IMAGE RESOURCES NL — Capital/Financing Update 2012

Mar 21, 2012

ABN 57 063 977 579

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

ASX Release 22 March 2012

ASX code: IMA

IMAGE ACQUIRES 100% OF ZIRCON-RICH BOONANARRING EXTENSIONS IN WA

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• Image has acquired a 100% interest in the exploration licence covering strike extensions of the 100%-owned Boonanarring deposit.

• Results from recently completed drilling on the northern extension of Boonanarring are very encouraging, with a best intersection of 7m at 26.0% HM (2.5% HM cut-off) containing 33% zircon from 36m.

• Boonanarring and its extensions have potential to add significant value to the North Perth Basin project, currently under feasibility study.

• The Company continues to build a strong Heavy Minerals (HM) position near in place infrastructure.

Image Resources (ASX: IMA ) is pleased to report that drilling 3.6km to the north of its Boonanarring deposit has identified zircon-rich mineralisation over a 2.2km strike length, interpreted to be a possible extension of the Boonanarring deposit, approximately 110km north of Perth in Western Australia. (IMA ASX Release 8 December 2011).

Image has earned a 70% interest in exploration licence E70/3041 which covers the Boonanarring extensions near Regans Ford from Kingsreef Pty Ltd by expenditure and cash payments totalling $300,000, and has reached agreement with Kingsreef to purchase the remaining 30% interest in the tenement for a consideration of 1 million fully paid Image shares.

Drilling Update

Intersections over 5%HM from the latest program are summarised in Table 1, with all intersections greater than 2.5%HM, attached in Appendix 1. Figure 1 shows the drilling results coloured by HM% x thickness (HMm%). Two typical cross sections are shown in Figures 2 and 3. Further sampling is being carried out to assess the potential for low grade HM in the overburden to the mineralised horizons.

All HM samples >2.0% were examined and the mineral content visually estimated. Approximately one third of the samples were estimated to have zircon contents ranging from 15% to 50% of the HM suite, which combined with high HM grades results in unusually high in-ground zircon grades, reminiscent of the high zircon strands at Eneabba. These results confirm that the high zircon grades observed at the Boonanarring deposit can be expected to extend into the northern extension.

The visually estimated in-ground zircon grades calculated from the results shown in Appendix 1 (2.5%HM cut-off) range from 0.2% to 11.7% and average approximately 2.3%. This zircon grade compares favourably with the average in-ground zircon grade of about 3.2% at the high-grade Jacinth-Ambrosia deposits and about 0.8% at the lower grade Cyclone deposit in the Eucla Basin. Whilst further mineral assemblage studies and drilling are required to confirm the zircon grade at Boonanarring and its extensions, these early results are considered to be most encouraging. Image will be targeting the zircon-enhanced eastern side of the Boonanarring trend in its ongoing exploration.

Significant Upside

Image’s Board and Management believe the acquisition of the Regans Ford tenement is of significant strategic value to the Company because of its location surrounding the Boonanarring HM resource on Image’s wholly owned Mining Lease (M70/1194). Zircon values in M70/1194 average 15% of the HM suite, with concentrations up to 70% of the HM suite in some areas (IMA ASX release 15 September 2011).

As previously announced, Image has identified potential strike extensions to the Boonanarring deposit of up to 7.7km to the north and 2.3km to the south, giving a potential overall strike extent of 12.5km. Importantly, these extensions all fall within the recently acquired Regans Ford tenement.

Further drilling has been carried out on the southern strike extension of the Boonanarring resource with laboratory processing of drill samples in progress. In addition, negotiations to gain exploration access to the 3.6km strike extension immediately north of Boonanarring are continuing.

Table 1 Boonanarring North HM intersections 5% HM cut-off

Hole ID	Northing	Easting	From (m)	To (m)	Thick (m)	HM (%)	Slimes (%)	Zircon (Est. % of HM)
GG773*	6549530	386907	26	31	5	12.7	12.4	19
GG774*	6549551	386937	29	38	9	17.2	29.3	48
GG783*	6549717	386822	26	33	7	7.8	6.8	6
GG816	6550438	386484	31	35	4	15.1	11.5	26
GG860	6550984	386229	36	41	5	35.3	14.5	37
GG866	6550806	386315	33	39	6	23.4	13.2	50
GG873	6550976	386212	30	35	5	25.8	9.3	14
GG876	6550796	386299	30	35	5	8.5	12.3	15
GG908	6549540	386922	31	35	4	12.0	18.1	36
GG911	6549899	386735	24	30	6	12.5	16.5	9
GG916	6549904	386755	35	39	4	36.8	12.4	51
GG917	6549891	386719	28	31	3	14.2	16.2	2

Notes:

1. • Results previously reported December 2011

2. HM determined by TBE separation at 2.96 SG and expressed as % of total (in-ground) sample

3. Zircon content visually estimated from HM sinks

4. Slimes determined as fraction passing 63 micron

5. Intersections > 30% slimes excluded

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While the Boonanarring resource is not currently included in the feasibility study being carried out on the North Perth Basin HM project, Image is most encouraged by these results which continue to demonstrate that Boonanarring and its recently acquired extensions have the potential to add significant value to the North Perth Basin project.

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Figure 1 Boonanarring Drilling Locations

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Figure 2 Boonanarring North Drill Section (Line 4)

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Figure 3

Boonanarring North Drill Section (Line 8)

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 reviewed 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.

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Appendix 1

Boonanarring North Drill Intersections 2.5% HM cut-off, minimum 3m thickness

Hole ID	Northing	Easting	From (m)	To (m)	Thick (m)	HM (%)	Slimes (%)	Zircon (Est. % HM)
GG773	6549530	386907	25	39	14	10.4	16.6	22
GG774	6549551	386937	29	38	9	17.2	29.3	48
GG783	6549717	386822	26	33	7	7.8	6.8	6
GG787	6549631	386641	23	31	8	5.9	11.4	8
GG788	6549613	386608	26	30	4	8.9	7.8	7
GG789	6549600	386571	27	30	3	8.3	7.6	12
GG799	6550010	386509	25	29	4	5.0	9.6	16
GG801	6550062	386615	26	35	9	5.9	12.7	6
GG801	6550062	386615	36	39	3	4.5	17.5	18
GG810	6550338	386268	18	24	6	4.4	17.8	6
GG812	6550369	386340	23	26	3	5.7	22.0	18
GG815	6550422	386452	24	36	12	7.6	15.8	14
GG816	6550438	386484	31	35	4	15.1	11.5	26
GG827	6550702	386098	23	28	5	4.3	10.2	9
GG832	6550768	386241	22	26	4	6.9	19.8	11
GG838	6550897	386052	23	30	7	4.9	13.8	17
GG841	6550950	386156	23	26	3	9.0	18.2	2
GG847	6551031	385898	29	32	3	8.0	17.3	6
GG848	6551022	385883	29	32	3	6.6	16.1	6
GG855	6551146	386106	31	35	4	4.8	18.9	6
GG860	6550984	386229	36	43	7	26.0	20.7	33
GG865	6550787	386282	28	32	4	3.3	14.4	11
GG865	6550787	386282	33	38	5	9.1	14.5	28
GG866	6550806	386315	33	40	7	20.6	13.8	50
GG872	6550814	386332	35	38	3	27.9	36.2	42
GG873	6550976	386212	30	35	5	25.8	9.3	14
GG874	6550992	386248	36	42	6	21.9	36.9	46
GG876	6550796	386299	30	38	8	6.8	13.2	9
GG878	6550777	386257	41	44	3	4.5	6.8	27
GG882	6549284	386848	24	30	6	6.2	7.4	18
GG883	6549301	386884	28	31	3	14.3	9.9	28
GG893	6549293	386866	27	31	4	9.7	11.7	33
GG898	6549800	386518	18	22	4	4.1	18.5	6
GG898	6549800	386518	25	29	4	7.7	9.3	10
GG899	6549813	386558	19	31	12	5.3	14.4	14
GG900	6549828	386593	28	31	3	2.6	7.9	35
GG903	6549789	386500	24	28	4	4.6	12.4	9
GG904	6549808	386535	18	22	4	4.6	17.7	5
GG906	6549836	386611	22	31	9	5.1	15.0	21
GG907	6549524	386888	26	32	6	9.5	11.6	8
GG908	6549540	386922	27	30	3	10.6	19.7	13
GG908	6549540	386922	31	38	7	9.1	21.0	6

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Hole ID	Northing	Easting	From (m)	To (m)	Thick (m)	HM (%)	Slimes (%)	Zircon (Est. % HM)
GG910	6549881	386701	28	31	3	3.4	15.8	32
GG911	6549899	386735	24	39	15	8.8	14.4	6
GG912	6549913	386772	35	38	3	11.8	27.4	21
GG916	6549904	386755	31	39	8	21.8	19.2	53
GG917	6549891	386719	28	31	3	14.2	16.2	33
GG917	6549891	386719	33	37	4	6.5	13.4	2

Notes:

1. Holes GG773 to GG855 previously reported Dec 2011

2. HM determined by TBE separation at 2.96 SG and expressed as % of total (in-ground) sample

3. Zircon content visually estimated from HM sinks

4. Slimes determined as fraction passing 63 micron

5. Intersections > 30% slimes excluded

6. Intersections with estimates of >30% iron-oxides in mineral excluded

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