IMAGE RESOURCES NL — Interim / Quarterly Report 2007

Jul 30, 2007

QUARTERLY REPORT For the Quarter Ended 30 June 2007

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HIGHLIGHTS

• A significant zircon-rich discovery reported close to Image’s tenement boundary at Serpentine Lakes in the Eucla Basin, trending into Image’s tenement and providing a further opportunity for Image to expand its heavy mineral interests.

• Further encouraging high-grade drilling results from Cooljarloo North where at least four continuous mineralised strands have been outlined over a cumulative 12km strike length.

• Bench scale testing of composite strand and channel samples from Cooljarloo in progress, prior to resuming drilling of more than 40km of magnetic targets.

• Additional tenure secured at Bootine, linking the Gingin and Bidaminna project areas, with a total of more than 87km of aeromagnetic targets evident, prospective for both strand and channel-style mineralisation.

• Ground magnetic surveys to outline heavy mineral drilling targets in progress at Bootine, Cataby West and Quinns Hill.

• A drill intersection of 6m @ 1.84% Ni from the Kambalda West JV south of Nepean, with a follow up ground EM survey in progress over an 8km strike length of ultramafics.

• A historic drill intercept of 2m @ 5g/t Au identified at the Woodline JV , adding to other targets recently identified.

COOLJARLOO NORTH (Image 100%)

During the quarter 200m-spaced drilling at Image’s 100%-owned Cooljarloo North project over Target 2, 3 and 5 has demonstrated at least four continuous strands at consistent elevations and coincident with magnetic targets, two of which extend individually over a 4.5km length within the northeast part of E70/2892. This drilling has now outlined a total strike length of at least 12 km of high grade shallow strands at Cooljarloo North. These results complement previous ASX releases dated 7 March 2007 and 17 May 2007 regarding the high grade Target 1 strand and have the potential to significantly enhance the economics of the Cooljarloo North project.

Laboratory results from Target 2 are shown in Table 1, preliminary (visual) results from Target 2 in Table 2 and historical drilling results for the Target 2 area in Table 3. Drill locations and cross sections are shown in Figures 1 and 2 respectively. These consistent, good grade results are most encouraging.

Table 1 Cooljarloo North Target 2 Laboratory Results

Hole No	North	East	From m	To m	Interval m	Grade % HM
CN291	6637203	330830	12	18	6	12.8
		including	14	18	4	16.2
CN364	6635803	331689	14	18	4	11.8
		including	16	18	2	19.1
CN363	6635800	331651	10	20	10	11.7
CN426	6634397	332248	20	22	2	11.4
CN368	6635599	331399	12	14	2	11.1
CN350	6636000	331519	8	12	4	11.0
CN327	6636402	331251	14	18	4	10.8
CN328	6636401	331300	12	16	4	9.5
CN419	6634599	332400	20	28	8	9.3
		including	22	26	4	13.4
CN380	6635402	331511	14	18	4	9.3
CN332	6636201	330789	12	14	2	8.9
CN341	6636001	331049	6	10	4	8.5
CN384	6635400	331863	14	22	8	8.3
CN383	6635399	331780	12	16	4	8.3
CN353	6635799	331161	12	14	2	8.2
CN377	6635407	331391	8	12	4	8.0
CN406	6634800	331930	22	26	4	7.8
CN307	6636798	331051	12	14	2	7.7
CN388	6635200	331660	12	18	6	7.5
		including	16	18	2	10.8
CN373	6635599	331762	16	20	2	7.3
CN329	6636400	331329	10	16	6	6.3
CN405	6634799	331899	18	24	6	6.2
CN316	6636598	331181	12	16	4	6.1
CN338	6636198	331400	10	14	4	6.0
		including	12	14	2	7.7
CN330	6636400	331357	12	16	4	6.0
CN342	6636000	331080	8	10	2	5.6

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Table 1 (cont.)

Hole No	North	East	From m	To m	Interval m	Grade % HM
CN313	6636601	330929	12	14	2	5.3
CN359	6635801	331452	8	14	6	5.3
		including	12	14	2	6.1
CN424	6634399	332171	16	24	8	5.2
CN314	6636596	330972	12	16	4	5.2
CN360	6635802	331490	8	14	6	5.0
CN355	6635801	331256	8	12	4	4.8
CN347	6636000	331349	4	8	4	4.7
CN333	6636202	330930	12	14	2	4.7
CN378	6635403	331429	10	14	4	4.4
CN324	6636401	331056	12	18	6	4.3
CN346	6636003	331320	8	10	2	4.3
CN308	6636797	331082	12	14	2	4.1

2m samples, uncut. HM grade determined by TBE heavy liquid separation

Table 2 Cooljarloo North Target 2 Visual Results

Hole No	North	East	From m	To m	Interval m	Grade % HM
CN751	6634798	332162	34	36	2	30.0
CN485	6635999	331533	10	14	4	17.5
		including	12	14	2	30.0
CN715	6636599	331145	14	18	4	15.0
		including	16	18	2	25.0
CN726	6635800	331632	16	18	2	15.0
CN701	6637201	330812	14	18	4	13.5
CN494	6636903	330960	16	18	2	13
CN473	6635400	331880	16	20	4	11.0
		including	16	18	2	17.0
CN739	6635196	332023	22	24	2	10
CN492	6636902	331000	10	16	6	8.3
CN482	6636000	331064	8	10	2	8.0
CN722	6636000	331505	10	14	4	7.5
		including	12	14	2	10.0
CN487	6635998	331584	8	14	6	7.3
CN426	6634397	332248	22	24	2	7.0
CN466	6633795	332679	18	20	2	7.0
CN486	6635998	331564	8	10	2	7.0
CN490	6636795	331067	10	14	4	7.0
		including	12	14	2	8.0
CN717	6636400	330891	16	18	2	7.0
CN771	6633793	332661	18	26	8	6.8
		including	20	22	2	12.0
CN467	6633796	332639	22	24	2	6.0
CN495	6636903	330941	16	18	2	6.0
CN407	6634799	331956	24	26	2	5.5
CN735	6635001	331817	16	20	4	5.5

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Table 2 (cont.)

Hole No	North	East	From m	To m	Interval m	Grade % HM
CN382	6635400	331739	16	18	2	5.0
CN416	6634601	332279	26	28	2	5.0
CN433	6634199	332288	18	20	2	5.0
CN436	6634201	332393	18	20	2	5.0
CN438	6634201	332561	22	24	2	5.0
CN493	6636903	330979	10	12	2	5.0
CN723	6635809	331470	10	12	2	5.0
CN753	6634799	332257	34	36	2	5.0
CN762	6634396	332233	22	24	2	5.0
CN766	6634395	332444	20	22	2	5.0
CN769	6634197	332670	12	14	2	5.0
CN385	6635401	331900	12	14	2	4.6
CN434	6634201	332332	18	20	2	4.5
CN472	6633793	332329	16	18	2	4.5
CN489	6636599	330948	12	16	4	4.5
CN711	6636800	331032	10	12	2	4.5
CN483	6635998	331139	10	12	2	4.4
CN480	6635802	331671	16	18	2	4.3

2m samples. HM Grades are visual estimates, pending receipt of laboratory results.

Table 3 Cooljarloo North Target 2 Historical Results

Hole No	North	East	From m	To m	Interval m	Grade % HM
HR0819	332012	6634391	24	27	3	19.2
HR0767	331593	6635550	15	19.5	4.5	19.1
HR0580	331172	6635757	9	10	1	14.3
		including	9	10	1	14.3
HR0768	331559	6635528	16.5	21	4.5	12.4
HR0574	331357	6635889	4	12	8	11.9
		including	4	11	6	14.1
HR0930	330864	6636746	10.5	15	4.5	10.5
HR0573	331388	6635911	3	11	8	9.6
		including	4	10	6	11.1
HR0815	332146	6634478	27	31.5	4	9.4
HR0796	331542	6635040	13.5	18	4.5	9.0
HR0892	332229	6634056	19.5	22.5	3	9.0
HR0766	331626	6635572	15	18	3	8.9
HR0586	330905	6635581	11	13	2	8.7
HR0931	330830	6636724	13.5	18	4.5	8.2
HR0782	331090	6635223	10.5	12	1.5	8.1
HR0482	330663	6636366	12	15	3	8.1
CR7080	331280	6636300	10	16	6	7.8
HR0489	330783	6636368	14	16	2	7.8
JWB7320	331520	6634691	14	16	2	7.4
HR0495	331022	6636373	15	17	2	7.3

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Table 3 (cont.)

Hole No	North	East	From m	To m	Interval m	Grade % HM
HR0792	331676	6635127	16.5	19.5	3	7.1
HR0888	332364	6634143	21	25.5	4.5	7.0
HR0496	331101	6636375	12	16	4	7.0
JWB7440	331640	6634694	16	20	4	6.7
HR0821	331944	6634348	16.5	22.5	6	6.4
HR0789	331777	6635192	13.5	19.5	6	6.3
HR0583	331005	6635647	11	13	2	6.1
HR0630	330771	6637169	15	18	3	6.1
HR0777	331257	6635332	12	15	3	6.1
HR0578	331239	6635801	4	10	6	6.0
HR0798	331475	6634996	9	18	9	5.9
HR0490	330844	6636369	12	17	5	5.8
HR0491	330863	6636370	12	17	5	5.8
HR0627	330670	6637103	13	17	4	5.8
CR7020	331220	6636300	12	14	2	5.7
HR0582	331038	6635669	10	11	1	5.3
HR0616	330302	6636862	17	18	1	5.3
HR0816	332112	6634457	25.5	30	4.5	5.3
HR0826	331777	6634239	18	19.5	1.5	5.2
CR6840	331040	6636300	12	18	6	5.1
HR0481	330644	6636365	12	15	3	5.0
HR0488	330803	6636368	14	15	1	5.0
CR6430	330630	6636289	12	14	2	4.9
CR6840	331040	6636300	20	21.5	1.5	4.9
HR0626	330638	6637081	15	17	2	4.9
HR0793	331643	6635105	15	16.5	1.5	4.9
HR0893	332196	6634034	19.5	21	1.5	4.9
HR0820	331978	6634370	18	25.5	7.5	4.8
HR0628	330704	6637125	14	15	1	4.4
HR0791	331710	6635149	16.5	18	1.5	4.4

HM grades based on reported results from historical drilling.

Image has also completed preliminary drilling at Targets 3 and 5 at Cooljarloo North with significant results shown in Table 4, including drillhole CN195 with 2m at 17.8% HM from 6 m. Ground magnetics over these targets suggests the length of these targets is greater than 4 km and will be assessed in the next drilling campaign. This augurs well for the project as the conversion rate from ground magnetic targets to mineralised strands has been high.

Image is planning to follow up Targets 1 to 5 at Cooljarloo North with a new drilling campaign to enable estimation of resources to be carried out in addition to drill testing of a further 8km of magnetic targets. Detailed mineralogical and product quality test work needed for the resource estimations is well advanced.

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Table 4 Cooljarloo North Targets 3 and 5 Laboratory Results

Hole No	North	East	From m	To m	Interval m	Grade % HM
CN195	6634001	329375	4	10	6	9.2
		including	6	8	2	17.8
CN199	6634041	329373	6	10	4	12.1
CN200	6634074	329397	6	8	2	6.7
CN201	6634110	329412	6	8	2	7.4
CN202	6634148	329427	6	8	2	5.1
CN210	6635002	329357	10	14	4	5.7
CN213	6634797	330698	18	22	4	4.9
CN216	6634751	330383	20	22	2	8.8
CN220	6634998	330406	26	29	4	7.2
CN223	6634998	330496	22	24	2	20
CN226	6634998	330595	16	20	4	7.7
CN228	6634997	330624	14	18	4	4.6
CN231	6635197	330485	14	18	4	8.6
CN232	6635198	330516	12	16	4	8.9
CN248	6635395	330160	18	20	2	9.8
CN249	6635402	330253	16	24	6	7.7
		including	20	22	2	14.2
CN251	6635401	330420	16	20	4	6.3
CN254	6635401	330271	18	22	4	7.5

2m samples, uncut. HM grades determined by TBE heavy liquid separation.

COOLJARLOO (Image 70%)

Composite samples from the main mineralised strands and channels at Cooljarloo are currently being examined to determine mineral assemblage and product quality characteristics. The scope of this work will extend as further drill samples are processed and the residue become available for compositing. Concentrates from 27 composite samples have been generated by Wilfley tabling and will be further processed by heavy liquid separation, high intensity magnetic separation, electrostatic separation and by XRF analysis of the resulting fractions. The results of this test work will better define the markets for which these products are suited and provide firmer estimates of product pricing.

Laboratory results of drill samples previously announced as visual grade estimates are currently being assessed and will be released when all the results have been received. Some 42km of magnetic targets remain to be drill tested at Cooljarloo following completion of landowner access agreements and environmental permitting.

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Figure 1 Cooljarloo North Project – Drill Hole Intersections and Magnetic Anomalies

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Figure 2 Cooljarloo North Project – Target 2 Cross Sections

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BOOTINE (Image100%)

Following its successful heavy mineral exploration and resource delineation at Cooljarloo and Cooljarloo North, Image has added the 190sq km Bootine tenement (E70/3192) northwest of the operating Gingin mine to its extensive North Perth Basin land package (see Figure 3). The tenement effectively links the Gingin project with the Bidaminna project and covers the whole spectrum of mineralised strands from 0m RL to 130m RL (see Figure 4). This tenement acquisition increases Image’s landholding to 1,850sq km and is part of the company’s strategy to be a dominant landholder in the North Perth Basin, a world-class heavy mineral producing region which supplies 25% of the world’s zircon.

Over 30 new targets, totalling more than 87km in length, have been identified from a recently flown aeromagnetic survey within E70/3192. Surprisingly, very little drilling has been carried out on the tenement which is prospective for both strandline mineralisation and the newly discovered channel-style mineralisation.

Image views this as an excellent opportunity to apply its magnetic mapping technique in an attempt to validate the existing aeromagnetic targets and to identify other targets that have not been discriminated by the airborne survey. Ground magnetic surveying at Bootine is in progress with 120 line km of surveying completed so far. It is important to note that the heavy mineral strand being mined at the Gingin mine is evident on an older aeromagnetic survey and points to the prospectivity of the Bootine tenements situated only 5km to the northwest.

The tenement’s proximity to the Iluka Gingin mine and the Tiwest HM dry plant and synthetic rutile plant at Muchea is considered an advantage for any possible future operation. Image will be carrying out ground magnetic surveys at the surrounding Gingin and Cataby West tenements over the ensuing months as part of the company’s strategy to identify new targets and prove additional resources in the North Perth Basin.

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Figure 3 Location of Image Resources Mineral Sands Tenements North Perth Basin Project

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Figure 4 Bootine Project – Aeromagnetic Interpreted Strandlines

CATABY WEST AND QUINNS HILL (Image 100%)

Ground magnetic surveys commenced over interpreted paleocoastlines during the quarter with some 162 line km completed to date.

SERPENTINE LAKES, Eucla Basin ( Image 100%)

As recently announced (ASX release 17 July 2007) the new zircon-rich Cyclone discovery of Diatreme Resources Limited is adjacent to and only 500m from, Image’s Serpentine Lakes tenements boundary on the Barton paleocoastline of the Eucla Basin. This paleocoastline is interpreted to pass through the Image tenements for a distance of at least 28km, as shown on Figure 5. The proximity of this discovery, its local thickening to 2.3km and its correlation with the same paleocoastline over such large distances is felt to be significant, and it is highly probable that the 2.3km width of strand mineralisation intersected by Diatreme passes directly into the Image ground. This prospective paleoshoreline corridor ranges up to more than 9km in width within the Image tenements and contains several favourable geomorphological features conducive to heavy mineral deposition.

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Figure 5 Elevation Model showing Cyclone HM Prospect and Postulated Shorelines

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Figure 6 Elevation Model showing Cyclone HM Prospect, Postulated Shorelines

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Image is already making plans for access with the local landholders and interpreting aeromagnetic data prior to carrying out extensive ground magnetic mapping surveys which it has been using to great effect in the North Perth Basin. Image’s adjacent Serpentine Lake tenements total 466sq km in size and are interpreted to contain multiple parallel paleocoastlines which will provide exploration targets.

Following Diatreme’s announcement, Image applied for a new tenement E69/243, Wanna South (see Figure 6), which is 288sq km in area and parallels the NW-trending coastline held by Diatreme. Image also holds tenements at Forrest Lakes totalling 740sq km to the south which cover the Oldea Range paleocoastline which passes through Iluka’s Jacinth and Ambrosia heavy mineral discoveries.

Image is most encouraged by the discovery of zircon-rich mineral sands next to its Eucla Basin tenements and views this as a further opportunity to expand its heavy mineral interests.

KAMBALDA WEST JV (Image 100% diluting)

Mincor Resources has completed a 73-hole, 3010m RAB and aircore drilling programme over an 8km strike length of interpreted ultramafic rocks south of the Nepean nickel mine. The drilling intersected a sequence of amphibolites, ultramafics and metasediments intruded by felsic rocks. The stratigraphy is believed to be similar to the stratigraphy at the Nepean Mine and importantly, interpreted to contain the footwall contact of the ultramafic. Nickel assays have been received, with a best result of 6m at 1.84% Ni from 18m in drill hole NRB048. This high nickel value may be a result of lateritic enrichment. Multi element analysis results have yet to be received and are expected to give a better idea of the nature of the high-grade nickel result. A moving loop surface EM survey is being carried out over the 8km strike of the interpreted ultramafics during the next quarter.

WOODLINE JV (Image 100%, diluting)

The Woodline project is situated on the regional Tropicana-Beachcomber structural trend, a current focus of exploration activity for gold following the significant Tropicana gold discovery. Sipa Resources has completed first-pass calcrete sampling over both of the joint venture tenements in those areas where regolith conditions favour use of surface geochemistry. Several anomalous zones in both gold and pathfinder elements will be the focus for infill sampling.

Preliminary interpretation of airborne EM flown in February over some 90% of the southern tenement E28/1496 has been completed. No strong conductive features were identified, however two possible bedrock conductors were recognised in an area of poor exposure and both will be tested by wide-spaced RAB drilling during the next quarter. In addition, compilation of drilling by previous explorers has highlighted results up to 2m at 5g/t Au which have not been adequately followed up. These areas will be assessed for possible infill drilling.

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
Mobile 0419 969 183	Mobile 0411 640 337
Email roger@imageres.com.au	Email george@imageres.com.au

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 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’. Roger Thomson consents to the inclusion of this information in the form and context in which it appears in this report.

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MINING EXPLORATION ENTITY QUARTERLY REPORT

APPENDIX 5B

Name of entity:

Image Resources NL ABN: Quarter ended (“current quarter”) 57 063 977 579 30/6/2007 Consolidated statement of cash flows Cash flows related to operating activities Current quarter $AUD’000 Year to date (12 months) $AUD’000 1.1 Receipts from product sales and related debtors 58 174 1.2 Payments for: (a) exploration and evaluation (b) development (c) production (d) administration (301) (291) (1,556) (743) 1.3 Dividends received 1.4 Interest and other items of a similar nature received 75 249 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows (459) (1,876)	Image Resources NL ABN: Quarter ended (“current quarter”) 57 063 977 579 30/6/2007 Consolidated statement of cash flows Cash flows related to operating activities Current quarter $AUD’000 Year to date (12 months) $AUD’000 1.1 Receipts from product sales and related debtors 58 174 1.2 Payments for: (a) exploration and evaluation (b) development (c) production (d) administration (301) (291) (1,556) (743) 1.3 Dividends received 1.4 Interest and other items of a similar nature received 75 249 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows (459) (1,876)	Image Resources NL ABN: Quarter ended (“current quarter”) 57 063 977 579 30/6/2007 Consolidated statement of cash flows Cash flows related to operating activities Current quarter $AUD’000 Year to date (12 months) $AUD’000 1.1 Receipts from product sales and related debtors 58 174 1.2 Payments for: (a) exploration and evaluation (b) development (c) production (d) administration (301) (291) (1,556) (743) 1.3 Dividends received 1.4 Interest and other items of a similar nature received 75 249 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows (459) (1,876)	Image Resources NL ABN: Quarter ended (“current quarter”) 57 063 977 579 30/6/2007 Consolidated statement of cash flows Cash flows related to operating activities Current quarter $AUD’000 Year to date (12 months) $AUD’000 1.1 Receipts from product sales and related debtors 58 174 1.2 Payments for: (a) exploration and evaluation (b) development (c) production (d) administration (301) (291) (1,556) (743) 1.3 Dividends received 1.4 Interest and other items of a similar nature received 75 249 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows (459) (1,876)
		30/6/2007
	Current quarter $AUD’000		Year to date (12 months) $AUD’000
	58 (301) (291) 75		174 (1,556) (743) 249
	(459)		(1,876)
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 (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	(10) (4) (65) 285		(103) (97) (77) 25 6
	206		(246)
	(253)		(2,122)

~~1~~

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1.13 Total operating and investing cash flows
(253) (2,122)
(brought forward)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, 3,508
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)
Net financing cash flows 3,508
Net increase (decrease) in cash held (253) 1,386
1.20 Cash at beginning of quarter/year to date 3,764 2,125
1.21 Exchange rate adjustments to item 1.20
1.22 Cash at end of quarter 3,511 3,511
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the
related entities
Current quarter
$AUD'000
1.23 Aggregate amount of payments to the parties included in item 1.2 (92)
1.24 Aggregate amount of loans to the parties included in item 1.10 -
1.25 Explanation necessary for an understanding of the transactions
N/A
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
N/A
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
N/A
Financing facilities available
Amount available Amount used
$AUD’000 $AUD’000
3.1 Loan facilities - -
3.2 Credit standby arrangements - -
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Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development	$AUD’000
	(400)
	-
Total	(400)

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $AUD’000	Previous quarter $AUD’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details) – Short Term Deposit	496	129
	3,015	3,635
Total: cash at end of quarter(item 1.22)	3,511	3,764

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	Nature of interest	Interest at beginning ofquarter	Interest at end of quarter
	E38/1585 E77/1059 P38/3166	Relinquished Relinquished Relinquished	100% 100% 100%	0% 0% 0%
	E70/3192 E77/1241 E77/1260 E77/1261 P70/1516	Application Granted Granted Granted Granted	0% 100% 100% 100% 100%	100% 100% 100% 100% 100%

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Issued and quoted securities at end of current quarter

	Total number	Number quoted	Issue price per security (cents)	Amount paid up per security (cents)
7.1 Preference securities 7.2 Issued during quarter	N/A
	Nil
7.3 Ordinary securities 7.4 Issued during quarter	74,677,978	74,677,978
	Nil
7.5 Convertible debt securities 7.6 Issued during quarter	N/A
	Nil
7.7 Options Non-employee Options Employee Options 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	1,805,000 2,000,000 2,000,000 2,500,000 300,000	Not Quoted Not Quoted Not Quoted Not Quoted Not Quoted	Exercise price $0.335 $0.39 $0.37 $1.80 $0.25	Expiry date 27.11.2008 26.11.2009 21.11.2010 16.11.2011 4.7.2007
	Nil
	Nil
	Nil
7.11 Debentures	N/A
7.12 Unsecured notes	N/A

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.

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

George Sakalidis Managing Director

Date: 31 July 2007

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