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IMAGE RESOURCES NL Capital/Financing Update 2021

Mar 1, 2021

65117_rns_2021-03-01_355557c4-0bbb-4f56-9ce2-57d993b62dc4.pdf

Capital/Financing Update

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02 March 2021

IMAGE RESOURCES GOLD FARMIN; THICK SUPERGENE ZONE IDENTIFIED

Image Resources NL (ASX: IMA) (“Image” or “the Company”) is pleased to advise it has entered into a Farmin agreement with the owners of the King Gold Prospect (“King Prospect”) , located in the heart of, and completely surrounded by, Image’s Erayinia gold tenement in Western Australia.

This Farmin represents a low risk, low-cost opportunity for Image to evaluate the King Prospect in stepwise fashion, and if deemed prospective, to earn up to 80% interest with limited expenditure. Understanding the structural and geological model of mineralisation in the King Prospect, which has been shown to contain a thick supergene zone that extends into Image’s Erayinia tenement, could provide insight into the potential for a much larger mineralised system within Erayinia.

The King Prospect appears to have a thickened supergene zone up to 1km in strike length which extends onto Image’s Erayinia tenement and with the thickest intersection of:

  • 71m at 1.03g/t Au from 36m in RC hole ROE0782.

Other intersections in the supergene zone are presented in Figure 1 and Table 2 with the following more notable intersections:

  • 29m at 1.12g/t Au from 64m in RC hole KNRC012

  • 43m at 0.72g/t Au from 36m In RC hole ROE0704

  • 35m at 0.66g/t Au from 76m in RC hole KNRC015

  • 20m at 1.66g/t Au from 39m in RC hole EYRC01

  • 13m at 1.77g/t Au from 41m in RC hole KNRC011

  • 17m at 2.0g/t Au from 132m in RC hole ROE0899

Head of Exploration George Sakalidis commented, “The mineralised zone at the King Prospect has strong potential for a near-surface, thick, gold-enriched supergene zone. The project area has 3 or 4 westerly dipping lodes which continue over 1.5km and the grades and thickness can be enhanced within the supergene zone with the thickest intersection of 71m at 1.03g/t from 36m in ROE782.

This central thickened zone is the primary initial target and will be tested with a total of 42 RC holes for 4,260m which will evaluate the near surface potential in the top 100m. In addition, a number of historically drilled areas will be examined for their supergene potential within Image’s Erayinia and Madoonia Downs tenements.

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 www.imageres.com.au

Page 1 of 21

The King Prospect mineralisation augments the previous RC drilling activities completed by Image at Erayinia and forms a key part of a strongly mineralised zone covering a large 1.5km x 150m area.”

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Figure 1: Hole locations, maximum mineralisation intercepts, enlarged supergene zone (pink shade) and planned drilling on King Prospect

King Prospect Mineralisation

Image has entered into a Farmin Agreement with the holders of the King Prospect (P28/1320 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 www.imageres.com.au

Page 2 of 21

P28/1321), covering 3.7km[2] and which is surrounded by Image’s Erayinia tenement (E28/1895) and is south of Image’s Madoonia Downs tenement (E28/2742) as shown in Figure 2. Execution of the Farmin Agreement enlarges Image’s target exploration area to 120km[2] and provides Image a low risk, low-cost entry into a brownfield’s gold project, which has a previously identified mineralised core zone that will be tested in an initial ‘earn-in’ infill drilling program.

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Figure 2: King Prospect and Image’s Erayinia and Madoonia Downs tenements

The King Prospect contains a consistent, reasonably well-defined, gold-enriched supergene blanket that is greater than 1km in strike length. It is commonly 2-8m thick with some thicker zones and with one zone up to 71m thick, where the supergene zones have

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 www.imageres.com.au

Page 3 of 21

merged with the underlying 3-4 western dipping lodes (Figures 1 and 3-6).

This mineralized shallow blanket has not been the main focus of exploration in the past. With the current price of gold near record Australian dollar levels, this near surface layer could prove to be potentially economic and will be the focus of the low-cost initial earn-in drilling program.

Below this mineralised blanket are a series of three or four moderately west-dipping mineralised lodes as shown in Figures 3–6. This style of mineralisation is coherent and has a pronounced supergene effect evident at shallower depths with thick intersections such as:

  • 71m at 1.03g/t from 36m including 7m at 5.63g/t from 40m in ROE0782;

  • 29m at 1.41g/t from 64m including 6m at 3.14g/t from 64m in RNRC012;

  • 43m at 0.72g/t from 36m including 8m at 2.63g/t from 36m in ROE0704;

and other thick intersections as shown in Table 1.

The exploration results reported in this announcement have been prepared and reported in accordance with the JORC Code 2012.

Planned Drilling

An initial RC program of 42 holes for 4,260m (average depth 101m) is planned to evaluate this promising supergene layer as well as testing for multiple stacked shallow lodes that are also observed down to 150m depth (Table 2).

Some individual holes are also directed at testing the down-dip extension of high-grade intersections within the multiple westerly dipping lodes. These multiple stacked lodes may continue at depth and could potentially be similar to some of the larger deposits in the Kalgoorlie districts that have bulk tonnage.

Detailed 50m spaced cesium vapor ground magnetic surveys are also planned to help map the detailed structure within the King Prospect.

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 www.imageres.com.au

Page 4 of 21

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Figure 3: Cross section 1 showing mineralised zones, significant gold intercepts and planned drilling on Image’s Erayinia tenement

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Figure 4: Cross section 2 showing mineralised zones, significant gold intercepts and planned drilling on King Prospect

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 www.imageres.com.au

Page 5 of 21

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Figure 5 : Cross section 3 showing mineralised zones, significant gold intercepts and planned drilling on King Prospect

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Figure 6 : Cross section 4 showing mineralised zones, significant gold intercepts and planned drilling on King Prospect

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 www.imageres.com.au

Page 6 of 21

Two programs of work (POWs) have been applied for covering the King Prospect PLs and the surrounding tenements held by Image. Approvals from DIMRS for the planned drilling shown in blue in Figure 1 are expected within 30 days. Drill spacing will be sufficient to better define the continuity of the three or four moderately west-dipping lodes and the thickened supergene zones to help define a potential maiden mineral resource.

Location within Gold Mining District

Erayinia, Madoonia Downs and the King Prospect are located within an active gold mining district. Silver Lake Resources, who own the Randall’s Mill, have been processing ore from a number of satellite deposits in the nearby area including:

  • Aldiss Mining Centre (includes the nearby Harrys Hill and French Kiss Deposits);

  • Mt Belches; and

  • Daisy Mining Centre.

Randall’s Mill is reportedly operating at 1.2Mt per annum, and this mill may be an option for tolltreating ore from the King Prospect, which is 85km away. The haul road starts at French Kiss, only 20km away from the King Prospect (Figure 7).

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Figure 7: Image and King Prospect tenements and surrounding mined deposits proximal to the operating Randall’s Mill

Key Terms of Farmin Agreement over King Prospect (high level summary)

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 www.imageres.com.au

Page 7 of 21

  1. Image has the right, but not the obligation, to spend $330k within 24 months to earn 40% interest in the King Prospect.

  2. Upon Image earning a 40% interest, a joint venture will be deemed to have been formed with Image as the JV manager.

  3. Image will then have the right, but not the obligation, to purchase a further 40% interest (to get to 80%) with a cash payment of $240,000 to the owners within 180 days of the initial 40% interest earn-in date.

  4. If Image obtains an 80% interest, the owners then have the right to contribute 20% to future project expenditures to maintain their 20% ownership position, or the owners can elect not to contribute to any expenditures and instead to convert to a 2% net smelter royalty.

  5. If the owners convert to a 2% royalty, they also have the right to elect that their royalty be purchased by Image at fair market value as determined by an independent organization agreed by the Image and the owners.

Managing Director Patrick Mutz commented, “Image remains focused on its mineral sands mining and ore processing operations, including exploration under Project ‘MORE’ to identify new Mineral Resources and Ore Reserves to extend the mine life of operations. However, with the Australian gold price at near record levels, Image will utilise resources not associated with mineral sands, to take advantage of this low risk, low-cost opportunity to evaluate the prospectivity of the highly mineralised King Prospect, which could potentially lead to a better understanding of the gold mineralisation model on Image’s much larger Erayinia and Madoonia tenements.

Taking action on the King opportunity is also in line with Image’s 2021 multi-pronged growth strategy developed to take advantage of Image’s current debt-free, cash generating position. This strategy includes continuing to identify ‘MORE’ mineral sand ore reserves at Boonanarring and Atlas; evaluating the potential for a second operating centre within Image’s current mineral sands portfolio; evaluating opportunities for involvement with long-life mineral sands resources or ore reserves outside of Image’s current portfolio; and evaluating the opportunity for potential commodity diversification into gold through currently owned Erayinia and Madoonia tenements and now the associated King Farmin.”

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

www.imageres.com.au

Page 8 of 21

Table 1. Gold Drilling Intercepts; >1ppm (g/t) highlighted pink

Hole ID
Easting
Northing RL AHD
Dip
Azimuth
MGAz51
MGAz51 metres
degrees
degrees
RC- Image Resources NL 2-5m composites and 1m splits
Hole ID
Easting
Northing RL AHD
Dip
Azimuth
MGAz51
MGAz51 metres
degrees
degrees
RC- Image Resources NL 2-5m composites and 1m splits
Hole ID
Easting
Northing RL AHD
Dip
Azimuth
MGAz51
MGAz51 metres
degrees
degrees
RC- Image Resources NL 2-5m composites and 1m splits
Hole ID
Easting
Northing RL AHD
Dip
Azimuth
MGAz51
MGAz51 metres
degrees
degrees
RC- Image Resources NL 2-5m composites and 1m splits
Hole ID
Easting
Northing RL AHD
Dip
Azimuth
MGAz51
MGAz51 metres
degrees
degrees
RC- Image Resources NL 2-5m composites and 1m splits
Hole ID
Easting
Northing RL AHD
Dip
Azimuth
MGAz51
MGAz51 metres
degrees
degrees
RC- Image Resources NL 2-5m composites and 1m splits
EOH
metres
From
metres
To
metres
Width
metres
Gold
ppm
EYRC01 471965 6526902 305 -58 98 120 39 42 3 1.435
EYRC01 including 39 40 1 1.314
EYRC01 including 41 42 1 2.693
EYRC01 47 50 3 2.431
EYRC01 56 58 2 9.915
EYRC02 471880 including 304 -60 94 120 69 70 1 1.178
EYRC02 109 114 5 1.056
EYRC02 including 111 113 2 1.941
EYRC03 471799 6526904 305 -60 96 120 92 98 6 5.914
EYRC03 including 92 95 3 11.473
EYRC15 471671 including 301 -54 89 180 179 180 1 1.012
EYRC17 471816 6527025 304 -60 90 120 93 97 4 1.524
EYRC17 including 93 95 2 2.575
EYRC18 471731 6527027 304 -60 90 140 93 98 5 1.456
EYRC18 including 93 96 3 2.017
EYRC18 115 117 2 0.652
EYRC18 121 125 4 0.763
EYRC18 including 121 122 1 2.244
EYRC19 471930 6526898 304 -60 90 120 43 46 3 2.226
EYRC19 including 43 44 1 5.666
EYRC19 53 59 6 2.543
EYRC19 including 53 54 1 1.055
EYRC19 including 55 57 2 6.766
EYRC19 including 71 72 1 3.438
EYRC19 77 81 4 2.291
EYRC19 including 77 78 1 2.659
EYRC19 including 80 81 1 5.467
EYRC22 471902 6526750 305 -60 90 110 84 88 4 0.979
EYRC26 471642 6527025 303 -53 102 233 127 130 3 0.546
EYRC26 200 206 6 0.587
EYRC26 including 201 202 1 1.118
EYRC27 471712 including 303 -58 91 312 137 138 1 1.297
EYRC27 including 157 158 1 1.594
EYRC27 including 167 168 1 2.322
EYRC27 180 184 4 0.596
EYRC27 including 180 181 1 1.137
RC- Historical inetercepts
KNRC001 472040 6526570 306 -61 90 150 97 98 1 1.930
KNRC001 including 106 107 1 17.390
KNRC001 110 114 4 1.503
KNRC001 including 110 111 1 2.200
KNRC001 including 112 114 2 1.825
KNRC001 117 123 6 2.952
KNRC001 including 117 118 1 1.340

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 www.imageres.com.au

Page 9 of 21

Hole ID
KNRC001
Easting
MGAz51
Northing
MGAz51
including
RL AHD
metres
Dip
degrees
Azimuth
degrees
EOH
metres
From
metres
120
To
metres
123
Width
metres
3
Gold
ppm
5.407
KNRC002 472120 6526570 305 -63 90 200 47 48 1 1.050
KNRC002 including 67 68 1 1.680
KNRC002 including 72 73 1 2.010
KNRC007 472069 6526478 303 -56 45 120 85 87 2 1.450
KNRC007 including 86 87 1 2.190
KNRC008 472095 6526458 303 -48 45 130 64 65 1 2.510
KNRC009 472147 6526430 302 -50 45 120 52 56 4 0.570
KNRC011 472410 6526085 292 -58 55 120 41 50 9 2.094
KNRC011 including 41 43 2 3.860
KNRC011 including 44 46 2 3.575
KNRC011 including 48 49 1 2.000
KNRC011 51 54 3 1.350
KNRC011 including 52 54 2 1.695
KNRC011 58 61 3 0.850
KNRC011 including 60 61 1 1.400
KNRC012 472391 6526068 292 -51 61 132 64 70 6 3.143
KNRC012 including 64 65 1 1.190
KNRC012 including 66 69 3 5.593
KNRC012 84 89 5 1.652
KNRC012 including 84 86 2 3.430
KNRC012 90 94 4 1.280
KNRC012 including 90 91 1 1.620
KNRC012 including 92 93 1 2.610
KNRC013 472435 6526059 293 -53 64 120 35 36 1 1.370
KNRC013 54 56 2 1.380
KNRC013 including 55 56 1 1.810
KNRC013 including 61 62 1 1.030
KNRC014 472412 6526038 293 -53 45 96 36 37 1 1.660
KNRC014 65 72 7 4.083
KNRC014 including 68 69 1 3.730
KNRC014 including 70 72 2 11.500
KNRC014 84 89 5 0.988
KNRC014 including 86 87 1 1.860
KNRC014 including 88 89 1 1.690
KNRC014 91 93 2 3.360
KNRC014 including 91 92 1 6.040
KNRC015 472390 6526018 293 -47 45 132 77 78 1 2.190
KNRC015 including 93 94 1 1.720
KNRC015 104 111 7 2.274
KNRC015 including 104 107 3 4.597
KNRC015 126 128 2 4.370
KNRC016 472461 6526028 293 -52 63 120 55 56 1 24.230
KNRC016 including 60 61 1 1.130
KNRC017 472446 6526015 293 -54 64 120 34 38 4 1.335
KNRC017 including 34 35 1 1.550
KNRC017 including 36 38 2 1.720

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 www.imageres.com.au

Page 10 of 21

Hole ID
KNRC017
Easting
MGAz51
Northing
MGAz51
RL AHD
metres
Dip
degrees
Azimuth
degrees
EOH
metres
From
metres
60
To
metres
65
Width
metres
5
Gold
ppm
4.214
KNRC017 including 60 61 1 18.300
KNRC017 including 62 63 1 1.400
KNRC017 78 82 4 0.663
KNRC017 including 81 82 1 1.530
KNRC018 472363 6526102 291 -50 69 130 41 45 4 1.585
KNRC018 including 42 43 1 4.320
KNRC018 including 44 45 1 1.300
KNRC018 48 54 6 0.885
KNRC018 including 48 50 2 1.280
KNRC018 including 51 52 1 1.510
KNRC018 including 80 81 1 1.960
KNRC018 including 84 85 1 1.960
KNRC019 472389 6525955 293 -60 45 80 29 34 5 0.534
KNRC019 46 50 4 1.428
KNRC019 including 49 50 1 4.210
KNRC019 including 59 60 1 6.970
KNRC020 472374 6525942 292 -60 45 100 25 26 1 1.260
KNRC021 472417 6525928 294 -60 45 80 65 66 1 1.990
KNRC021 73 75 2 3.025
KNRC021 including 78 79 1 2.740
KNRC023 472515 6525968 293 -60 45 100 35 36 1 1.400
KNRC023 50 53 3 13.143
KNRC023 including 50 51 1 38.610
KNRC024 472501 6525954 293 -60 45 120 36 40 4 0.510
KNRC024 62 66 4 1.443
KNRC024 including 62 64 2 2.150
KNRC024 84 86 2 1.975
ROE0701 472246 6526157 294 -60 90 80 42 44 2 0.540
ROE0701 70 72 2 2.330
ROE0702 472315 6526157 292 -60 270 80 42 44 2 4.210
ROE0702 68 70 2 2.270
ROE0703 472397 6526157 292 -60 270 130 46 48 2 2.470
ROE0704 472446 6525957 293 -60 90 80 36 42 6 3.447
ROE0704 54 56 2 2.460
ROE0704 70 72 2 0.740
ROE0704 76 78 2 0.950
ROE0705 472515 6525957 293 -60 270 80 36 40 4 1.260
ROE0705 including 38 40 2 1.910
ROE0705 70 72 2 1.690
ROE0705 76 78 2 1.390
ROE0706 472597 6525957 290 -60 270 140 34 36 2 4.900
ROE0706 52 54 2 1.140
ROE0781 472206 6526160 295 -60 90 160 98 100 2 0.690
ROE0782 472355 6526160 292 -60 270 160 40 47 7 5.629
ROE0782 including 40 43 3 11.767
ROE0782 including 46 47 1 2.330

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 www.imageres.com.au

Page 11 of 21

Hole ID
Easting
Northing
MGAz51
MGAz51
ROE0782
Hole ID
Easting
Northing
MGAz51
MGAz51
ROE0782
Hole ID
Easting
Northing
MGAz51
MGAz51
ROE0782
RL AHD
metres
Dip
degrees
Azimuth
degrees
EOH
metres
From
metres
61
To
metres
63
Width
metres
2
Gold
ppm
10.757
ROE0782 67 69 2 0.540
ROE0782 73 77 4 0.913
ROE0782 including 73 74 1 2.034
ROE0782 including 76 77 1 1.278
ROE0782 including 81 82 1 1.327
ROE0783 472406 6525960 293 -60 90 160 28 29 1 1.762
ROE0783 44 47 3 0.671
ROE0783 including 54 55 1 1.638
ROE0783 including 141 142 1 3.326
ROE0898 472000 6526560 307 -60 90 160 98 102 4 0.545
ROE0898 including 98 99 1 1.330
ROE0899 472080 6526560 305 -60 90 160 42 43 1 2.130
ROE0899 132 145 13 2.162
ROE0899 including 132 141 9 2.426
ROE0899 including 144 145 1 5.160
ROE0899 including 148 149 1 5.330
ROE0899 including 159 160 1 1.480
ROE0900 472160 6526560 304 -60 90 160 55 56 1 6.930
ROE0900 81 83 2 0.550
ROE0901 472240 6526560 303 -60 90 160 34 36 2 1.740
ROE0901 including 35 36 1 2.770
ROE0902 472120 6526360 302 -60 90 160 89 90 1 1.270
ROE0902 99 101 2 1.970
ROE0902 including 99 100 1 3.350
ROE0903 472200 6526360 298 -60 90 160 32 36 4 0.643
ROE0903 including 35 36 1 1.720
ROE0903 116 118 2 0.740
ROE0903 including 159 160 1 1.080
ROE0904 472280 6526360 297 -60 90 160 38 39 1 1.850
ROE0904 99 101 2 2.580
ROE0907 472550 6525760 293 -60 90 160 144 145 1 1.430
DD- Historical inetercepts
ROE1048 472330 including 292 -60 270 150 40 40.5 0.5 7.150
ROE1048 including 44 45 1 2.130
ROE1048 including 87 88 1 1.670
RAB- Historical inetercepts
KRR071 474357 6525157 285 -90 360 37 18 24 6 0.937
AC- Historical inetercepts
ROE0339 471697 6526757 306 -90 360 40 34 36 2 0.610
ROE0356 473097 6524037 284 -90 360 47 30 32 2 1.360
ROE0599 472237 6526557 303 -90 360 39 30 32 2 0.880
ROE0608 472277 6526157 293 -90 360 35 24 26 2 3.220

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 www.imageres.com.au

Page 12 of 21

Hole ID
ROE0611
Easting
MGAz51
472477
Northing
MGAz51
6525957
RL AHD
metres
293
Dip
degrees
-90
Azimuth
degrees
360
EOH
metres
46
From
metres
44
To
metres
46
Width
metres
2
Gold
ppm
0.510
ROE0700 473637 6524557 285 -90 360 51 28 30 2 2.860
SLAC020 472010 6526890 305 -90 0 39 32 33 1 1.070

Table 2. Planned RC Drilling

Hole_ID Easting
MGAz51
Northing
MGAz51
RL
metres
Depth
metres
Dip
degrees
Azimuth
degrees
Tenement
PD001 471773 6527025 304 125 -60 90 E28/1895
PD002 471965 6527003 303 85 -60 45 E28/1895
PD003 471907 6526949 304 125 -60 45 E28/1895
PD004 472005 6526967 304 70 -60 45 E28/1895
PD005 471974 6526937 304 80 -60 45 E28/1895
PD006 471948 6526904 305 80 -60 90 E28/1895
PD007 472020 6526925 304 60 -60 45 E28/1895
PD008 472000 6526906 303 70 -60 45 E28/1895
PD009 472092 6526939 290 60 -60 45 E28/1895
PD010 471946 6526798 305 140 -60 45 E28/1895
PD011 472148 6526770 306 60 -60 45 P28/1320
PD012 472091 6526715 306 85 -60 45 P28/1320
PD013 472032 6526658 306 135 -60 45 P28/1320
PD014 472200 6526654 305 60 -60 45 P28/1320
PD015 472158 6526614 305 100 -60 45 P28/1320
PD016 472027 6526486 305 220 -60 45 P28/1320
PD017 472288 6526627 304 60 -60 45 P28/1320
PD018 472070 6526418 303 205 -60 45 P28/1320
PD019 472344 6526569 298 60 -60 45 P28/1320
PD020 472286 6526514 301 70 -60 45 P28/1320
PD021 472230 6526460 300 130 -60 45 P28/1320
PD022 472172 6526403 301 165 -60 45 P28/1320
PD023 472400 6526457 298 60 -60 45 P28/1320
PD024 472396 6526400 296 65 -60 45 P28/1320
PD025 472312 6526317 295 125 -60 45 P28/1320
PD026 472255 6526260 294 155 -60 45 P28/1320
PD027 472199 6526211 294 120 -60 45 P28/1320
PD028 472397 6526289 295 65 -60 45 P28/1320
PD029 472422 6526201 294 65 -60 45 P28/1320
PD030 472387 6526165 292 105 -60 45 P28/1320
PD031 472335 6526078 291 110 -60 45 P28/1320
PD032 472463 6526134 292 80 -60 45 P28/1320
PD033 472434 6526105 292 95 -60 45 P28/1320
PD034 472370 6526048 292 120 -60 45 P28/1320
PD035 472483 6526046 294 75 -60 45 P28/1320
PD036 472421 6525988 292 115 -60 45 P28/1320
PD037 472428 6525959 293 90 -60 90 P28/1320
PD038 472537 6525991 292 70 -60 45 P28/1320
PD039 472586 6525870 292 105 -60 45 P28/1320
PD040 472529 6525812 292 175 -60 45 P28/1320

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Page 13 of 21

Hole_ID Easting
MGAz51
Northing
MGAz51
RL
metres
Depth
metres
Dip
degrees
Azimuth
degrees
Tenement
PD041 472643 6525814 288 110 -60 45 P28/1320
PD042 472607 6525777 289 110 -60 45 P28/1320
Total 42 RC drillholesfor 4,260m

Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872

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Page 14 of 21

Image Resources Background Information

Image is Australian’s newest mineral sands mining company, operating open-cut mining and ore processing facilities at its 100%-owned, high-grade, zircon-rich Boonanarring Mineral Sands Project located 80km north of Perth, Western Australia, in the infrastructure-rich North Perth Basin. Boonanarring is arguably one of the highest grade, zircon-rich, mineral sands projects in Australia. The project was constructed and commissioned on-time and on-budget in 2018 and production of HMC ramped-up to exceed name-plate capacity in only the second month of operation (January 2019).

Image has now completed two full years of successful operations with performance meeting or beating market guidance ranges in all categories. The Company is focused on maintaining its strong operational and health, safety and environmental performance and has prioritised the identification of new Mineral Resources and Ore Reserves, to extend the cumulative mine life of Ore Reserves in its portfolio, while investigating the development of a second operating centre in parallel with current operations.

For further information, please contact:

George Sakalidis

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

This document is authorised for release to the market by:

Patrick Mutz

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

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Page 15 of 21

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.

PREVIOUSLY REPORTED INFORMATION

The information in this report that relates to exploration results for EYRC01, EYRC02 and EYRC03 is extracted from the Company’s ASX release dated 18 September 2018 (‘20m Shallow Gold Intersection at IMA Erayinia Prospect’) and is available to view on www.imageres.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and 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.

COMPETENT PERSON’S STATEMENT

The information in this report that relates to exploration results (other than EYRC01, EYRC02 and EYRC03) 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 an employee of Image Resources NL. Mr Sakalidis 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’. Mr Sakalidis has provided his prior written consent to the inclusion of this information in the form and context in which it appears in this report. Mr Sakalidis is a shareholder in the Company.

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 www.imageres.com.au

Page 16 of 21

JORC Code, 2012 Edition – Table 2 report template

Section 1 Sampling Techniques and Data

(Criteria in this sectionapplyto allsucceeding sections.)
Criteria JORC Code explanation Commentary
Sampling Nature and quality of sampling (eg cut channels, Sampling and QAQC procedures are
techniques random chips, or specific specialised industry carried out using Image’s protocols as per
standard measurement tools appropriate to the industry sound practice.
minerals under investigation, such as down hole RC drilling was used to obtain bulk 1
gamma sondes, or handheld XRF instruments, etc). metre samples from which composite 4m
These examples should not be taken as limiting samples were prepared by spear
the broad meaning of sampling. sampling of the bulk 1m samples. 3kg of
Include reference to measures taken to ensure the composite sample was pulverized to
sample representation and the appropriate produce a 10g charge for aqua
calibration of any measurement tools or systems regia/ICPMS determination for gold and
used. pathfinder elements. The analytical
Aspects of the determination of mineralisation results of the composite samples are
that are Material to the Public Report. used to determine which 1m samples
In cases where ‘industry standard’ work has been from the rig’s cyclone and splitter are
done this would be relatively simple (eg ‘reverse selected for fire assay.
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.
Criteria JORC Code explanation JORC Code explanation Commentary Commentary
Sampling Nature and quality of sampling (eg cut channels, Sampling and QAQC procedures are
techniques random chips, or specific specialised industry carried out using Image’s protocols as per
standard measurement tools appropriate to the industry sound practice.
minerals under investigation, such as down hole RC drilling was used to obtain bulk 1
gamma sondes, or handheld XRF instruments, etc). metre samples from which composite 4m
These examples should not be taken as limiting samples were prepared by spear
the broad meaning of sampling. sampling of the bulk 1m samples. 3kg of
Include reference to measures taken to ensure the composite sample was pulverized to
sample representation and the appropriate produce a 10g charge for aqua
calibration of any measurement tools or systems regia/ICPMS determination for gold and
used. pathfinder elements. The analytical
Aspects of the determination of mineralisation results of the composite samples are
that are Material to the Public Report. used to determine which 1m samples
In cases where ‘industry standard’ work has been from the rig’s cyclone and splitter are
done this would be relatively simple (eg ‘reverse selected for fire assay.
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.
Drilling Drill type (eg core, reverse circulation, open‐hole Reverse circulation (RC) drilling was
techniques hammer, rotary air blast, auger, Bangka, sonic, etc) carried out by Image Resources.
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).
Drill sample
Method of recording and assessing core and chip RC recoveries are visually estimated
recovery sample recoveries and results assessed. qualitatively on a metre basis.
Measures taken to maximise sample recovery and Various drilling additive (including muds
ensure representative nature of the samples. and foams) have been used to condition
Whether a relationship exists between sample the RC holes to maximize recoveries and
recovery and grade and whether sample bias may sample quality.
have occurred due to preferential loss/gain of Insufficient drilling and geochemical data
fine/coarse material. is available at the present stage to
evaluate potential sample bias. Drill
samples are sometimes wet which may
result in sample bias because of
preferential loss/gain of fine/coarse
material.
Logging Whether core and chip samples have been RC chips and chip trays are being

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Page 17 of 21

Criteria JORC Code explanation JORC Code explanation Commentary Commentary
geologically and geotechnically logged to a level of geologically logged.
detail to support appropriate Mineral Resource Lithology, alteration and veining is
estimation, mining studies and metallurgical recorded and imported into the Image
studies. Resources central database. The logging
Whether logging is qualitative or quantitative in is considered to be of sufficient standard
nature. Core (or costean, channel, etc) to support a geological resource.
photography. Logging of RC drillholes records lithology,
The total length and percentage of the relevant mineralogy, mineralisation, weathering
intersections logged. and colour, and is qualitative in nature.
All drillholes were logged in full.
Sub-sampling
If core, whether cut or sawn and whether quarter,
techniques half or all core taken.
and sample
preparation
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 representation 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 beingsampled.
Quality of The nature, quality and appropriateness of the RC samples are assayed using a 50g
assay data
and
laboratory
tests
assaying and laboratory procedures used and
whether the technique is considered partial or
total.
For geophysical tools, spectrometers, handheld
charge and a fire assay method with an
AAS finish which is regarded as
appropriate. The technique provides an
estimate of the total gold content.
XRF instruments, etc, the parameters used in QA/QC measures included repeat
determining the analysis including instrument analyses and the use of internal lab
make and model, reading times, calibrations standards which indicated acceptable
factors applied and their derivation, etc. levels of accuracy and precision although
Nature of quality control procedures adopted (eg in rare cases there is some indication of
standards, blanks, duplicates, external laboratory the presence of coarse gold.
checks) and whether acceptable levels of accuracy Industry standard standards and
(ie lack of bias) and precision have been duplicates are used by the NATA
established. registered laboratory conducting the
analyses.
Verification of
The verification of significant intersections by Where duplicate analyses of individual
sampling and either independent or alternative company samples were made the analytical results
assaying personnel. were averaged.
The use of twinned holes. No twin holes have been drilled.
Documentation of primary data, data entry Primary data is entered into an in‐house
procedures, data verification, data storage database and checked by the database
(physical and electronic) protocols. manager.

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Page 18 of 21

Criteria JORC Code explanation JORC Code explanation Commentary Commentary
Discuss any adjustment to assay data. No adjustment of assay data other than
averagingof repeat and duplicate assays.
Location of Accuracy and quality of surveys used to locate drill RC drill collars were located using a hand‐
data points holes (collar and down‐hole surveys), trenches, held GPS with an accuracy of +‐ 4m.
mine workings and other locations used in Mineral
Grid system: GDA94
Resource estimation. Topographic control using regional DEM
Specification of the grid system used. data.
Qualityand adequacyof topographic control.
Data spacing Data spacing for reporting of Exploration Results. RC drilling was carried out at 75m
and
distribution
Whether the data spacing and distribution is
sufficient to establish the degree of geological and
spacings on two lines 400m apart.
Not for ore resource estimation.
grade continuity appropriate for the Mineral 4m compositing was applied
Resource and Ore Reserve estimation procedure(s)
and classifications applied.
Whether sample compositinghas been applied.
Orientation of Whether the orientation of sampling achieves Drilling of inclined (‐60deg) RC holes 90°
data in unbiased sampling of possible structures and the to east or orthogonal to the target strike.
relation to
geological
structure
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.
Sample The measures taken to ensure sample security. Samples were taken to the laboratory
security Kalgoorlie depot prior to dispatch to
Perth using a commercial freight
company.
Audits or The results of any audits or reviews of sampling The sampling techniques and results have
reviews techniques and data. not been subject to audit.

Section 2 Reporting of Exploration Results

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

Criteria JORC Code explanation JORC Code explanation Commentary Commentary
Mineral Type, reference name/number, location and Erayinia is situated on exploration licence
tenement and
land tenure
status
ownership including agreements or material
issues with third parties such as joint ventures,
partnerships, overriding royalties, native title
E28/1895 and E28/2242 116.6sqkm and is
held by Image Resources NL. Image
Resources is earning an interest in the King
interests, historical sites, wilderness or national JV tenements P28/1320 and P28/1321
park and environmental settings. 3.7sqkm as described in the section, Key
The security of the tenure held at the time of Terms of Farm‐in of King Prospect. All
reporting along with any known impediments to licences are granted with no known
obtaining a licence to operate in the area. impediments to obtaining a licence to
operate.
Exploration Acknowledgment and appraisal of exploration by The King prospect area has been subject
done by other otherparties. to systematic surface samplingby

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Page 19 of 21

Criteria JORC Code explanation JORC Code explanation Commentary Commentary Commentary
parties previous explorers mainly including
WMC and Integra. Air‐core drilling was
carried out by WMC Resources and a
total of 129 holes for 5402 m were
drilled at the King and K5 prospects.
Integra drilled 25 RC holes for 2860m
and 43 AC holes totalling 1600m
between 2003‐2007 in the King
Prospect. Available historical data has
been compiled over all the tenements
and the main companies include
Goldfields (201 AC & 22 RC), Integra
(427 AC & 35 RC)and Newmont(52 AC).
Geology Deposit type, geological setting and style of Erayinia is underlain by a moderate to
mineralisation. strongly foliated, mafic volcano‐
sedimentary sequence intruded by
differentiated dolerites and variably
metamorphosed to upper amphibolite
facies conditions. Numerous felsic
porphyries also intrude the sequence.
These Archaean rocks are overlain by
sedimentary rocks of Proterozoic to
Cainozoic age. The Proterozoic rocks are
part of the Woodline Beds and are
characterized by carbonate‐pyrite‐
bearing quartz pebble conglomerates.
Drill hole A summary of all information material to the The details of material RC holes
Information understanding of the exploration results including completed historically and by Image are
a tabulation of the following information for all
Material drill holes:
reported in Table1.
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 clearlyexplain whythis is the case.
Data In reporting Exploration Results, weighting No weighting or cutting of gold values, other
aggregation
methods
averaging techniques, maximum and/or minimum
grade truncations (eg cutting of high grades) and
than averaging of duplicate and repeat
analyses.
cut‐off grades are usually Material and should be No metal equivalents have been used.
stated.
Where aggregate intercepts incorporate short

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Page 20 of 21

Criteria JORC Code explanation JORC Code explanation Commentary Commentary
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 clearlystated.
Relationship These relationships are particularly important in All vertical aircore holes into the horizontal
between
mineralisation
widths and
intercept
lengths

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
supergene zones are showing true width
intersections. A number of inclined drill
holes along the EW cross‐sections shown in
Figures 1, 3, 4, 5, and 6 are not true widths
because the lines are oblique to the strike
are reported, there should be a clear statement to angle and would be over estimating the true
this effect (e.g., ‘down hole length, true width not width by 5 to 10%. Drill holes oriented
known’). towards 65 degrees would be close to true
widths.
Diagrams Appropriate maps and sections (with scales) and Refer to text.
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.
Balanced Where comprehensive reporting of all Exploration Anomalous ranges used are stated in the
reporting Results is not practicable, representative reporting text.
of both low and high grades and/or widths should
be practiced, to avoid misleading reporting of
Exploration Results.
Other Other exploration data, if meaningful and Detailed ground magnetic survey by Image
substantive
exploration
data
material, should be reported including (but not
limited to): geological observations; geophysical
survey results; geochemical survey results; bulk
Resources.
samples – size and method of treatment;
metallurgical test results; bulk density,
groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminatingsubstances.
Further work The nature and scale of planned further work Detailed infill RC drilling is planned on a
~~(e.g.~~e.g.,tests for lateral extensions or depth 100mx100m grid over the prospective areas
extensions or large‐scale step‐out drilling). mainly within the King JV tenements and
Diagrams clearly highlighting the areas of possible includes 42 RC holes for 4260m. Refer to
extensions, including the main geological Figure 1 and Table2.
interpretations and future drilling areas, provided
this information is not commercially sensitive. Detailed 50m spaced cesium vapor ground
magnetics over the King JV tenements.

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Page 21 of 21