IMAGE RESOURCES NL — Regulatory Filings 2018

Sep 17, 2018

18 September 2018

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20 METRE SHALLOW GOLD INTERSECTION AT IMAGE RESOURCES’ ERAYINIA PROSPECT

Highlights

• Encouraging initial results from EYRC01 20m @ 0.7g/t Au from 40m, Including 4m @ 1.2g/t Au from 48m and 4m @ 1.0g/t Au from 56m

• 7km untested strike northwest of drillhole EYRC01. Follow-up 60 AC holes planned to map out gold enhanced supergene zone prior to deeper RC drilling

• At least 16 separate other enhanced gold enriched supergene zones identified for follow-up with deeper RC drilling

Erayinia gold drilling

Image Resources is pleased to announce encouraging results from its first-pass drilling of 6 reverse circulation (RC) drill holes totalling 650 metres at Image’s 100%-owned Erayinia prospect (E28/1845 and E28/2742 totalling 106.7 sq. km), located 130km ESE of Kalgoorlie and numerous other operating gold mines (Fig.1) The drill programme has been successful in identifying strike continuity of the King mineralisation (historically drilled by WMC in 199899 and Integra 2003-07*), which starts 350 metres to the south.

Image Resources’ drilling (Figs.2, 3 and 4) show a number of gold mineralised zones within the first 3 southern RC holes (EYRC001, 2 and 3). The best intersection is 20m at 0.7g/t Au from 40m (Table 1 and Table 2) within a sheared, bleached and silicified mafic unit. The mineralisation is interpreted to occur as west dipping stacked pyrite, quartz, and carbonate lodes within a package of Archaean mafic and sedimentary rocks.

A seven km strike length to the north of the King mineralisation remains virtually untested with only 3 deep RC holes (EYRC004, 5 and 6) completed 400m to the north by Image Resources, which intersected siliceous metasediments. Hole EYRC05 intersected a 16m zone of semi-massive sulphides from 47m in a brecciated cherty quartzite, however preliminary analyses are low and are being checked by a more rigorous fire assay method. This area shows a complex sigmoidal-shaped magnetic feature, interpreted to be a dolerite. Further air-core (AC) drilling is proposed to outline the extent of the mineralisation prior to deeper RC drilling.

Image Resources NL ABN 57 063 977 579 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312 www.imageres.com.au

Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872

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Future work will include 60 AC drill holes spaced 50m on 200m spaced lines and to a depth of 40m, to help identify and map the anomalous Au within the clay/bedrock interface where the supergene gold is present, prior to deeper RC drilling. The King mineralisation to the south is similar in style and all the RC drilling was sited on a supergene enhanced layer that was first identified by shallow AC drilling.

Further work is required elsewhere on the tenements to follow up on very encouraging positive results from shallow drilling and in some cases deeper RC. There are 16 anomalous Au zones identified mainly from previous AC drilling that will require follow up to ascertain potential Au extensions. These targets vary from 100ppb to 2860ppb (2.86g/t Au) as shown in Table 3.

Notwithstanding these encouraging early gold results at Erayinia, Image remains primarily focussed on exploration activities aimed at adding to the mineral sands mineral resources and ore reserves to increase the overall life-of-mine around the Boonanarring and Atlas Deposits. Plans include a further 119 drill holes totalling 2,872 metres to be drilled in October 2018. Other mineral sands related activities include plans for botanical surveys and drilling 23 holes totalling 900 metres at Bidaminna and Woolka, which are Image’s leading potential upside projects.

Notes: * WAMEX Open File Report A61649 – WMC Annual Technical Report for the Karonie Project October 2000. * WAMEX Open File Report A79824 – Integra Surrender Report for the Aldiss Project October 2008.

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Figure 1 Location of Erayinia and operating gold mines in the Kalgoorlie region.

Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312 www.imageres.com.au

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Figure 2. Ground Magnetics merged with Aeromagnetic Image with current RC drilling and historical AC and RC holes.

Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312 www.imageres.com.au

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Figure 3. Ground Magnetics merged with Aeromagnetic Image with current RC drilling and historical AC and RC holes.

Image Resources NL ABN 57 063 977 579 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312 www.imageres.com.au

Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872

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Table 1. RC Drillhole Locations

Table 1. RC Drillhole Locations	Table 1. RC Drillhole Locations	Table 1. RC Drillhole Locations	Table 1. RC Drillhole Locations	Table 1. RC Drillhole Locations	Table 1. RC Drillhole Locations
Hole ID Easting Northing Depth(m) Dip Azimuth MGAz51 MGAz51 Metres Degrees Degrees
EYRC01	471965	6526902	120	-58	98
EYRC02	471880	6526907	120	-60	94
EYRC03	471799	6526904	120	-60	96
EYRC04	471743	6527301	109	-60	88
EYRC05	471658	6527309	99	-60	94
EYRC06	471831	6527305	57	-60	94

Table 2. RC Drilling Assays > 0.2g/t Gold

Table 2. RC Drilling Assays >0.2g/t Gold	Table 2. RC Drilling Assays >0.2g/t Gold	Table 2. RC Drilling Assays >0.2g/t Gold	Table 2. RC Drilling Assays >0.2g/t Gold	Table 2. RC Drilling Assays >0.2g/t Gold
Hole ID From To Width Gold Metres Metres Metres ppm
EYRC01	40	44	4	0.694
EYRC01	44	48	4	0.398
EYRC01	48	52	4	1.152
EYRC01	56	60	4	1.04
EYRC01	76	80	4	0.203
EYRC02	68	72	4	0.567
EYRC02	104	108	4	0.43
EYRC02	112	116	4	0.541
EYRC03	92	96	4	0.633
EYRC03	96	100	4	0.338

Table 3. Follow up – Untested with Deep Drilling Anomalous Gold Intercepts

Table 3. Follow up –Untested with Deep Drilling Anomalous Gold Intercepts	Table 3. Follow up –Untested with Deep Drilling Anomalous Gold Intercepts	Table 3. Follow up –Untested with Deep Drilling Anomalous Gold Intercepts	Table 3. Follow up –Untested with Deep Drilling Anomalous Gold Intercepts	Table 3. Follow up –Untested with Deep Drilling Anomalous Gold Intercepts	Table 3. Follow up –Untested with Deep Drilling Anomalous Gold Intercepts	Table 3. Follow up –Untested with Deep Drilling Anomalous Gold Intercepts	Table 3. Follow up –Untested with Deep Drilling Anomalous Gold Intercepts
Hole ID Hole Type EOH Depth Easting Northing From To Max Gold Metres MGAz51 MGAz51 Metres Metres ppm
SISC1466	AC	56	468844	6540483	55	56	0.13
SISC1483	AC	49	468750	6539840	32	36	0.25
ISRC1029	RC	184	468669	6539513	106	107	1.76
SISC1235	AC	52	469031	6538991	48	51	0.23
SISC1236	AC	42	468975	6538937	32	36	0.24
ROE0968	AC	54	469641	6538647	32	34	0.35
SISC1581	AC	24	469074	6537465	16	20	0.1
ROE1234	AC	30	469240	6534300	24	26	1.28
ROE0339	AC	40	471697	6526757	34	36	0.61
KRR019	RAB	10	473837	6526157	7	8	0.84
KRR071	RAB	37	474357	6525157	18	22	0.96
ROE0345	AC	57	474677	6525157	22	24	0.19
ROE0346	AC	45	474757	6525157	40	42	0.34
ROE0347	AC	49	474837	6525157	22	24	0.23
ROE0700	AC	51	473637	6524557	28	30	2.86
KRR136	RAB	37	474737	6524357	24	30	0.39
ROE0356	AC	47	473097	6524037	30	32	1.36

Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312 www.imageres.com.au

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Figure 4. Cross section showing IMA RC and historical (Integra 2004) air-core drilling

For further information, please contact:

George Sakalidis Exploration Director M: +61 411 640 337 george@imageres.com.au

COMPETENT PERSON’S STATEMENT – EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES

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 2012 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.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. This announcement contains forwardlooking statements which involve a number of risks and uncertainties. These forward-looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this announcement. No obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312 www.imageres.com.au

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JORC Code, 2012 Edition – Table 2 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sampling	•	Nature and quality of sampling (eg cut channels,	•	Sampling and QAQC procedures are
techniques		random chips, or specific specialised industry		carried out using Image’s protocols as per
		standard measurement tools appropriate to the		industry sound practice.
		minerals under investigation, such as down hole	•	RC drilling was used to obtain bulk 1
		gamma sondes, or handheld XRF instruments, etc).		metre samples from which composite 4m
		These examples should not be taken as limiting		samples were prepared by spear
		the broad meaning of sampling.		sampling of the bulk 1m samples. 3kg of
	•	Include reference to measures taken to ensure		the composite sample was pulverized to
		sample representation and the appropriate		produce a 10g charge for aqua
		calibration of any measurement tools or systems		regia/ICPMS determination for gold and
		used.		pathfinder elements. The analytical
	•	Aspects of the determination of mineralisation		results of the composite samples are
		that are Material to the Public Report.		used to determine which 1m samples
	•	In cases where ‘industry standard’ work has been		from the rig’s cyclone and splitter are
		done this would be relatively simple (eg ‘reverse		selected for fire assay.
		circulation drilling was used to obtain 1 m samples
		from which 3 kg was pulverised to produce a 30 g
		charge for fire assay’). In other cases more
		explanation may be required, such as where there
		is coarse gold that has inherent sampling
		problems. Unusual commodities or mineralisation
		types (eg submarine nodules) may warrant
		disclosure of detailed information.
Drilling	•	Drill type (eg core, reverse circulation, open-hole	•	Reverse circulation (RC) drilling was
techniques		hammer, rotary air blast, auger, Bangka, sonic, etc)		carried out using a face sampling
		and details (eg core diameter, triple or standard		hammer with a nominal diameterWheel
		tube, depth of diamond tails, face-sampling bit or		of Fortune. No duplicate samplesof
		other type, whether core is oriented and if so, by		140mm.
		what method, etc).
Drill sample	•	Method of recording and assessing core and chip	•	RC recoveries are visually estimated
recovery		sample recoveries and results assessed.		qualitatively on a metre basis.
	•	Measures taken to maximise sample recovery and	•	Various drilling additive (including muds
		ensure representative nature of the samples.		and foams) have been used to condition
	•	Whether a relationship exists between sample		the RC holes to maximize recoveries and
		recovery and grade and whether sample bias may		sample quality.
		have occurred due to preferential loss/gain of	•	Insufficient drilling and geochemical data
		fine/coarse material.		is available at the present stage to
				evaluate potential sample bias. Drill
				samples are sometimes wet which may

Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312 www.imageres.com.au

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				result in sample bias because of
				preferential loss/gain of fine/coarse
				material.
Logging	•	Whether core and chip samples have been	•	RC chips and chip trays are being
		geologically and geotechnically logged to a level of		geologically logged.
		detail to support appropriate Mineral Resource	•	Lithology, alteration and veining is
		estimation, mining studies and metallurgical		recorded and imported into the Image
		studies.		Resources central database. The logging
	•	Whether logging is qualitative or quantitative in		is considered to be of sufficient standard
		nature. Core (or costean, channel, etc)		to support a geological resource.
		photography.	•	Logging of RC drillholes records lithology,
	•	The total length and percentage of the relevant		mineralogy, mineralisation, weathering
		intersections logged.		and colour, and is qualitative in nature.
			•	All drillholes were logged in full.
Sub-sampling	•	If core, whether cut or sawn and whether quarter,
techniques		half or all core taken.
and sample preparation	•	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
	•	For all sample types, the nature, quality and
		appropriateness of the sample preparation
		technique.
	•	Quality control procedures adopted for all sub-
		sampling stages to maximise representation of
		samples.
	•	Measures taken to ensure that the sampling is
		representative of the in situ material collected,
		including for instance results for field
		duplicate/second-half sampling.
	•	Whether sample sizes are appropriate to the grain
		size of the material beingsampled.
Quality of	•	The nature, quality and appropriateness of the	•	RC samples were dispatched to
assay data		assaying and laboratory procedures used and		MinAnalytical laboratory in Perth where
and laboratory tests	•	whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld		the samples were pulverized and a 10g sub sample analysed using an aqua regia digest and determination of Au (lower
		XRF instruments, etc, the parameters used in		limit of detection 1ppb), Ag, As, Bi, Cu,
		determining the analysis including instrument		Mo, Ni, Pb, Sb, Te, W and Zn by ICPMS.
		make and model, reading times, calibrations		Aqua regia will dissolve most oxides,
		factors applied and their derivation, etc.		sulphides and carbonates but will not
	•	Nature of quality control procedures adopted (eg		totally digest refractory and silicate
		standards, blanks, duplicates, external laboratory		minerals. In a weathered, oxidized
		checks) and whether acceptable levels of accuracy		environment aqua regia digestion is
		(ie lack of bias) and precision have been		considered adequate for exploration
		established.		purposes. QA/QC measures included
				repeat analyses and the use of internal

Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312 www.imageres.com.au

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				lab standards which indicated acceptable
				levels of accuracy and precision although
				in rare cases there is some indication of
				the presence of coarse gold.
			•	Industry standard standards and
				duplicates are used by the NATA
				registered laboratory conducting the
				analyses.
Verification of	•	The verification of significant intersections by	•	Where duplicate analyses of individual
sampling and		either independent or alternative company		samples were made the analytical results
assaying		personnel.		were averaged.
	•	The use of twinned holes.	•	No twin holes have been drilled.
	•	Documentation of primary data, data entry	•	Primary data is entered into an in-house
		procedures, data verification, data storage		database and checked by the database
		(physical and electronic) protocols.		manager.
	•	Discuss any adjustment to assay data.	•	No adjustment of assay data other than
				averagingof repeat and duplicate assays.
Location of	•	Accuracy and quality of surveys used to locate drill	•	RC drill collars were located using a hand-
data points		holes (collar and down-hole surveys), trenches,		held GPS with an accuracy of +- 4m.
		mine workings and other locations used in Mineral	•	Grid system: GDA94
		Resource estimation.	•	Topographic control using regional DEM
	•	Specification of the grid system used.		data.
	•	Qualityand adequacyof topographic control.
Data spacing	•	Data spacing for reporting of Exploration Results.	•	RC drilling was carried out at 80m
and distribution	•	Whether the data spacing and distribution is sufficient to establish the degree of geological and	•	spacings on two lines 400m apart. Not for ore resource estimation.
		grade continuity appropriate for the Mineral	•	4m compositing was applied
		Resource and Ore Reserve estimation procedure(s)
		and classifications applied.
	•	Whether sample compositinghas been applied.
Orientation of	•	Whether the orientation of sampling achieves	•	Drilling of inclined (-60deg) RC holes 90°
data in		unbiased sampling of possible structures and the		to east or orthogonal to the target strike.
relation to geological structure	•	extent to which this is known, considering the deposit type. If the relationship between the drilling orientation
		and the orientation of key mineralised structures
		is considered to have introduced a sampling bias,
		this should be assessed and reported if material.
Sample	•	The measures taken to ensure sample security.	•	Samples were taken to the laboratory
security				Kalgoorlie depot prior to dispatch to
				Perth using a commercial freight
				company.

Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312 www.imageres.com.au

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Audits or	•	The results of any audits or reviews of sampling	•	The sampling techniques and results have
reviews		techniques and data.		not been subject to audit.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	JORC Code explanation	Commentary
Mineral	•	Type, reference name/number, location and	• Erayinia is situated on exploration licence
tenement and		ownership including agreements or material	E28/1895 and E28/2242 108.6sqkm and is
land tenure status		issues with third parties such as joint ventures, partnerships, overriding royalties, native title	held by Image Resources NL. The licence is granted with no known impediments to
		interests, historical sites, wilderness or national	obtaining a licence to operate.
		park and environmental settings.
	•	The security of the tenure held at the time of
		reporting along with any known impediments to
		obtaininga licence to operate in the area.
Exploration	•	Acknowledgment and appraisal of exploration by	The King prospect area has been subject to
done by other		other parties.	systematic surface sampling by previous
parties			explorers mainly including WMC and Integra.
			Air-core drilling was carried out by WMC
			Resources and a total of 129 holes for 5402 m
			were drilled at the King and K5 prospects.
			Integra drilled 25 RC holes for 2860m and 43 AC
			holes totalling 1600m between 2003-2007 in the
			King Prospect. Available historical data has been
			compiled over all the tenements and the main
			companies include Goldfields (201 AC & 22 RC),
			Integra(427 AC & 35 RC)and Newmont(52 AC).
Geology	•	Deposit type, geological setting and style of	Erayinia is underlain by a moderate to
		mineralisation.	strongly foliated, mafic volcano-sedimentary
			sequence intruded by differentiated
			dolerites and variably metamorphosed to
			upper amphibolite facies conditions.
			Numerous felsic porphyries also intrude the
			sequence. These Archaean rocks are
			overlain by sedimentary rocks of Proterozoic
			to Cainozoic age. The Proterozoic rocks are
			part of the Woodline Beds and are
			characterized by carbonate-pyrite-bearing
			quartz pebble conglomerates.
Drill hole	•	A summary of all information material to the	A total of 6 RC holes (EYRC01 to EYRC06
Information		understanding of the exploration results including	totaling 625m) were drilled at Erayinia. The

Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312 www.imageres.com.au

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		a tabulation of the following information for all		details of material drillholes are reported in
		Material drill holes:		Table 1 and Table 2.
	•	easting and northing of the drill hole collar
	•	elevation or RL (Reduced Level – elevation above
		sea level in metres) of the drill hole collar
	•	dip and azimuth of the hole
	•	down hole length and interception depth
	•	hole length.
	•	If the exclusion of this information is justified on
		the basis that the information is not Material and
		this exclusion does not detract from the
		understanding of the report, the Competent
		Person should clearlyexplain whythis is the case.
Data	•	In reporting Exploration Results, weighting	•	No weighting or cutting of gold values, other
aggregation		averaging techniques, maximum and/or minimum		than averaging of duplicate and repeat
methods		grade truncations (eg cutting of high grades) and		analyses.
		cut-off grades are usually Material and should be	•	No metal equivalents have been used.
		stated.
	•	Where aggregate intercepts incorporate short
		lengths of high grade results and longer lengths of
		low grade results, the procedure used for such
		aggregation should be stated and some typical
		examples of such aggregations should be shown in
		detail.
	•	The assumptions used for any reporting of metal
		equivalent values should be clearlystated.
Relationship	•	These relationships are particularly important in	•	Not applicable.
between		the reporting of Exploration Results.
mineralisation widths and intercept lengths	• •	If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths
		are reported, there should be a clear statement to
		this effect (eg ‘down hole length, true width not
		known’).
Diagrams	•	Appropriate maps and sections (with scales) and	•	Refer to text.
		tabulations of intercepts should be included for
		any significant discovery being reported These
		should include, but not be limited to a plan view
		of drill hole collar locations and appropriate
		sectional views.
Balanced	•	Where comprehensive reporting of all Exploration	•	Anomalous ranges used are stated in the
reporting		Results is not practicable, representative reporting		text.
		of both low and high grades and/or widths should
		bepracticed,to avoid misleadingreportingof

Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312 www.imageres.com.au

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		Exploration Results.
Other	•	Other exploration data, if meaningful and	•	Ground Magnetic survey by Image
substantive		material, should be reported including (but not		Resources.
exploration data		limited to): geological observations; geophysical survey results; geochemical survey results; bulk
		samples – size and method of treatment;
		metallurgical test results; bulk density,
		groundwater, geotechnical and rock
		characteristics; potential deleterious or
		contaminatingsubstances.
Further work	•	The nature and scale of planned further work (e.g.	•	Detailed air-core drilling is planned on a
		tests for lateral extensions or depth extensions or		400mx50m grid over the prospective areas
		large-scale step-out drilling).		mainly north of hole EYRC01.
	•	Diagrams clearly highlighting the areas of possible
		extensions, including the main geological
		interpretations and future drilling areas, provided
		this information is not commerciallysensitive.

Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312 www.imageres.com.au

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