IMAGE RESOURCES NL — Investor Presentation 2012

Oct 23, 2012

IMAGE RESOURCES NL ASX : IMA

PROGRESSING TOWARDS HEAVY MINERALS SANDS PRODUCTION

Roadshow October 2012

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COMPETENT PERSON STATEMENT

COMPETENT PERSON’S STATEMENT – EXPLORATION RESULTS

The information in this presentation is based on information compiled by Paul Leandri BAppSc who is a member of the Australasian Institute of Mining and Metallurgy. Paul Leandri is an employee of Image Resources NL. He 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 for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Paul Leandri consents to the inclusion of this information in the form and context in which it appears in this presentation.

COMPETENT PERSON’S STATEMENT – RESOURCE ESTIMATES

The information in this presentation that relates to mineral resources is based on information compiled by Lynn Widenbar BSc, MSc, DIC MAIG, MAusIMM employed by Widenbar & Associates who is a consultant to the Company. Lynn Widenbar 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’. Lynn Widenbar consents to the inclusion of this information in the form and context in which it appears in this presentation.

COMPETENT PERSON’S STATEMENT – PROJECT EVALUATION

The information in this presentation that relates to project evaluation is based on information compiled by Peter Davies BSc Eng (Hons) ARSM, C.Eng. MIMMM, FAusIMM FRSA, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Peter Davies is Managing Director/Project Manager of Image Resources NL. Peter Davies 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 for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Peter Davies consents to the inclusion of this information in the form and context in which it appears in this report.

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FORWARD LOOKING STATEMENT

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

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CORPORATE SUMMARY

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Current Cash at Bank $1M (at 08/10/2012)

Capital Structure Market Cap

Shares Options (held by Directors. All at above current share price)

Board and Management $28.8M Peter Thomas Chairman Managing Director/ 106.6M[Peter Davies ] Project Manager 10.9M George Sakalidis Technical Director Paul Leandri Exploration Manager

Major Shareholders Top 20

51.1%

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THE TEAM

Peter Davies – Image Managing Director/Project Manager

Peter Davies, appointed as Managing Director in May 2012, is a mining engineer with 39 years of global experience in project evaluation and management of mining, chemicals and mineral sands operations.

From 1995 to 2000 he was Manager/General Manager of the Tiwest Chandala minerals sands and Synthetic Rutile processing facilities north of Perth. In 2000 he was transferred by Kerr-McGee Chemicals (later Tronox) to manage the TiO2 pigment plant at Antwerp and from 2001 to 2006 was Director of European Operations, in charge of the pigment plants at Uerdingen (Germany), and Botlek (The Netherlands).

George Sakalidis– Image) Technical Director (MD until May 2012)

George Sakalidis is an exploration geophysicist with over 30 years’ industry experience and the last 12 years as a Director on a number of ASX listed companies. He has extensive experience in gold, diamond, base metals and mineral sands exploration. Mr Sakalidis has been involved in a number of significant mineral discoveries. He was also instrumental in the design of the magnetic surveys and exploration drilling program that led to the discovery of the large mineral sands resources at Magnetic Minerals Limited's Dongara Project. Magnetic Minerals were taken over by Ticor in early 2003.

The geophysical techniques used by Image and George Sakalidis’ proven ability to interpret the results in order to find economic mineralisation which has been missed by other companies, gives Image a significant competitive advantage in this field.

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THE TEAM

Paul Leandri – Image Exploration Manager

Over 25 years experience in mining and exploration geology, including 8 years working for RGC Mineral Sands consisting of 5 years mine planning at Capel operations and 3 years exploration around Eneabba and the Murray Basin. Past 12 years working on mine planning, development and exploration projects for various mineral sands companies, including 6 years on the Coburn Mineral Sands project and 1.5 years in Project Generation for Iluka Resources. Joined Image as Exploration Manager in August 2010.

Lynn Widenbar – Widenbar and Associates

Consultant resource geologist with over 40 years experience in the exploration, evaluation and mining of mineral resources in Australia, Asia, Africa, North, Central and South America and Europe; this includes more than 10 years involvement in resource estimation mineral sands, mainly in Western Australia, for companies such as Image Resources, Magnetic Minerals and Diatreme Resources.

Stephen Miller – Red Rock Engineering

With 20 years of mining engineering experience in operations (including 3 years as Mid West Mining Manager for Iluka) and 7 years in project development, Stephen has the right balance of skills and experience to be able to work across technical boundaries in order to optimise the full span from resources to final product.

Per Scrimshaw – Creative Mined

Consultant mining engineer with 14 years experience in technical support for mining operations within Australia and abroad. Over 10 Years of this has been servicing Mineral Sands clients in the key areas of optimisation, design, scheduling and economic evaluation. Supported operations have included North Capel Extended, Stratham West, Gingin, Cataby, Eneabba South Mine, Dardanup / Burekup, Kwale.

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THE TEAM

Eugene Dardengo – Processing Manager

Eugene is an accomplished Metallurgist and Operations Manager with over 27 years’ experience in the Australian mining and mineral industry. Eugene has held a number of other diverse roles and was held accountable for Logistics Services, Technical Support Services and Safety, Health and Environment Advice for Tiwest Northern Operations. Has worked as a Metallurgist, with Hamersley Iron (Rio), and Allied Mineral Laboratories and the Readings Group of Companies, and has had exposure to the planning, prioritising and implementation of various metallurgical test work programs for iron ore projects and a wide range of industrial minerals.

Steve Benson – Allmineral

Over 33 years experience in Mineral Sands at Allied Eneabba (RGC) and Tiwest Chandala and Cooljarloo operations. Steve has worked at all levels in Wet Plant and Dry Mill operations up to Plant Manager and has provided technical support both as an in house specialist and as a specialist with equipment suppliers. He has strong knowledge of and experience in physical separation techniques and some unique skills in the assessment of heavy minerals mineralogy.

Maurice Ibbotson – Engineering Manager

Over 47 years experience in the global mining, steelmaking and mineral processing industries. This includes 15 years in mineral sands processing, 5 years as Engineering Superintendent at Tiwest (Chandala), 6 years as Project Manager at Iluka Resources (Capel, Narngulu) and 4 years as Major Project Management Consultant for Kerr McGee/Tronox (Germany, Netherlands).

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THE TEAM

Peter McSweeney - MSP Engineering

Peter has over 25 years experience in delivering industrial minerals projects throughout Australia and overseas. He has been the Managing Director of MSP Engineering for the past 16 years and during this period the company has delivered over $AUD 500M in capital projects including:

• ISK Mineral Sands – Wet and dry mineral sands processing facility at Waroona and Picton WA

• MBT (now Bemax) – MBT wet and dry mineral sands processing facility in the Murray Basin

• Bemax – Relocation of the Jangardup wet plant floating concentrator to Murray Basin

• Rocla – Design and construction of their 1.6mtpa high purity silica sands plant in South Australia

• – Sons of Gwalia / GAM – Numerous expansions of the Wodgina and Greenbushes tantalum gravity/grind concentrators valued in excess of $200M.

Jackie Boyer – JASS (Aust) Pty Ltd

Jackie has over 27 years’ experience in statutory approvals management, environmental impact assessment, environmental planning, environmental management and environmental policy matters. Her experience has been gained working with a wide range of interests from State and local government, construction, industry and academic institutions to landowners, community groups and the general public.

Felicity Donaldson - 360 Environmental

Ten years of experience in the resources sector undertaking baseline environmental studies, impact assessments and State/ Federal approvals under environmental and mining legislation. Recent mining projects have included iron ore, gold and uranium.

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MINERAL SANDS FOCUS IN A WORLD CLASS LOCATION

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Advantages of the North Perth Basin : Project

• High grade resources

• Good quality products

• Majority of resources are on cleared freehold farm land

• Multi-user ports nearby with established road and rail access

• Existing power and gas infrastructure nearby

• Proximity to existing Mineral Separation and SR plants and pool of experienced potential employees

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North Perth Basin is a world class location for a new Mineral Sands operation

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EXTENSIVE TENEMENT HOLDINGS

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North Perth Basin Project Resources

• Atlas and Atlas South (part MLA)

• Hyperion

• Helene

• Red Gully (existing ML)

• Boonanarring (existing ML - part)

• Gingin North (existing ML)

• Gingin South (existing ML - part)

Longer Term Projects

• Cooljarloo

• Bidaminna

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These tenements have high potential for further exploration discoveries

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NORTH PERTH BASIN RESOURCES

		Current Resources and Targets	Current Resources and Targets	Current Resources and Targets	Total
		Atlas + Atlas South	Boonanarring	Other NPB
JORC Resources	Mt	10.7	10.5	31.7	52.9
Total Target Mining Inventory	Mt	12	20	28	>60
BASE CASE	Mt	9.6	20	26.3	**Average **
HM %	%	8.1	9.5	8	8.5
Zircon % in HM	%	11.0	17.5	11	13.2
Operating Margin	$/t	13.8	14.9	8.5	11.8

For a breakdown of JORC Resource Categories, please refer to the full table of Resources (Pgs 21-22).

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BOONANARRING

• JORC resource over 4.6km strike length of 10.5Mt @ 7.0%HM containing 740kt HM , all Measured and Indicated

(Refer to table of resources on pages 21-22 for full details)

• East Strand on Block B contains 3.8Mt

• @9.5% HM with 21.1% of HM as Zircon (includes higher grade sections)

• Block C has been drilled to Indicated spacing. Further JORC Resource statement due in February 2013

• Target Mining Inventory over 12.5km strike length 15Mt to 25Mt

• Existing Mining Lease over part of the resource. Northern MLA in progress

• Land access negotiations and environmental studies in progress

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CLEARED FARMLAND

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Boonanarring is cleared Freehold farmland

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HIGH QUALITY PRODUCTS

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• Boonanarring Ilmenite quality is very attractive to :

• a wide range of customers

• 55% TiO2 (range of world deposits is between 40% and 60% TiO2)

• Coarse Grained (D50 >200micron)

• U+Th ~ 70ppm

• Low CaO (important for slag plant feed)

• Low Niobium and Vanadium (both <0.15 ppm)

Ilmenite of this quality commands a premium in pricing in the world market

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ATLAS

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• JORC resource of 10.7Mt @ 7.8%HM containing 0.84Mt HM , all Measured and Indicated

• • High value mineral assemblage; 53.4% Ilmenite, 5.3% Leucoxene, 7.8% Rutile, 10.6% Zircon

• Low strip ratio 0.8:1

• Atlas South Extension drilled

• Mining Lease Application in

progress

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Shallow, high grade, “jewel in the crown”

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PATH TO PRODUCTION

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• First production scheduled for 2014

• Planned 3.3Mtpa single mine and Wet Plant operation

• Initial production of HMC at Boonanarring planned for toll treatment or sale

• Second mine and Wet Plant planned for Atlas in 2018

• Construction of Dry Mill to produce finished products remains an option

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PROJECT DEVELOPMENT STRATEGY

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MILESTONES

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• Next update on project financial analysis: target Nov 2012

• Obtain product samples for testing by customers: target Jan 2013

• Aiming for resource upgrades at Boonanarring in Feb 2013

• Wet plant process testwork completion expected Feb 2013

• Land access and environmental approvals: all approvals scheduled to be in place by Dec 2013

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UPSIDE POTENTIAL

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NPB Project

• Potential for extension to known resources (Atlas, Rhea, Red Gully, Boonanarring and Gingin South/Chandala)

• Potential for other major new finds south of Atlas (20Mt potential)

Other Projects

• Divest Eucla Basin assets

• Large lower grade targets at Bidaminna and Titan/Cooljarloo which require further definition drilling

• Wider application of proven geophysical techniques

The NPB Project should provide a robust platform from

which Image can expand to become a major industry player.

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CLEAR VISION AND STRATEGY

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Image has several competitive advantages:

• World class assets and location

• A strong management/project team, with extensive mineral sands experience

• A clear planned path to production

• Proven exploration expertise at extremely low costs

• Low barrier to entry

Image has the Vision of becoming a major global producer of high quality Ilmenite and Zircon

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NPB DETAILED RESOURCE STATEMENT

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High Grade Resources	High Grade Resources
Resource	Resource Category	BCM	TONNES	% HM	% SLIMES	HM TONNES	VHM (%)	Ilmenite (%)	Leucoxene (%)	Rutile (%)	Zircon (%)
Atlas	Indicated	520,000	1,080,000	3.2	19.2	34,000	74	53	8	7	6
Atlas	Measured	4,810,000	9,700,000	8.5	15.3	822,000	76	52	5	8	11
**Atlas Total **		5,330,000	10,780,000	7.9	15.7	856,000	76	**52 **	5	8	10
Boonanaring	Indicated	3,740,000	7,450,000	7.0	14.9	520,000	80	48	11	3	17
Boonanaring	Measured	1,680,000	3,060,000	7.2	9.9	220,000	67	49	1	3	15
Boonanaring **Total **		5,420,000	10,510,000	7.1	13.4	740,000	76	48	8	3	17
Gingin Nth	Indicated	680,000	1,320,000	5.7	15.7	75,000	75	57	9	3	5
Gingin Nth	Inferred	580,000	1,090,000	5.2	14	57,000	78	57	11	4	6
Gingin Nth **Total **		1,260,000	2,410,000	5.5	15.0	132,000	77	**57 **	10	3	6
Gingin Sth	Indicated	3,240,000	5,820,000	6.5	7.1	377,000	91	68	10	5	8
Gingin Sth	Inferred	400,000	730,000	6.5	8.4	48,000	92	67	8	6	11
Gingin Sth	Measured	870,000	1,530,000	4.4	7.2	67,000	79	51	15	6	8
Gingin Sth **Total **		4,510,000	8,080,000	6.1	7.3	492,000	89	65	10	5	8

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NPB DETAILED RESOURCE STATEMENT (cont)

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High Grade Resources	High Grade Resources
Helene	Indicated	5,600,000	11,500,000	4.6	18.6	523,000	84	70	1	3	11
Hyperion	Indicated	1,800,000	3,700,000	7.8	19.3	290,000	71	56	0	6	9
Red Gully	Indicated	1,930,000	3,410,000	7.8	11.5	267,000	90	66	8	3	12
Red Gully	Inferred	1,455,000	2,570,000	7.5	10.7	192,000	90	66	8	3	12
Red Gully **Total **		3,385,000	5,980,000	7.7	11.2	459,000	90	66	8	3	12
**Grand Total **		27,305,000	52,960,000	6.6	14.3	3,492,000	80.4	58.3	6.0	4.7	11.4

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