IMAGE RESOURCES NL - Regulatory Filings 2012

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

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ASX Release 18 April 2012

ASX code: IMA

ABN 57 063 977 579

RED GULLY RESOURCE CONFIRMED

HIGHLIGHTS

High grade core to Red Gully deposit confirmed with a best intersection of 17m at 12.7%HM from 10m (2.5% HM cut-off).
Deposit grades and thicknesses increasing to the south.
Good correlation with previous drilling.
Attractive zircon content indicated by visual inspection.

In 2011 Image acquired a 100% interest in the Red Gully mining lease (M70/1192) from Iluka Resources (ASX Release 9 March 2011). The identified resource extends over 8km in length making it one of Image’s longest heavy mineral (HM) deposits. Based on Iluka’s drilling it contains a combined resource of 6.0Mt @ 7.7%HM containing 459,000t of HM , comprised of:

Indicated Resource: 2.6Mt @ 7.5%HM (north area)
Inferred Resource: 3.4Mt @ 7.8%HM (south area)

In the subsequent Scoping Study (ASX Release 25 August 2011) Red Gully was identified as a priority deposit and consequently Image initiated a drill program to increase the drill density on the accessible northern half of the deposit (Indicated Resource) to 200m x 20m and compare the Image drilling results to the Iluka results. This drilling program was completed in December 2011 with 179 holes totalling 6,431m.

All of the HM results from the drilling program have now been received, enabling Image to determine the significance of the infill drilling. Intersections over 5%HM and 3m thickness are summarised in Table 1, with all intersections greater than 2.5%HM and 3m thickness shown in Table 2. The best intersection is 17m at 12.7%HM from 10m depth, using a 2.5% cut-off and minimum 3m thickness. Figure 1 shows the drilling results coloured by HM% x thickness (HM%m) and a typical section shown in Figure 2.

The drilling confirms that the deposit extends over the northern half of the granted mining lease with the best grades and thicknesses in the southern 2.5km. The deposit consists of two parallel strands as shown on Figure 1. To the north the eastern strand narrows, but continues to the northern end of the tenement. Mineralisation on three lines was left open due to seasonal agricultural restrictions and is now being delineated by further drilling.

In general the Image HM results correspond well to the Iluka results with only minor variations. Visual examination of the drill sample HM concentrate estimated zircon contents between 1 and 40% of HM, averaging 11%, which correlates well with the 12.4% zircon in the current resource estimate based on Iluka’s mineralogy data. Image will confirm these observations with its own assemblage studies in the coming months. This data will be used to update the Indicated Resource estimate and add confidence to the mining studies being undertaken as part of the North Perth Basin Feasibility Study.

Image has just completed a detailed magnetic survey over the Inferred Resource in the southern half of the tenement where previous drilling indicated that the mineralisation tenor increases. Once the magnetic data has been interpreted, the company intends to negotiate drilling access and infill drill this Inferred Resource upgrading it to Indicated status. It is anticipated that the tonnage and grade of this shallow resource will be confirmed by the proposed infill drilling.

Table 1

Red Gully Significant Intersections 5%HM cut-off, >=3m

Hole Number	Depth From (m)	Depth To(m)	Thickness (m)	HM (%)	Slimes (%)
RG063 including	10.0	27.0	17.0	12.7	16.2
	14.0	27.0	13.0	15.4	13.1
RG058 including	9.0	27.0	18.0	9.6	16.9
	11.0	25.0	14.0	11.2	16.4
RG103 including	14.0	23.0	9.0	16.1	10.4
	15.0	22.0	7.0	19.8	10.1
RG125 including	14.0	24.0	10.0	13.6	11.3
	14.0	23.0	9.0	14.7	11.7
RG088 including	13.0	25.0	12.0	12.1	12.8
	16.0	23.0	7.0	18.5	11.4
RG113 including	16.0	23.0	7.0	19.0	9.6
	16.0	22.0	6.0	21.4	9.7
RG064 including	12.0	28.0	16.0	9.5	13.6
	16.0	25.0	9.0	13.9	11.6
RG062 including	14.0	26.0	12.0	8.7	13.0
	18.0	26.0	8.0	11.5	10.9
RG054 including	15.0	25.0	10.0	9.3	12.8
	16.0	24.0	8.0	10.8	12.3
RG152 including	20.0	25.0	5.0	16.8	7.8
	21.0	25.0	4.0	20.3	7.5

HM determined by TBE heavy liquid separation nominal 2.96 SG Slimes is fraction less than 63 microns

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.