IMAGE RESOURCES NL — Interim / Quarterly Report 2016

Jul 28, 2016

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

	Name of entity IMAGE RESOURCES NL ABN Quarter ended (“current quarter”) 57 063 977 579 30/06/2016 Consolidated statement of cash flows	Name of entity IMAGE RESOURCES NL ABN Quarter ended (“current quarter”) 57 063 977 579 30/06/2016 Consolidated statement of cash flows	Name of entity IMAGE RESOURCES NL ABN Quarter ended (“current quarter”) 57 063 977 579 30/06/2016 Consolidated statement of cash flows	Name of entity IMAGE RESOURCES NL ABN Quarter ended (“current quarter”) 57 063 977 579 30/06/2016 Consolidated statement of cash flows
	IMAGE RESOURCES NL
	ABN 57 063 977 579 Consolidated statement of cash flows
			30/06/2016
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid/R&D refund received 1.7 Other (provide details if material) Net operating cash flows		Current quarter $A’000		Year to date (6.months) $A’000
		(4) (385) - - (635) - 1 - - -		9 (1,879) - - (2,419) - 13 - 136 -
		(1,023)		(4,140)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other – security deposit proceeds Other – security deposit payments Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		- - (68) - - - 45 (2)		- - (87) - 137 - 81 (35)
		(25)		96
		(1,048)		(4,044)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(1,048)	(4,044)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) – share issue expenses 1.20 Other – borrowings transaction expenses	200 - 4,000 - - (1) (40)	3,022 - 4,000 - - (117) (40)
Net financing cash flows	4,159	6,865
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	3,111 675 -	2,821 965 -
	3,786	3,786

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

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		113
		-
1.25	Explanation necessaryforanunderstanding ofthe transactions

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

On 8 June 2016, 156,703,542 shares were issued as consideration for assets to the value of $13,015,205 acquired from, and a loan being provided by, Murray Zircon Pty Ltd and for its parent company, Guangdong Orient Zirconic Ind Sci & Tech Co., Ltd, entering into an offtake agreement and prepayment facility agreement with Image (MZ Transaction), details of which are set out in the announcement released by Image on 8 February 2016 and the Notice of Meeting released on 7 April 2016. The assets acquired include plant & equipment and warehouse wet plant spare parts and other inventory.

On 8 June 2016, 3,550,926 shares were issued in settlement of $308,931 related to an advisor fee for the MZ transaction.

• 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

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements – bankguarantees	Amount available $A’000	Amount used $A’000
	4,000	4,000
	35	35

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	710
	-
	-
	888
Total	1,598

Reconciliation of cash

Total Reconciliation of cash		1,598
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items inthe accountsis asfollows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	2,496	474
	1,290	201
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	3,786	675

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference and location	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
	Refer Quarterly Report
	Refer Quarterly Report

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (seenote 3)	Amount paid up per security (seenote 3)
7.1 Preference+securities (description) 7.2 Changes during quarter:	N/A
(a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions 7.3 +Ordinary securities Fully paid 7.4 Changes during quarter:
	379,511,740	379,511,740
Increases through issues – MZ transaction Settlement of advisor fee Loan conversion	156,703,542 3,550,926 2,857,143	156,703,542 3,550,926 2,857,143	$0.0831 $0.0870 $0.0700	$0.0831 $0.0870 0.0700
(b) Decreases through returns of capital,buy-backs
7.5 +Convertible debt securities (description) 7.6 Changes during quarter:	N/A
(a)Increases through issues
(b) Decreases through securitiesmatured, converted
7.7 Options (description and conversion factor) Over fully paid shares Over fully paid shares Over fully paid shares Over fully paid shares Over fully paid shares Over fully paid shares 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter			Exercise price	Expiry date
	2,600,000	Not quoted	$0.3908	27/12/2016
	N/A
	N/A
	N/A
7.11 Debentures (totals only)	N/A
7.12 Unsecured notes(totals only)	N/A

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Compliance statement

1. This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

2. This statement does give a true and fair view of the matters disclosed.

Sign here: ................... ....................................... Date: 29 July 2016 Print name: Dennis Wilkins (Company Secretary)

Notes:

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2. The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3. Issued and quoted securities

The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

1. The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

2. Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

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