Image Resources NL provides an updated Ore Reserve estimate at its 100%-owned, Atlas mineral sands project (Atlas Project) located in the infrastructure-rich North Perth Basin in Western Australia. This announcement replaces the Company's ASX announcement on the Atlas Ore Reserve dated 19 December 2022 and provides additional details with respect to key project modifying factors and economics. The Ore Reserve remains the same. The northern section of the Mineral Resource is now excluded in this updated Ore Reserve estimate due to uncertainties of timing for environmental approval over the northern section of the deposit. 5.5 million tonnes of Ore Reserves at 9.2% total HM, 4.5 million tonnes (81%) classified as Proved Reserve at 10.6% total HM, 481 kt (96%) of contained HM is in the Proved category. 11.9% zircon, 7.9% rutile, 4.9% leucoxene and 53% Ilmenite in total HM. Mining scheduled to commence 2H 2023 followed by processing Fourth Quarter 2023. Forecast processing rate of 2.6 million tonnes per annum. Total Heavy Mineral Concentrate production of 446kt. Net pre-tax project cash flow of AUD 62 Million. Project to be funded by Image from existing cash reserves. This Ore Reserve estimate is based on a Mineral Resource estimate completed by Snowden Optiro as of December 2022. This Ore Reserve update was prepared and reported by Entech Mining Consultants in accordance with the guidelines of the JORC Code (2012). The following material changes have been made to the mine plan inputs since the 2017 Ore Reserve estimate: Mineral Resource estimate and corresponding block model updated for additional assay and mineral assemblage data obtained since the 2017 BFS due to the inclusion of additional drilling undertaken in the intervening period. The updated Mineral Resource has also now used the results of sachet logging and visual estimates of Iron Oxides (FeOx) to interpret and exclude laterite material within the interpreted strandlines; Change to Mine Development Envelope to exclude the northern section of the Mineral Resource. The northern section was excluded due to the uncertainties of achieving environmental approvals in a timely fashion over the Mount Jetty and Bibby creek lines, Aboriginal areas of cultural concern and areas of potentially sensitive flora and fauna as well as native vegetation. The Southern section of the Mineral Resource area is more economically robust due to higher HM grades and lower strip ratio, and consequently generates most of the net cash flow; Changes in pit design based on revised pit optimisation results using current study inputs and assumptions, including a reduced feed rate to the WCP from earlier studies; and A change to the assumptions and application of mining dilution to reflect a less selective mining method due to the thin strand mineralisation anticipated at the Atlas Project. Mining adjustments from the 2017 Ore Reserve include adopting an approach to applying mining dilution to encompass both internal laterite material and boundary material dilution at the top and bottom ore surfaces. This results in a more conservative approach to the application of dilution (approximately 20% dilution compared to 2% used in 2017). The 2017 Ore Reserve estimate excluded some material for the previously proposed high voltage powerline crossing, which has now been removed from the current mine plan. Together these adjustments have a minor effect on contained HM, though the dilution adjustments do increase the feed tonnage with a commensurate reduction in HM%. Very minor changes can be attributed to Mineral Resource modelling impacts between estimates. between estimates. The 2017 Ore Reserve estimate downgraded all Measured Mineral Resources to Probable Ore Reserve, based on some uncertainty surrounding density estimates. The current Mineral Resource estimates density using an algorithm that considers lithology, HM and slime grades interpolated into the model, such that a variable density attribute is estimated based on the material characteristics as modelled. The same method has been used for the Boonanarring deposit since 2019 and the algorithm has been refined since, using operational data from the Boonanarring site. Hence this estimate includes no downgrading of Measured Mineral Resources, which convert directly to Proved Ore Reserves, subject to the application of appropriate modifying factors. Inferred and unclassified material contained within the mine plan, and below the top-of-ore surface, are included in the Ore Reserve as planned dilution, where it is considered unable to be selectively mined as waste. The Ore Reserve has been defined as delivered to the Feed Preparation Plant
(FPP).