IMAGE RESOURCES NL — Capital/Financing Update 2012

Jan 10, 2012

ASX Release 11 January 2012

ASX code: IMA

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

ABN 57 063 977 579

ATLAS SOUTH DRILLING IMMINENT

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HIGHLIGHTS

• Permits granted for drilling of extensions to the Atlas and Boonanarring HM resources.

• Atlas South drilling to start next week

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• Significant value adding potential

Image has received approvals for drilling programmes to test the highly prospective southern extensions of the Atlas and Boonanarring heavy mineral (HM) deposits.

Preparations are underway to begin drilling of the 3km southern extension of the Atlas deposit identified by magnetic mapping, as shown Figure 1. This aircore drilling programme, scheduled to commence in the next week, has potential to add significant tonnage to the Atlas Measured and Indicated Resource. Based on Image’s scoping study results, Atlas is the highest value resource within the North Perth Basin project with a projected payback of project capital within 13 to 16 months from the start of operations (see Image ASX Release 19 December 2011). The drilling is targeting high grade extensions of the Atlas deposit, the southern end of which contains elevated grades and zircon contents up to 20% of the heavy mineral suite. The programme is expected to take approximately two weeks to complete after which the drill rig will move to Boonanarring.

The Boonanarring South target is a 2.3km extension to the Boonanarring Measured Resource situated on farmland that was previously inaccessible due to the presence of a pine plantation. Figure 2 shows the location of the target area along strike from the high grade mineralisation which is open both to the east and south. The drilling will take approximately five weeks to complete. The Boonanarring resource, which has not yet been included in the North Perth Basin scoping study, forms part of a 12.5km-long target zone of which 5.5km still remains to be drilled to the north of the resource.

These drilling programmes have potential to add significant value to Image’s North Perth Basin project.

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Figure 1 Atlas South Proposed Drilling

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Figure 2 Boonanarring South Extension Zircon Grade (left), HM Grade (right)

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.

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