IMAGE RESOURCES NL — Investor Presentation 2019

Aug 4, 2019

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Boonanarring Mineral Sands Project

100%-owned; high-grade; zircon-rich 80km north of Perth in Western Australia Built on-time & on-budget; Production Exceeding Expectations 2019 Guidance Upgraded

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Diggers & Dealers Mining Forum Kalgoorlie, WA 5-7 August 2019

John McEvoy Chief Financial Officer Image Resources NL ASX: IMA

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Disclaimer and Forward-Looking Statements

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This presentation/document has been prepared by the management of Image Resources NL ("Image”, “IMA“, or “the Company”). The information presented includes an indicative outlook of the business activities of Image for the calendar year (CY) 2019 and 2020 and is provided to aid investors and potential investors with assessing the value of the Company. Some of the information provided may be based on past performance, however, this information should not be considered a reliable indicator of future performance. The information presented supersedes all previously presented information of its kind unless otherwise noted. This information is based in part on Image’s interpretation of trends in commodity prices, financial markets, economic and macroeconomic factors and consequently is subject to variation.

Certain statements in this presentation/document, and in subsequent oral statements made by and on behalf of Image, constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements of the Company, the Boonanarring Project or the industry, to be materially different from any forecast results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These statements reflect the Company’s current expectations regarding future events, performance and results as of the date of this presentation/document.

Statements in this presentation/documents that constitute forward-looking statements or information include, but are not limited to statements regarding production statistics, revenue, operating costs and EBITDA. Forward-looking information and statements may also include commodity price assumptions, projected capital and operating costs, metal or mineral recoveries, mine life, production rates and other assumptions used in the 2017 Bankable Feasibility Study (“2017BFS”). Readers are cautioned that actual results may vary from those presented. Certain of the factors and assumptions used to develop the forward-looking information, as well as the risks that could cause the actual results to differ materially, are contained in the 2017BFS and subsequent BFS updates, lodged with the ASX and disclosed on the Company’s website at www.imageres.com.au.

Accessing the information contained in this presentation implies an acknowledgement that you have read and understood the above disclaimer and qualifications regarding forward-looking statements.

Information regarding the calculation of ore reserves and mineral resources in this presentation (if any), and the consents provided by the respective Competent Persons is presented within this presentation. For additional information and details on the content of this presentation, please refer to the ASX releases on the Company’s website.

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Investor Snapshot

Company successfully transitioned to profitable, cashflow positive miner in Q2 2019

• Ø Project construction and commissioning completed ‘on-schedule’ and ‘on-budget’

• Ø Production commenced 1 Dec 2018

• Ø Ramp-up to full production in 2[nd] month of operations

• Ø Completed first two quarter of operations (30 June 2019):

• HMC Production: 138% of budget

• • Ore Grade: 143% of budget

• Ore Grade:

$579/T

• Revenue:

• $325/T

• Project Opex:

• $254/T

• Operating Margin:

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• YTD Project EBITDA: $29.5M (Q2: $20M)

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Investor Snapshot

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Company transitioning to profitable zircon miner at a time of zircon supply shortfall

• Ø 30 June 2019 (Six Month) Summary:

• Ore Grade 143% of Budget

• Zircon grade YTD 112% of budget

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Rough zircon grains

• Zircon 85%+ of revenue

• Revenue $67.3M YTD

• Project EBITDA $29.5M (2019 Guidance +$15M to A$55-65M)

Ø Share price $0.235[1] (increased to $0.30[2 ] post Q2 Results).

Ø Market capitalisation $228M[1]

Notes:1 - as at 30 June 2019

2 – as at 23 July 2019

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Image Corporate Snapshot

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Diverse and experienced Board and Management

As at 30 June 2019 (unless stated): ASX Code: IMA Share Price[1] : : 12-Month Price Range[1] Shares on Issue: Market Cap: ($0.235/share) Cash on hand[2] : Debt: Enterprise Value: Top 20 Shareholders:

IMA A$0.30 A$0.10–0.30 972m A$228m A$26m A$67m A$269m 69%

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Board of Directors

Bob Besley – Independent Chairman Patrick Mutz – Managing Director Chaodian Chen - Non-Executive Director Aaron Chong Veoy Soo – Non-Executive Dir George Sakalidis – Executive Director Peter Thomas – Non-Executive Director Fei (Eddy) Wu – Non-Executive Director Huang Cheng Li – Non-Executive Director

Key Management

Patrick Mutz – CEO

John McEvoy – Chief Financial Officer Todd Colton – Chief Operating Officer George Sakalidis – Exploration Director

Notes:

1. As at 23 July 2019

2. Cash excludes $12m received in July (30 June HMC shipment #6)

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Products and Applications

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IMA produces HMC containing zircon and titanium dioxide Ø Zircon sand is processed into zirconium compounds, intermediate products and zirconium metal for a variety of applications;

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Qualities
whitener
opacifier
heat resistant
abrasion resistant
metal bio-compatible
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§ Ceramics (tiles); 55% demand

§ Foundry Sands (castings); 14%

§ Refractories (furnace linings); 10%

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• § Chemicals (gem stones, nuclear reactors); 14%

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• § Others; 7%

Speciality uses include fibre optics, glass, paints, catalysts, underarm deodorants, adhesives, cosmetics, paper, dental ceramics plus many research applications.

Source: Zirconium Industry Association www.zircon-association.org

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Products and Applications

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Ø Titanium dioxide (TiO2) from rutile and ilmenite is processed into titanium based products and titanium metal for a variety of applications;

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• § Ultra-white pigments (paint, paper, plastic); ~90% demand

• § Welding rods (flux coating);

• § Titanium metal (light, strong, corrosion-resistant, biocompatible);

• Used in aircraft, spacecraft, motor vehicles and medical implants;

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Speciality uses include sunscreen, adhesives, inks, fabrics, ceramics, cosmetics, toothpaste, catalysts, and pharmaceuticals.

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Forward Looking Statement Project Location

q LOCATION

Ø North Perth Basin in Western Australia

Ø 80 km north of Perth CBD

Ø Proven mineral sands address

§ Including majors Iluka and Tronox

Ø Infrastructure rich

§ paved roads, power, gas pipeline water, telecommunications etc.

Ø Local communities and landowners experienced with, and accepting of, mineral sands mining.

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Project Types and Locations

Ø 1,000 km [2] tenements portfolio Ø 100% focus on mineral sands

Ø Strandline projects (dry mining)

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Ø Dredge mining prospects

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Multiple opportunities for a second stand-alone mining project within the current 100%-owned tenement package.

Bidaminna is high on priority list.

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Atlas Ore Reserves
Probable: 9.5Mt @ 8.1%
HM
Boonanarring Ore
Reserves
Proved: 9.3 Mt @ 8.6%
HM
Probable: 10.5Mt @
5.9% HM
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Forward Looking Statement Ore Reserves

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q QUALITY ORE RESERVES

Ø JORC Code (2012) Compliant

Ø High HM, VHM and very high zircon at Boonanarring

High Grade Ore Reserves - Strand Deposits;	High Grade Ore Reserves - Strand Deposits;	High Grade Ore Reserves - Strand Deposits;	in accordance with the JORC Code (2012)	in accordance with the JORC Code (2012)	in accordance with the JORC Code (2012)	in accordance with the JORC Code (2012)	in accordance with the JORC Code (2012)	in accordance with the JORC Code (2012)	in accordance with the JORC Code (2012)	in accordance with the JORC Code (2012)	in accordance with the JORC Code (2012)
Project/Deposit	Category	Volume	Tonnes	% HM	**% Slimes **	HM Tonnes	VHM	**Ilmenite **	Leucoxene	Rutile	Zircon
							(%)	(%)	(%)	(%)	(%)
Boonanarring1	Proved	5,008,000	9,344,000	8.6	14.3	803,771	76.081	48.9	1.8	2.2	23.2
Boonanarring1	Probable	5,565,000	10,514,000	5.9	17.6	622,429	78.653	52.3	1.8	2.7	21.9
Total Boonanarring		10,573,000	19,858,000	7.2	16.1	1,426,200	77.203	50.4	1.8	2.4	22.7
Atlas1	Probable	5,000,000	9,477,000	8.1	15.5	767,637	73.3	50.7	4.5	7.5	10.6
Total Atlas		5,000,000	9,477,000	8.1	15.5	767,637	73.3	50.7	4.5	7.5	10.6
Total Ore Reserves		15,573,000	29,335,000	7.5	15.9	2,193,837	75.8	50.5	2.7	4.2	18.4

1. COMPLIANCE STATEMENT - Boonanarring/Atlas Ore Reserves

The Ore Reserves statement has been compiled in accordance with the guidelines of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code – 2012 Edition). The Ore Reserves have been compiled by Jarrod Pye, Mining Engineer and full-time employee of Image Resources, under the direction of Andrew Law of Optiro, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Law has sufficient experience in Ore Reserves estimation relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Law consents to the inclusion in the report of the matters compiled by him in the form and context in which it appears.

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Example Products and Prices

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Notes: VHM assemblages and commodity prices are estimates based on Boonanarring project heavy mineral concentrate product.

Increase in premium Zircon Prices and Grades has increased Zircon Revenue to over 85% of total.

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Forward Looking Statement Target Production Rate

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Base Assumptions

Ø Start mining at Boonanarring

Ø Dry, open-cut mining Ø Production rate - 500 dry tonnes per hour

• 3.7M dry tonnes per year

Ø Conventional gravity separation using spirals

Ø Product: Heavy Mineral Concentrate (HMC)

• Production rate: avg. approx. 240K tonnes/annum

• • No further processing or separation required

• • Truck to Bunbury for bulk shipments to China

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Boonanarring – Production Statistics

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Average annual production at Boonanarring: 5 Year Base Case

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Ø 240k tonnes HMC p.a. containing:

• 60kt zircon (70kt/year in 2019-20)

• 130kt ilmenite

• 6kt rutile

• 4kt leucoxene

Ø 5+ years mine life with potential to add 3-4 years additional reserves (north, south and new strand to west of WCP)

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Boonanarring – HM Ore Grade

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Boonanarring – Zircon Grade in Ore HM

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Boonanarring – HMC Production

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Recent Announcements

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• Ø 13 May 2019: ‘Image Mines Ultra-High-Grade Ore’

• § Identification of zone of direct shipping ore (DSO) at up to 95%HM and 70% zircon in the HM

• § DSO zone 4-6m wide by 1-3m thick and ending approximately 60m along strike and beyond into next mining section; 500 tonnes DSO mined

• Ø 27 May 2019: ‘Image Secures Sales Agreements for all Current HMC Inventory’

• § Sales commitments for 70K tonnes of HMC valued at >A$35M. Total of approx. 3,000 tonnes DSO mined

• Ø 2 July 2019: ‘Image Completes Sales of 70,000 Tonnes HMC Inventory in June Quarter’

• Ø 15 July 2019: ‘Confirms High Grade Core in Eastern Strand at Boonanarring’

• Ø 17 July: ‘Secures Drilling Access to High Grade Nth Extension at Boonanarring’

• Ø 23/24 July: Quarterly Results & Guidance Upgrade

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Boonanarring – 2019 Guidance

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2019 Guidance & 2020 Forecast1,2,4	Units	YTD Actual	2019 Guidance	2020 Forecast
HMC3 Produced	DMT 000s	138	240-260	280-300
HMC3 Sold	DMT 000s	116	230-250	280-300
Revenue	A$M	67	130-145	180-200
Revenue/DMT Sold	A$/DMT HMC	579	568-592	600-650
Project Operating Costs	A$M	38	75-85	85-95
Project Opex./DMT Sold	A$/DMT HMC	325	320-350	310-330
Project EBITDA	A$M	29.5	55-65	90-100

Notes:

1. To be read in conjunction with slide 2 - Disclaimer and Forward-Looking Statements.

2. Further details regarding YTD actuals can be found in the 30 June 2019 Quarterly Report announced 23 July 2019.

3. Heavy Mineral Concentrate product.

4. Non-IFRS Financial Information:

This document contains non-IFRS unaudited financial measures including Project operating costs and Project EBITDA. Image management considers these to be key financial performance indicators used to measure underlying operational performance. Project operating costs include costs incurred in producing HMC at the Boonanarring Project plus logistics costs but exclude corporate and exploration costs, depreciation/amortisation, financing costs and income tax. Project EBITDA is calculated as revenue from sale of HMC less Project Operating Costs.

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Forward Looking Statement Upside Potential

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Upside potential at and near Boonanarring

• Ø Confirmed potential to extend mine life with high grade mineralisation (ASX announcement 13 March & 26 June 2017);

• § Assuming mineralisation in extension area is identical to known Ore Reserves in all aspects and economics; two years of additional mine life could add AU$60M to project NPV.

• § Access to land to the north of Boonanarring announced 17 July 2019 with drilling planned for 2[nd] half 2019.

• § Potential to add additional mine life west and south of current reserves

• Ø Potential to process ores from several other deposits with high grade mineral resources in the vicinity;

• § Red Gully, Regans Ford, and Gingin (South and North).

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Boonanarring High-Grade Extension

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ASX - 13 March & 26 June 2017

Drilling Results (Feb 2017)

• Ø Confirm 5.6km northern extension of Boonanarring mineralisation

• Ø Outstanding high grade intersections:

• § 8m @ 23.8% HM in IX00245

• § 8m @ 21.1% HM in IX00244 and

• § 8m @ 16.3% HM in IX00250

• Importantly with high grade zircon: § 21.5% Zr in HM in IX00245 & 247

• § 22.1% Zr in HM in IX00243 & 244

• § 16.4% Zr in HM in IX00242, 250, 251

• Ø Additional drilling on part of northern extension planned for 2[nd] half 2019 - .

• access secured July 2019

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Projects Pyramid – Strand Deposits Forward Looking Statement Mineral Resources – Accessible by Dry Open-Cut Mining Projects ranked by combined Zircon (Zr) plus Rutile (Ru)

BFS assumes mining at Boonanarring followed by mining at Atlas. Other projects can be added after further drilling and studies.

Tonnes-grades are for Mineral Resources; Boonanarring and Atlas per JORC Code (2012); All others historic per JORC Code (2004).

Boonanarring 43.8Mt; 5.6%HM; 20.7% Zr+Ru Atlas 18.1Mt; 6.0%HM; 15.8% Zr+Ru

Red Gully 6.0Mt; 7.7% HM; 15.5% Zr+Ru Regans Ford 9.9Mt; 9.6%HM; 14.3% Zr+Ru Cooljarloo North 15.2Mt; 5.3%HM; 14.0% Zr+Ru Gingin South 8.1Mt; 6.1%HM; 13.5% Zr+Ru Gingin North 2.4Mt; 5.5%HM; 9.1% Zr+Ru

Total 103Mt; 6.2%HM; 17% Zr+Ru

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Projects Pyramid – Dredge Prospects Forward Looking Statement Mineral Resources – Accessible by Dredge Mining Projects ranked by HM Grade

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Positive attributes

• 90+%VHM;

• <5% slimes;

Tonnes-grades are for historic Mineral Resources per JORC Code (2004).

Bidaminna 45Mt; 3.0%HM; 6.5% Zr+Ru

• 25-67% Leucoxene;

• • 100Mt exploration target.

• Potential focus for

2[nd] operating centre.

Titan-Telesto 140Mt; 1.9%HM; 12.8% Zr+Ru

Calypso 51Mt; 1.7% HM; 15.9% Zr+Ru

Total 236Mt; 2.1%HM; 11.5% Zr+Ru

Potential Royalty from Tronox

Royalty agreement in place as of 2014

Ø Small cash payment (already received)

Ø Sliding-scale royalty on production

Avg. HM Grade 2.5% 3.0% 3.5% 4.0%	Royalty
	1.25% 2.50% 3.75% 5.00%

Ø Indefinite production schedule

Ø Potential for future arrangements with Tronox or others based on large area of potential dredge mining mineralisation within Image’s tenements in the vicinity of Tronox’s historic dredge operations.

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Tronox historic mining area Image-Tronox royalty area

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Use of Solar Energy

Heads of Agreement with Sunrise Energy Group Pty Ltd to provide 2 to 2.5 MWAC solar farm to be:

• Ø Constructed and operated by Sunrise Energy;

• Ø Located on Image owned land adjacent to Boonanarring mine site; and

Ø Providing 25% of total electricity requirements for mine and processing operations.

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Additional information regarding Heads of Agreement announced to ASX on 23 April 2018 .

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Contact For further information

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Patrick Mutz Managing Director Image Resources NL info@imageres.com.au Office: +61 8 9485 2410 Ground Floor, 23 Ventnor Avenue West Perth, WA 6005 PO Box 469, West Perth, WA 6872 www.imageres.com.au

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Diggers & Dealers: Booth 125