IMAGE RESOURCES NL — Interim / Quarterly Report 2006

Apr 27, 2006

SUMMARY

• Aircore drilling in progress at the Bidaminna heavy mineral project in the North Perth Basin targeting potentially high-grade strands.
• Very encouraging results from ground magnetic surveys at Cooljarloo about 100km north of Bidaminna identifying new targets with the potential to significantly increase and upgrade the existing reported resource (80Mt at 3% HM) in an area close to existing mines and infrastructure.
• A new joint venture with Troy Resources on Image's 100%-owned Bronco Plains gold project east of Kalgoorlie.
• Attractive nickel and gold targets identified on Image's 100%owned Binti Bore project near the 30%-owned Emu Lake nickel sulphide project.
• A joint venture with Sipa Exploration on two 100%-owned Image tenements near Woodline east of Kalgoorlie.

BIDAMINNA (Image 100%)

Aircore drilling has commenced at Image's 100%-owned Bidaminna heavy minerals (HM) project situated 30km northwest of Gingin in the North Perth Basin - see location map below. The initial 100-hole programme (an approximately 400m x 40m spacing) will test the northern parts of the interpreted Callisto and Ganymede strands and adiacent sub-strands where access agreements and environmental permitting have been completed. The drilling is targeting interpreted HM strands 100-250m in width with magnetic amplitudes, as determined from detailed ground magnetic surveys, ranging from 1.2 to 3.2 nano Teslas (nT).

Bidaminna, Cooljarloo Location Map

COOLJARLOO (Image earning up to 70%)

As recently announced (ASX releases of 13 February 2006, 28 February 2006 and 26 April 2006) 180 line km of detailed ground magnetic surveys have now been completed at Image's Cooliarloo HM project in the North Perth Basin. Previous explorers have reported an Inferred Resource of 80Mt at 3% HM in three strands (35 AHD, 28,000 and Mid-Level strands) on this project situated approximately 100km north of Image's Bidaminna project. Under the terms of a joint venture agreement Image may earn up to a 70% interest in the tenement by sole funding \$800,000 of expenditure within six years.

The results of these surveys to date have been most encouraging, showing an excellent correlation between previous high-grade drill intercepts and high amplitude magnetic anomalies at the 35 AHD strand – see table and map below. Significantly a total of 32km of interpreted, multiple, sub-parallel strands have been identified along strike from and sub-parallel to known resources.

Hole No		Collar Coordinates	From	То	Interval	HM Grade
	E.	N	m	m	m	℅
JABB-2040	331987	6619345	0	4	4	21.9
JABC-1350	331571	6617424	8	14	$\overline{6}$	11.0
JAD-840	331042	6621111	6	8	$\overline{2}$	19.5
JAD-2040	332225	6621111	$\overline{2}$	6	4	22.5
		including	4	6	$\overline{2}$	36.6
JAEN-8180	332563	6623140	4.5	9	4.5	5.8
JAES-7820	332257	6621871	4	10	6	9.4
		includina	2	4	2	20.9
HR-1046	331839	6618750	3	9	6	24.1
HR-1079	331959	6620500	1.5	6	4.5	8.0
HR-1084	332259	6620500	1.5	4.5	3	10.3
HR-1091	332019	6621500	4.5	9	4.5	7.8
HR-1106	332199	6622200	3	7.5	4.5	4.5
HR-1164	333339	6624050	4.5	9	4.5	6.9
HR-1174	331869	6618750	0	10.5	10.5	11.5
		Including	3	7.5	4.5	20.8
HR-1180	331929	6619900	1.5	4.5	3.	5.5
HR-1188	332229	6621500	3	7.5	4.5	8.6
		Including	4.5	6	1.5	20.9

35 AHD Strand Historical Drilling Results

At the 35 AHD strand a new high amplitude zone has been identified outside of the reported resource and is estimated to be 2.3km in length with only one previous line of drilling having been completed. Importantly, a shallow high-grade intersection of 2m at 19.5% HM from 6m has been reported on the southernmost tip of this high amplitude zone. The high amplitude zones at 35 AHD now total 7.8km in length and in some cases the previous drilling is considered not to have tested the high amplitude peaks, indicating potential to significantly upgrade the 35 AHD resource. Subject to finalisation of access agreements this area will be a priority drilling target.

A thick intersection of 30m at 6.6% HM from 39m has been reported close to the eastern boundary of the tenement and is being followed up with a detailed ground magnetic survey to map the trend of this intercept within the tenement. The survey will also test the possible extent of the Reserve strand into the tenement which has a number of reported deep yet thick HM intersections to the south. Drilling of the eastern targets is planned to commence after the Bidaminna drilling programme has been completed in May.

A 26sq km exploration licence (E70/2892) has been applied for to the north of Image's Cooliarloo project. This tenement is considered to be highly prospective as a previous high resolution aeromagnetic survey has identified 17km of interpreted HM strands with significant magnetic amplitudes ranging from 1-2nT and importantly with interpreted near-surface responses. These interpreted strands are thought to be the northern extension of the 35 AHD resource.

Cooljarloo Project - Ground Magnetic Interpreted Strandlines with HM Resources

BRONCO PLAINS (Image 100%)

A joint venture agreement has been signed with Trov Resources for a joint venture on Image's 100%-owned Bronco Plains gold project situated 140km east of Kalgoorlie. A geochemical survey carried out by Image covered targets identified from interpretation of aeromagnetic data and considered to be prospective for gold. The sampling of this soil-covered area identified several extensive gold-anomalous areas (up to 54ppb Au compared to a background of 5ppb Au). In some cases the anomalies remain open on to the adiacent Image tenement as shown in the map below.

Under the terms of the agreement Troy may earn a 60% interest in two contiguous exploration licences (E28/1377 and E/28/1569) by sole funding \$500,000 of expenditure within five years. Troy has indicated that follow-up soil sampling is anticipated to commence within the next month.

BINTI BORE (Image 100%)

Geochemical sampling on two 100%-owned exploration licences (E31/680 and E28/1510) at Binti Bore, situated 80km north-northeast of Kalgoorlie and 15km north of Image's 30%-owned Emu Lake nickel sulphide project, has identified several anomalies which warrant a high priority follow-up. Soil sampling over a pronounced circular aeromagnetic feature some 500m in diameter identified a discrete, coincident Ni-Cu-Pt-Cr-Au multi-element anomaly of similar or larger diameter. Adiacent to this circular anomaly the sampling identified a broad gold anomaly (up to 10 times background) 2.5km in length and 500m in width, open to the south and with coincident low order copper anomalism.

In addition, a series of linear low-order gold anomalies have been identified elsewhere on the tenements, which may be related to mineralised shear structures.

Follow-up sampling to further define these nickel and gold anomalies is in preparation.

WOODLINE (Image 100%)

Image has reached agreement in principle with Sipa Exploration for a joint venture on two 100%-owned Image tenements (E28/1400 and E28/1496) approximately 130km east of Kalgoorlie. Under the terms of the agreement Sipa may earn a 60% interest by sole funding expenditure of \$1 million within five years.

FORRESTANIA (Image 100%)

Image completed a 450m diamond drill hole at Forrestania, targeting a deep EM conductor interpreted to lie on the possible folded strike extension of the Flying Fox ultramafic unit and at about 350m below surface. Drill hole FRCD-3 intersected granitic rocks with minor inclusions of banded iron formation and coarse magnetite disseminations. A zone of massive to heavy disseminated sulphides was intersected in the 2.7m interval from 323.5m within a chlorite-altered, silicified and brecciated granite. A down hole EM survey confirmed the presence of a sizeable conductor adjacent to this intersection, confirming that the pyrrhotite-rich sulphides are extensive and are the likely source of the strong surface EM anomaly.

Analysis of split drill core did not reveal any significant nickel, copper or gold values in the sulphide zone. At Forrestania, Image will now focus on geochemical sampling of other targets on its extensive ground holdings in this prospective region, including follow-up sampling of promising Ni-Cu-Pt geochemical anomalies identified about 10km east-southeast of the Nepean nickel mine.

URANIUM PROSPECTS (Image 100%)

As previously reported (June 2005 quarterly report and 21 July 2005 ASX release). Image has applied for six target areas in the Southern Cross - Esperance region covering strong radiometric anomalies evident in government airborne survey data. The radiometric anomalies acquired by Image range from 11ppm to 41ppm Uranium Equivalent (UEq) compared to backgrounds of 1-5ppm UEq (Uranium Equivalent is a standard method of comparing radiometric survey data). Geochemical sampling on Image's 26 Mile Rock prospect situated 40km west of Salmon Gums has identified elevated uranium values up to 10 times background coinciding with an airborne radiometric anomaly and warranting further sampling. Ground radiometric surveys and geochemical sampling on Image's other uranium prospects at Lake Seabrook, Lake Eva, Three Star Lake, Boydells and Yerritup is in preparation.

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

Please direct enquiries to:

Roger Thomson Managing Director Phone (08) 9485 2836 Mobile 0419 969 183 Email roger@meteoric.com.au George Sakalidis Executive Director - Exploration Phone (08) 9485 2836 Mobile 0411 640 337 Email george@meteoric.com.au

The information in this report that relates to exploration results is based on information compiled by Roger Thomson BSc, ARSM, MAusIMM, who is a Member of the Australian Institute of Geoscientists. Roger Thomson is an employee of Meteoric Resources NL. Roger Thomson 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'. Roger Thomson consents to the inclusion of this information in the form and context in which it appears in this report.

MINING EXPLORATION ENTITY QUARTERLY REPORT

Name of entity:

Image Resources NL

ABN: 57 063 977 579 Quarter ended ("current quarter")

31/3/2006

Consolidated statement of cash flows

		Current quarter	Year to date
Cash flows related to operating activities		\$AUD'000	(9 months)
			\$AUD'000
1.1	Receipts from product sales and related debtors	88	143
1.2	Payments for:
	(a) exploration and evaluation	(322)	(864)
	(b) development
	(c) production		(393)
1.3	(d) administration Dividends received	(122)
1.4	Interest and other items of a similar nature	41	114
	received
1.5	Interest and other costs of finance paid
1.6 1.7	Income taxes paid Other (provide details if material)
	Net Operating Cash Flows	(315)	(1,000)
	Cash flows related to investing activities
1.8	Payment for purchases of:
	(a) prospects	(12)	(118)
	(b) equity investments	(32)	(139)
1.9	(c) other fixed assets Proceeds from sale of:		(4)
	(a) prospects
	(b) equity investments
1.10	(c) other fixed assets Loans to other entities
1.11	Loans repaid by other entities	(17)	28
1.12	Other (provide details if material)
1.13	Net investing cash flows Total operating and investing cash flows	(61)	(233)
	(carried forward)	(376)	(1, 233)

1.13	Total operating and investing cash flows (brought forward)	(376)	(1,233)
1.14	Cash flows related to financing activities Proceeds from issues of shares, options,	64	1,160
	etc.
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings	$\blacksquare$
1.17 1.18	Repayment of borrowings Dividends paid	÷
1.19	Other (provide details if material)		(28)
	Net financing cash flows	64	1,132
	Net increase (decrease) in cash held	(312)	(101)
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	2,870	2,659
1.22	Cash at end of quarter	2,558	2,558

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	(69)
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	Amount used
		\$AUD'000	\$AUD'000
3.1	Loan facilities
3.2	Credit standby arrangements	$\mathbf{m}$

Estimated cash outflows for next quarter

	Total	אמצי
-4.2	Development	$\mathbf{m}$
4.1	Exploration and evaluation	(320)
		\$AUD'000

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	81	428
5.2	Deposits at call
5.3	Bank overdraft
5.4	Other (provide details) – Short Term Deposit	2,477	2,442
	Total: cash at end of quarter (item 1.22)	2,558	2,870

Changes in interests in mining tenements

		Tenement	Nature of interest	Interest at	Interest at
		reference		beginning of	end of
				quarter	quarter
6.1	Interests in mining tenements	E38/1661	Relinquished	100%	$0\%$
	relinquished, reduced, lapsed
6.2	Interests in mining tenements	E70/2926	Application	0%	100%
	acquired or increased	E38/1871	Application	0%	100%
		P77/3589	Application	0%	100%
		P77/3590	Application	0%	100%
		P77/3591	Application	0%	100%
		P77/3592	Application	0%	100%
		P70/1490	Granted	100%	100%
		P46/1376	Granted	100%	100%
		E15/882	Granted	100%	100%
		E15/883	Granted	100%	100%
		E15/884	Granted	100%	100%
		E15/885	Granted	100%	100% 100%
		E15/886 E15/887	Granted	100%	100%
			Granted	100%
		E70/2847 E70/2710	Granted Granted	100% 100%	100% 100%
		E39/1059	Granted	100%	100%
		E39/1087	Granted	100%	100%
		E63/974	Granted	100%	100%
		E63/976	Granted	100%	100%
		E77/1132	Granted	100%	100%
		P29/1799	Granted	100%	100%
		E63/977	Granted	100%	100%
		E63/978	Granted	100%	100%
		E63/979	Granted	100%	100%
		E63/981	Granted	100%	100%
		E63/984	Granted	100%	100%
		E63/985	Granted	100%	100%
		E70/2711	Granted	100%	100%
		E39/1020	Granted	100%	100%
		E70/2712	Granted	100%	100%
		E70/2793	Granted	100%	100%
		E74/347	Granted	100%	100%
		E30/310	Granted	100%	100%

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	Nil
7.3	Ordinary securities	60,210,751	60,210,751
7.4	Issued during quarter	300,000		\$0.25	\$0.25
7.5	Convertible debt securities	N/A
7.6	Issued during quarter	Nil
7.7	Options			Exercise price	Expiry date
	Non-employee Options	13,740,727 1,850,000 2,000,000 2,000,000	Quoted Not Quoted Not Quoted Not Quoted	\$0.25 \$0.335 \$0.39 \$0.37	25.8.2006 27.11.2008 26.11.2009 21.11.2010
	Employee Options	1,035,000	Not Quoted	\$0.25	4.7.2005
7.8	Issued during quarter	Nil
7.9	Exercised during quarter	300,000	Quoted	\$0.25	25.8.2006
7.10	Expired during quarter	Nil
7.11	Debentures	N/A
7.12	Unsecured notes	N/A

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

Rudolf Tieleman (Company Secretary)
Date: 28 April 2006