IMAGE RESOURCES NL — Capital/Financing Update 2022

Jan 18, 2022

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19 January 2022

ENEABBA TENEMENT PACKAGE STRATEGIC ACQUISITION UPDATE

Image Resources NL (ASX: IMA) (“Image” or “the Company”) is pleased to advise it has completed the strategic acquisition of a package of mineral sands tenements (other than 3 mining leases) in the historic Eneabba mining district located 275km north of Perth in Western Australia. The package of tenements was acquired from Sheffield Resources Limited under an asset sale and purchase agreement announced on 29 November 2021.

The full package of tenements consists of 8 exploration licences (“ELs”) , 3 mining leases (“MLs”) and 1 retention licence (“RL”) covering 8 project areas (“Eneabba Tenements”) .

The portion of the transaction completed on 18 January 2022 comprises 8 ELs and 1 RL for the payment of A$23m in cash (from cash reserves) follows satisfaction of conditions precedent (“CPs”), being regulatory approval to transfer the RL and execution of a deed of assignment related to a third-party royalty holder on a portion of the tenements.

Acquisition of the remaining 3 MLs (all associated with the West Mine North project area) is subject to satisfaction of CPs, including Foreign Investment Review Board (“FIRB”) approval, regulatory approval to transfer the MLs, and third-party approval to novation of the land access arrangements. Completion on the 3 MLs of the West Mine North project is expected to occur in Q1 2022 and involves a further payment of A$1 million in cash.

Managing Director and CEO Patrick Mutz commented, “Acquiring the Eneabba Tenements satisfies one of the components of Image’s growth strategy, being the acquisition of additional Mineral Resources outside of our current portfolio for future mining opportunities. We will now expand our project development activities to include a new potential mining centre in addition to our plans for operations at Atlas and Bidaminna.”

Strategic Acquisition and Plans

Mineralisation in all of the Eneabba Tenements project areas is accessible by dry mining methods and testing has demonstrated the mineralisation is amenable to typical heavy mineral recovery processing technology such as the wet concentration plant currently used at Image’s Boonanarring project.

For further information on the potential significant impacts of the acquisition of the Eneabba Tenements on Image’s development opportunities see the Company’s ASX announcement of 29 November 2021 entitled ‘STRATEGIC ACQUISITION OF ENEABBA TENEMENT PACKAGE CONTAINING 6.3 MILLION TONNES TOTAL HEAVY MINERALS’.

Plans include fast-tracking the conversion of Eneabba Tenements contained Mineral Resources to Ore Reserves. The additional Mineral Resources have the potential to gain economy-of-scale advantages by doubling the ore processing rate from 500 tonnes per hour to up to 1,000 tonnes per hour in future dry mining operations.

Acquisition of the Eneabba Tenements adds further expansion opportunities to Image’s current development plans for its 100%-owned Atlas deposit, which is slated for production following the cessation of production at Boonanarring, and its 100%-owned Bidaminna project which is currently under feasibility study with the aim of establishing a stand-alone dredge mining operation to be operated in parallel with Atlas.

Image Resources NL | ABN 57 063 977 579 Le vel 2, 7 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 www.imageres.com.au

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This document is authorised for release to the market by:

Patrick Mutz

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

Image Resources Background Information

Image is an established, profitable 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 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. Production of HMC commenced December 2018 and ramped-up to exceed name-plate capacity in only the second month of operation (January 2019).

The Company repaid its outstanding debt ahead of schedule in February 2021 and paid an inaugural dividend of $0.02 per share in April 2021, after only two years as an active mining company (CY2019 and CY2020), and is on-track to meet its market guidance for CY2021 which is similar to CY2020.

Since February 2021 Image is focused on a multi-pronged growth strategy which includes (1) maintaining its strong economic performance at Boonanarring and continuing at its 100%owned Atlas, Helene and Hyperion projects; (2) progressing a feasibility study at its 100%owned Bidaminna project in support of development of a second mining and processing centre to be operated in parallel with operations at Atlas; (3) evaluating the economic potential of its two 100%-owned gold tenements and King Farmin tenement, all located SE of Kalgoorlie; and (4) investigate opportunities outside of the Company’s current mineral sands portfolio to identify a larger potential mine-life deposit for development.

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 be 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 Level 2, 7 Ventnor Avenue, West Perth WA 6005 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 www.imageres.com.au

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