IMAGE RESOURCES NL — Interim / Quarterly Report 2010

Jan 30, 2011

MINING EXPLORATION ENTITY QUARTERLY REPORT

APPENDIX 5B

Name of entity:

IMAGE RESOURCES NL ABN: Quarter ended (“current quarter”) 57 063 977 579 31/12/2010 Consolidated statement of cash flows Current quarter $AUD’000 Year to date (6 months) $AUD’000 Cash flows related to operating activities 1.1 Receipts from product sales, related debtors, GST Credits 38 143 1.2 Payments for: (a) exploration and evaluation (284) (774) (b) development (c) production (d) administration (220) (572) 1.3 Dividends received 1.4 Interest and other items of a similar nature received 86 108 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 (380) (1,095)	IMAGE RESOURCES NL	IMAGE RESOURCES NL	IMAGE RESOURCES NL	IMAGE RESOURCES NL
			Quarter ended (“current quarter”)
			31/12/2010
		Current quarter $AUD’000		Year to date (6 months) $AUD’000
		38 (284) (220) 86		143 (774) (572) 108
		(380)		(1,095)
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 advanced by/repaid to other entities 1.12 Other (Loan repayments to associated company) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		(32) (98) (3) 1		(74) (310) (7) 466 1
		(132)		76
		(512)		(1,019)

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1.13 Total operating and investing cash flows (brought forward)	(512)	(1,019)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, 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) – Share issue expenses Net financing cash flows	1,306 (68)	1,306 (68)
	1,238	1,238
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	726 3,542	219 4,049
	4,268	4,268

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 Aggregate amount of payments to the parties included in item 1.2 1.24 Aggregate amount of loans to the parties included in item 1.10	Current quarter $AUD'000
	88
1.25 Explanation necessary for an understanding of the transactions

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

4.1 Exploration and evaluation 4.2 Development 4.3 Administration	$AUD’000
	400
	180
Total	580

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 Deposits	73	93
	4,195	3,449
Total: cash at end of quarter(item 1.22)	4,268	3,542

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 of quarter	Interest at end of quarter
	E70/3417	Relinquished	100%	0%
	E70/3997 E70/3999 E70/4000 E70/4001 E70/4002 E69/2434 E70/3720 E70/3893 E70/3966 P70/1595	Application Application Application Application Application Granted Granted Granted Granted Granted	0% 0% 0% 0% 0% 100% 100% 100% 100% 100%	100% 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
7.3 Ordinary securities Fully paid 7.4 Issued during quarter
	89,588,959	89,588,959
	3,125,000 150,000	3,125,000 150,000	$0.40 $0.37	$0.40 $0.37
7.5 Convertible debt securities 7.6 Issued during quarter	N/A
7.7 Options 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter Director Options Employee Options			Exerciseprice	Expiry date
	2,500,000	NotQuoted	$1.80	16.11.2011
	2,500,000	NotQuoted	$1.50	19.11.2011
	2,200,000	NotQuoted	$2.12	20.11.2012
	2,345,000	NotQuoted	$1.12	18.12.2014
	Nil
	150,000	Not Quoted	$0.37	21.11.2010
	1,850,000 1,000,000	Not Quoted NotQuoted	$0.37 $2.38	21.11.2010 26.3.2012
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.

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Rudolf Tieleman

Company Secretary Date: 31 January 2011

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