IMAGE RESOURCES NL — Capital/Financing Update 2020

Feb 12, 2020

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13 February 2020

IMAGE RESOURCES REALISES ANTICIPATED HIGHER ORE GRADES AND ACHIEVES NEW PRODUCTION RECORDS

Image Resources NL (ASX: IMA) (“Image” or “the Company”) is pleased to report record high monthly production of heavy mineral concentrate (HMC) in December 2019 and again in January 2020, in line with expectations of higher ore grades forecast for mining in Block ‘B’ at its 100%-owned, high-grade, zircon-rich Boonanarring Mineral Sands project located 80km north of Perth in Western Australia.

Prior to December 2019, the highest monthly HMC production achieved was in January 2019 at 25.5kt from ore mined in the northern section of Boonanarring Block ‘C’. However, following the relocation of mining from Block ‘C’ to the overall higher grade Block ‘B’ in mid-November 2019, HMC production for December set a new record high at 31.4kt, and in January 2020, HMC production reached a new high at 35.3kt, providing a strong start for Q1 and CY2020 production.

It is important to note that HMC production in December and January was in line with the Company’s updated mining model estimates which include the uplift in forecast heavy mineral and zircon grades as reported in the updated Ore Reserve results published in December 2019. Average monthly HMC production levels are anticipated to moderate through the year to an average of 25-28kt/month to achieve published market guidance for CY2020 HMC production of 300-330kt.

HMC Sales

In January 2020 the sale of a regular monthly scheduled shipment of HMC was completed and discussions are underway with the Company’s off-take partners for Q1 follow-on shipments. Thus far, the only impact to Image from the uncertain economic conditions in China following the emergence of the coronavirus has been a delay of a planned February shipment of HMC into March.

Image is working with its partners to expand the size and/or frequency of HMC shipments going forward, to accommodate the higher 2020 HMC production schedule. The Company also continues to investigate interests in the purchase of its HMC from entities outside of China, as a step to minimise geographical risk and to expand the Company’s marketing opportunities.

Managing Director and CEO Patrick Mutz commented, “We continue to meet our production targets at Boonanarring which for 2020 are significantly higher than 2019 targets. Our efforts have been supported by substantially higher HMC production capacity following modifications to the processing plant in 2019, These modifications have now been proven to allow HMC production at levels substantially above original plant design capacity.

We also remain focused on, and confident of the outcome of, accelerating exploration and the development of new Mineral Resources and Ore Reserves under the formal banner of Project ‘MORE’ with the goal of extending the mine-life at Boonanarring as quickly as practicable. And, in response to the recent softening of the zircon market, which were largely offset by rising TiO2 prices, we continue to evaluate value-adding steps aimed at incrementally increasing product revenue.”

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 www.imageres.com.au

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Debt Repayment

In early February 2020, Image completed the second, of a total of seven scheduled quarterly debt repayments. Accordingly, the Company is scheduled to be debt free after May 2021. However, given its strong current cash position, options for early repayment of the debt are being investigated. Once the debt is repaid, the Company may be in a position to consider the payment of a shareholder dividend.

As previously announced, Image’s cash position as at 31 December 2019 was AU$49.9 million. The second debt repayment of US$7.9 million was completed on 6 February 2020 leaving a debt principal outstanding of US$32.9 million (~AU$49.1 million).

Boonanarring Project Background Information

The Boonanarring Project is arguably one of the highest heavy mineral grade, zircon-rich, mineral sands projects in Australia. Construction and project commissioning were completed on-time and on-budget in 2018. Production commenced December 2018 and HMC production ramped-up to exceed name-plate capacity in only the second month of operation (January 2019). Image achieved profitability in Q1’19, was cashflow positive in Q2’19 and has completed four full quarters of successful operations with performance exceeding targets in all major categories, including significantly higher HMC production and lower operating costs than forecast. CY2019 market guidance was met after it was increased twice during the year. The Company is focused on maintaining strong operational performance and identifying new Mineral Resources and Ore Reserves, initially, within economic pumping distance of the current wet concentration plant, to extend the mine life at Boonanarring.

This document is authorised for release to the market by:

Patrick Mutz

Managing Director +61 8 9485 2410 info@imageres.com.au www.imageres.com.au

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 www.imageres.com.au

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