Image Resources NL : Mineral Resources Update - Eneabba Tenements

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11 March 2022

MINERAL RESOURCES UPDATE - ENEABBA TENEMENTS

Image Resources NL (ASX: IMA) ("Image" or "the Company") is pleased to provide a Mineral Resources update on seven of the eight projects associated with the Company's recent strategic acquisition of a package of tenements located in the historic Eneabba mineral sands mining district in Western Australia ("Eneabba Tenements"), located 275km north of Perth.

Highlights:

• 199 million tonnes total Mineral Resources at 2.8% total heavy minerals
• • 137 million tonnes (69%) in JORC Measured and Indicated categories
  • Image's total Mineral Resources accessible by dry mining triples to 284 million tonnes
• 5.5 million tonnes contained heavy minerals
• • Image's total contained heavy minerals accessible by dry mining doubles to 11.0 million tonnes
  • Image's current production of heavy mineral concentrate is approximately 0.3 million tonnes per annum
• 84% valuable heavy minerals ("VHM") within mineral assemblage
• 19% zircon plus rutile in total heavy minerals
• Mineralisation located from surface in some places with low overall average strip ratio.

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In January 2022, the Company completed the strategic acquisition of seven of eight mineral sands projects across eight exploration licences ("EL") and one retention lease ("RL") as the primary portion of a package of tenements acquired from Sheffield Resources Ltd (see ASX announcement "Strategic Acquisition of Eneabba Tenement Package" dated 29 November 2021 and "Eneabba Tenement Package Strategic Acquisition Update" dated 19 January 2022).

The first order of business with new ownership of the Eneabba Tenements was verification and reporting of Mineral Resources on behalf of Image by the Company's JORC Competent Person Mrs Christine Standing of Optiro Pty Ltd (Snowden Optiro). The Mineral Resource estimates have been prepared and reported in accordance with the JORC Code 2012.

Total Mineral Resources reported for all seven projects as presented in Table 1 is 199 million tonnes at 2.8% total heavy minerals ("THM") containing 5.5 million tonnes of heavy minerals. Other positive attributes of these Mineral Resources include 84% valuable heavy minerals in the mineral assemblage, a combined total of 19% zircon plus rutile in the heavy minerals, a low average strip ratio and relatively low slimes and oversize contents. Refer to Table 1 on page 3 for the full details of the Mineral Resource estimates.

Image Resources NL | ABN 57 063 977 579 Level 2, 7 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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The Eneabba Tenements are considered accessible by dry mining techniques and therefore these new Mineral Resources effectively more than triple the Company's total Mineral Resources accessible by dry mining, from 85 million tonnes to 284 million tonnes.

These new Mineral Resources also effectively double the Company's contained heavy minerals in its total Mineral Resources accessible by dry mining, from 5.5 million tonnes to 11.0 million tonnes.

The final project associated with the Eneabba tenement package, which covers three mining leases ("MLs"), remains outstanding pending Foreign Investment Review Board (FIRB) approval. Mineral Resources for this project will be reported separately following FIRB approval and completion of acquisition.

The projects associated with the Eneabba tenement package are located approximately 275km north of Perth on either side of the Brand Highway. The area is renowned historically for heavy mineral sands mining with several major mining companies operating in the area since the 1970s.

Figure 1 - Location Map, Eneabba Tenements

Image Resources NL | ABN 57 063 977 579 Level 2, 7 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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Table 1 - Summary of Mineral Resources for the Eneabba Tenements

	Mineral	Cut-off		In-situ HM	Total	HM Assemblage (% of total HM)
	Tonnes	HM					Slimes	Oversize
Deposit	Resource	(total	Tonnes
(million)	grade	Zircon	Rutile	Leuc.	Ilmenite	(%)	(%)
	Category	HM%)	(millions)
		(%)
	Measured	1.4	2.6	0.11	4.3	10.3	2.1	2.3	72	15	11.3
Yandanooka	Indicated	1.4	57.7	1.73	3.0	12.3	3.6	3.7	69	15	11.4
Inferred	1.4	0.4	0.01	1.5	10.9	3.0	4.4	68	20	21.9
	Sub Total	1.4	60.8	1.84	3.0	12.1	3.5	3.6	70	15	11.5
Drummond	Indicated	1.4	35.5	0.84	2.4	14.1	10.3	3.4	53	14	7.7
Inferred	1.4	3.3	0.08	2.3	11.2	9.0	2.7	56	12	7.2
Crossing
Sub Total	1.4	38.8	0.91	2.4	13.9	10.2	3.4	54	14	7.7
	Indicated	1.4	20.7	0.60	2.9	13.7	2.9	3.7	71	14	14.7
Durack	Inferred	1.4	5.6	0.15	2.6	14.2	2.6	7.4	64	16	18.3
	Sub Total	1.4	26.3	0.75	2.8	13.8	2.9	4.4	70	14	15.5
Thomson	Inferred	1.4	25.7	0.52	2.0	18.8	13.8	5.4	42	18	6.9
Sub Total	1.4	25.7	0.52	2.0	18.8	13.8	5.4	42	18	6.9
Corridor	Inferred	2.0	18.1	0.57	3.1	6.7	5.5	0.4	47	14	4.8
Sub Total	2.0	18.1	0.57	3.1	6.7	5.5	0.4	47	14	4.8
	Indicated	1.4	14.0	0.26	1.9	14.7	12.7	5.0	47	6	6.2
Robbs Cross	Inferred	1.4	3.8	0.08	2.0	14.5	10.9	4.1	50	6	8.1
	Sub Total	1.4	17.8	0.34	1.9	14.7	12.3	4.8	48	6	6.6
	Indicated	2.0	6.5	0.35	5.3	10.0	8.0	10.4	66	15	3.2
Ellengail	Inferred	2.0	5.3	0.22	4.1	9.9	8.2	8.4	62	15	2.5
	Sub Total	2.0	11.8	0.56	4.8	9.9	8.1	9.6	64	15	2.9
	Total Measured		2.6	0.11	4.3	10.3	2.1	2.3	72	15	11.3
	Total Indicated		134.4	3.77	2.8	12.9	6.0	4.3	64	14	10.0
	Total Inferred		62.3	1.61	2.6	12.3	8.7	4.0	50	15	7.1
	Grand Total		199	5.5	2.8	12.7	6.7	4.2	60	14	9.1

1. The Mineral Resource estimates were prepared by Optiro Pty Ltd
2. All tonnages and grades have been rounded to reflect the relative uncertainty of the estimate, thus the sums of columns may not equal.
3. Total HM %: Samples from 1989 and 1996 (Drummond Crossing, Ellengail and Corridor) were analysed using a -75µm slimes / +2 mm oversize screen. Separation of HM% was by heavy liquid TBE (density 2.84 g/ml) from the -710µm+75µm fraction.
4. Total HM %: RGC samples from 1998 and Iluka samples (Drummond Crossing, Durack, Ellengail, Corridor and Yandanooka) were analysed using a -53µm slimes / +2mm oversize screen. Separation of total HM% was by heavy liquid TBE (density 2.90 g/ml) from the -710µm+53µm fraction.
5. Total HM %: Samples from Robbs Cross and Thomson analysed by Diamantina Laboratories in Perth using a -45µm slimes / +1mm oversize screen (method DIA_HLS_45µm_1mm). Separation of total HM% was by heavy liquid TBE (density 2.96g/ml) from the -45µm+1mm fraction.
6. Total HM %: Samples from Drummond Crossing, Durack, Corridor and Yandanooka were analysed by Western Geolabs in Perth using a -53µm slimes / +1mm oversize screen. Separation of total HM% was by heavy liquid TBE (density 2.96 g/ml) from the +53µm-1mm fraction.
7. Durack reported below an upper cut-off grade of 35% slimes.
8. Estimates of mineral assemblage are presented as percentages of the total heavy mineral (THM) component of the deposit, as determined by QEMSCAN analysis. For Ellengail Iluka Method 3 (magnetic separation and XRF analysis) and for Ellengail and Corridor, Iluka Method 4 (HMC

is separated into magnetics and non-magnetics) were used with QEMSCAN data.

Image Resources NL | ABN 57 063 977 579 Level 2, 7 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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Table 2 - Global Total Resource Summary for Image Mineral Resources prior to the

purchase of the Eneabba Tenements

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Image Resources NL | ABN 57 063 977 579

Level 2, 7 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872

T: 08 9485 2410

www.imageres.com.au

Page 4 of 31

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Summary of JORC 2012 Table 1

A summary of the JORC 2012 Table 1 (included as Appendix 1) is provided below in compliance with the requirements of ASX listing rule 5.8.1.

Geology and Mineralisation Interpretation

The Eneabba Tenements are located within the North Perth Basin (NPB), which is a deep linear trough of sediments, extending from the south coast to north of the Murchison River, adjacent to and west of the Darling Fault. The NPB contains a number of high-grade beach, dune and swale heavy mineral deposits extending from Capel in the south to Eneabba in the north.

Within the Eneabba Tenements area, a series of paleo-shorelines were formed in a north- facing bay ranging from 85m to 128m above the present sea level (Eneabba Shoreline). Each paleo-shoreline represents a stand-still event during regression of the sea. The stand-still events have resulted in well-developed platforms cut into the underlying sediments and in some instances accumulation/concentration of heavy minerals to form strandline deposits. The Eneabba Shoreline has been correlated with the Yoganup Shoreline in the south of the Perth Basin.

Following the strandline deposition of heavy minerals, several dune deposits have also been formed. At Eneabba, these dunes occur to the northeast of the paleo-shorelines that they derive their heavy mineral from. Typically, dunal mineralisation is lower in grade but more extensive in volume than strandline mineralisation. The Eneabba Tenements contain both strandline and dunal deposits.

A combination of geology and grade were used to interpret the mineralisation and geological domains. Mineralised domains were defined at Drummond Crossing, Durack and Yandanooka using a nominal cut-off grade of 0.7% HM and at Corridor, Ellengail, Robbs Cross and Thomson using a nominal cut-off grade of 0.9% HM. Additional higher grade domains were defined at Durack (>1.9% HM), Corridor and Ellengail (>2% HM) and Yandanooka (>3% HM).

Geological interpretation included modelling of rock domains (including laterite, intervals with high induration or sediments with high oversize contents) at Drummond Crossing, Durack, Corridor, Ellengail and Yandanooka. Horizons with high slimes contents were interpreted as separate domains at Durack (>35% slimes), Thomson (>34% slimes) and Yandanooka (>20% slimes).

Drilling Techniques

All of the drilling data used in the Mineral Resource estimations are based on an aircore system using a blade (face sampling) drill bit. There are three distinct generations of data: drilling undertaken by Renison Goldfields Consolidated in the 1980s and 1990s (First Generation), drilling undertaken by Iluka Resources Limited during the late 1990s and 2000s (Second Generation) and drilling undertaken by Sheffield Resources Limited between 2010 and 2021 (Third Generation). Most of the deposits contain a mixture of all three generations of data. Of the seven Mineral Resource estimates being reported in this announcement, five are based on a significant proportion of Third Generation drill data (between 48% and 100%). For the remaining two projects, the Corridor Mineral Resource estimate is based on First Generation and Second Generation drill data with 11 Third Generation drill holes for validation and the Ellengail Mineral Resource estimate is based on First Generation and Second Generation drill data only.

Sampling Techniques

All of the Third Generation drill samples are from 1.5m down hole intervals collected from an NQ diameter aircore hole (70mm). Samples of 1kg to 3kg were collected from a rotary splitter

Image Resources NL | ABN 57 063 977 579

Level 2, 7 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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