1 Proved 3.5 13.9 16.0 0.5 82.7 44 4.6 2.2 31.9
Boonanarring1 Probable 7.1 6.4 16.0 0.5 76.6 49 1.7 2.8 23.1
Total Boonanarring 10.7 8.9 16.0 0.9 79.6 46 3.2 2.5 27.5
Atlas2 Probable 9.5 8.1 15.5 0.8 73.3 50.7 4.5 7.5 10.6
Total Atlas 9.5 8.1 15.5 0.8 73.3 50.7 4.5 7.5 10.6
Total Ore Reserves 20.2 8.5 15.8 1.7 76.8 48.3 3.8 4.7 19.9

1 Refer to Boonanarring Ore Reserves Release 20 December 2019 - http://www.imageres.com.au/images/joomd/157680627920191220OreReserveUpdateHigherOreGradeandIn SituZircon.pdf

2 Atlas Reserves refer to the 30 May 2017 release “Ore Reserves Update for 100% Owned Atlas Project” http://www.imageres.com.au/images/joomd/149611340720170530ORERESERVESUPDATEFOR100OWNEDAT LASPROJECT.pdf

  1. COMPLIANCE STATEMENT - Boonanarring Ore Reserves The information in this report that relates to the estimation of Ore Reserves for the Boonanarring Project is extracted from the Company’s ASX announcement dated 20 December 2019 and is available to view on the Company’s website. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original announcement and that all material assumptions and technical parameters underpinning the estimates in the original announcement continue to apply and have not materially changed. The Company confirms that the form and context in which any Competent Person’s findings are presented have not been materially modified from the original market announcement.

2. COMPLIANCE STATEMENT - Atlas Ore Reserves

The information in this report that relates to the estimation of Ore Reserves for the Atlas Project is extracted from the Company’s ASX announcement dated 30 May 2017 and is available to view on the Company’s website. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original announcement and that all material assumptions and technical parameters underpinning the estimates in the original announcement continue to apply and have not materially changed. The Company confirms that the form and context in which any Competent Person’s findings are presented have not been materially modified from the original market announcement.

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Page 15 of 29

High Grade Mineral Resources - Strand Deposits; in accordance with the JORC Code (2012) @ 2.0% HM Cut-off High Grade Mineral Resources - Strand Deposits; in accordance with the JORC Code (2012) @ 2.0% HM Cut-off High Grade Mineral Resources - Strand Deposits; in accordance with the JORC Code (2012) @ 2.0% HM Cut-off High Grade Mineral Resources - Strand Deposits; in accordance with the JORC Code (2012) @ 2.0% HM Cut-off High Grade Mineral Resources - Strand Deposits; in accordance with the JORC Code (2012) @ 2.0% HM Cut-off High Grade Mineral Resources - Strand Deposits; in accordance with the JORC Code (2012) @ 2.0% HM Cut-off High Grade Mineral Resources - Strand Deposits; in accordance with the JORC Code (2012) @ 2.0% HM Cut-off High Grade Mineral Resources - Strand Deposits; in accordance with the JORC Code (2012) @ 2.0% HM Cut-off High Grade Mineral Resources - Strand Deposits; in accordance with the JORC Code (2012) @ 2.0% HM Cut-off High Grade Mineral Resources - Strand Deposits; in accordance with the JORC Code (2012) @ 2.0% HM Cut-off High Grade Mineral Resources - Strand Deposits; in accordance with the JORC Code (2012) @ 2.0% HM Cut-off
Project/Deposit Category Tonnes % HM % HM VHM **Ilmenit ** Leucoxen Rutile Zircon
(million) (million) (%) (%) (%) (%) (%)
Boonanarring3 Measured 8.8 10.3 14 0.9 78.1 46 3.8 2.3 26.0
Boonanarring3 Indicated 14.6 4.6 17 0.7 71.2 48 2.6 2.7 17.9
Boonanarring3 Inferred 6.9 3.5 20 0.2 59.4 45 4.9 3.9 5.6
Boonanarring Total 30.3 6.0 17.0 1.8 72.7 46 3.6 2.7 20.4
Atlas3 Measured 9.9 7.9 16.1 0.8 71.0 49.1 4.2 7.2 10.5
Atlas3 Indicated 6.4 3.7 17.3 0.2 56.5 41.6 3.4 4.7 6.8
Atlas3 Inferred 1.8 4.0 19.9 0.1 41.5 29.0 3.3 4.4 4.8
Atlas Total 18.1 6.0 16.9 1.1 65.9 46.1 4.0 6.5 9.3
Sub-Total Atlas/Boonanarring 48.4 6.0 17.0 2.9 70.1 46.1 3.7 4.1 16.2
Mineral Resources - Strand Deposits; in accordance with JORC Code (2012) @ 2.0% HM Cut-off Mineral Resources - Strand Deposits; in accordance with JORC Code (2012) @ 2.0% HM Cut-off Mineral Resources - Strand Deposits; in accordance with JORC Code (2012) @ 2.0% HM Cut-off Mineral Resources - Strand Deposits; in accordance with JORC Code (2012) @ 2.0% HM Cut-off Mineral Resources - Strand Deposits; in accordance with JORC Code (2012) @ 2.0% HM Cut-off Mineral Resources - Strand Deposits; in accordance with JORC Code (2012) @ 2.0% HM Cut-off Mineral Resources - Strand Deposits; in accordance with JORC Code (2012) @ 2.0% HM Cut-off Mineral Resources - Strand Deposits; in accordance with JORC Code (2012) @ 2.0% HM Cut-off Mineral Resources - Strand Deposits; in accordance with JORC Code (2012) @ 2.0% HM Cut-off Mineral Resources - Strand Deposits; in accordance with JORC Code (2012) @ 2.0% HM Cut-off Mineral Resources - Strand Deposits; in accordance with JORC Code (2012) @ 2.0% HM Cut-off Mineral Resources - Strand Deposits; in accordance with JORC Code (2012) @ 2.0% HM Cut-off
Project/Deposit Category Volume Tonnes % HM **% Slimes ** HM Tonnes VHM **Ilmenite ** Leucoxene Rutile Zircon
(million) (million) (million) (%) (%) (%) (%) (%)
Helene4 Indicated 6.4 13.2 4.3 18.6 0.57 88.7 74.6 0.0 3.6 10.5
Hyperion4 Indicated 2.4 5.0 6.3 19.0 0.32 69.4 55.8 0.0 6.3 7.3
Cooljarloo Nth Total 8.8 18.2 4.8 18.7 0.88 81.8 67.9 0.0 4.6 9.4
Previously Reported Mineral Resources - Strand Deposits; in accordance with JORC Code (2004) @ 2.5% HM Cut-off
Project/Deposit Category Volume Tonnes % HM **% Slimes ** HM Tonnes VHM **Ilmenite ** Leucoxene Rutile Zircon
(million) (million) (million) (%) (%) (%) (%) (%)
Gingin Nth4 Indicated 0.7 1.3 5.7 15.7 0.1 75.4 57.4 9.3 3.2 5.5
Gingin Nth4 Inferred 0.6 1.1 5.2 14.0 0.1 78.4 57.3 11.3 3.7 6.0
Gingin Nth Total 1.3 2.4 5.5 15.0 0.1 76.7 57.3 10.2 3.4 5.7
Gingin Sth4 Measured 0.9 1.5 4.4 7.2 0.1 79.4 50.7 15.3 5.6 7.8
Gingin Sth4 Indicated 3.2 5.8 6.5 7.1 0.4 90.6 67.6 9.8 5.1 8.1
Gingin Sth4 Inferred 0.4 0.7 6.5 8.4 0.0 91.6 67.4 7.5 5.8 10.9
Gingin Sth Total 4.5 8.1 6.1 7.3 0.5 89.2 65.3 10.3 5.2 8.3
Red Gully4 Indicated 1.9 3.4 7.8 11.5 0.3 89.7 66.0 8.3 3.1 12.4
Red Gully4 Inferred 1.5 2.6 7.5 10.7 0.2 89.0 65.4 8.2 3.0 12.3
Red Gully Total 3.4 6.0 7.7 11.2 0.5 89.4 65.7 8.2 3.1 12.4
Sub-Total Gingin & Red Gully 9.2 16.5 6.6 9.8 1.1 87.8 64.5 9.4 4.1 9.7
Historic Deposit Mineral Resources - Strand deposit; in accordance with JORC Code (2004) @ 2.5% HM Cut-off
Project/Deposit Category Volume Tonnes % HM **% Slimes ** HM Tonnes VHM **Ilmenite ** Leucoxene Rutile Zircon
(million) (million) (million) (%) (%) (%) (%) (%)
Regans Ford5 Indicated 4.5 9.0 9.9 16.8 0.9 94.3 70.0 10.0 4.3 10.0
Regans Ford5 Inferred 0.5 0.9 6.5 18.5 0.1 90.5 68.3 7.7 4.4 10.1
Regans Ford Total 5.0 9.9 9.6 17.0 1.0 94.1 69.9 9.9 4.3 10.0
Grand Totals 55.6 106.2 6.1 6.5 78.3 56.8 4.6 4.0 12.9

3. COMPLIANCE STATEMENT - Boonanarring/Atlas Mineral Resources

The information in this report which relates to the estimation of Mineral Resources at Boonanarring is extracted from the Company’s ASX announcement dated 20 December 2019 and is available to view on the

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Page 16 of 29

Company’s website. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original announcement and that all material assumptions and technical parameters underpinning the estimates in the original announcement continue to apply and have not materially changed. The Company confirms that the form and context in which any Competent Person’s findings are presented have not been materially modified from the original market announcement.

The information in this report which relates to the estimation of Mineral Resources at Atlas is extracted from the Company’s ASX announcement dated 8 May 2017 and is available to view on the Company’s website. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original announcement and that all material assumptions and technical parameters underpinning the estimates in the original announcement continue to apply and have not materially changed. The Company confirms that the form and context in which any Competent Person’s findings are presented have not been materially modified from the original market announcement

4. COMPLIANCE STATEMENT – MINERAL RESOURCE ESTIMATES

The information in this table 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.

  1. HISTORIC INFORMATION - REGANS FORD DEPOSIT

The information in this table that relates to tonnes, grades and mineral assemblage is based on historic information published by Iluka Resources Limited and indicating the mineral resources were compiled in accordance with the JORC Code (2004).

==> picture [519 x 183] intentionally omitted <==

----- Start of picture text -----

Mineral Resources - Dredge deposits; in accordance with JORC Code (2012) @ 1.0% HM Cut-off
Project/Deposit Category Volume BCM Tonnes % HM % Slimes HM Tonnes VHM Ilmenite Leucoxene Rutile Zircon
(million) (million) (million) (%) (%) (%) (%) (%)
Titan6 Indicated 10.3 21.2 1.8 22.1 0.38 86.0 71.9 1.5 3.1 9.5
Titan6 Inferred 58.5 115.4 1.9 18.9 2.2 85.9 71.8 1.5 3.1 9.5
Total Titan Total 68.8 136.6 1.9 19.4 2.6 85.9 71.8 1.5 3.1 9.5
Telesto6 Indicated 1.7 3.5 3.8 18.4 0.13 83.3 67.5 0.7 5.6 9.5
Calypso6 Inferred 27.1 51.5 1.7 13.7 0.85 85.6 68.1 1.6 5.1 10.8
Mineral Resources - Dredge deposits; in accordance with JORC Code (2004) @ 1.0% HM Cut-off
Project/Deposit Category Volume BCM Tonnes % HM % Slimes HM Tonnes VHM Ilmenite Leucoxene Rutile Zircon
(million) (million) (million) (%) (%) (%) (%) (%)
Bidaminna6 Inferred 26.3 44.6 3.0 3.6 1.3 96.8 83.1 7.2 1.0 5.5
Total Dredge 123.9 236.2 2.1 15.2 4.9 87.8 73.1 2.6 3.2 9.0
----- End of picture text -----

6. COMPETENT PERSON’S STATEMENT – MINERAL RESOURCES 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 2012 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.

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Page 17 of 29

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, air-core (AC)
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 AC 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.
Drill sample
Nature and quality ofsampling (eg cut

At the drillsite,Image’s geologist

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Page 18 of 29

JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria JORC Code explanation Commentary
recovery 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.
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 96 samples
that have a grade ≥ 5% HM that are
the subject of this release, all 96
(100%) have good recovery.
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 ofseparationof

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Page 19 of 29

JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria JORC Code explanation Commentary
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 dispatched 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.
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 controlprocedures adoptedforall

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
selectionofthereplicate samplesis

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Page 20 of 29

JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria JORC Code explanation Commentary
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.
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.
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
fromthe sample (de-sliming) using a

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Page 21 of 29

JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria JORC Code explanation Commentary
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.

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
methodis also consistentwithbest

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Page 22 of 29

JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria JORC Code explanation Commentary
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 dispatch (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
Verification of
sampling and
assaying

The verification of significant intersections
by either independent or alternative
company personnel.

The use of twinned holes.

The logging of significant intersections
reported in this release has been
verified
by
alternative
company
personnel.

No twin holeshave beendrilledinthe

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Page 23 of 29

JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria JORC Code explanation Commentary

Documentation of primary data, data
entry procedures, data verification, data
storage
(physical
and
electronic)
protocols.

Discuss any adjustment to assay data.
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.

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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Page 24 of 29

JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria JORC Code explanation Commentary

Whether sample compositing has been
applied.
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 dispatched and
delivered, checking of SRM results,
and verification logging of significant
intercepts.

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 25 of 29

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
Northern
and
Northwestern
Extension
is
within
exploration
licenses
E70/3720
(expiry
29/12/2020)
and
E70/3100
(expiry
03/05/2020).

The Boonanarring Southern Extension is
within mining lease M70/1194 (expiry
15/12/2026)
and
exploration
license
E70/3041 (expiry 09/06/2020).

Image has a 100% interest in each of these
licences.
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
(Block
D)
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 interstitialclay and

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 26 of 29

Criteria JORC Code explanation Commentary
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.

Boonanarring has two major strandlines of
heavy 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,

No weighting or cutting of HM values, other
than averaging of duplicate and repeat

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 27 of 29

Criteria JORC Code explanation Commentary
















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.
analyses.
Relationship
between
mineralisation
widths and
intercept lengths













These relationships are particularly
important
in
the
reporting
of
Exploration Results.
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
geometry
of
the
Boonanarring
mineralisation is effectively horizontal and
the vertical drillholes give 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
northern
extensions of the Boonanarring Deposit.
Other
substantive
exploration data




Other exploration data, if meaningful
and material, should be reported
including (but not limited to): geological
observations;
geophysical
survey

Feasibility
Study
results
for
the
Boonanarring Deposit were announced on
the 30thMay 2017 and a 60% increase in
OreTonnesin “Proved”Category Ore

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 28 of 29

Criteria JORC Code explanation Commentary






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.
Reserves at Boonanarring was announced
on 21stAugust 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.

Recent drilling for the North Western
Boonanarring is summarised in this report
with 70% of the assays received to date.

Future drilling for northern and southern
extensions and the drilling within the newly
identified
48-55m
RL
shoreline
are
summarised in this release.

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 29 of 29