IMAGE RESOURCES NL — Capital/Financing Update 2009

Jan 29, 2009

ASX Release 30 January 2009

ASX code: IMA

MOU SIGNED WITH CHINA HAINAN PROVINCIAL BUREAU OF GEOLOGICAL EXPLORATION

==> picture [101 x 113] intentionally omitted <==

2nd 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 ABN 57 063 977 579

____________________________________________________________

Image Resources is pleased to report that a Memorandum of Understanding (MOU) has been signed with the China Hainan Provincial Bureau of Geological Exploration (HPBGE) regarding its North Perth Basin mineral sands project. Image has agreed to release composite samples, resource models and scoping study results from its North Perth Basin project to enable HPBGE to further assess these resources and to establish a sound basis on which to engage in discussion with HPBGE about the possible commercialisation of the project.

Established in 1988, HPBGM is a Chinese provincial government organisation with a staff of 1,800 people. There are 16 branches and subsidiary entities engaging in mineral exploration, hydro geological exploration, environmental geological surveys and mineral development aimed at HPBGM becoming an industrial enterprise spanning exploration, development, mining and mineral production.

HPBGE has extensive experience and advanced technology in the exploration, development and processing of mineral sand resources. Since its establishment, HPBGE has completed over 1000 geological projects. Importantly, HPBGE has existing mineral sand mining and processing operations on Hainan Island in China.

The objective of the MOU is to facilitate the formulation and negotiation of possible transactions. Image’s scoping study (released 1 December 2008) demonstrated that Image’s significant inferred and indicated resources can potentially be exploited:

1. on a standalone basis; or

2. by an established producer(s); or 3. by a combination of the above.

The MOU limits HPBGE’s freedom to acquire Image shares, however, it may at any time acquire up to 5% of Image’s issued capital. Image considers that the MOU represents a significant step towards the commercialisation of its North Perth Basin resources while keeping open the option of developing the resources on a stand alone basis.

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

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

The information in this report is based on information compiled or reviewed by George Sakalidis BSc (Hons), who is a member of the Australasian Institute of Mining and Metallurgy. George Sakalidis is a director of Image Resources NL. George Sakalidis 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 for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. George Sakalidis consents to the inclusion of this information in the form and context in which it appears in this report.