21 August 2017

60% INCREASE IN ORE TONNES IN 'PROVED'

CATEGORY ORE RESERVES AT BOONANARRING

Image Resources NL (ASX: IMA) ("Image" or "the Company") is pleased to announce a 60% increase in ore tonnes in the 'proved' category of Ore Reserves for its 100%-owned Boonanarring Minerals Sand Project located 120 km north of Perth in the North Perth Basin.

As part of the process of fast-tracking the development of the high-grade Boonanarring project, Image completed grade control drilling in March 2017 designed to increase the confidence level of the Boonanarring Mineral Resources and Ore Reserves. Results of the drilling programme were used by Optiro Pty Ltd (Optiro) to complete an update of the Boonanarring Mineral Resources and estimated Ore Reserves for Boonanarring in accordance with the guidelines of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code - 2012 edition).

When compared to the previously estimated Ore Reserves for Boonanarring ( as announced on 10 April 2017), the total tonnes of Proved Ore Reserves have increased by 60% from 5.8 million to 9.3 million tonnes, albeit at a lower heavy mineral (HM) grade, but importantly at a higher concentration of zircon in the HM as shown in Tables 1 and 2 below.

The significance of the updated Ore Reserves is that Proved Ore Reserves now represents nearly half (47%) of the total Ore Reserves at Boonanarring. It is important to point out that while the total tonnes in the Proved category increased, the overall tonnes of Ore Reserves is largely unchanged.

The updated Ore Reserves for Boonanarring are presented in Table 1. For comparison purposes, the estimated Ore Reserves as at March 2017 are presented in Table 2. Both are reported on Mineral Resources at a cut-off grade of 2.0% total heavy minerals (THM).

Table 1. August 2017 Boonanarring Ore Reserves Summary1-5

Classification Million tonnes

THM Slimes Oversize

% of total heavy mineral

% % %

Zircon Rutile Leucoxene Ilmenite

Strandline mineralisation

Proved 9.3 8.6 14.3 6.7

Probable 8.3 6.7 17.1 7.8

23.2 2.2 1.8 48.9

23.5 2.5 1.7 51.1

Sub-total 17.6 7.7 15.6 7.2

23.3 2.3 1.7 49.8

Overlying mineralisation

Probable 2.2 3.0 19.6 6.9

8.9 4.1 2.7 61.8

Sub-total 2.2 3.0 19.6 6.9

8.9 4.1 2.7 61.8

Total

Proved 9.3 8.6 14.3 6.7

Probable 10.5 5.9 17.6 7.6

23.2 2.2 1.8 48.9

21.9 2.7 1.8 52.3

Total 19.9 7.2 16.1 7.2

22.7 2.4 1.8 50.4

Table 2. March 2017 Boonanarring Ore Reserves Summary1-5

Classification Million tonnes

THM Slimes Oversize

% of total heavy mineral

% % %

Zircon Rutile Leucoxene Ilmenite

Strandline mineralisation

Proved 5.8 9.1 14.2 6.6

Probable 11.9 7.0 16.8 7.8

21.6 2.2 1.9 48.5

24.0 2.5 1.6 51.4

Sub-total 17.8 7.7 16.0 7.4

23.0 2.4 1.7 50.3

Overlying mineralisation

Probable 2.2 3.0 20.3 7.3

8.6 4.1 2.7 61.8

Sub-total 2.2 3.0 20.3 7.3

8.6 4.1 2.7 61.8

Total

Proved 5.8 9.1 14.2 6.6

Probable 14.2 6.4 17.4 7.7

21.6 2.2 1.9 48.5

22.8 2.6 1.7 52.2

Total 20.0 7.2 16.5 7.4

22.4 2.4 1.8 50.8

Table notes:

  1. Ore Reserves are based upon a cut-off grade of 2% total heavy minerals (THM) and resource materials in domain 11 containing less than 6% zircon have been excluded from the Ore Reserve estimation.

  2. The Ore Reserves are based upon an FX rate US$0.73:A$1.00; and the following commodity prices: ilmenite - $US144, leucoxene - $US522, rutile - $US936 and zircon - $US1,126.

  3. Mineral Resources have been reported as inclusive of Ore Reserves.

  4. The mineral assemblage is reported as a percentage of in-situ THM content.

  5. Tonnes and grade data have been rounded to one significant figure. Discrepancies in summations may occur due to rounding.

For further information, please contact: Patrick Mutz

Managing Director

+61 8 9485 2410

info@imageres.com.auwww.imageres.com.au

COMPLIANCE STATEMENT

The information in this report that relates to the estimation of Mineral Resources is based on information compiled by Mrs Christine Standing, who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and the Australian Institute of Geoscientists (AIG). Mrs Standing is a full-time employee of Optiro Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she 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'. Mrs Standing consents to the inclusion in this report of the matters based on her information in the form and context in which it appears.

The Ore Reserves statement has been compiled in accordance with the guidelines of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code - 2012 Edition). The Ore Reserves have been compiled by Jarrod Pye, Mining Engineer and full-time employee of Image Resources, under the direction of Andrew Law of Optiro, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Law has sufficient experience in Ore Reserves estimation relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Mineral Resources and Ore Reserves". Mr Law consents to the inclusion in the report of the matters compiled by him in the form and context in which it appears.

JORC CODE TABLE 1 CRITERIA

The table below summaries the assessment and reporting criteria used for the Atlas Project Mineral Resource and Ore Reserve estimates and reflects the guidelines in Table 1 of The Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012).

Section 1 Sampling Techniques and Data

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

Criteria

JORC Code explanation

Commentary

Sampling techniques

  • Nature and quality of sampling. These examples should not be taken as limiting the broad meaning of sampling.

  • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

  • Aspects of the determination of mineralisation that are Material to the Public Report.

  • Sampling of the deposit has been by vertical reverse-circulation air-core method (RCAC). This is a Mineral sands industry- standard drilling technique.

  • Samples are from intervals of 0.5 m, 0.7 m, 1 m and 1.5 m and

  • 11 vertical diamond core holes were drilled in 2016 to obtain geotechnical and bulk density data.

2 m. The majority of samples (almost 98%) are from intervals of 1 m.

Drilling techniques

  • Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

  • All Image RCAC drillholes are drilled vertically using an NQ-sized (76 mm diameter) drill bit.

  • All Iluka RCAC drillholes are vertical and were drilled using a BQ- sized drill bit (60 mm diameter).

  • Water injection is used to convert the sample to a slurry so it can be incrementally sampled by a rotary splitter.

  • 20 vertical diamond core holes were drilled in 2016 using a PQ sized drill bit (85 mm) diameter).

Drill sample recovery

  • Method of recording and assessing core and chip sample recoveries and results assessed.

  • Measures taken to maximise sample recovery and ensure representative nature of the samples.

  • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

  • At the drill site, Image's geologist estimates sample recovery qualitatively (as good, moderate or poor) for each 1 m down hole sampling interval. Specifically, the supervising geologist visually estimates the volume recovered to sample and reject bags based on prior experience as to what constitutes good recovery.

  • Image has recorded that over 90% of the samples have good recovery and that less than 5% have moderate recovery and less than 5% have poor recovery.

  • Image also monitors recovery through the mass of the laboratory sample, which is recorded prior to despatch and again on delivery to the laboratory. The mass variation in the laboratory samples can then be correlated back to the original total sample.

Logging

  • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

  • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

  • The total length and percentage of the relevant intersections logged.

  • Image's supervising geologist logs the sample reject material at the rig and pans a small sub-sample of the reject, to visually estimate the proportions of sands, heavy mineral (HM) sands, 'slimes' (clays), and oversize (rock chips) in each sample, in a semi-quantitative manner.

  • The geologist also logs colour, grain size, an estimate of induration (a hardness estimate) and sample 'washability' (ease of separation of slimes from sands by manual attrition).

  • To preclude data entry and transcription errors, the logging data is captured into a digital data logger at the rig, which contains pre-set logging codes.

  • No photographs of samples are taken.

Image Resources NL published this content on 21 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 21 August 2017 08:17:05 UTC.

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