IMAGE RESOURCES NL — Interim / Quarterly Report 2003

Apr 28, 2003

QUARTERLY REPORT

For the Quarter Ended 31 March 2003

SUMMARY

• Significant thicknesses of anomalous nickel, copper, platinum and palladium confirmed in drilling along strike from known nickel mineralization at Emu Lake. Further drilling is planned.
• Intersections of 3m at 13.1 g/t, 2m at 4.7 g/t and 13m at 1.4 g/t from the Wilthorpe gold project, plus a new gold zone discovered, with intersections of 3m at 2.4 g/t and 3m at 2.3 g/t.
• New acquisition at Withers Find near Bullfinch covering 2km of old gold workings and an untested geochemical anomaly.
• A regional gold and multi-element anomaly outlined over a 10km strike length in an unexplored greenstone belt at Woongaring.
• Drilling targets for gold and nickel-copper defined at Adam Range.
• Coincident magnetic, gravity and geochemical anomalies outlined south east of Tennant Creek, with potential for copper-gold mineralization.
• \$1.2 million received for the shareholding in Magnetic Minerals, boosting cash at bank to \$2.8 million.

Emu Lake (Image 90%)

The rotary airblast (RAB) drilling completed during the December quarter encountered anomalous nickel, copper, platinum and palladium values on the favourable contact 1.4km south (47300N prospect) and 3.6km south (45000N prospect) from the gossan zone where previous exploration drilling intersected narrow high-grade nickel sulphides grading up to 7.5% Ni.

During the quarter a 42-hole, 2221 metre follow-up RAB drilling programme was completed, to test the nature and extent of the two anomalous zones intersected in the previous programme. An additional aeromagnetic target was tested north of the gossan zone.

Drilling at the 45000N prospect intersected 45m at 0.22% Ni, 582 ppm Cu, 54 ppb Pt and 50 ppb Pd from 9m in drillhole ELRB100 and 21m at 0.41% Ni, 347 ppm Cu, 29 ppb Pt and 65 ppb Pd from 29m in adiacent drillhole ELRB101. These strongly anomalous intersections in weathered ultramafic are situated 100m south of the previously reported intersection in reverse circulation drillhole ELRC11 (28m at 0.34% Ni, 450 ppm Cu, 34 ppb Pt and 81 ppb Pd from 26m).

Step out drilling 100m to the north and south of drillhole ELRB70 at the 47300N prospect, where anomalous nickel and copper results were previously reported, (32m at 0.37% Ni, 485 ppm Cu, 38 ppb Pt and 63 ppb Pd from 7m) encountered weakly anomalous nickel and copper values. Further drilling to test both of these anomalous zones at depth is proposed during the June quarter. Drilling of the aeromagnetic anomaly north of the gossan zone confirmed the presence of ultramafic rocks and further investigation of this area is planned.

As previously foreshadowed, it is proposed to deepen drillhole ELD01 at the gossan zone in order to test a strong off-hole EM anomaly in the footwall of the favourable ultramafic contact. To achieve this, the casing placed in the hole to carry out the earlier downhole EM survey must be removed and efforts to achieve this will continue in the June quarter.

Lake Percy

Following the high-resolution aeromagnetic survey completed during the September 2002 quarter, ground magnetic surveys have been carried out on two target areas at this nickel project situated 30km to the north of the Emily Ann nickel mine (2 million tonnes at 3.9% Ni). The ground magnetic survey confirmed the detail over two zones of interpreted ultramafic rocks totalling some 3.5km in length. Sampling of previous gold exploration drillholes over one of the targets confirmed the presence of ultramafic rocks with anomalous values up to 1945 ppm Ni and 217 ppm Cu. Scout RAB drilling of these targets in this emerging nickel district is being planned.

Wilthorpe (Image 90%)

A 33-hole RAB drilling programme totalling 1766 metres has been completed at the Wilthorpe project situated in the Peak Hill area 120km north of Meekatharra. The drilling was aimed at testing two targets; an area of known gold mineralization in the northern part of the property and an untested geochemical anomaly situated 2.5km further south.

Previous drilling of the northern prospect had encountered mineralization with a best intercept of 32m at 1.0 g/t gold from 8m (including 7m at 2.0 g/t from 8m). The recent drilling confirmed a broad zone of gold mineralization over an east-west distance of 70m, adjacent to and below the previous drilling, with best intercepts of 2m at 3.3 g/t from 46m in drillhole WDRB05, 13m at 1.4 g/t from 35m in WDRB06, and 3m at 13.1 g/t from 3m and 2m at 4.7 g/t from 50m in WDRB07 – see table for details. Drilling 100m to the south along strike intersected 6m at 1.2 g/t from 30m in WDRB10, however drilling 100m to the north did not intersect significant values.

Hole		Coordinates	From	To	Interval	Grade
Number	N	Е	m	m	m	a/t Au
WDRB05	4335	6514	28	32	4	1.2
			46	55	9	1.1
		(Including)	46	48	2	3.3)
			67	69	2	2.2
WDRB06	4335	6490	7	10	3	1.2
			24	26	$\overline{2}$	1.2
			35	48	13	1.4
			52	56	4	1.9
WDRB07	4335	6466	3	6	3	13.1
			10	12	2	1.0
			24	28	4	1.0
			50	52	2	4.7
			70	73	3	2.4
			78	80	$\overline{2}$	$1.0$ eoh
WDRB10	4235	6526	30	36	6	1.2
WDRB30	1740	6300	24	27	3	2.4
WDRB31	1780	6300	65	68	3	2.3

Holes inclined at 60°; azimuth 090° except WDRB30 and 31 azimuth 180°; eoh: end of hole.

A single drill traverse across the geologically anomalous gold zone at the southern prospect intersected a cross-cutting north east trending zone of ferruginous quartz veins where previous surface prospecting had encountered a number of gold nuggets close to the veins. The quartz veins have been traced over a 200m strike length in a broad zone some 100m wide, with extensions obscured by soil cover. Drill intercepts include 3m at 2.4 g/t from 24m in drill hole WDRB30 and 3m at 2.3 g/t from 65m in adjacent drill hole WDRB31. Further sampling and drilling is planned in order to assess the extent and potential of this new gold zone.

Builfinch (Image 90%)

Image Resources has acquired a 100% interest in three prospecting licences totalling 5.6 sq km covering the Withers Find gold workings. The area was previously an excision within Image's Bullfinch project area near Southern Cross. The Withers Find workings occur over a 2km strike length and comprise a series of narrow high grade veins in granite gneiss, similar to the Golden Frog and Bottom prospects previously reported on by Image. Geological mapping of these prospects is in progress. In addition, geochemical sampling has confirmed the extension of a goldin-soil anomaly on to the Withers Find tenements which is also being investigated.

Woongaring (Image 100%)

Reconnaissance geochemical sampling over aeromagnetic targets on this project situated 150km NNW of Southern Cross has outlined a 10km-long gold and multi element anomaly in an area of extensive sand cover. The anomalous zone coincides with a shear zone within an unexplored greenstone belt interpreted from aeromagnetics.

Follow up sampling has confirmed the anomalism, with gold values of up to 13 ppb compared to a background of less than 1 ppb. The sampling remains widespaced (mostly 500m centres or 500m x 250m spacing) and these early results are considered to be significant. Additional tenements have been applied for to cover extensions of the anomalous zones. Further sampling is planned once the new tenements have been granted.

Adam Range (Image 100%)

A 644-hole geochemical vacuum drilling programme was completed at Adam Range, 25km NNE of Laverton in the Laverton Tectonic zone. Based on 200mx 50m sample spacing the programme outlined three coincident Cu-Ni-Pt-Pd anomalies over a one kilometre strike of interpreted ultramafic

rocks, a nearby 1.5km-long anomalous gold trend and a separate 800m-long anomalous copper trend with associated low-order gold values. RAB drilling of these attractive targets is envisaged during the next quarter.

Jabora Hill (Image 100%)

Check sampling of drilling reported in the previous quarter has confirmed gold intersections of 1m at 4.2 g/t from 35m at the end of hole JRB38 and 4m at 0.3 g/t from 33m and 2m at 0.3 g/t from 40m in hole JRB27. An induced polarization survey in the vicinity of the drilling has indicated other potential targets which are currently being investigated.

This project is situated at the northern end of the Tallering greenstone belt and 17km along strike from the Snake Well project of MIM-Gwalia Resources where a number of significant gold intersections have recently been reported.

Doolgunna (Image 51%, earning 60%)

A 25-hole, 977 metre RAB drilling programme was completed at the Doolgunna project situated 45km ESE of the Peak Hill gold mine. The drilling tested a 1500m long geochemical anomaly (peak value 689 ppm arsenic) interpreted to coincide with a regional structure and considered to be prospective for gold. The drilling intersected a number of ferruginous quartz stringer zones within Proterozoic metasediments with grades of up to 0.35% arsenic however no significant gold values were encountered. The potential of this project is being re-assessed.

Tennant Creek (100%)

Image Resources holds two exploration licences totalling 889 sq km situated approximately 100km SE of Tennant Creek. The area is interpreted to contain similar rocks to those hosting the high grade Tennant Creek copper-gold deposits, obscured by younger sedimentary cover. Several aeromagnetic targets have been identified and ground magnetic, gravity and geochemical surveys have been carried out over five targets. Results so far indicate coincident magnetic and gravity features with a low-order gold anomaly at target MT12 and a magnetic anomaly adjacent to a gravity ridge with coincident Au, Bi, Sb and As anomalism at target FT5. Partial extraction geochemistry is being trialled in an effort to identify mineralization below cover however the significance of the results obtained so far has yet to be determined. These coincident magnetic and gravity features are considered worthy of scout drilling for iron oxide copper-gold styles of mineralization.

Aeromagnetic Database

Following interpretation of the aeromagnetic database two exploration licences for gold were applied at for during the quarter at Scorpion Well 10km south east of the Centenary gold mine north of Leonora and at Junction Lake east of Kalgoorlie.

CORPORATE

Image Resources has received \$1.2 million for its holding in Magnetic Minerals following the successful takeover bid by Ticor Resources, by boosting cash at bank at quarter end to \$2.79 million.

PROJECT LOCATIONS

For more information on the company visit www.imageres.com.au

Please direct enquiries to: Roger Thomson Managing Director Phone (08) 9485 2410

George Sakalidis Executive Director - Exploration Phone (08) 9485 2410

The information on mineralisation contained in this report accurately reflects the information compiled by Mr Roger Thomson BSc, MAusIMM, who is a competent person (as defined by the Australasian Code of Reporting of Identified Mineral Resources and Ore Reserves) with relevant experience in relation to such mineralisation

MINING EXPLORATION ENTITY QUARTERLY REPORT

Name of entity Image Resources NL

ABN

57 063 977 579

Quarter ended ("current quarter")

31/3/2003

Consolidated statement of cash flows

Cash flows related to operating activities		Current quarter \$AUD'000	Year to date (9 months) \$AUD'000
1.1	Receipts from product sales and related debtors
1.2	Payments for: (a) exploration and evaluation (b) development (c) production (d) administration	(229) (96)	(979) (411)
1.3	Dividends received
1.4	Interest and other items of a similar nature received	19	76
1.5 1.6 1.7	Interest and other costs of finance paid Income taxes paid Other (provide details if material)
	Net Operating Cash Flows	(306)	(1, 313)
1.8	Cash flows related to investing activities Payment for purchases of:
	(a) prospects (b) equity investments (c) other fixed assets	(6) (1)	(51) (30)
1.9	Proceeds from sale of: (a) prospects		(72)
	(b) equity investments (c) other fixed assets	1,297	1,297
1.10	Loans to other entities
1.11 1.12	Loans repaid by other entities Other (provide details if material)
	Net investing cash flows	1,290	1,144
1.13	Total operating and investing cash flows (carried forward)	984	(169)

1.13	Total operating and investing cash flows (brought forward)	984	(169)
1.14 1.15 1.16 1.17 1.18 1.19	Cash flows related to financing activities Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings Repayment of borrowings Dividends paid
	Other (provide details if material) Net financing cash flows
	Net increase (decrease) in cash held	984	(169)
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	1,802	2,955
1.22.	Cash at end of quarter	2,786	2,786

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter \$AUD'000
1.23	Aggregate amount of payments to the parties included in item 1.2	(82)
1.24	Aggregate amount of loans to the parties included in item 1.10

1.25 Explanation necessary for an understanding of the transactions $N/A$

Non-cash financing and investing activities

$2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

$N/A$

$2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

$N/A$

Financing facilities available

		Amount available \$AUD'000	Amount used \$AUD'000
3.1	Loan facilities
3.2	Credit standby arrangements	$\blacksquare$

Estimated cash outflows for next quarter

\$AUD'000

	Total	(93)
4.2	Development	$\blacksquare$
4.1	Exploration and evaluation	(93)

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.		Current quarter \$AUD'000	Previous quarter \$AUD'000
5.1	Cash on hand and at bank	274	69
5.2	Deposits at call	2,512	1,733
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	2,786	1,802

Changes in interests in mining tenements

		Tenement reference	Nature of interest	Interest at beginning	Interest at end of
				of quarter	quarter
6.1	Interests in mining	E63/628	50% reduction in area	100%	100%
	tenements	E52/136	50% reduction in area	51%	51%
	relinguished, reduced or lapsed	9	50% reduction in area	100%	100%
		E59/879	50% reduction in area
		E52/138	and reverted to JV
			partner	51%	$0\%$
6.2	Interests in mining	E28/132	Application	$0\%$	100%
	tenements acquired or increased		Application	$0\%$	100%
		E39/998	Granted-Earning
		E39/738	75% interest	$0\%$	$0\%$
			Application	$0\%$	100%
		E37/745

Issued and quoted securities at end of current quarter

		Total number	Number quoted	Issue price per security (cents)	Amount paid up per security (cents)
7.1	Preference securities	N/A
7.2	Issued during quarter	N/A
7.3	Ordinary securities	48,716,257	31,334,064
7.4	Issued during quarter	Nil	Nil
7.5	Convertible debt securities	N/A
7.6	Issued during quarter	N/A
7.7	Options Non-employee			Exercise price	Expiry date
	Options Employee	15,512,191	Not quoted	\$0.25	25.8.2006
	Options	1,100,000	Not quoted	\$0.25	4.7.2005
7.8	Issued during quarter	Nil
7.9	Exercised during quarter	Nil
7.10	Expired during quarter	Nil
7.11	Debentures	N/A
7.12	Unsecured notes	N/A

Other Information

Compliance statement

This statement has been prepared under accounting policies which comply with $\mathbf{1}$ accounting standards as defined in the Corporations Act or other standards acceptable to ASX.

This statement does give a true and fair view of the matters disclosed. $\overline{2}$

Rudolf Tieleman (Company Secretary) Date: 29 April 2003