IMAGE RESOURCES NL — Capital/Financing Update 2007

Aug 29, 2007

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Name of entity Image Resources NL ABN 57 063 977 579

We (the entity) give ASX the following information.

Part 1 - All issues

1 Class of securities issued or to be issued 2 Number of securities issued or to be issued (if known) or maximum number which may be issued 3 Principal terms of the securities (eg, if options, exercise price and expiry date; if partly paid securities, the amount outstanding and due dates for payment; if convertible securities, the conversion price and dates for conversion) 4 Do the securities rank equally in all respects from the date of allotment with an existing class of quoted securities? If the additional securities do not rank equally, please state:  the date from which they do  the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment  the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment	Quoted fully paid ordinary shares (1) Unquoted fully paid ordinary shares (2) Unquoted options to acquire fully paid ordinary shares
	2,000,000 ordinary shares (1) 75,872 ordinary shares (2) 1,000,000 options
	Options: Exercise Price: $2.38 Expiry Date: 26 March 2012
	Shares Yes in relation to all fully paid ordinary shares (1 and 2). It is to be noted that the parcel of 75,872 shares issued at $1.977017 per share are subject to voluntary escrow restrictions and a trading holding lock until 21 August 2009. Options The options are unquoted.

5 Issue price or consideration 6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets) 7 Dates of entering securities into uncertificated holdings or despatch of certificates 8 Number and class of all securities quoted on ASX (including the securities in clause 2 if applicable) 9 Number and class of all securities not quoted on ASX (including the securities in clause 2 if applicable)	Shares (1) - $2.00 per share Shares (2) - $1.977017 per share Options -$Nil	Shares (1) - $2.00 per share Shares (2) - $1.977017 per share Options -$Nil
	The shares (1) were issued pursuant to the placement agreement announced to ASX on 28.8.2007. The shares (2) were issued pursuant to an agreement for acquisition of an increased interest in exploration tenements whereby part of the consideration ($150,000) was to be satisfied by the issue of share scrip, the number to be calculated by reference to the VWAP over 5 trading days. The options are being issued to a key employee (refer to ASX release dated.12.4.2007) pursuant to the acceptance of an invitation offered under the company’s employee share optionplan.
	30 August 2007
	Number	Class
	76,977,978	Ordinary fully paid shares
	Number	Class
	75,872 1,805,000 2,000,000 2,000,000 2,500,000 1,000,000	Ordinary fully paid shares subject to voluntary escrow /holding lock until 21 August 2009 Options exercisable on or before 27.11.2008 at $0.335 per option Options exercisable on or before 26.11.2009 at $0.39 per option Options exercisable on or before 21.11.2010 at $0.37 per option Options exercisable on or before 16.11.2011 at $1.80 per option Employee Share Options exercisable on or before 26 March 2012 at $2.38 per option

• 10 Dividend policy (in the case of a trust, distribution policy) on the N/A increased capital (interests)

Part 2 - Bonus issue or pro rata issue

No Issues to be advised

11	Is security holder approval
	required?
12	Is the issue renounceable or non-
	renounceable?
13	Ratio in which the+securities will
	be offered
14	+Class of+securities to which the
	offer relates
15	+Record date to determine
	entitlements
16	Will holdings on different registers
	(or subregisters) be aggregated for
	calculating entitlements?
17	Policy for deciding entitlements in
	relation to fractions
18	Names of countries in which the
	entity has+security holders who will
	not be sent new issue documents
	Note: Security holders must be told how their
	entitlements are to be dealt with.
	Cross reference: rule 7.7.
19	Closing date for receipt of
	acceptances or renunciations

20 Names of any underwriters 21 Amount of any underwriting fee or commission 22 Names of any brokers to the issue 23 Fee or commission payable to the broker to the issue 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of +security holders 25 If the issue is contingent on +security holders’ approval, the date of the meeting 26 Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled 27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders 28 Date rights trading will begin (if applicable) 29 Date rights trading will end (if applicable) 30 How do+security holders sell their entitlements_in full_ through a broker? 31 How do+security holders sell_part_ of their entitlements through a broker and accept for the balance? 32 How do+security holders dispose of their entitlements (except by sale through a broker)? 33 +Despatch date

Part 3 - Quotation of securities

• 34 Type of securities ( tick one )

• (a) Securities described in Part 1

• (b) All other securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

NO NEW CLASS OF SECURITIES BEING FORMED

• 35 If the[+] securities are[+] equity securities, the names of the 20 largest holders of the additional[+] securities, and the number and percentage of additional[+] securities held by those holders

• 36 If the[+] securities are[+] equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over

• 37 A copy of any trust deed for the additional[+] securities

Entities that have ticked box 34(b)

NOT REQUIRED TO BE COMPLETED

• 38 Number of securities for which +quotation is sought

• 39 Class of +securities for which quotation is sought

40 Do the[+] securities rank equally in all respects from the date of allotment with an existing[+] class of quoted +securities? If the additional securities do not rank equally, please state:  the date from which they do  the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment  the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

• 41 Reason for request for quotation now Example: In the case of restricted securities, end of restriction period

• (if issued upon conversion of another security, clearly identify that other security)

Number +Class 42 Number and[+] class of all[+] securities quoted on ASX ( including the securities in clause 38)

Quotation agreement

• 1 Quotation of our additional securities is in ASX’s absolute discretion. ASX may quote the securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those securities should not be granted quotation.

• An offer of the securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any securities to be quoted and that no-one has any right to return any securities to be quoted under sections

737, 738 or 1016F of the Corporations Act at the time that we request that the securities be quoted.

• We warrant that if confirmation is required under section 1017F of the Corporations Act in relation to the securities to be quoted, it has been provided at the time that we request that the securities be quoted.

• If we are a trust, we warrant that no person has the right to return the securities to be quoted under section 1019B of the Corporations Act at the time that we request that the securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before quotation of the securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Signed: Date: 30 August 2007 (Director) Print name: Roger Thomson