IMAGE RESOURCES NL — Investor Presentation 2012

Aug 12, 2012

IMAGE RESOURCES NL ASX : IMA

PROGRESSING TOWARDS HEAVY MINERALS SANDS PRODUCTION

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AUGUST 2012

COMPETENT PERSON AND FORWARD LOOKING STATEMENT

COMPETENT PERSON’S STATEMENT – EXPLORATION RESULTS

The information in this presentation 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 presentation.

COMPETENT PERSON’S STATEMENT – RESOURCE ESTIMATES

The information in this presentation that relates to mineral resources is based on information compiled by Lynn Widenbar BSc, MSc, DIC MAusIMM employed by Widenbar & Associates who is a consultant to the Company. Lynn Widenbar 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 of Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Lynn Widenbar consents to the inclusion of this information in the form and context in which it appears in this presentation.

COMPETENT PERSON’S STATEMENT – PROJECT EVALUATION

The information in this presentation that relates to project evaluation is based on information compiled by Peter Davies BSc Eng (Hons) ARSM, C.Eng. MIMMM, FAusIMM FRSA, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Peter Davies is Managing Director/Project Manager of Image Resources NL. Peter Davies 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’. Peter Davies consents to the inclusion of this information in the form and context in which it appears in this report.

FORWARD LOOKING AND EXPLORATION TARGET STATEMENTS

Some statements in this presentation regarding estimates or future events are forward looking-statements. They involve risk and uncertainties that could cause actual results to differ from estimated results. Forward-looking statements include, but are not limited to, statements concerning the Company’s exploration programme, outlook, target sizes and mineralisation estimates. They include statements preceded by words such as “expected”, “planned”, “target”, “scheduled”, “intends”, “prospective”, “potential” and similar expressions.

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IMAGE HAS THE VISION OF BECOMING A MAJOR GLOBAL PRODUCER OF HIGH QUALITY ILMENITE AND ZIRCON

Image has a number of competitive advantages:

• World class assets and location

• A all of whom have very strong management/project team,

• extensive mineral sands experience

• A clear path to production

• focussed for on

• Specifically many years identifying high grade mineral sands resources in the North Perth Basin.

• Proven exploration expertise and at extremely low costs relative to others in the industry

• Strongly leveraged to the sector due to low capital cost of entry

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HIGH RANKING LOW RISK NEW PRODUCER

• Ready to go from explorer to mid-sized producer

• – –

• Robust project economics low cost of entry low risk

• Feasibility study has commenced. Due for completion by mid 2013

• Competent and credible management team

• First production from Boonanarring scheduled for 2014 .

• World Class Location in Western Australia

• Close to transport, infrastructure and experienced workforce

• to Tiwest and Iluka

• Adjacent company making operations

• High quality resource

• Heavy mineral sands deposits with good grades, processing characteristics and product quality with low U+Th levels

 Leveraging competitive advantage to become a globally significant producer

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WORLD CLASS LOCATION

Advantages of the North Perth Basin:

• resources

• High grade

• Low U+Th coarse grain Ilmenites and good quality Zircon products

• Majority of resources are on cleared freehold farm land

• Multi-user ports nearby with established road and rail access

• and infrastructure

• Existing power gas nearby

• Proximity to existing Mineral Separation and SR plants and pool of experienced potential employees

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North Perth Basin is a world class location for a new Mineral Sands operation

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EXTENSIVE TENEMENT HOLDINGS

North Perth Basin Project Resources

• Atlas and Atlas South (part MLA)

• Hyperion

• Helene

• Red Gully (existing ML)

• Boonanarring (existing ML part)

• Gingin North (existing ML)

• Gingin South (existing ML part)

• Longer Term Projects

• Cooljarloo

• Bidaminna

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These tenements have high potential for further exploration discoveries

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NPB RESOURCES AND EXPLORATION TARGETS

		Current Resources and Exploration	Current Resources and Exploration	Current Resources and Exploration	Total
		Atlas + Atlas South	Boonanarring + Gingin North	Other NPB
Scoping Study Resource	Mt	10.7	5.5	29.3	45.5
Resources/ Exploration Targets	Mt	12.0	28.7	22.6	63.3
					Average
HM %	%	8.1	7.8	6.8	7.5
Zircon % in HM	%	11.0	11.1	9.6	10.5
Operating Margin	$/t	23.3	10.5	10.2	12.8

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NPB – BOONANARRING

• Scoping Study resource over 1.5km strike length of 3.1Mt @ 7.2%HM containing 221Kt HM , all Measured

• Potential mineralisation over 12.5km potential strike length >25Mt

• Consistent high HM and Zircon grades and extensive strike length being confirmed by the current extension drilling programme.

• New JORC Resource statement on the northern section due in September

• Existing Mining Lease over part of the resource

• Land access negotiations and environmental studies in progress.

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Potential target for early start-up on high grade mineralisation

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BOONANARRING 9/8/2012

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CLEARED FARMLAND

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Boonanarring is cleared Freehold farmland

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NPB - ATLAS

• Total resource of 10.7Mt @ 7.8%HM containing 0.84Mt HM , comprising

• 9.7Mt @ 8.5%HM (Measured) 1.1Mt @ 3.2%HM (Indicated)

• High value mineral assemblage; 53.4% Ilmenite, 5.3% Leucoxene, 7.8% Rutile, 10.6% Zircon

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Shallow, high grade, “jewel in the crown”

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PATH TO PRODUCTION – SCOPING STUDY UPDATE

• First production scheduled for mid 2014

• 3.3Mtpa multi-pit operation over initial 12 year mine life

• Staged development with initial production of HMC at Boonanarring for sale or toll treatment

• Subsequent Dry Mill construction to produce finished remains an

• products option under continuing review

• Resource base would support additional parallel mine and wet plant operations and increased production rates

Mine and Wet Plant capital payback within first 3 years of operation

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ISSUES – TECHNICAL

Current Focus:

• Resource upgrades at Boonanarring

• Wet plant process testwork

• Obtain product samples for testing by customers

• Land access and environmental approvals

• Finance options for the completion of the feasibility study and project development

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FINANCE OPTIONS

Alternatives include:

• Equity

• level Joint Ventures on term

• Project longer resources

• Project funding from downstream customers

• – –

• Build Own Operate (“BOO”) arrangements

• Sales of non-core assets

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FEASIBILITY TIME CHART

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KEY PROJECT TEAM MEMBERS

Managing Director/Project Manager: Peter Davies Exploration Manager: Paul Leandri

Resource Modelling and Estimation: Lynn Widenbar (Widenbar and Associates)

Mining Engineering: Stephen Miller (Red Rock Engineering) and Per Scrimshaw (Creative Mined)

Process Flowsheet Design: Eugene Dardengo and Steve Benson (Allmineral)

Engineering Management: Maurice Ibbotson Engineering Design and Cost Estimation: MSP Engineering Marketing: TBA

Environmental Approvals: Jackie Boyer ( JASS) and Felicity Donaldson (360 Environmental)

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THE TEAM

Peter Davies – Image Managing Director/Project Manager

Peter Davies, appointed as Managing Director in May 2012, is a mining engineer with 39 years of global experience in project evaluation and management of mining, chemicals and mineral sands operations. He graduated from the Royal School of Mines, London and holds First Class Certificates of Competency for coal mines (UK) and metal mines (Queensland). After early experience in British coal mines and as Mine Captain at Ashanti Goldfields, Peter was engaged for 10 years in international project evaluation and project management roles with Billiton International Metals/Shell Metals. Between 1990 and 1995 he was the senior mining professional at Dominion Mining and Delta Gold.

From 1995 to 2000 he was Manager/General Manager of the Tiwest Chandala minerals sands and Synthetic Rutile processing facilities north of Perth. In 2000 he was transferred by KerrMcGee Chemicals (later Tronox) to manage the TiO2 pigment plant at Antwerp and from 2001 to 2006 was Director of European Operations, in charge of the pigment plants at Uerdingen (Germany), and Botlek (The Netherlands).

Since 2006 he has been an independent consultant and was a Director of CSA Global. Mr Davies is an Associate of the Royal School of Mines, a Chartered Engineer in UK, Member of IMMM and Fellow of AusIMM.

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CLEAR VISION AND STRATEGY

Image has several competitive advantages:

• World class assets and location

• A all of whom have very strong management/project team,

• extensive minerals sands experience

• A clear path to production

• focussed for on

• Specifically many years identifying high grade mineral sands resources in the North Perth Basin.

• Proven exploration expertise and at extremely low costs relative to others in the industry

• Strongly leveraged to the sector due to low capital cost of entry.

Image has the Vision of becoming a major global producer of high quality Ilmenite and Zircon

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THE TEAM

Paul Leandri – Image Exploration Manager

Over 25 years experience in mining and exploration geology, including 8 years working for RGC Mineral Sands consisting of 5 years mine planning at Capel operations and 3 years exploration around Eneabba and the Murray Basin. Past 12 years working on mine planning, development and exploration projects for various mineral sands companies, including 6 years on the Coburn Mineral Sands project and 1.5 years in Project Generation for Iluka Resources. Joined Image as Exploration Manager in August 2010.

Lynn Widenbar – Widenbar and Associates

Consultant resource geologist with over 40 years experience in the exploration, evaluation and mining of mineral resources in Australia, Asia, Africa, North, Central and South America and Europe; this includes more than 10 years involvement in resource estimation mineral sands, mainly in Western Australia, for companies such as Image Resources, Magnetic Minerals and Diatreme Resources.

Stephen Miller – Red Rock Engineering

With 20 years of mining engineering experience in operations (including 3 years as Mid West Mining Manager for Iluka) and 7 years in project development, Stephen has the right balance of skills and experience to be able to work across technical boundaries in order to optimise the full span from resources to final product.

Per Scrimshaw – Creative Mined

Consultant mining engineer with 14 years experience in technical support for mining operations within Australia and abroad. Over 10 Years of this has been servicing Mineral Sands clients in the key areas of optimisation, design, scheduling and economic evaluation. Supported operations have included North Capel Extended, Stratham West, Gingin, Cataby, Eneabba South Mine, Dardanup / Burekup, Kwale.

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THE TEAM

Eugene Dardengo – Processing Manager

Eugene is an accomplished Metallurgist and Operations Manager with over 27 years’ experience in the Australian mining and mineral industry. Eugene has held a number of other diverse roles and was held accountable for Logistics Services, Technical Support Services and Safety, Health and Environment Advice for Tiwest Northern Operations. Has worked as a Metallurgist, with Hamersley Iron (Rio), and Allied Mineral Laboratories and the Readings Group of Companies, and has had exposure to the planning, prioritising and implementation of various metallurgical test work programs for iron ore projects and a wide range of industrial minerals.

Steve Benson – Allmineral

Over 33 years experience in Mineral Sands at Allied Eneabba (RGC) and Tiwest Chandala and Cooljarloo operations. Steve has worked at all levels in Wet Plant and Dry Mill operations up to Plant Manager and has provided technical support both as an in house specialist and as a specialist with equipment suppliers. He has strong knowledge of and experience in physical separation techniques and some unique skills in the assessment of heavy minerals mineralogy.

Maurice Ibbotson – Engineering Manager

Over 47 years experience in the global mining, steelmaking and mineral processing industries. This includes 15 years in mineral sands processing, 5 years as Engineering Superintendent at Tiwest (Chandala), 6 years as Project Manager at Iluka Resources (Capel, Narngulu) and 4 years as Major Project Management Consultant for Kerr McGee/Tronox (Germany, Netherlands).

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THE TEAM

Peter McSweeney - MSP Engineering

Peter has over 25 years experience in delivering industrial minerals projects throughout Australia and overseas. He has been the Managing Director of MSP Engineering for the past 16 years and during this period the company has delivered over $AUD 500M in capital projects including:

• –

• ISK Mineral Sands Wet and dry mineral sands processing facility at Waroona and Picton WA

• –

• MBT (now Bemax) MBT wet and dry mineral sands processing facility in the Murray Basin

• Bemax – Relocation of the Jangardup wet plant floating concentrator to Murray Basin

• –

• Rocla Design and construction of their 1.6mtpa high purity silica sands plant in South Australia

• – – Sons of Gwalia / GAM Numerous expansions of the Wodgina and Greenbushes tantalum gravity/grind concentrators valued in excess of $200M.

Jackie Boyer – JASS (Aust) Pty Ltd

Jackie has over 27 years’ experience in statutory approvals management, environmental impact assessment, environmental planning, environmental management and environmental policy matters. Her experience has been gained working with a wide range of interests from State and local government, construction, industry and academic institutions to landowners, community groups and the general public.

- Felicity Donaldson 360 Environmental Ten years of experience in the resources sector undertaking baseline environmental studies, impact assessments and State/ Federal approvals under environmental and mining legislation. Recent mining projects have included iron ore, gold and uranium.

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CORPORATE SUMMARY

Free Cash

$2.1M(at 10/08/2012)

Capital Structure Board and Management Market Cap $31M Peter Thomas Chairman Managing Director/ Peter Davies Shares 106M Project Manager Options 10.7M George Sakalidis Executive Director (held by Directors. All Paul Leandri Exploration Manager At above current share price)

Major Shareholders Top 20 51%

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