IMAGE RESOURCES NL - Capital/Financing Update 2011

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ASX Release 25 November 2011

ASX code: IMA

2[nd] Floor, 16 Ord Street West Perth WA 6005 PO Box 644 West Perth WA 6872 Telephone 08 9485 2410 Facsimile 08 9485 2840 [email protected] www.imageres.com.au

ABN 57 063 977 579

PROGRESS NORTH PERTH BASIN PROJECT

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HIGHLIGHTS

Environmental consultant appointed for permitting of NPB mining.
Flora and Fauna studies commenced at Atlas Deposit
Drilling commenced on zircon enhanced Boonanarring and Red Gully Deposits

Feasibility Study

Image has begun work on the North Perth Basin Feasibility study with the commissioning of 360 Environmental to undertake the Environmental Impact Assessment Studies. These studies involve managing and co-ordinating all of the environmental activities required to achieve permitting of the NPB project at a Public Environmental Review level. Environmental Approvals process is the longest lead time item and thus must be commenced immediately to allow Image to meet its deadline of commencing production in 2014.

The first step in the environmental approvals process is the commissioning of a Level 2 Fauna and Level 2 Flora survey over the Atlas deposit. This work has begun with 360 Environmental field teams commencing work in November.

Drilling Programs

Gingin South

Drilling commenced on 25 October with infill of the 800m gap in the drill spacing at Gingin South to 200m x 20m drill spacing in order to allow an upgrade of the Inferred Gingin South resource to JORC Indicated Status. Combined with the 100m x 20m infill drilling completed earlier in the year (ASX announcement 27 September 2011) this will allow Image to upgrade the status of Gingin South resource to Measured and Indicated, with approximately 90% of the resource expected to fall within the Measured category. Figure 1 shows the location of the drill holes and Table 1 lists the significant intersections. This table also highlights the low slime content of the Gingin South drilling with values ranging from 2.0% to 13.4% slimes.

Table 1:

Significant Intersections Gingin South

Hole Number	East	North	From (m)	To (m)	Interval (m)	HM (%)	Slime (%)
GG725	398353.231	6523712.38	8	21	13.00	4.02	4.58
GG726	398393.861	6523705.2	7	11	4.00	3.99	10.26
GG727	398438.284	6523699.17	11	13	2.00	4.77	11.26
GG729	398380.975	6523710.62	8	18	10.00	4.83	7.57
GG730	398340.697	6523714.11	15	21	6.00	7.52	13.38
GG732	398237.684	6523911.9	17	20	3.00	3.58	11.03
GG733	398277.686	6523936.86	6	11	5.00	5.12	4.74
GG736	398443.517	6523992.05	24	27	3.00	3.89	9.78
GG741	398242.654	6524003.58	7	13	6.00	5.28	2.60
GG742	398195.306	6524000.72	16	21	5.00	5.11	3.81
GG743	398197.681	6524196.03	18	20	2.00	2.72	2.00
GG746	398120.416	6524206.36	7	18	11.00	5.63	3.63
GG755	397772.477	6522828.58	10	12	2.00	5.72	7.88
GG757	397842.603	6522802.11	13	17	4.00	3.47	2.72
GG758	397876.612	6522791.36	12	20	8.00	3.21	8.75
GG759	397908.414	6522779.47	11	14	3.00	3.65	4.36
GG761	397982.838	6522750.83	7	9	2.00	3.40	6.92

Notes: HM minerals > 2.96 SG as % of total sample. Slimes = particles <63um

Boonanarring

At the completion of the Gingin South drilling the rig moved to the northern extension of the zircon enhanced Boonanarring deposit, approximately 3.3km to the north of the Measured Resource on the Boonanarring Mining Lease. The rig has now moved on to Red Gully and will return to complete the Boonanarring drilling and initiate work on the southern 2.3km extension of Boonanarring resource (ASX Release 15 September 2011), where there is +20% zircon within a plus 8% HM zone (Figure 2).

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 by Paul Leandri BAppSc who is a member of the Australasian Institute of Mining and Metallurgy. Paul Leandri is an employee of Image Resources NL. He 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 for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Paul Leandri consents to the inclusion of this information in the form and context in which it appears in this report.

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Figure 1 Gingin South Infill Drill Holes Nov 2011 coloured by HMm%