IMAGE RESOURCES NL — Capital/Financing Update 2007

Aug 13, 2007

==> picture [98 x 110] intentionally omitted <==

ASX Release ASX code: IMA 14 August 2007

2[nd] Floor, 35 Outram St West Perth WA 6005 PO Box 644 West Perth WA 6872 Telephone 08 9485 2410 Facsimile 08 9485 2840 info@imageres.com.au www.imageres.com.au

EMU LAKE A POTENTIAL HIGH-GRADE NICKEL IPO

ABN 57 063 977 579

_______________________________________________________________________________

Image Resources is pleased to announce that the vendor of the Emu Lake joint venture has agreed to sell its residual 10% interest to the remaining joint venturers, increasing Image’s interest to 33⅓%. Under the revised terms of the joint venture, Image’s interest will be free carried until Jubilee Mines NL subsidiary, Sir Samuel Mines NL, sole contributes a further $3.25 million at the rate of at least $1 million per year or, failing that, withdraws. The consideration for the sale is the sum of $750,000, with Image’s share of $250,000 to be payable as to $100,000 in cash and the remainder in Image shares, plus an increase in the vendor’s royalty to 1.75%.

The Emu Lake nickel project is situated 70 km north east of Kalgoorlie and about 30km east of the high-grade Silver Swan nickel mine. Drilling has identified significant nickel sulphide mineralisation over a strike length of more than 300m, open at depth, on an ultramafic contact. To date, ten high-grade drill intersections have been made at grades of between 3%-10% Ni with best intersections of 2m @ 6.2% Ni, 1.8% Cu and 2.2g/t PGE (platinum group elements) from 336.0m and 2m @ 2.0% Ni, 1.0% Cu and 4.2g/t PGE from 343.5m in drill hole ELD15. The revised terms of the joint venture are anticipated to result in a reinvigorated drilling programme to test for depth extensions to the high-grade contact mineralisation which may to be similar to the nearby Silver Swan mine where high-grade nickel mineralisation has been traced to depths of more than 1500m below surface.

Under the new terms of the joint venture Image may assign its interest in the Emu Lake project to a subsidiary within the next 12 months for the purposes of an ASX listing. Similarly, Image has reached agreement with Mincor Resources NL for Image to assign its interest in a package of ten nickel properties comprising the Kambalda West joint venture where Mincor is carrying out an active nickel exploration programme.

These new developments open the way for Image to consider seeking shareholder approval to farm out a package of its nickel projects to a subsidiary with a view to distributing shares in the subsidiary to Image shareholders prior to application for listing on ASX. Image’s existing nickel projects do not appear to have been given much value in the market and it is anticipated that the proposed spin out will add value for Image shareholders and allow Image to focus on its core mineral sand projects.

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

Please direct enquiries to: Roger Thomson George Sakalidis Executive Director Managing Director Phone (08) 9485 2410 Phone (08) 9485 2410 Mob 0419 969 183 Mob 0411 640 337

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 Image Resources NL. Roger Thomson has sufficient experience which is relevant to the style of mineralization 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.