IMAGE RESOURCES NL — Regulatory Filings 2011

Jul 20, 2011

2nd Floor, 16 Ord Street 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

ASX Release ASX Code: IMA 21 July 2011

GINGIN SOUTH

240% RESOURCE INCREASE TO 492,000t HM

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HIGHLIGHTS

• Drilling by Image Resources has identified a major extension to the Gingin South heavy mineral (HM) deposit resulting in an additional total Indicated and Inferred Resource of 5.2Mt @ 6.6% HM containing 348,000t of HM at a 2.5% HM cut-off.

• The discovery brings the overall Gingin South resource to 8.1Mt @ 6.1% HM containing 492,000t of HM at a 2.5% HM cut-off.

• Iluka testwork on Gingin South shows the ilmenite to be of mainly chloride/SR quality, with potential to attract a price premium.

• The new extension increases the defined resources in the Gingin area to 1.3Mt of HM.

• The new resource is being included in Image’s developing mine plan for the North Perth Basin

Extension Resource Estimate

Image identified high grade HM mineralisation immediately south of the Gingin South HM deposit in 2010 and subsequently infilled it to a 100m x 20m drill spacing in early 2011. The current, interim resource estimate is based on a 200m x 20m drill spacing. This interim estimate of Indicated and Inferred Resources for the Gingin South extension totals 5.2Mt @ 6.6% HM, containing 348,000t of HM at a 2.5% HM cut-off. Table 1 summarises the resource status and Table 2 shows the corresponding mineral content.

Table 1 Gingin South Extension Resource 18 July 2011

CLASSIFICATION	VOLUME (cu m) TONNES HM (%) HM Tonnes SLIMES (%) OS (%)
INDICATED INFERRED	2,502,000 4,499,000 6.7 300,000 6.7 11.0 398,000 733,000 6.5 48,000 8.4 8.8
TOTAL	2,900,000 5,232,000 6.6 348,000 6.9 10.7

1. 5% HM cut-off Slimes: minus 63micron fraction OS: oversize, plus 1mm fraction

Table 2 Gingin South Extension, % Mineral Content of HM

CLASSIFICATION	HM Tonnes ILMENITE LEUCXOENE RUTILE ZIRCON VHM TOTAL
INDICATED INFERRED	300,000 70.1 9.0 5.1 8.2 92.3 48,000 67.4 7.5 5.8 10.9 91.6
TOTAL	348,000 69.7 8.8 5.2 8.5 92.2

This new resource is situated immediately south of and contiguous with the HM deposit within mining lease M70/448 acquired from Iluka Resources Limited in March 2011, as shown in Figure 1. The new extension has increased the total deposit length to 5.5 km, with widths varying between 40m and 250m and averaging 120m. Appendix 1 tabulates the extension resource estimate at various cut-off grades and Appendix 2 defines the criteria used to determine the resource status.

Geology

The Gingin South deposit and its extension consists of two strands deposited in a shoreline environment along the Gingin Scarp when it was formed by transgression of the ocean in the Pleistocene. The western strandline occurs at an elevation of 64m RL and rises sharply to the east to between 72m and 74m RL. The easternmost shoreline occurs at 74m RL with a gentle westerly dip. In some areas the 74m strand appears to merge with the 64m strand. The deposits lie on a base of grey clays, silts and sands interpreted to be Cretaceous Coolyena Group. Figures 2 to 5 show typical drill cross-sections along the deposit.

Mineralogy

The mineral assemblage of the resource estimate is based upon the analysis of 11 HM composites taken from drill sections over the length of the resource area and subject to full mineralogical analysis (FMA) at Diamantina Laboratories in Perth. The composites were designed to reflect the geological interpretation of the strand zones and were created by compositing the concentrate from between 7 and 60 drill samples (average of 21 concentrate samples per composite). Each composite was subjected to magnetic separation and grain counting techniques to define the individual mineral species. The results are closely comparable to the Iluka mineral species identification for Rutile and Zircon, but contain greater levels of ilmenite and lesser leucoxene. The difference is ascribed to the differing mineralogical determination method used by Iluka and natural variation along strike.

Iluka analysed the Gingin South mineralogy by creating 11 bulk composites of drill samples representing the entire M70/448 mineralisation. These samples were separated into component minerals using a combination of wet table, magnetic and electrostatic separation. Chemical analysis of the ilmenite fraction showed 9 of the 11 samples to range between 58 % TiO2 and 64 % TiO2 with U + Th contents between 110 and 190 ppm and FeO less than 5.3 %, minimum 1.7 %. These qualities are typical of premium grade Chloride or SR feed ilmenite. The remaining two samples have lower TiO2 (55 – 56 %) contents and making them more suitable for sale as sulphate ilmenite, which is the principal feedstock in China.

Overall Gingin South Resource

Using drilling and mineralogical data supplied by Iluka on mining lease M70/448, Image estimated a total Measured and Indicated resource at a 2.5% HM cut-off of 2.8Mt at 5.1% HM, containing 144,000t of HM (refer IMA ASX Release 9 March 2011). Together with the southern extension, the ove ~~rla~~ ll Gingin South resource has increased to 8.08Mt @ 6.1% HM, segregated into Measured, Indicated and Inferred categories, as shown in Table 3.

Table 3

	Overall Gingin Sout~~h ~~	Overall Gingin Sout~~h ~~	**HM Resource 18 July **	**HM Resource 18 July **	2011
CLASSIFICATION	HM	VOLUME	TONNES	HM	SLIMES	HM Tonnes
	CUTOFF
MEASURED	2.5	873,000	1,526,000	4.4	7.2	67,000
INDICATED	2.5	3,242,000	5,820,000	6.5	7.1	377,000
INFERRED	2.5	398,000	733,000	6.5	8.4	48,000
TOTAL	2.5	4,513,000	8,079,000	6.1	7.3	492,000

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Figure 1 Gingin South and Gingin South Extension

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Figure 2 Gingin South Cross-section 6522000mN

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Figure 3 Gingin South Cross-section 65223200mN

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Figure 4 Gingin South Cross-section 6524260mN

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Figure 5
Gingin South Cross-section 6525750mN (M70/448)
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Future Work

Image has completed infill drilling to a 100m x 20m drill spacing over most of the southern extension resource, but only approximately 40% of these assays have been completed. Upon completion of processing of these drill samples an updated resource estimate will be prepared and released. Additional HM composites are being prepared and these will be submitted for QEMSCAN analysis, to provide sufficient ~~d~~ ata for a Measured Resource to be estimated along most of the 5.5km resource extension. Due to drill rig availability and timing issues with one land holder a central 800m section of the resource has not yet been drilled. This area is expected to be drilled in September 2011.

The overall Gingin South resource will become part of the updated Scoping Study that the Image is undertaking on the nine deposits that currently comprise the North Perth Basin Project. Of these nine deposits, four are situated in close proximity to the Atlas Deposit (Cooljarloo Area) and contain a total dry mining resource of 1.7Mt of HM. The Red Gully, Boonanarring and Gingin North resources in the Gingin area contain a total of 0.81 Mt of HM. The new resource at the Gingin South extension adds another 0.49Mt of HM, bringing the resources in the Gingin project area to 1.3Mt of HM and total North Perth Basin dry mining resources to 3.0Mt. Figure 6 shows the location of all these resources illustrating that Image has opened up a new centre of potential operations following the Gingin South resource upgrade, as foreshadowed in previous releases. This result provides the first drilling evidence of the significant potential to further upgrade and increase the Gingin shoreline deposits and Image expects its next drill program to further enhance this prospective shoreline.

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 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 6 North Perth Basin Project, Resource Location Plan

Appendix 1 Gingin South Extension Resource by Cut-off Grade

HM CUTOFF	RCODE	RESCAT	VOLUME	TONNES	HM	HM Tonnes	SLIMES	OS
5	TOTAL	INDICATED	1,437,070	2,613,619	8.76	229,031	6.93	11.00
4	TOTAL	INDICATED	1,885,454	3,410,940	7.76	264,757	6.83	10.86
3	TOTAL	INDICATED	2,322,463	4,183,510	6.97	291,716	6.73	11.03
2.5	TOTAL	INDICATED	2,502,085	4,499,516	6.68	300,478	6.69	11.04
2	TOTAL	INDICATED	2,548,019	4,581,057	6.60	302,350	6.69	11.08
5	TOTAL	INFERRED	240,209	435,421	8.20	35,718	6.80	8.78
4	TOTAL	INFERRED	322,365	588,636	7.24	42,605	7.61	8.25
3	TOTAL	INFERRED	384,925	707,876	6.62	46,868	8.34	8.49
2.5	TOTAL	INFERRED	398,573	732,912	6.49	47,544	8.37	8.75
2	TOTAL	INFERRED	408,088	750,081	6.39	47,945	8.36	8.94
5	TOTAL	TOTAL	1,677,279	3,049,040	8.68	264,749	6.91	10.69
4	TOTAL	TOTAL	2,207,819	3,999,576	7.69	307,363	6.94	10.48
3	TOTAL	TOTAL	2,707,388	4,891,386	6.92	338,585	6.97	10.66
2.5	TOTAL	TOTAL	2,900,658	5,232,428	6.65	348,022	6.92	10.72
2	TOTAL	TOTAL	2,956,106	5,331,138	6.57	350,295	6.92	10.78

Note: Discrepancy in tonnages due to rounding of significant figures.

Appendix 2 Gingin South Extension Resource Classification Criteria

Gingin	Appendix 2 South Extension Resource Classification Criteria
Criteria	Explanation
	SAMPLING TECHNIQUES AND DATA
Sampling Techniques	Air core drilling samples
Drilling techniques.	Vertical NQ air core holes
Drill sample recovery.	Sample quality is logged at time of drilling. No relationship between grade and recovery is known to exist
Logging.	Chip samples are logged for colour, grainsize, presence of induration, estimated HM, Slimes and Oversize grades and
Sub-sampling techniques and sample preparation.	Samples were rotary split on site to reduce the sample size from about 8 to 1.5 kg.
Quality of assay data and laboratory tests.	Samples were assayed by Western Geolabs and Diamantina Laboratories. Western Geolabs conduct routine duplicate assaying of 8% of samples.
Verification of sampling and assaying.	Replicate samples taken at rate of 1 in 100 for check assay at original laboratory. Separatereplicate samples takenat1 in 100forumpire assay at differentlaboratory
Location of data points.	Collars were surveyed by differential GPS. The holes are supposed and are assumed to be vertical.
Data spacing and distribution.	Drill holes are spaced at 20 metres apart within the resource area and 40 to 80 m apart on the edges. Drill lines are approximately 100 m apart, except in one area where there is a 800 m gap. . Assay results have only been completed for every second drill line giving an effective 200 m spacing for resource estimation. The sampling interval was 1 or 2 metres. Sample compositing only took place for mineral assemblage determinations with between7 and 62samples compositedintoindividual mineralogicalcomposites.
Orientation of data in relation to geological structure.	Drill lines are oriented at 65 degrees to the strike. No biased sampling of structure has occurred.
Audits or reviews.	None.
Mineral tenement and land tenure status.	The project lies mainly within granted exploration licence E70/3032, held 100% by Image Resources. Approximately 8 % lies within granted E 70/2742, which Image has earned an 80% share in. Land tenure is freehold land spread between four separate parties, plus2shireroadreserves.
Exploration done by other parties.	None for this resource estimate. Exploration done by Iluka used as the basis for resource estimate in M70/448, which comprises ~35% of overall resource.
Geology.	The deposit is a typical strandline hosted mineral sand deposit.
ESTIMATION AND REPORTING OF MINERAL RESOURCES
Database integrity.	All of the samples were logged electronically using n industry standard logging program designed to preclude transcription errors. Assay data is presented electronically and both manually and electronically checked prior to loading into the database. The database is validated for missing intervals, duplicate samples, missing coordinates, hole name mismatches andEOH mismatchbetweencollarand downhole data.
Geological interpretation.	The data quality affords ahighdegree ofconfidenceinthe geological interpretation.
Dimensions.	The deposit is 4.1 km long,40-60 m wide and 3-6 m thick
Estimation and modelling techniques.	ID squared interpolation for HM, Slimes and OS, nearest neighbour for assemblage data. Model and data constrained by mineralisation wireframe solids with initial search radius of 400m x 40m x 8m, minimum 12 samples. Considered suitable for type of deposits and levelof information.
Moisture.	The bulk density is estimated on a dry basis.
Cut-off parameters.	2 % HM for “high grade” mineral envelope. Various geological parameters for basement andlithologyzones.
Miningfactors orassumptions.	The depositislikely to bemined by elevating scrapers.
Metallurgical factors or assumptions.	There is nothing to indicate that the deposit could not be processed by traditional methods, i.e. spirals.
Bulk density.	Assumed according to formula using grade of HM and slime as inputs.