Image Resources NL provided a Mineral Resources update on two Mineral Resource Estimates (MRE) associated with the Company's recent strategic acquisition of the McCalls Mineral Sands Project located north- east of Gingin in the Dandaragan Trough. The mineral assemblage for both deposits was analysed using Quantitative Evaluation of Minerals by Scanning electron microscopy (QEMSCANTM) by Bureau Veritas Mineral Laboratories to determine the percentage of ilmenite, leucoxene, rutile and zircon within the total HM fraction. The following breakpoints were used to distinguish between the TiO 2 minerals: rutile (>95% TiO2), leucoxene (85-95% TiO2) and ilmenite (<55-85% TiO2).

Mineral Resources Estimate: Grade estimations for total HM, slimes and oversize have been carried out using ordinary kriging for both deposits. Grade estimations of mineral assemblage (zircon, rutile, leucoxene and ilmenite) have been carried out using inverse distance cubed for both deposits. The McCalls Mineral Resources estimate has been classified according to the guidelines of the JORC Code (2012), into Indicated and Inferred Resources considering the confidence in geological and grade continuity and taking into account data quality (in particular the historical nature of the BHP data), data density and confidence in estimation of heavy mineral content, and the location of the mineral assemblage data.

In plan, a polygon was used to define the areas of Indicated and Inferred Mineral Resources. The Mindarra Springs Mineral Resources estimate has been classified as Inferred Resources according to the guidelines of the JORC Code (2012), considering the confidence in geological and grade continuity and taking into account data quality (in particular the historical nature of the BHP data), data density and confidence in estimation of heavy mineral content, and the location of the mineral assemblage data. The assigned classification of Indicated and Inferred at both the McCalls deposit and the Mindarra Springs deposit reflects the Competent Person's assessment of the accuracy and confidence levels in the Mineral Resources estimates.

Cut-off Grade: Optiro selected cut-off grades to represent the Mineral Resources that may be considered for eventual economic extraction, based on the Company's experience as a mineral sands consultancy. Both Mineral Resources estimates were reported above a total HM cut-off grade of 1.1% and below a slimes cut-off grade of 35%. Mining Factors: In determining the criteria for reasonable prospects for eventual economic extraction, potential mining methods considered were wet dredge mining or dry dozer-trap operations, similar to those commonly and currently in use in HM mining operations both in Australia and globally.

It is considered that the deposits within McCalls Mineral Sand Project have a reasonable prospect of eventual economic extraction when considered in the context of the deposit location and existing infrastructure and taking into consideration the depth, thickness and grades of the deposits. Metallurgical Factors: Metallurgical characterisation test work on samples from McCalls has confirmed that the deposit is amenable to typical mineral sands processing methodologies using standard mineral sands separation equipment. Ilmenite characterisation studies conducted on a sample composited from Second Generation drill samples at McCalls produced concentrates containing between 59% and 66% TiO 2, indicating potential suitability for chloride processing or as a feedstock for synthetic rutile production.

Image Resources is not aware of any other material modifying factors that would prevent the eventual economic extraction of these deposits.