IMAGE RESOURCES NL — Regulatory Filings 2011

Jun 7, 2011

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ASX Release 8 June 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 info@imageres.com.au www.imageres.com.au

ABN 57 063 977 579

NEW HIGH GRADE STRAND AT CHANDALA NORTH.

ENCOURAGING RHEA AND MIDDLE STRAND RESULTS

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HIGHLIGHTS

• Initial results confirm the high grade nature of the Chandala North deposit with intercepts including 15m at 11.1% HM from surface and 3m @ 25.9% HM from 16m.

• The Gingin South deposit has increased in size, with a continuous high grade core of greater than 8% HM over a 5km strike length. Resource estimation about to commence.

• Analyses from Rhea and Middle Strand completed, including 5m @ 10.8% HM from 5m and 2m @ 34.8% HM from 6m.

• The high grade core at Middle Strand extended, grading more than 10% HM over a 1.1km strike length.

• Resource upgrades about to commence at Rhea and Middle Strand, each showing potential for both dry mining and dredgeable resources.

• Further increases in titanium feedstock and zircon prices continue to improve the economic outlook for Image’s North Perth Basin project.

Chandala North Drilling Results

Image has received the first 750 analytical results from the Chandala North heavy mineral (HM) deposit, situated 2.5km south and along strike from the Gingin South resource (Figure 1). These results confirm field estimates of a high grade deposit with intercepts up to 15m @ 11.1% HM from surface and 4m @ 24.0% HM from 30m (2.5% cut-off). Significant intercepts are summarised in Table 1 and drill hole locations shown on Figure 1. A drill section is shown in Figure 2, illustrating the mineralisation outlined to date. Two strand levels have been identified in this section, an upper strand at 74m RL, which contains high grades and outcrops at the surface and a westerly dipping strand at 65m RL, also containing a >10% HM core. These strands are present in drilling to the north and south of this section, giving a total inferred strike length of 2.3km and leaving the mineralisation open to both the north and south. Image is planning to infill the Chandala North mineralisation to 100m x 20m drill spacing to allow estimation of Measured resources.

The Gingin South deposit is situated 2.4km north along strike of the Chandala North deposit and with the inclusion of the recently acquired Gingin South mining lease this deposit has now increased to 5km in length. Over this 5km length the Gingin South deposit has a continuous high grade core greater than 8% HM and often over 10% HM . Three typical sections from Gingin South are shown in Figures 3, 4 and 5 with locations marked on Figure 1. These sections show that the strands are on similar levels to the Chandala North deposit’s three strands at 5060m RL, 68m RL and 73-75m RL.

Image has completed infill drilling at 100m x 20m spacing over most of the Gingin South deposit and is awaiting analytical results to enable estimation of Measured and Indicated resources.

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The correlation of the strand lines from Gingin South to Chandala North is a significant validation of Image’s strategy to target high grade mineralisation along the Gingin Scarp and Image looks forward to announcing a significant resource upgrade once all analyses from the recent drilling are complete.

Table 1 Chandala North Drilling Results (2.5% HM cut-off)

Hole **Number **	MGA East	MGA **North **	From m	To m	Interval m	HM %
GG455	401493	6517442	30	32	2	8.9
GG456	401465	6517442	30	34	4	24.0
GG457	401435	6517442	31	35	4	6.3
GG466	401277	6518223	0	6	6	4.2
GG467	401263	6518214	0	11	11	10.3
		including	5	11	6	14.1
GG468	401246	6518211	0	15	15	11.1
		including	8	12	4	18.2
GG469	401231	6518203	0	11	11	9.6
		including	4	11	7	11.8
GG470	401214	6518199	0	12	12	8.1
GG471	401196	6518205	0	8	8	4.9
		including	16	19	3	25.9
GG472	401178	6518211	0	5	5	3.0
GG473	401161	6518204	18	22	4	9.2
GG474	401143	6518212	23	26	3	22.0
GG475	401124	6518228	22	27	5	18.1
GG476	401105	6518229	27	29	2	36.7

Notes:

1. All drilling NQ size aircore

2. Samples collected at 1m intervals with ~20% split taken for assay using rotary splitter

3. All samples processed at Western Geolabs Pty Ltd – a mineral sands specialist laboratory, with HM grades determined by TBE heavy liquid separation.

4. All collar located in field using handheld GPS and locations subsequently located with DGPS to +/- -0.1 m accuracy

5. Holes drilled at 20m spacing in areas of mineralisation along existing tracks approximately perpendicular to strike

6. Major intersections calculated at 2.5% HM cut-off.

South of Chandala North, Target 3 is shaping up as another promising area with potential to define another Gingin Scarp strandline package up to 4km in strike length. Future drilling is being scheduled to test this area.

Rhea Drilling Results

All analytical results have been received from the Rhea resource drilling described in previous releases. The results are encouraging and show the potential for the estimation of resources on two strand lines, the Rhea strand and the Middle strand. Better intersections are shown in Table 1, including 5m at 10.8% HM from 5m in drill hole RH272 and 2m at 34.8% HM from 6m in RH319. Figure 1 shows the location of the drilling. A summary of significant intersections at a 2.5% HM cut-off is attached in Appendix 1.

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Figure 1 Gingin to Chandala North Drilling

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Figure 2 Chandala North Cross-section 6518220mN

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Figure 3 Gingin South Cross-section 6522200mN

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Figure 4 Gingin South Cross-section 6524260mN

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Figure 5 Gingin South Cross-section 6525750mN

Typical sections of the Middle Strand mineralisation are shown in Figure 7 to 9, showing the main mineralised zone at about 50m RL with low grade (2-4% HM) sheet mineralisation 4-6m below it on a clay basement in a similar stratigraphic position to the central mineralisation at Rhea. The main mineralised zone at Middle Strand is 2-6m thick, 20m to 40m wide, continuous over 1100m of strike with between 1m and 6m of cover. HM grades are higher than Rhea with a continuous core greater than 10% HM throughout. The Middle Strand high grade core will be attractive as a potential satellite orebody to Atlas, Hyperion Helene and Rhea.

Typical cross-sections of the Rhea deposit are shown in Figures 10 to 12. These cross-sections show that Rhea consists of a narrow upper mineralised zone, 2-4m thick with HM grades up to 11.2% HM and a central zone, 2-10m thick with grades up to 10% HM, but generally between 2- 8% HM. These two zones are separated by between 2m and 4m of barren sand, with the central zone overlying a clay basement of interpreted Mesozoic sediments. The central mineralisation is quite extensive and stretches across the entire drill section overlying a channel of 4-20% slimes cut into the basement clays. This channel contains low levels of HM, but is not as significantly mineralised as the Calypso channel to the north-east.

The water table at Rhea is quite close to the surface, generally between 7m and 10m depth and this, combined with low slimes and moderate HM grades, may make it suitable for a dredging operation. In the meantime further increases in titanium feedstock and zircon prices continue to improve the economic outlook for Image’s North Perth Basin project.

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Table 2 Rhea and Middle Strand Drilling Results

Hole **Number **	MGA East	MGA **North **	From m	To m	Interval m	HM %
RH155	340035	6617805	1	3	2	11.2
RH187	339883	6617604	13	16	3	8.3
RH272	339512	6617465	5	10	5	10.8
RH286	339338	6617591	9	11	2	8.5
RH292	339268	6617674	6	8	2	12.5
RH298	339204	6617748	3	7	4	8.1
RH305	339119	6617806	6	9	3	10.3
RH313	339050	6617873	4	6	2	11.0
RH319	338980	6617947	6	8	2	24.8
RH324	338916	6618034	3	7	4	11.5
RH328	338839	6618113	3	6	3	13.4
RH330	338812	6618096	7	9	2	9.1

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Figure 6 Rhea Resource Drilling

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Figure 7 Middle Strand Cross-section 96500mN

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Figure 8 Middle Strand Cross-section 96800mN

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Figure 9 Middle Strand Cross-section 97300mN

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Figure 10 Rhea Cross-section 96500mN

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Figure 11 Rhea Cross-section 97000mN

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Figure 12 Rhea Cross-section 97100mN

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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APPENDIX 1 Rhea Drilling Results (2.5% HM cut-off)

Hole **Number **	MGA East	MGA **North **	From (m)	To (m)	Interval (m)	HM (%)
RH001	339519	6618440	13	16	3	4.4
RH003	339475	6618384	0	3	3	4.5
RH003	339475	6618384	11	18	7	4.2
RH005	339404	6618365	17	19	2	3.1
RH006	339374	6618348	15	18	3	3.2
RH007	339329	6618295	15	18	3	4.8
RH008	339265	6618271	15	17	2	3.3
RH009	339211	6618230	10	12	2	4.2
RH010	339185	6618207	12	15	3	3.7
RH013	339580	6618348	14	16	2	3.7
RH014	339551	6618325	0	7	7	7.1
RH014	339551	6618325	13	19	6	4.1
RH015	339564	6618337	14	17	3	3.4
RH016	339536	6618317	8	10	2	3.4
RH022	339407	6618238	15	18	3	3.4
RH023	339432	6618258	14	17	3	3.7
RH030	339660	6618285	13	17	4	3.4
RH031	339634	6618270	14	17	3	3.9
RH032	339608	6618249	1	4	3	6.1
RH033	339581	6618229	4	6	2	3.8
RH033	339581	6618229	14	16	2	4.8
RH034	339592	6618241	0	3	3	4.6
RH034	339592	6618241	13	18	5	4.7
RH035	339565	6618218	15	17	2	3.3
RH040	339450	6618129	14	16	2	3.6
RH044	339621	6618258	0	4	4	5.6
RH045	339461	6618373	11	17	6	3.9
RH045	339461	6618373	18	20	2	3
RH046	339487	6618394	0	5	5	4.1
RH046	339487	6618394	17	19	2	3.7
RH047	339775	6618239	13	18	5	3
RH051	339705	6618198	11	15	4	6.2
RH054	339669	6618167	3	5	2	7.5
RH054	339669	6618167	14	17	3	3.7
RH055	339659	6618153	3	6	3	3.7
RH056	339645	6618143	14	18	4	4
RH058	339613	6618129	13	17	4	4.9
RH059	339595	6618122	12	16	4	5.1
RH060	339581	6618117	16	18	2	3.2
RH061	339566	6618107	12	17	5	3.6
RH062	339506	6618078	14	16	2	3.7

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Hole **Number **	MGA East	MGA **North **	From (m)	To (m)	Interval (m)	HM (%)
RH066	339362	6617967	14	18	4	3.4
RH071	339770	6618120	11	16	5	4.7
RH072	339757	6618108	10	15	5	5.5
RH074	339727	6618084	12	14	2	3.5
RH075	339711	6618075	15	17	2	4.5
RH076	339695	6618065	13	16	3	3.6
RH077	339679	6618053	13	18	5	3.2
RH078	339663	6618042	13	15	2	6
RH079	339648	6618030	13	15	2	6
RH081	339619	6618004	2	4	2	4.3
RH081	339619	6618004	13	19	6	4.7
RH083	339585	6617986	15	17	2	4.8
RH084	339571	6617975	13	15	2	3.9
RH085	339555	6617967	15	17	2	3
RH086	339520	6617950	15	18	3	3.3
RH089	339886	6618071	12	15	3	3.8
RH090	339869	6618064	12	14	2	3.7
RH092	339819	6618032	11	13	2	3
RH094	339785	6618009	12	15	3	3.9
RH095	339753	6617987	12	18	6	3.7
RH103	339974	6618011	12	14	2	3.4
RH107	339907	6617968	13	15	2	3.1
RH109	339877	6617941	12	14	2	3.6
RH110	339861	6617928	13	17	4	4.1
RH111	339844	6617925	13	17	4	4.2
RH114	339803	6617886	8	10	2	3.5
RH114	339803	6617886	11	14	3	3.3
RH115	339787	6617876	10	15	5	4.6
RH122	339602	6617769	13	16	3	3.1
RH132	339916	6617859	13	15	2	4.2
RH133	339898	6617850	12	14	2	4.7
RH136	339849	6617815	11	14	3	3.3
RH137	339816	6617796	12	15	3	3.7
RH149	340123	6617875	13	15	2	3.5
RH150	340108	6617866	11	13	2	3.1
RH152	340081	6617841	14	16	2	3.8
RH153	340065	6617829	11	13	2	3.4
RH154	340050	6617818	11	13	2	3.1
RH155	340035	6617805	1	3	2	11.2
RH156	340021	6617795	10	12	2	4.5
RH157	340004	6617787	9	16	7	4
RH158	339986	6617783	12	14	2	3.1
RH160	339952	6617769	12	16	4	4

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Hole **Number **	MGA East	MGA **North **	From (m)	To (m)	Interval (m)	HM (%)
RH161	339935	6617766	11	15	4	3.5
RH162	339920	6617753	12	15	3	3.6
RH164	339896	6617725	13	15	2	3.9
RH170	340135	6617767	15	17	2	3.7
RH171	340122	6617753	14	17	3	3.1
RH173	340091	6617738	15	17	2	4.6
RH174	340078	6617726	12	14	2	4.8
RH176	340048	6617709	13	15	2	3.3
RH177	340032	6617701	13	17	4	3.7
RH178	340017	6617691	15	17	2	5.8
RH179	340000	6617682	13	15	2	6.8
RH181	339974	6617662	14	16	2	4.2
RH185	339916	6617623	12	14	2	4.5
RH186	339899	6617615	11	13	2	3.5
RH187	339883	6617604	13	16	3	8.3
RH189	339847	6617588	12	14	2	3.7
RH190	339832	6617554	13	15	2	3.4
RH194	339766	6617529	14	16	2	3.4
RH195	339754	6617517	13	16	3	3.5
RH196	339745	6617502	13	17	4	3.7
RH198	340240	6617707	14	16	2	3.3
RH199	340226	6617696	12	15	3	3
RH200	340211	6617686	12	17	5	3.1
RH201	340194	6617677	13	17	4	3.7
RH202	340178	6617668	11	14	3	3.4
RH203	340163	6617660	10	14	4	5.1
RH203	340163	6617660	15	18	3	5.6
RH204	340146	6617654	14	16	2	3.6
RH205	340129	6617647	10	12	2	4.3
RH206	340114	6617639	12	16	4	3.6
RH207	340099	6617630	0	3	3	5.9
RH207	340099	6617630	11	13	2	4.6
RH208	340083	6617623	12	14	2	5.8
RH209	340066	6617626	13	15	2	3.5
RH210	339735	6617861	10	12	2	4
RH213	339677	6617819	13	15	2	3.8
RH217	339613	6617896	15	17	2	3.1
RH220	340296	6617625	14	17	3	3
RH222	340265	6617607	12	14	2	3.6
RH223	340249	6617598	14	18	4	4
RH224	340234	6617587	13	15	2	3.2
RH224	340234	6617587	16	18	2	5.7
RH225	340218	6617581	11	19	8	3.8

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Hole **Number **	MGA East	MGA **North **	From (m)	To (m)	Interval (m)	HM (%)
RH228	340179	6617546	14	16	2	3.5
RH229	340160	6617541	15	17	2	5.5
RH231	340132	6617528	15	19	4	3.2
RH232	340118	6617517	15	18	3	3.6
RH232	340118	6617517	19	21	2	4.8
RH233	340102	6617507	17	19	2	4.4
RH234	340090	6617497	18	20	2	3
RH235	340080	6617483	15	18	3	3.3
RH236	340069	6617467	16	20	4	3.5
RH237	340056	6617456	16	20	4	4.4
RH239	340008	6617430	17	19	2	3.3
RH240	339979	6617411	15	18	3	3.4
RH244	340209	6617448	16	19	3	3
RH246	340236	6617470	15	17	2	3.1
RH247	340251	6617479	14	17	3	3.4
RH248	340267	6617486	13	19	6	3.4
RH249	340282	6617497	11	13	2	3.8
RH249	340282	6617497	14	18	4	3
RH250	340300	6617510	11	18	7	4.2
RH252	340327	6617527	13	17	4	3.8
RH255	340463	6617374	0	4	4	6.9
RH262	340528	6617294	0	2	2	3.9
RH263	340517	6617283	16	18	2	3.2
RH264	340541	6617302	0	3	3	5.1
RH265	339608	6617408	0	2	2	3.2
RH265	339608	6617408	7	10	3	4.2
RH266	339593	6617399	6	9	3	6.1
RH267	339578	6617391	6	8	2	4.1
RH270	339542	6617478	12	15	3	3.2
RH271	339527	6617469	3	5	2	5
RH271	339527	6617469	12	14	2	3.1
RH272	339512	6617465	5	10	5	10.8
RH273	339495	6617460	3	5	2	7.7
RH277	339444	6617545	3	5	2	3.3
RH277	339444	6617545	13	15	2	3
RH278	339428	6617538	6	8	2	5.6
RH278	339428	6617538	12	14	2	3.6
RH282	339391	6617629	5	9	4	5.3
RH282	339391	6617629	13	15	2	3.7
RH283	339378	6617619	13	15	2	3.1
RH284	339367	6617611	11	13	2	3
RH285	339352	6617602	6	8	2	6.2
RH286	339338	6617591	9	11	2	8.5

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Hole **Number **	MGA East	MGA **North **	From (m)	To (m)	Interval (m)	HM (%)
RH288	339312	6617572	12	14	2	3.2
RH289	339310	6617696	14	16	2	3.2
RH290	339298	6617685	5	7	2	3.2
RH290	339298	6617685	13	15	2	3.3
RH290	339298	6617685	16	18	2	3.1
RH291	339284	6617678	5	7	2	5.2
RH291	339284	6617678	13	15	2	3.9
RH292	339268	6617674	6	8	2	12.5
RH292	339268	6617674	12	16	4	4
RH293	339257	6617669	13	15	2	3.4
RH294	339244	6617656	5	7	2	5
RH294	339244	6617656	12	15	3	3.8
RH295	339232	6617646	13	17	4	3.7
RH296	339234	6617763	2	5	3	4.8
RH296	339234	6617763	12	16	4	3.8
RH298	339204	6617748	3	7	4	8.1
RH298	339204	6617748	11	13	2	3
RH299	339191	6617741	2	5	3	5.5
RH299	339191	6617741	9	11	2	3
RH300	339179	6617731	9	11	2	3.7
RH301	339167	6617720	13	15	2	3.2
RH302	339160	6617835	10	13	3	3.3
RH304	339134	6617817	2	6	4	3
RH305	339119	6617806	6	9	3	10.3
RH305	339119	6617806	14	18	4	3.1
RH308	339075	6617791	7	9	2	3
RH309	339099	6617914	10	14	4	4
RH310	339087	6617904	12	14	2	4.2
RH311	339075	6617894	3	13	10	4.6
RH313	339050	6617873	4	6	2	11
RH314	339037	6617865	14	17	3	3.4
RH315	339034	6617981	12	15	3	3.3
RH316	339025	6617967	12	14	2	3.9
RH319	338980	6617947	6	8	2	24.8
RH319	338980	6617947	12	17	5	3.8
RH320	338964	6617943	5	7	2	3.1
RH320	338964	6617943	11	17	6	3.3
RH322	338946	6618047	10	15	5	4.3
RH323	338932	6618039	10	12	2	3.3
RH324	338916	6618034	3	7	4	11.5
RH324	338916	6618034	10	14	4	3.6
RH325	338902	6618029	2	5	3	4.3
RH327	338855	6618119	10	13	3	3.7

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Hole **Number **	MGA East	MGA **North **	From (m)	To (m)	Interval (m)	HM (%)
RH328	338839	6618113	3	6	3	13.4
RH328	338839	6618113	10	12	2	3.8
RH328	338839	6618113	13	15	2	3.4
RH329	338825	6618104	4	6	2	5.5
RH329	338825	6618104	13	16	3	3.9
RH330	338812	6618096	7	9	2	9.1
RH330	338812	6618096	13	18	5	3.5
RH332	339154	6618304	13	16	3	3
RH335	339109	6618279	12	16	4	4.2
RH336	339094	6618272	13	16	3	3.9
RH340	339017	6618341	2	4	2	5.9
RH340	339017	6618341	10	13	3	3.3
RH341	339004	6618331	11	14	3	3.6
RH342	338992	6618318	9	14	5	3
RH343	338927	6618403	12	14	2	3.6
RH345	338952	6618426	10	14	4	5
RH346	338966	6618436	10	13	3	4.1
RH377	341313	6617589	0	3	3	3.4
RH377	341313	6617589	20	23	3	3.5
RH378	341329	6617592	1	3	2	4.8
RH378	341329	6617592	20	22	2	3.2
RH380	341362	6617595	20	22	2	3.1
RH384	341367	6617700	0	2	2	5.2
RH385	341377	6617856	20	22	2	3.5
RH387	340417	6617471	14	16	2	3.3
RH388	340404	6617461	0	2	2	3.2
RH388	340404	6617461	15	17	2	3
RH389	340372	6617431	12	15	3	4.2
RH389	340372	6617431	16	19	3	3.6
RH390	339569	6617880	10	15	5	4.3
RH391	339525	6618083	14	16	2	3.9
RH392	339453	6618033	14	17	3	3.3
RH393	339466	6618159	14	18	4	3.9
RH394	339423	6618117	14	18	4	3.3
RH395	339362	6618093	12	18	6	3.4
RH396	339352	6618202	15	17	2	4.3
RH397	339297	6618173	15	18	3	3.1
RH398	339594	6618355	11	18	7	4.3
RH399	339356	6618321	14	19	5	3.8
RH400	339296	6618287	14	17	3	3.5
RH401	339238	6618251	10	12	2	4.3
RH401	339238	6618251	13	15	2	3.1

HM grades determined by TBE heavy liquid separation

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