IMAGE RESOURCES NL — Capital/Financing Update 2012

Apr 9, 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 info@imageres.com.au www.imageres.com.au

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ABN 57 063 977 579

ASX Release 10 April 2012

ASX code: IMA

BOONANARRING FAST TRACK

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At the time of the Scoping Study (IMA ASX release 25 August 2011) insufficient drilling had been undertaken to justify Boonanarring being included in the study. However, further to the announcement of encouraging exploration results from Boonanarring (IMA ASX release 22 March 2012), Image will immediately commence technical and environmental studies to evaluate the possibility of also fast tracking the development or this high grade, high zircon-content mineralisation in parallel with the planned development of the Atlas deposit west of Badgingarra, which is currently subject to a Feasibility Study.

Image holds a granted mining lease on the Boonanarring resource. Subject to the necessary environmental approvals and land access agreements being obtained it is anticipated that Image could be producing heavy minerals concentrate for sale by mid 2014, ahead of commissioning of the planned mineral separation plant (dry mill) and production of finished ilmenite, rutile and zircon products.

The fast tracking of the Boonanarring deposit, with its high grade, high zircon-content mineralisation, would position Image to take greater advantage of the current strong market for both titanium feedstock and zircon products and would generate positive cash flow for the company earlier than indicated by the Scoping Study. With a strong technical team already in place for the Atlas Feasibility Study, Image is well placed to progress the necessary studies for this additional short lead time project.

Drilling at Boonanarring is continuing and there are indications of extensions to the identified high grade zones. The Boonanarring target is large (12.5 km) as indicated by drilling and geophysical work undertaken by Image.

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 by George Sakalidis BSc (Hons), who is a member of the Australasian Institute of Mining and Metallurgy. George Sakalidis is a Director of Image Resources NL. George Sakalidis 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’. George Sakalidis consents to the inclusion of this information in the form and context in which it appears in this report.