ROBUST PROJECT ECONOMICS FOR BOONANARRING AND ATLAS

2nd

Floor, 16 Ord Street West Perth WA 6005

PO Box 644 West Perth WA 6872

Telephone 08 9485 2410 Facsimile 08 9485 2840 [email protected] www.imageres.com.au

ABN 57 063 977 579

ASX Code: IMA 16 July 2013

ROBUST PROJECT ECONOMICS FOR BOONANARRING AND ATLAS __________________________________________________________________________________

Image Resources NL (ASX:IMA) is pleased to announce the results of the Feasibility Study for the Boonanarring and Atlas projects which comprise part of Image’s North Perth Basin (NPB) mineral sands project.

The Feasibility Study was carried out by a very experienced team of leading industry experts managed by Peter Davies, Managing Director of Image. Details of the key team members are provided in the technical study team section later in this release (refer page 25).

HIGHLIGHTS

DRY MINE : 10 years of dry mining yield a JORC Code Probable Reserve of 24 million tonnes grading 8.2% Heavy Mineral (HM) (containing 15% of HM as zircon)

START UP : subject to financing, production could commence within 18 months

PRE-TAX NPV@ 8% : $145 million

PRE-TAX IRR : 57.4% (based on first 10 years of operation only)

Peter Davies said “the Feasibility Study has established a strong basis for Image to secure off-take partners and funding for the Projects. We are now focusing on securing finance to expedite the Project”.

Other highlights include:

net life of mine pre-tax cashflow after capital of $245 million

capital payback within first 22 months of production

3.3mtpa dry mining and wet processing operation over initial 10-year mine life

in the lowest cost quartile of zircon producers

ore body location contains adequate water supply and within excellent infrastructure and transport links

low cost dry mill option shows high potential

additional NPB resources (Hyperion, Helene, Red Gully Gingin North and Gingin South) represent a further net pit value of $100 – $110 million

granted Mining Leases over Boonanarring extending beyond the planned project life

ASX Release 16 July 2013

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SUMMARY

The results of Image’s recently completed Feasibility Study on its Boonanarring and Atlas heavy mineral sands deposits in the North Perth Basin indicate the Company could begin producing ilmenite, leucoxene, rutile and zircon within 18 months (by early 2015).

The Boonanarring and Atlas deposits (situated near Gingin and inland from Cervantes respectively) form part of the Company’s North Perth Basin Mineral Sands Project, which represents one of the highest grade mineral sands Resources under evaluation worldwide.

“The very strong results from these studies, in terms of both project economics and technical feasibility, have validated the Company’s confidence in undertaking the resource drilling, technical and environmental studies over the last nine months,” says Image’s Managing Director, Peter Davies.

“We have now shown that the exceptionally high heavy minerals and zircon grades at Boonanarring, combined with good location, existing infrastructure and excellent product quality, provide the basis for a great opportunity to develop the Company’s first production operation,” Davies says, adding that project was of an appropriate size, grade and location for Image’s capabilities.

“Image has strength and depth of management to both develop and operate Boonanarring,” says Davies.

Given the very positive outcomes demonstrated by the Feasibility Study, the Company will pursue the development of the Boonanarring and Atlas deposits, whilst continuing to find ways to reduce project development cost and further increase net cashflow.

The major focus now is to secure the funding from the wide range of off-takers, debt financiers and potential development joint venture partners who have expressed interest even under the present market conditions.

Since December, the Company has been actively reducing the area of its exploration tenements directed at constraining exposure to recurring costs (including rents, rates and management).

The most prospective areas within the remaining tenements are being aggressively subjected to Image’s very low cost ground magnetic exploration techniques. The objective is both to delineate extensions to existing Resources and to identify drill targets on potential major new areas of mineralisation

All Resources and Reserves in this release are estimated and reported in accordance with the 2004 JORC Code.

Boonanarring and Atlas represent a total Resource of 32.3 million tonnes @ 8.1% heavy minerals and the intention is to mine the deposits at a rate of 3.3Mtpa over a projected 10-year mine life. Annual production from the mine is expected to average 89,000t of ilmenite, 5,400t of leucoxene, 9,000t of rutile and 32,400t of zircon for a combined annual production of these heavy minerals of 135,900t.


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These products are in strong demand and are used in a wide range of industry applications, including the making of ceramics, surface glazes and pigments used in paint, paper and plastics.

Using a long-term exchange rate of A$0.80 to the US dollar, the study indicates that the project can generate a net project cashflow (pre-tax and after capital) of $245 million over the 10-year period.


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Table 1: Key Project Parameters

Metric Units Result Comment

JORC Resources (refer Appendices) Boonanarring and Atlas only

Measured 12.7Mt @8.2% HM At 2.5% HM cut-off

grade

Indicated 15.4Mt 2 8.5% HM

Inferred 4.2Mt @6.45 HM

Total 32.3Mt @8.1%HM

Ore Reserves

Proven Requires further analysis

Probable 24.0Mt @8.2%HM

Total 24.0Mt @8.2%HM 75% conversion rate

Mining

Ore Mining Rate Mtpa 3.3

Strip ratio Boonanarring bcm:bcm 5.8:1

Strip Ratio Atlas bcm:bcm 1:1

Contract mining yes

Method Conventional dry mining

Mine Life Years 10

Wet Processing

Throughput (RHF) Dry Mtpa 2.8

Recoveries MFU and Wet Plant

Ilmenite % 85 to 92 Atlas gives higher recoveries

Leucoxene % 74 to 77

Rutile % 91 to 93

Zircon % 93 to 96

HMC Produced ktpa 170 Annual Average

Site Infrastructure

Installed Power MVA 2.6

Make-up Water requirement Gl/a 2.0

Dry Processing Toll treatment

Recoveries

Ilmenite % 92 to 94 Atlas gives higher recoveries

Leucoxene % 78 to 82

Rutile % 88 to 90

Zircon % 83 to 88

Final Products

Ilmenite ktpa 89 Annual Average

Leucoxene ktpa 5.5 Annual Average

Rutile ktpa 9 Annual Average

Zircon ktpa 32.4 Annual Average


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Davies notes that the development programme is dependent on the timeline for environmental approvals, “providing valuable opportunity to evaluate opportunities to further enhance the already robust project economics by reducing capital costs and reliance on third parties for the treatment of concentrates”.

Robust economic returns for the project contained in the study indicate a capital payback period of 22 months from a 3.3 million tonnes per year dry mining and wet processing operation from the Boonanarring and Atlas deposits. The Feasibility Study focused on just these two of Image’s seven defined Resources between Cooljarloo in the north and Gingin in the south. Image has a major tenement holding in the North Perth Basin, nearly all of which is potentially prospective for heavy minerals.

Capital expenditure, with contingencies, to bring Boonanarring into production (including pre-production costs and working capital) is $A64.1 million. The deposit therefore presents a relatively low cost and low technical risk start-up operation with a capital payback period of less than two years from start of production. Mine life at Boonanarring is currently planned to be six years followed by three to four years of operations at Atlas. Mining and ancillary activities would be carried out by contractors with extensive local experience in mineral sands mining.

Testwork has indicated that 40% of the ilmenite from Boonanarring and 100% of the ilmenite from Atlas is suitable for synthetic rutile production or chloride pigment production. The balance is suitable for slag furnace or sulphate pigment plant feed.

Detailed testwork on representative bulk samples from Atlas and Boonanarring has provided the basis for product recovery estimates, process flowsheet design and final product grade predictions. Ilmenite and rutile samples, representative of production from both deposits, have been well received by number of major prospective customers after their testing.


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Figure 1: Project Location Map


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Figure 2: Boonanarring Site Plan


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Figure 3: Atlas Site Plan


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EXECUTIVE SUMMARY

Properties

This release relates to the technical feasibility and economics of developing operations to extract and process heavy mineral bearing sands from the Boonanarring and Atlas deposits. Both deposits are 100% owned by Image.

Image owns other projects containing JORC Code Resources in the North Perth Basin. It is assumed that these will be developed after completion of operations at Boonanarring and Atlas. They do not form part of the project technical study or economic evaluation albeit they are mentioned in context as appropriate.

Project Concepts

The overall project concept includes mining of the Boonanarring and Atlas deposits sequentially, using conventional dry open pit mining techniques and wet concentration of the ore to produce heavy minerals concentrates (HMC) for sale or toll treatment. Transport of concentrates to Bunbury or Geraldton by road have each been considered.

The wet concentrator has been designed on the basis of annual mining rates of up to 3.3Mpta ore delivered to a single in-pit Mining Feed Unit (MFU) and 2.8Mtpa of rougher head feed (RHF) to the wet concentrator.

Mining schedules at each site have been developed to extract the higher grade sections of the deposits first, providing optimum early cashflow and earliest possible payback of capital. Mining and ancillary activities would be carried out by contractors with extensive local experience in mineral sands mining.

Ilmenite and rutile samples representative of production from both deposits have been sent to prospective customers for testing. Customer feedback has been positive in terms of the suitability of the products for a range of applications

The high grade Boonanarring deposit, which occurs predominantly on freehold agricultural land centred approximately 20km north of Gingin, will be developed first. On completion of mining and processing operations at Boonanarring, the mining operations, processing facilities and site infrastructure will be re-located at the Atlas deposit.

The study envisages that production will commence in 18 months hence (i.e. February 2015), producing, on average, approximately 170kt of HMC per year for 10 years. Valuable heavy mineral (VHM) production over the life of the operations at Boonanarring and Atlas is expected to total approximately 892,000t of ilmenite 324,000t of zircon, 89,000t of rutile and 54,000t of leucoxene.

The project will have a maximum negative cashflow of $64.1 million in the June Quarter 2015. This allows for all project expenditures and working capital. The deposit therefore presents a relatively low cost and low technical risk start-up operation with a capital payback period of less than two years from start of production.

Mine life at Boonanarring is currently planned to be six years, followed by three to four years of operations at Atlas.


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Resources

The Feasibility Study considered only the Resources at Boonanarring and Atlas.

With the exception of some minor infill drilling completed in April 2013, all of the assay and

mineralogical results have been received for the 12km length of Blocks A, B, C, D and E at

Boonanarring.

The overall JORC Code Resource inventory at Boonanarring is 21.5Mt @ 8.3% HM containing 1.8Mt of HM at a 2.5% HM cut-off, segregated into Measured, Indicated and Inferred categories as shown in Table 2.

Table 2: Overall Boonanarring HM Resource dated 30 May 2013

CLASSIFICATION

HM CUTOFF Volume Tonnage HM VHM Slimes HM

(%) (M cubic metre) (Mt)* (%) (%) (%) (kt)

MEASURED 2.5 1.6 3.0 7.8 5.5 10.1 230

INDICATED 2.5 7.0 14.3 9.0 7.2 17.0 1,270

INFERRED 2.5 2.1 4.2 6.5 5.4 17.4 270

TOTAL 2.5 10.7 21.5 8.3 6.6 16.1 1,770

*Note Values rounded to reflect accuracy of estimates.

The eastern strandline generally contains continuous zones of very high HM and zircon grades. At a cut-off grade of 2.5% HM, the eastern strand over the full Resource contains an Indicated Resource of 8.4Mt @ 11.7% HM, with 25% of the HM being zircon.

The Atlas Resource is located approximately 170km north of Perth and 18km east of Cervantes. The Resource was estimated by Lynn Widenbar of Widenbar & Associates in April 2011 as containing a total Measured and Indicated Resource of 10.8Mt at 7.8%HM, using a 2.5% HM cut-off. The Resource is detailed in Table 3.

Table 3: Atlas HM Resource dated 18 April 2011

Category HM Cut-off Volume

(M BCM)

Tonnes

(Mt)

HM

(%)

VHM

(%)

Slimes

(%)

OS

(%)

HM

Kt

Indicated 2.5 0.5 1.1 3.2 2.6 19.2 3.8 34

Measured 2.5 4.8 9.7 8.3 6.4 15.3 4.5 810

Total 2.5 5.3 10.8 7.8 6.1 15.7 4.4 844

The Atlas strandlines increase in zircon grade to the south with the southern 2.5km containing over 10% Zircon in HM correlating with higher HM grades in this area.


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At this stage, the technical and economic studies have not included the other Resources 100% held by Image in the North Perth Basin. Based on the results of the scoping study completed in August 2011 and reviewed in May 2012, these excluded Resources are expected to represent an additional $100 million to $110 million in net pit value using the Feasibility Study price assumptions. In addition, Image holds extensive prospective areas in the North Perth Basin, over which exploration is still at an early stage.

Mining Production Schedule

At both Boonanarring and Atlas, the mining sequence has been designed to maximise the grade of ore fed to the plant in the early years. Consideration has also been given to minimising post mining waste rehandling costs.

At Boonanarring, the overall strip ratio is relatively high at 5.8:1 (bcm:bcm). However, development of these Resources is still very profitable due to the high HM and zircon grades. At Atlas the strip ratio is 1:1.

Table 4: Production Schedule.

Life of Mine Average Year Maximum Year

kt kt kt

Feed to MFU 26,886 (Note 1) 2,689 3,427

HMC 1,695 170 227

Ilmenite 891 89 130

Leucoxene 55 5.5 10

Rutile 89 9 16

Zircon 324 32.4 54

Note 1: Includes 2.8Mt of Inferred Resources (refer Table 4)


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Figure 4 Annual Production

Reserves

Conversion from Resources to Reserves has been carried out through open pit optimisation and economic modelling using realistic and achievable operating parameters, costs and widely publicised industry pricing forecasts (refer below for more details).

At Boonanarring, approximately 2.8Mt of Resources, which are currently included in the mining schedule and project economics, are in the JORC Code Inferred category. This was due to the lower density of drilling in these areas or uncertainties in assessing the configuration of the mineralised zones between section lines. Assay results from later in-fill drilling, carried out in April 2013, has largely resolved these issues, but the Resource models have not yet been updated to incorporate these more recent results.

At Atlas, there are only 54kt of JORC Code Inferred Resources which are included in the mining schedule, but excluded from the JORC Probable Reserves.


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Table 5: Reserves

Site Category Reserves

Kt %HM Zircon in

HM % VHM in HM %

% Slimes

Boonanarring (Note

1) Probable 14,420 8.3% 17.7% 80.1% 17.0%

Atlas(Note 2) Probable 9,603 8.1% 11.0% 74.1% 15.5%

Total Probable 24,023 8.2% 15.0% 77.7% 16.4%

Excluded Resources

Boonanarring Inferred 2,811 5.8% 17.3% 84.4% 17.5%

Atlas Inferred 54 8.9% 9.1% 80.7% 8%

Note 1: Boonanarring Probable Reserves include 1.67Mt of ‘Unclassified’ material at

2.1%HM which is treated as planned dilution.

Note 2: 17kt of ‘Unclassified’ material at 0.7%HM is treated as planned dilution at Atlas

Process and Plant Design

Separate process testwork campaigns were carried out at AML in Perth on representative bulk samples from both Boonanarring and Atlas. Based on this testwork, project team members working in conjunction with MSP Engineering (MSPE) developed the wet plant process flowsheet and mass and water balances. This work formed the basis for the process design criteria.

Feed to the wet concentrator plant (WCP) is deslimed in cyclones and rescreened before being fed to the first of five stages of spirals to produce an HMC concentrate averaging 88% Valuable Heavy Mineral (VHM). Mechanical attritioning will be carried out at the WCP to improve HMC quality and to reduce slimes content at the toll treatment facility. Slimes will be thickened before being pumped to conventional solar drying ponds. Dried slimes are returned to the mining void as part of the progressive rehabilitation programme.


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Figure 5 Simplified Process Flowsheet.


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Infrastructure

The Boonanarring project, 90km north of Perth is ideally situated in terms of existing infrastructure. Subject to the necessary water extraction licences being granted for the existing deep production bore on Block C, all power, water, gas and major highway access infrastructure already exists within 500m of the proposed plant site. Given the proximity to Gingin town and the northern Perth suburbs, no camp facilities or fly-in/fly-out arrangements will be required.

The Atlas site is more remote and accommodation facilities will be provided in Cervantes, with employees bussed to site. Power will be generated on site at Atlas.

In both cases, site infrastructure will include offices, workshops, stores, change room and ablutions facilities, fuel storage, mining contractor site area and road access for loading and hauling VHM.

Logistics

Detailed logistics studies have been carried out for a number of options including road/rail combination HMC haulage to Bunbury or road only haulage to either Bunbury or Geraldton. Costs are based on recent quotations from major haulage groups operating in these routes.

Land Access

At Boonanarring, the planned mining activities are located on cleared freehold farmland. An option to purchase agreement has been concluded with the owner of Block C, giving secure access to the land where mining operations will commence and where the plant site and site infrastructure will be located.

Mining access discussions are continuing with the other five landowners in the mining path.

At Atlas, the bulk of the mineralisation occurs on vacant Crown Land. Negotiations on Native Title have proceeded positively with the Yued People, who are the traditional owners in the area. A formal agreement is in late draft. Mining access discussions with the other freehold landowners have not commenced at this stage.

Project Schedule

The development programme is dependent on the timeline for environmental approvals and provides the opportunity to evaluate opportunities to further enhance the already robust project economics by reducing both capital cost and reliance on third parties for treatment of concentrates. The Company has already developed plans and concepts to address these opportunities.

The planned project development schedule is shown in Figure 6.


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Figure 6: Project Development Schedule.

Mining at Boonanarring is planned to be completed in 2021. The plant will then be relocated to Atlas and mining at Atlas will continue through to 2024. A three month period has been allowed for transfer of operations from Boonanarring to Atlas.

Capital Costs

All project direct capital cost estimates have been developed to an accuracy of +/- 15%. MSPE has developed the detailed capital cost estimates for the plant and site infrastructure. Miscellaneous capital costs were developed by other consultants. Mining contractor mobilisation, site establishment and pre-strip mining costs were provided by mining contracting groups. Pre-strip costs are based on detailed mining schedules.

The detailed economic model generated estimates of Working Capital based on the expected lag between production and payment for product shipments.

The capital cost estimates are summarised in Table 6.


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Table 6: Project Capital Cost Summary

Item Pre-Production Life of Mine (Note 1)

A$k A$k

Plant Cost 23,884 34,054

Infrastructure 2,090 3,356

Indirects 1,370 1,949

Contingency 3,590 3,590 (Note 3)

Sub-total 30,934 42,949

EPCM Costs 5,512 7,956

Land Acquisition (net) 3,200 4,434

Technical and Environmental Studies

1,672 3,072

Owner Supplied Capital Items 777 4,408

Sub-total Owner’s Costs 5,649 11,914

Mining Contractor Mobilisation and Site Establishment

1,550 4,367

Pre-strip 10,757 13,500

Owner’s Pre-production Costs 2,550 3,770

Sustaining Capital 0 8,352

TOTAL EXCLUDING WORKING CAPITAL

56,952 92,808

Working Capital 7,099 0

Maximum Negative Cashflow 64,051 64,051

Note 1: Includes site establishment at Atlas

Note 2: Unless shown, contingency has been applied to individual cost elements in the above table. Overall contingency applied to Indirect and Direct Project is equivalent to 13% of those costs

Note 3: Contingency in the Atlas plant capex is distributed to the line items


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Operating Costs

The operating cost estimates and key metrics are summarised in Tables 7 and 8.

Table 7: Project Operating Cost Summary

Item Variable Cost

Units

Variable Costs Annual Fixed Costs

A$ A$k

Administration 1,500

Ore Mining $/bcm 2.66 3,300

Waste Mining $/bcm 2.85

Owner’s Labour and Fixed Costs

7,800

MFU and Wet Processing

$/t RHF 2.40 1,500

Slimes Management and Rehab

550

Dayworks 1,900

HMC Transport and Processing

$/t HMC 90 to 112

Product Handling and Storage

$/t product 7.42 500

Table 8: Operating Cost Metrics

Item A$/t RHF A$/t HMC A$/t Product

Ore processed 29

HMC Produced 386

Final Product 482

Marketing and Prices

Final ilmenite product grade samples have been sent to a number of major potential customers. The ilmenite from Boonanarring will be separated into two fractions, one suitable for slag plant feed or Sulphate pigment plant feed and one suitable for either SR production or chloride pigment plant feed. The ilmenite from Atlas is all High TiO2 material suitable for either SR production or chloride pigment plant feed.

Samples of zircon from both Atlas and Boonanarring have been examined and assayed. The Atlas material is expected to be 65% Premium Grade. Due to iron staining, the Boonanarring material is expected to be 10% Premium and 50% Standard grade. This has been allowed for in the product pricing. Opportunity exists to consider off-site treatment of the Boonanarring zircon to improve product quality as part of the planned project optimisation studies.


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Pricing of the products has been derived having regard to widely publicised industry forecasts on. The project economics have been run on the price scenarios as shown in Table 9.

Table 9 Product Pricing Assumptions

Standard Pricing

Boonanarring Products

Atlas Products

US$/t FOB US$/t FOB US$/t FOB

Ilmenite 275 (Note 1) 260 272

Leucoxene 400 400 400

Rutile 1500 1500 1500

Zircon 1500 (Note 2) 1250 1410

Note 1: Low U+Th, Low impurity SR or chloride feed quality ilmenite

Note 2: Premium Grade Zircon

Financial Analysis

Project evaluation has been carried out using a detailed economic and financial model. Exchange rates of 1USD =A$0.80 have been applied from 2016 onwards.

The key economic parameters are shown in Table 10.

Table 10: Key Economic Parameters (Boonanarring and Atlas Projects only)

Pre-Tax After Tax (Note 1)

NPV at 8% $145M $107M

IRR 57.4% 50.8%

Maximum Negative Cashflow $64.1M

Payback Period 22 months

Total Revenue $992M

Total Operating Costs $655M

Operating Margin $337M

Operating Cashflow after Capital

$245M $185M

Note 1: After tax NPV is quoted disregarding the value of franking credits or dividends to investors. Image will have carried forward tax credits of $31 million at the start of project development.


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Figure 7: Cashflow Curve (Annual and Cumulative)

Key sensitivities are shown in Table 11 and Figure 8.

Table 10: Key Sensitivities

Price Grade Operating Cost

Capital Cost

NPV at 8% A$M A$M A$M A$M

20% Better 269 247 229 156

10% Better 207 196 187 150

Base Case 145 145 145 145

10% Worse 83 95 103 140

20% Worse 22 44 60 134


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Figure 8: Chart of Key Sensitivities

The project is relatively insensitive to capital and operating costs and most sensitive to ore grade and product sales prices.

Given the uncertainties of future product pricing, it is usual to consider “Inducement Prices” for zircon for new mineral sands projects. Pre and post tax inducement prices for the project are shown in Table 11 for different ilmenite pricing scenarios.

The “Zircon Inducement Price” is the zircon price at which the project both makes at least a 15% IRR and is cash positive in each year of operation. In the case of the Boonanarring and Atlas Project, the Inducement Price is lower than those prices quoted for most other mineral sands project currently under consideration worldwide. This reflects the relatively low capital cost for the Image project and the exceptionally high in-situ combined zircon and rutile grades, averaging 2.1% at Boonanarring and 1.4% at Atlas.


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Table 11: Zircon Inducement Prices – Boonanarring and Atlas

Pre-Tax After-Tax

US$/t US$/t US$/t US$/t

Sulphate Grade Ilmenite Price Scenario

190 250 190 250

Zircon Inducement Price

1100 960 1120 970

Environmental and Project Approvals

The Resources are in an established mineral sands province with a history of exploitation exceeding 30 years and are secured through tenure granted under the Mining Act 1978, including granted mining leases at Boonanarring. Application has been made for a mining lease covering the mining inventory at Atlas.

A number of State regulatory and other approvals are required to implement the project, particularly:

Tenure (Mining Leases, General Purpose Licenses and Miscellaneous Licenses)

Mining access agreements with private land owners (surface rights)

Part IV Environmental approval (State and Federal). Boonanarring is being assessed at the level of Public Environmental Review (PER). The draft PER report was submitted to the OEPA on 12 July 2013

Licenses to take water

Planning, health and building approvals will be required from the Shire of Gingin.

Consents to disturb Aboriginal heritage sites (if such sites exist)

EP Act Part V environmental, water and mining approvals.

Receipt of the primary State environmental approval (Part IV) will release government decision making authorities to grant a series of secondary approvals including groundwater licences, operating licences and mining approvals. All approvals for Boonanarring are expected to be obtained by June 2014, enabling work to commence on site in July 2014.

All approvals for Atlas are expected to be obtained within 2 years of formally commencing the environmental approval process for that deposit. The timing of the commencement of this process will ensure that it does not delay the proposed start up of mining in this area in 2021.


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Project Implementation Plan

The critical path for the initial site establishment at Boonanarring is determined by the period required to obtain the Primary Approvals. It is assumed that these will be parallel processed to enable work to commence on site in July 2014.

In order to be ready to start site construction at that time, detailed engineering will need to commence in February 2014, in turn requiring project finance arrangements and key land access agreements to be in place by that time. This leaves opportunity to commence options studies in September 2013 and if required, to complete a final Bankable Feasibility Study in January 2014.

It is proposed that the capital works will be split into three packages:

Tender and negotiation of the mining contract, mobilisation, site establishment and

pre-strip operations, to be managed directly by Image

An EPCM contract covering the process plant and major on-site infrastructure

A separate contract to cover planning and construction of the upgrade the Brand

Highway, Wannamal Road West junction.

Further review is required to determine the most appropriate structure for the EPCM contract, including Lump Sum or Target Price arrangements.

Adequate costs have been allowed in the pre-production period for Image to progressively recruit key operating staff and operating personnel at an early stage in order to ensure a smooth transition though commissioning and into production. Allowance has also been made for a dedicated Image Project Manager to provide overall management oversight.

Detailed organisation charts and manning levels have been developed for each operating phase.

Project Funding

The project economic analysis shows that the project will have a maximum negative cashflow of $64.1 million in the June Quarter 2015. This allows for all project expenditures and working capital.

No detailed analysis has been carried out of project financing options. Expressions of interest have been received from many parties with regard to various financing mechanisms including:

off-take

build-own-transfer (BOT) lease arrangements

debt

equity

unincorporated JV structures with direct investor participation in the JV.


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Both BOT and off–take agreements could reduce up-front capital requirements.

Advancing the discussions with interested parties will commence immediately.

Opportunities and Risks

Project Risks

Risk studies have been completed for the environmental and project approvals and process design and engineering aspects of the project.

The key environmental risks were assessed as being:

Management of noise and dust

Obtaining the necessary water allocation

Mitigation of groundwater impacts on vegetation and other local users

Delays in the overall approvals processes.

Major process design and engineering aspects of the project to be addressed at the next stage were identified as follows:

Designing the plant to provide adequate flexibility to accommodate grade variations

Effective grade management and ore blending

Adopting a realistic project schedule and building adequate scheduling contingency into the project programme

Early expedition of key items and maximisation of modularisation and off-site fabrication work

Requirements for additional pumping capacity

The need to lock-in the location of key project components as soon as possible before detailed engineering commences

Selecting the correct contracting mechanism to properly allocate risk.

Another risk workshop is planned at the start of the project optimisation work, to address any issues related to confidence in assays, Resources and mine planning criteria.

Mining access to the land outside Block C at Boonanarring remains a critical item in terms of overall project feasibility.

Upside Potential

Outweighing the possible impacts of the above risks, there is considerable upside potential in the following areas:

a) The low cost Dry Mill concept to establish an independent project

b) Build-Own-Transfer of major plant items


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c) Optimisation of cut-off grade and mine lifeIn-house zircon product quality improvement

d) Southern extension of Atlas Resources

e) Northern extension of Boonanarring Resources

f) Reduced costs for tailings disposal

g) Inclusion of other NPB Resources

Item h) above includes the JORC Code Resources at Helene, Hyperion, Red Gully, Gingin North and Gingin South. These Resources are estimated to have an additional net pit value of between $100 million and $110 million.

Technical Study Team

The Feasibility Study was carried out by a number of independent consultants to the Company. In addition, an expert independent specialist was appointed as part of the main project team to manage the scope and performance of the consultants carrying out each major component of the work.

Key consulting groups which formed part of the project team were as follows:

Resource estimation - Widenbar & Associates

Open pit mine optimisation and production scheduling - Creative Mined Pty Ltd

Process flowsheet design – Keypointe Pty Ltd and Allmineral Pty Ltd

Plant and on site infrastructure design - MSP Engineering Pty Ltd

Plant and on site infrastructure capital costs - MSP Engineering Pty Ltd

Direct process operating costs - MSP Engineering Pty Ltd

Mining costs, direct labour and site support and indirect costs –Broad Reach Pty Ltd

Metallurgical testwork – Allied Mineral Laboratories

Slimes testwork – ATC Williams

Geotechnical testwork and review – ATC Williams Pty Ltd

Access road design - Shawmac Pty Ltd

Logistics studies – Wyntak Pty Ltd

Marketing advice – Australasian Minerals & Trading Pty Ltd

Hydrology – MWES Consulting and URS

Environmental studies an approvals – Jass Pty Ltd, 360 Environmental Pty Ltd and Outback Ecology/MWH Global

Native Title – Liscia Legal and Economics Consulting Services

Risk Studies – Risk Point

Economic Modelling – Northwind Resources Pty Ltd


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In addition, external independent reviews were carried out as follows:

Exploration drilling, sampling and assaying QA/QC – CSA Global Pty Ltd

Open pit mining and optimisation methodology – CSA Global Pty Ltd

Process testwork, process flowsheet design and equipment selection – Mineral Technologies P/L

Conclusions

1. The Feasibility Study has demonstrated that a mining inventory of 26.9Mt @ 8.0%HM (containing 15% zircon) can be practically and economically developed at the Boonanarring and Atlas deposits.

2. The level of confidence in the technical studies supports the presentation of the JORC Code Reserves Statement for these elements of the North Perth Basin Project.

3. In addition to the currently defined Resources quoted above, there is the potential for further extensions to the mining inventory to the north of Block A at Boonanarring and to the south of the currently defined Atlas Resource. Potential exists for extension of the project life through development of other Resources currently 100% owned by Image in the North Perth Basin.

4. Testwork has demonstrated that the ilmenites produced from the project are of high quality and acceptable to major potential customers operating in the applicable downstream applications.

5. The zircon produced at Atlas is expected to be high quality, while opportunity exists at Boonanarring to enhance project economics by upgrading the zircon produced from that deposit.

6. The studies have not indicated any major technical, regulatory or logistical difficulties in establishing the necessary infrastructure facilities to support the operations at Boonanarring and Atlas.

7. No major impediments to project development have been identified in relation to environmental or community issues, permitting, land access or project approvals.

8. Market information indicates that the ilmenite market is able to absorb the ilmenite production from the project. Given the quality of the ilmenites and broad application in downstream uses, ilmenite pricing is expected to be achievable at the high end of market prices at any time. As of mid-2013, there is pressure from producers to increase prices because current pricing is not sustainable in the medium to long term.

9. Zircon will remain in oversupply through to late 2014, due to continuing high stock levels.

10. Given the unusually high zircon grades, especially at Boonanarring, the project is expected to be more robust than almost all other undeveloped mineral sands projects in a low zircon pricing environment.

11. In the final analysis, the viability of the project depends on availability of capital. With Image’s Zircon Inducement Price comparing favourably with other potential start up projects, if Image’s project does not support a financing then other projects are unlikely to be viable.


27

12. In summary the project has a number of major competitive advantages:

Competitive Zircon Inducement Price advantage

Rapid payback

Quality of Resources and products

Location

Low barriers to entry in terms of infrastructure requirements and local availability of experienced personnel

Strong management/project team with extensive mineral sands experience

Demonstrated ability to execute to plan on a clear path to production

Good tenement holdings and exploration expertise

Risks, as currently identified, are more than outweighed by upside potential

Recommendations

It is recommended at this stage that Image proceed to develop the recently defined upside represented by the low cost Dry mill concept. This concept would significantly reduce total operating costs from mine to final product and at the same time remove the project reliance on third parties for most downstream separation to final products – and at a fraction of the previously estimated capital cost for a stand-alone dry mill.

Figure 9: Proposed Site Layout at Boonanarring


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Figure 10: Boonanarring Resources and Drilling May 2013


29

Figure 11: Block A Section on Line 35 000N (Refer to Figure 10 for location)

Figure 12: Block B Section on Line 33 050N (Refer to Figure 10 for location)

Figure 13: Block C Section on Line 31 200N (Refer to Figure 10 for location)


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Figure 14: Block D Section on Line 27 600N (Refer to Figure 10 for location)

Figure 15: Perspective view of Block D & Block E strandlines connecting to Block C. Blocks coloured by (a) Interpolated HM Grade and (b) Interpolated Zircon Grade as % of HM


31

Figure 16: Atlas Resources and Drilling


32

Figure 17: Atlas Cross-Section on Line 6 617 800N (Refer to Figure 16 for location)



33



34

For more information on the Company visit www.imageres.com.au

Please direct enquiries to:

Peter Davies George Sakalidis Managing Director Technical Director Phone +61 8 9485 2410 Phone +61 8 9485 2410 Mob +61 409 296 676 Mob +61 411 640 337 COMPETENT PERSON’S STATEMENT – EXPLORATION RESULTS

The information in this presentation is based on information compiled by Paul Leandri BAppSc who is a member of the Australasian Institute of Mining and Metallurgy. Paul Leandri is an employee of Image Resources NL. He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Paul Leandri consents to the inclusion of this information in the form and context in which it appears in this presentation.

COMPETENT PERSON’S STATEMENT – RESOURCE ESTIMATES

The information in this presentation that relates to mineral Resources is based on information compiled by Lynn Widenbar BSc, MSc, DIC MAusIMM MAIG employed by Widenbar & Associates who is a consultant to the Company. Lynn Widenbar has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the ‘Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Lynn Widenbar consents to the inclusion of this information in the form and context in which it appears in this presentation.

COMPETENT PERSON’S STATEMENT – TECHNICALSTUDIES

The information in this presentation that relates to technical studies is based on information compiled by Peter Davies BSc Eng (Hons) ARSM, C.Eng. MIMMM, FAusIMM, FRSA, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Peter Davies is Managing Director/Project Manager of Image Resources NL. Peter Davies has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Peter Davies consents to the inclusion of this information in the form and context in which it appears in this report.

COMPETENT PERSON’S STATEMENT – PROJECT EVALUATION

The information in this presentation that relates to project evaluation and financial analysis is based on information compiled by Mr Ray Cary, BSc., who is a Fellow of the Australasian Institute of Mining and Metallurgy and a Fellow of the Australian Institute of Geoscientists. Ray Cary is the Director and Principal of Northwind Resources Pty Ltd, a Perth, Western Australia based minerals industry consultancy. Ray Cary has sufficient experience in the technical and economic evaluation of minerals development projects and mining operations which is relevant to the activity which he 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. Ray Cary consents to the inclusion of this information in the form and context in which it appears in this presentation.

FORWARD LOOKING STATEMENTS

Certain statements made during or in connection with this communication, including, without limitation, those concerning the economic outlook for the mining industry, expectations regarding prices, exploration or development costs and other operating results, growth prospects and the outlook of Image’s operations contain or comprise certain forward looking statements regarding Image’s operations, economic performance and financial condition. Although Image believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct.

Accordingly, results could differ materially from those set out in the forward looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes that could result from future acquisitions of new exploration properties, the risks and hazards inherent in the mining business (including industrial accidents, environmental hazards or geologically related conditions), changes in the regulatory environment and other government actions, risks inherent in the ownership, exploration and operation of or investment in mining properties, fluctuations in prices and exchange rates and business and operations risks management, as well as generally those additional factors set forth in our periodic filings with ASX. Image undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today’s date or to reflect the occurrence of unanticipated events.


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Appendix 1 Resource Summary – Boonanarring

Table A1-1: Boonanarring Resource Categories by HM Cut-off 30 May 2013

RESCAT HM

CUTOFF VOL TONNES

HM (%)

SLIMES (%)

OS (%)

HM TONNES

VHM (%)

MEASURED 10.0 300,000 600,000 14.3 9.8 2.6 90,000 11.0

MEASURED 5.0 1,200,000 2,200,000 8.9 9.9 2.3 200,000 6.4

MEASURED 4.0 1,400,000 2,700,000 8.2 10.1 2.2 220,000 5.8

MEASURED 3.0 1,600,000 3,000,000 7.8 10.1 2.2 230,000 5.5

MEASURED 2.5 1,600,000 3,000,000 7.8 10.1 2.2 230,000 5.5

MEASURED 2.0 1,600,000 3,000,000 7.7 10.1 2.2 230,000 5.4

MEASURED 1.0 1,600,000 3,000,000 7.7 10.1 2.2 230,000 5.4

INDICATED 10.0 1,800,000 3,800,000 19.2 17.8 11.5 730,000 15.9

INDICATED 5.0 4,100,000 8,600,000 12.4 17.6 10.0 1,060,000 10.0

INDICATED 4.0 5,200,000 10,600,000 10.9 17.4 9.5 1,160,000 8.7

INDICATED 3.0 6,400,000 13,000,000 9.5 17.1 8.9 1,240,000 7.6

INDICATED 2.5 7,000,000 14,300,000 8.9 17.0 8.7 1,270,000 7.2

INDICATED 2.0 7,600,000 15,400,000 8.4 16.9 8.5 1,300,000 6.8

INDICATED 1.0 8,400,000 16,900,000 7.8 16.6 8.3 1,320,000 6.3

INFERRED 10.0 230,000 470,000 18.0 16.0 4.8 90,000 15.7

INFERRED 5.0 1,000,000 2,000,000 9.4 16.7 5.6 190,000 8.0

INFERRED 4.0 1,400,000 2,900,000 8.0 17.2 5.7 230,000 6.7

INFERRED 3.0 1,800,000 3,700,000 7.0 17.3 5.7 260,000 5.8

INFERRED 2.5 2,100,000 4,200,000 6.5 17.4 5.6 270,000 5.4

INFERRED 2.0 2,200,000 4,600,000 6.1 17.4 5.6 280,000 5.1

INFERRED 1.0 2,300,000 4,600,000 6.1 17.5 5.5 280,000 5.0

TOTAL 10.0 2,330,000 4,870,000 18.4 16.6 9.7 910,000 15.2

TOTAL 5.0 6,300,000 12,800,000 11.3 16.1 7.9 1,450,000 9.0

TOTAL 4.0 8,000,000 16,200,000 9.9 16.1 7.6 1,610,000 7.8

TOTAL 3.0 9,800,000 19,700,000 8.8 16.1 7.3 1,730,000 7.0

TOTAL 2.5 10,700,000 21,500,000 8.3 16.1 7.2 1,770,000 6.6

TOTAL 2.0 11,400,000 23,000,000 7.9 16.1 7.1 1,810,000 6.3

TOTAL 1.0 12,300,000 24,500,000 7.5 16.0 7.0 1,830,000 6.0


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Table A1-2: Boonanarring Resource Mineralogy by HM Cut-off 30 May 2013

RESCAT HM

CUTOFF HM

TONNES VHM %

HM ILMENITE LEUCOXENE RUTILE ZIRCON

MEASURED 10.0 90,000 77 50 1 3 23

MEASURED 5.0 200,000 72 49 1 3 18

MEASURED 4.0 220,000 71 49 1 3 18

MEASURED 3.0 230,000 70 49 1 3 17

MEASURED 2.5 230,000 70 49 1 3 17

MEASURED 2.0 230,000 70 49 1 3 17

MEASURED 1.0 230,000 70 49 1 3 17

INDICATED 10.0 730,000 83 48 4 2 29

INDICATED 5.0 1,060,000 80 48 5 2 25

INDICATED 4.0 1,160,000 80 48 6 3 24

INDICATED 3.0 1,240,000 80 49 6 3 23

INDICATED 2.5 1,270,000 80 49 6 3 22

INDICATED 2.0 1,300,000 80 49 6 3 22

INDICATED 1.0 1,320,000 80 49 7 3 22

INFERRED 10.0 90,000 87 48 7 5 27

INFERRED 5.0 190,000 85 50 8 7 21

INFERRED 4.0 230,000 84 50 8 7 19

INFERRED 3.0 260,000 84 50 8 7 19

INFERRED 2.5 270,000 83 51 8 7 18

INFERRED 2.0 280,000 83 51 7 7 18

INFERRED 1.0 280,000 83 51 7 7 18

TOTAL 10.0 910,000 83 48 4 2 28

TOTAL 5.0 1,450,000 79 48 5 3 23

TOTAL 4.0 1,610,000 79 48 5 3 22

TOTAL 3.0 1,730,000 79 49 6 3 21

TOTAL 2.5 1,770,000 79 49 6 3 21

TOTAL 2.0 1,810,000 79 49 6 3 21

TOTAL 1.0 1,830,000 79 49 6 3 20


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Appendix 2 Resource Summary – Atlas

Table A2-1: Atlas HM Resource 18 April 2011

Category HM Cut-off Volume Tonnes HM (%)

VHM (%)

Slimes (%)

OS (%)

HM Tonnes

Indicated 5.0 4,900 9,800 5.6 4.6 15.7 10.2 500

Indicated 4.0 40,000 80,000 4.4 3.6 16.0 5.4 3,600

Indicated 3.0 309,000 635,000 3.5 2.9 19.0 4.1 22,000

Indicated 2.5 524,000 1,079,000 3.2 2.6 19.2 3.8 34,000

Indicated 2.0 807,000 1,663,000 2.9 2.4 19.4 3.4 48,000

Indicated 1.5 1,050,000 2,140,000 2.6 2.1 19.1 3.5 56,000

Indicated 1.0 1,240,000 2,530,000 2.4 2.0 18.9 3.3 61,000

Measured 5.0 2,980,000 6,120,000 11.0 8.5 16.2 4.0 670,000

Measured 4.0 3,660,000 7,460,000 9.8 7.6 15.8 4.2 730,000

Measured 3.0 4,410,000 8,930,000 8.8 6.8 15.5 4.4 790,000

Measured 2.5 4,800,000 9,700,000 8.3 6.4 15.3 4.5 810,000

Measured 2.0 5,300,000 10,700,000 7.7 6.0 15.2 4.7 830,000

Measured 1.5 6,400,000 12,800,000 6.8 5.2 15.0 5.1 860,000

Measured 1.0 9,100,000 17,900,000 5.2 4.0 14.5 5.5 930,000

Total 5.0 2,980,000 6,130,000 11.0 8.5 16.2 4.0 671,000

Total 4.0 3,700,000 7,540,000 9.8 7.6 15.8 4.2 734,000

Total 3.0 4,720,000 9,560,000 8.4 6.6 15.7 4.4 812,000

Total 2.5 5,300,000 10,800,000 7.8 6.1 15.7 4.4 844,000

Total 2.0 6,100,000 12,400,000 7.1 5.5 15.8 4.5 878,000

Total 1.5 7,400,000 14,900,000 6.2 4.8 15.6 4.9 916,000

Total 1.0 10,300,000 20,500,000 4.8 3.8 15.1 5.3 991,000 Slimes: minus 63 micron fraction OS: oversize, plus 1mm fraction


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Table A2-2: Atlas Resource 18 April 2011 Mineralogy Breakdown

Category HM Cut-off HM Tonnes Zircon (%HM)

Ilmenite (%HM)

HiTi (%HM)

Leucoxene (%HM)

Rutile (%HM)

VHM (%HM)

Indicated 5.0 500 7.8 65.3 3.5 2.3 4.9 83.7

Indicated 4.0 3,600 6.9 62.4 3.2 1.7 6.0 80.3

Indicated 3.0 22,000 6.9 63.8 3.6 1.3 6.6 82.2

Indicated 2.5 34,000 6.8 63.8 3.6 1.3 6.7 82.1

Indicated 2.0 48,000 6.8 63.6 3.6 1.3 6.7 82.0

Indicated 1.5 56,000 6.8 63.7 3.6 1.3 6.7 82.1

Indicated 1.0 61,000 6.9 63.8 3.6 1.3 6.7 82.2

Measured 5.0 670,000 11.1 55.5 2.9 1.0 7.0 77.6

Measured 4.0 730,000 11.0 55.5 3.0 1.0 7.0 77.5

Measured 3.0 790,000 10.9 55.5 3.0 1.0 7.1 77.5

Measured 2.5 810,000 10.9 55.5 3.0 1.1 7.1 77.5

Measured 2.0 830,000 10.8 55.5 3.0 1.1 7.1 77.5

Measured 1.5 860,000 10.8 55.5 3.1 1.1 7.0 77.6

Measured 1.0 930,000 10.9 55.5 3.1 1.2 7.0 77.8

Total 5.0 671,000 11.2 55.5 2.9 1.0 7.0 77.6

Total 4.0 734,000 11.0 55.5 3.0 1.0 7.0 77.5

Total 3.0 812,000 10.8 55.7 3.0 1.0 7.1 77.6

Total 2.5 844,000 10.7 55.8 3.0 1.1 7.0 77.7

Total 2.0 878,000 10.6 56.0 3.0 1.1 7.0 77.8

Total 1.5 916,000 10.6 56.0 3.1 1.1 7.0 77.9

Total 1.0 991,000 10.6 56.0 3.2 1.2 7.0 78.1


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Appendix 3

Boonanarring Resource Classification Criteria

Criteria Explanation

SAMPLING TECHNIQUES AND DATA

Sampling Techniques Air core drilling used to obtain 1metre samples from which approximately 1.5kg, representing approx. 20% of the sample stream was split via rotary splitter at the cyclone discharge for logging and assay. With the exception of Block B remainder of sample was retained in separate bags. In Block B the two 1.5kg bags were retained, one for assay and Logging and the second as back-up and QA/QC.

Drilling techniques. Vertical NQ air core holes

Drill sample recovery. Sample quality is logged at time of drilling on the basis of recovery size and material state (wet, moist or dry). Drillers ensure pipes are clear of sample before next sample taken, the driller’s assistant and Image personnel ensure the cyclone is cleaned regularly and discharge chute cleared of sample build-up. No relationship between grade and drilling recovery is known to exist

Logging. Chip samples are logged for colour, grain size, presence of induration and estimates are made of HM, Slimes and Oversize content using hydraulic panning. Logging system follows standard mineral sands practice and is suitable for Resource estimation to any category.

Sub-sampling techniques and sample preparation.

Samples were rotary split on site to reduce the sample size from about 8kg to 1.5 kg. Samples are taken in the condition that they are discharged from the cyclone (wet or dry). Samples are labeled with consecutive numbers on bags and separate lists compiled by loggers. These numbers are used throughout the cycle from generation to final assay to track samples.

Quality of assay data and laboratory tests.

Samples were assayed by four experienced mineral sands laboratories. Diamond Recovery Services (DRS) assayed 45%, Western Geolabs (WGL) assayed 29%, Diamantina assayed 17% and RJ Robbins (Robbins) 10%. Each lab took internal duplicates at a rate of 1 in 25, except for WGL, which took 2 in 25. Assay results have only been completed for samples estimated to contain >0.5%HM. DRS and Robbins process the entire sample to determine Oversize and Slimes and then take sub-samples of sand fraction for heavy liquid separation. Diamantina and WGL take 100gm subsamples from the assay sample and then remove OS and Slimes before subjecting to TBE heavy liquid separation for HM determination. All of these fractions are determined by gravimetric methods and are appropriate for the mineralisation style. QA/QC is undertaken using internal laboratory duplicates, duplicates riffle split from bulk samples and submission of duplicate samples to “umpire” laboratories.

Mineralogy is determined by compositing HM sinks from individual metre samples and subjecting to XRF analysis at certified laboratories. Back up mineralogy is determined by SEM methods.

Verification of sampling and assaying.

Replicate samples taken at rate of 1 in 50 for check assay at original laboratory.

Separate replicate samples taken at 1 in 100 for umpire assay at different laboratory


40


Location of data points. Collars were surveyed by differential GPS. The rig mast is set up vertically and holes are assumed to be drilled vertical. A LIDAR DEM has been flown over the orebody and used to model topography in between drill holes.

Data spacing and distribution. Drill holes are spaced at 20m apart within the Resource area and 40m to 80m apart on the edges. Drill lines are approximately 200m apart in blocks A, B, C and E. Some lines spaced at 400m due to heritage buffers and infrastructure buffers. In Block D drill lines are spaced at 100m. The sampling interval was 1m in all Blocks. Sample compositing only took place for mineral assemblage determinations with between 1 and 12 samples composited into individual mineralogical composites.

Orientation of data in relation to geological structure.

Drill lines are oriented at approximately 90 degrees to the strike. No biased sampling of structure has occurred.

Sample Security Sample numbers are recorded on bags and in the geological logs. Samples are then stored in selected areas in secured polyweave bags until sufficient samples are available for shipment to the designated laboratory. Samples are then transported directly to the laboratory by Image personnel.

Audits or reviews. CSA Global Pty Ltd (CSA) has been engaged to undertake independent audits. To date the review and audit process has not identified any material deficiencies.

Mineral tenement and land tenure status.

The area for the Resource lies within granted Mining Lease licences M70/1194 and M70/1311, both held 100% by Image Resources. Land tenure is freehold land owned by six landowners. The reported Measured Resource is located on granted Mining Lease M70/1194, for which land tenure is freehold land held by three parties.

Exploration done by other parties.

Exploration done by Iluka used as the basis for Resource estimate in M70/1194 (Block D), which comprises ~14% of overall Resource.

Geology. The deposit is a typical strandline hosted mineral sand deposit with later cover sands and clays.

ESTIMATION AND REPORTING OF MINERAL RESOURCES

Database integrity. All of the samples were logged electronically using an industry standard logging programme designed to preclude transcription errors. Assay data is presented electronically and both manually and electronically checked prior to loading into the database. The database is validated for missing intervals, duplicate samples, missing coordinates, hole name mismatches and end of hole (EOH) mismatch between collar and downhole data.

Site visits A site visit was undertaken by Lynn Widenbar of Widenbar & Associates on 5th February 2013. Mr Widenbar found that the work was being undertaken in a suitable manner.


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Geological interpretation. The data quality affords a high degree of confidence in the geological interpretation. Geological logs and examination of HM sink samples were used to determine geological domains and mineralogical associations, including identification and exclusion of spurious HM grades caused by non VHM sinks, chiefly iron-oxide fragments. Data is of sufficient density within the strands that alternative interpretations will not materially affect the Resource estimate. The geological domains defined from logging data were used to restrict estimation of grades to samples from the relevant domains. Geological continuity has been demonstrated at kilometre scale along strike, 100’s of metre scale across strike and 10’s of metre scale down hole. Main factors affecting continuity are erosional surfaces between the base of marine units and the Cretaceous Basement and erosional surfaces between the top of the marine unit and overlying sandy clay units. Grade continuity is significantly shorter across strike compared to along strike and is mainly influenced by hydrodynamic factors. Cross- strike higher HM grades and zircon grades are concentrated at the eastern nose of the strand with HM and zircon grades decreasing to the west and ilmenite grades increasing.

Dimensions. For the dimensions of the deposit in Blocks A through E please refer to previous ASX announcements.

Estimation and modeling techniques.

Ordinary Kriging was used for interpolation for HM, Slimes and OS, and ‘nearest neighbour’ for assemblage data. Model and data were constrained by mineralisation wireframe solids with initial search radius of 250m x 50m x 3m, minimum 2 samples, max 12. Assemblage data and hardness estimated by ‘nearest neighbour’. These mthods are considered suitable for the type of deposits and level of information.

Moisture. The tonnage is estimated on a dry basis.

Cut-off parameters. 2.5% HM for “high grade” mineral envelope. Various geological parameters for basement and lithology zones.

Mining factors or assumptions.

The deposit is likely to be mined by dry mining methods

Metallurgical factors or assumptions.

Testwork indicates that the mineralisation can be efficiently processed by traditional mineral sands methods, i.e. spirals, attritioning and magnetic/electrostatic separation.

Bulk density. Calculated using a formula which takes account of HM proportion, slimes, oversize and sand. The density values range from 1.79 to 2.61, with an average of 2.11


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Appendix 4

Atlas Resource Classification Criteria


SAMPLING TECHNIQUES AND DATA

Sampling Techniques Air core drilling used to obtain 1metre samples from which approximately 1.5kg, representing approx. 20% of the sample stream was split via rotary splitter at the cyclone discharge for logging and assay

Drilling techniques. Vertical NQ air core holes

Drill sample recovery. Sample quality is logged at time of drilling on the basis of recovery size and material state (wet, moist or dry). Drillers ensure pipes are clear of sample before next sample taken, the drillers assistant and Image personnel ensure cyclone cleaned regularly and discharge chute cleared of sample build-up. No relationship between grade and drilling recovery is known to exist

Logging. Chip samples are logged for colour, grain size, presence of induration and estimates are made of HM, Slimes and Oversize content using hydraulic panning. Logging system follows standard mineral sands practice and is suitable for Resource estimation to any category.

Sub-sampling techniques and sample preparation.

Samples were rotary split on site to reduce the sample size from about 7.5kg to 1.5 kg. Samples are taken in the condition that they are discharged from the cyclone (wet or dry). Samples are labeled with consecutive numbers on bags and separate lists compiled by loggers. These numbers are used throughout the cycle from generation to final assay to track samples.

Quality of assay data and laboratory tests.

All samples were assayed by Western Geolabs (WGL). WGL conduct routine duplicate assaying of 8% of samples (2 in 25). WGL take 100gm subsamples from each 1.5kg assay sample and then remove OS and Slimes before subjecting to TBE heavy liquid separation for HM determination. All of these fractions are determined by gravimetric methods and are appropriate for the mineralisation style. QAQC is undertaken using internal laboratory duplicates, duplicates riffle split from bulk samples and submission of duplicate samples to Diamantina Laboratories for “umpire” checks. Diamantina uses a similar analysis procedure to WGL. Mineralogy data consisted of the heavy mineral breakdown from a total of 69 composites. 22 of the composites were analysed by magnetic separation and grain counting and the reaming 47 were analysed by QEMSCAN. Both of these techniques produce reliable and comparable mineral breakdowns.

Verification of sampling and assaying.

Replicate samples taken at rate of 1 in 50 for check assay at original laboratory. Separate replicate samples taken at 1 in 100 for umpire assay at different laboratory

Location of data points. Collars were surveyed by differential GPS. The rig mast is set up vertically and holes are assumed to be drilled vertical.

Data spacing and distribution. Drill holes are spaced at 20 metre apart within the Resource area and 40m to 80m apart on the edges. Drill lines are approximately 100 m apart in the main part of the orebody (see Figure 7 in text). Lines in the northern Indicated Resource area spaced at 200m. The sampling interval was 1 metre. Sample compositing only took place for mineral assemblage determinations with between 1 and 31 samples composited into individual mineralogical composites.

Orientation of data in relation to geological structure.

Drill lines are oriented at approximately 90 degrees to the strike. No biased sampling of structure has occurred.


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Sample Security Sample numbers are recorded on bags and in the geological logs. Samples are then stored in selected areas in secured polyweave bags until sufficient samples available for shipment to the designated laboratory. Samples are then transported directly to the laboratory by Image personnel.

Audits or reviews. No independent audits have been undertaken on the Atlas Resource. Internal audits were undertaken by Image staff and contractors and found no significant deficiencies. An independent audit undertaken by CSA Global Pty Ltd (CSA) on Image’s field procedures at Boonanarring also found no material deficiencies, which lend confidence to the Atlas field procedures.

Mineral tenement and land tenure status.

The area for the Atlas Resource lies within granted Exploration licences E70/2636 and E70/2898 and Prospecting Licence P70/1516 all held 100% by Image Resources. The Resource is also covered by Mining Lease Application M70/1305. Land tenure is Unallocated Crown Land for approximately 85% of the Resource area and freehold land held by one landowner for the remainder.

Exploration done by other parties.

Deposit was previously explored by RGC Mineral Sands Ltd and Iluka Resources. Image has re-drilled all but 50 of these.

Geology. The deposit is a typical strandline hosted mineral sand deposit with the mineralisation sub-cropping to outcropping or covered by shallow later dunal sands. It consists of a main strandline that has been subdivided into four sub-strands on the basis of mineralogy and morphology, plus three lesser strands developed adjacent to the main strand line.

ESTIMATION AND REPORTING OF MINERAL RESOURCES

Database integrity. All of the samples were logged electronically using an industry standard logging program designed to preclude transcription errors. Assay data is presented electronically and both manually and electronically checked prior to loading into the database. The database is validated for missing intervals, duplicate samples, missing coordinates, hole name mismatches and end of hole (EOH) mismatch between collar and downhole data.

Geological interpretation. The data quality affords a high degree of confidence in the geological interpretation. Geological logs and mineralogical logs of HM sink samples were used to determine geological domains and mineralogical associations, including identification and exclusion of spurious HM grades caused by non VHM sinks, chiefly iron-oxide fragments. Data is of sufficient density within the strands that alternative interpretations will not materially affect the Resource estimate. The geological domains defined from logging data were used to restrict estimation of grades to samples from the relevant domains. Geological continuity has been demonstrated at kilometre scale along strike, 100’s of metre scale across strike and 10’s of metre scale down hole. The main sand units are continuous over the length on the deposit. The main strand unit is continuous over 6,700m with the lesser strands varying between 800m and 3,500m. Controls on strand continuity appear to be related to basement variations and a curve in the shoreline suggestive of a headland to the south. Grades show a distinct increase to the south, as do VHM contents, especially zircon.

Dimensions. The main strand is continuous over 6,700m strike and 100m to 350m across strike. Within the main strand a high garnet strand has been identified varying from 40m to 100m wide and extending for 3,500m strike. Other strands are less continuous, extending between 800m and 2,000m and averaging 60m width. Thickness ranges from 3m to 12m with an average of 4m.


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Estimation and modeling techniques.

An Inverse Distance Squared interpolation method was used to estimate HM%, Slimes% and OS%. No grade capping was applied. The search ellipse had radii of 220m north-south, 35m east-west and 5m vertically. A minimum of 8 samples and a maximum of 16 were required in the first search pass. The second search had radii of 440m by 70m by 5m, with a minimum of four and a maximum of 16 samples. Composite data was constrained by the mineralised strand interpretations to match the coding of the block model. A nearest neighbour method within mineralised strands was used to assign hardness into the block model. Mineral assemblage data were assigned on a nearest neighbour basis to the Resource model. Estimates were then weighted by HM % to calculate contained minerals.

Moisture. The tonnage is estimated on a dry basis.

Cut-off parameters. 2.5% HM for “high grade” mineral envelope. Various geological parameters for basement and lithology zones.

Mining factors or assumptions.

The deposit is likely to be mined by dry mining methods

Metallurgical factors or assumptions.

Testwork indicates that the mineralisation can be efficiently processed by traditional mineral sands methods, i.e. spirals, attritioning and magnetic/electrostatic separation.

Bulk density. Calculated using to formula which takes account of HM proportion, slimes, oversize and sand. Density values range from 1.50 to 2.25, with an average of approximately 2.0.


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Appendix 5

Boonanarring Reserve Classification Criteria

Modifying Factor Comment

Study Level

Minimum PFS required Study technical parameters and costs have been completed to Feasibility Study level

Mineral Resource

Resource modeling and quantities Refer Appendices 1 and 3

Cut-off grade parameters Not specifically addressed. Calculated in optimisation routine and reporting. Block values used due to multiple products

Mining Factors

Optimisation Completed for Blocks A through E of the latest Resource model dated May 2013. Allowance made in the model for approx 10% planned dilution.

Mine Design Detailed consideration given to practical mining sequence which provides optimum grade management in the early stages. Ore, waste and backfill volumes have been calculated on a monthly basis and smoothed as necessary. Ore mining and waste movement methods and equipment selected after detailed discussions with experienced mineral sands mining contractors.

Mine Geotechnical The deposit is relatively deep for dry sand mining. Conservative wall angles of 35 degrees have been adopted at this stage based on site investigation and analysis carried out by ATC Williams. Wall angle allow for expected groundwater conditions

Hydrological Studies Detailed hydrological and hydrogeological investigations, modeling and reporting to H3 Report standard have been completed by URS, with overall project management by MWES.

Mining Method Dry mining has been assumed for both overburden removal and ore mining. Contractor cost estimates are based on dozer push and excavator handling of ore into an in-pit Mining Feed Unit (MFU) with excavators and trucks and for overburden removal.

Grade Control Grade control (GC) has been considered, suggesting sampling at the PCP and SCP. The main requirement for GC will be the delineation of the edges of the ore zone and the definition of the top and base of the ore zone. GC costs have been based on closing up the 200m x 20m exploration drill spacing to 100m x 200m with extra infill holes at the margins of the deposit. In-pit spotting by experienced technicians will be used as necessary. If blending and stockpiling is considered to add value to the project at a later stage, additional consideration of effective grade control methods will be needed.


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Mineral Resource Model Refer Appendices 1 and 3. Modelling of ore outlines, HM grade and mineral assemblage is considered to be in line with industry best practice.

Mining Dilution Sub-blocking for the optimisation routines has resulted in the inclusion of approximately 10% unclassified material as planned dilution. This is considered adequate for the type of deposit and proposed mining method

Mining Recovery 100% ore recovery has been assumed. This will be controlled closely through grade control due to the high in-pit value of the ore.

Minimum Mining Widths Sufficient room has been allowed for ore mining, MFU operation and effective water drainage and pumping from the pit. On less than 20% of the sections is the mining width less than 40m and these are mostly at the ends of the pit limits. This will be reviewed in more detail at the next stage of mine planning.

Mine Infrastructure Detailed capital and operating cost estimates for the mining contractor’s site establishment and general mine support activities have been provided by experienced mineral sands mining contractors

Inclusion of Inferred Resources At the time of the study, the results of infill drilling carried out in April to close up the drill spacing in the western strandline and to improve the understanding of the ore outlines between sections had not been incorporated into the Resource model. These results would ,however, give confidence that the Inferred Resources currently included in the mining inventory will become Indicated Resources at the next stage or Resource estimation. Inferred Resources which are currently included in the mining schedule and economics are excluded from the Reserve statement.

Sensitivity of Project to Inferred Resources Given the statement above about the infill drilling results this analysis has not been carried out.

Metallurgical factors

Metallurgical Process Process testwork was carried out at AML in Perth based on representative bulk samples. Process flowsheet design and performance were developed by the project team in conjunction with MSP Engineering and reviewed by Mineral Technologies (MT) as independent expert.

Metallurgical Test work

Bulk Samples/ Pilot Plant studies Process testwork has been carried out on a representative bulk sample prepared from drill composites across Blocks B and C. Some variability testwork for samples from Blocks A , D and E is planned at the next stage of the studies.


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Deleterious Elements Monazite levels in the ore are low by regional standards. A detailed radioactive material management plan has been developed. Final products also have low U+Th levels by regional and global standards.

Appropriate mineralogy to meet product specifications

Detailed mineralogy has been carried out as part of the Resource modeling (c.f.) and the process testwork and product quality assessment.

Environmental

Environmental Studies – Status The project is being assessed by OEPA at the level of Public Environmental Review (PER). All fieldwork required to support this PER has been completed and the draft document was presented to OEPA on 12

th July 2013

Project approvals are expected to be finalised by end June 2014

Waste Rock Characterisation Soils and waste classification, together with a desktop PASS assessment have been completed as part of the PER studies

Waste Storage Sites and Design Options Detailed scheduling of waste movement, back-filling and surplus waste storage requirements has been carried out as part of the mine planning and scheduling. Sand tails from the Wet Concentrator Plant will be returned to the pit void after cycloning to dewater the material. Slimes will be pumped to solar drying cells before being re-handled back to the void. The mining void will be rehabilitated to pre-mining profile and land use progressively as mining advances


Status of approvals for residue storage and waste dumps

Addressed as part of the PER and also to be covered as part of the Mining Proposal. There will be no residual tailings dams or waste dumps after final land rehabilitation. Allowance has been made in operating costs for the estimated annual Mining Rehabilitation Levy cost.

Infrastructure

Geotechnical assessment Site test work and analysis of bearing pressures for the planned plant site has been carried out by ATC Williams. The general area is relatively level, well drained, stable and suitable for construction.

Availability of land for plant development Image has an option to purchase Block C which contains the initial mining area and the site for the process plant and main site infrastructure. Negotiations for mining access to the remaining mining areas will be progressed as part of the next stage of the studies.


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Power Western Power have confirmed the availability of adequate supply on the local grid to supply the planed load for the operation Gas supply is not required for a Wet processing operation

Water Image has drilled and tested a deep production bore located adjacent to the planned plant site on Block C. Subject to obtaining the necessary approvals and licences, this bore can provide all the required process make-up water(2Glpa)

Transportation (particularly for bulk commodities) Detailed logistics studies have been carried out for transport of HMC to either Bunbury or Geraldton. A Traffic Impact Statement and costed design for upgrading of the local road junction with the Brand Highway have been completed.

Labour The location of the Boonanarring project close to Perth and Gingin, with a local pool of experienced mineral sands operators and managers, is expected to reduce labour availability issues. Detailed manning schedules and prevailing costs have been developed for each stage of the project.

Accommodation Site accommodation will not be required as the labour force is expected to be sourced from the local area and northern suburbs of Perth. A bus service from a central location is being considered to address the issues of fatigue and travel time.

Costs and Revenue Factors

Capital Costs – Mine Developed in conjunction with experienced mining contractor

Capital Costs – Plant and Infrastructure Developed by MSP Engineering to +/-15% accuracy

Capital Costs – Other Developed in house to the appropriate level of detail and based on local operating experience

Operating Costs – Mine Developed in conjunction with experienced mining contractor based on detailed monthly movement volumes and agreed mining concepts and methods.

Operating Costs – Plant Developed by MSP Engineering to +/-15% accuracy

Operating Costs – Other Developed in house to the appropriate level of detail and based on local operating experience

Product Prices and Penalties

Assumptions and sources re Metal pricing Advice from industry literature, analysts’ metrics and experience mineral sands marketing consultant

Allowances for deleterious elements As above.

Derivation of transport charges Detailed logistics study. Sales prices are FOB

Exchange Rates and their source Based on available economic forecasts and in-house assumptions

Sell Costs, including Royalties Industry standard sales commission rates and State Royalties.

Source, or basis, of treatment and refining charges and penalties

Preliminary and confidential discussions with potential toll treatment facilities.


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Market Assessment This area needs to be addressed in more detail at the next stage of the studies and after detailed discussions with potential customers. Image will not produce sufficient volumes of any product to materially affect overall market supply or pricing

Demand, supply and stock situation As Above

Consumption trends As Above

Factors likely to affect demand and supply As Above

Customer and Competitor Analysis As Above

Likely Market Windows As Above

Price and Volume forecasts, including basis of forecasts

As Above

Customer specifications, testing and acceptance requirements for Industrial Minerals

Final product specifications and samples of two ilmenite grades and one rutile grade were produced from the bulk sample testwork. Samples were sent to prospective customers who validated the assay results and confirmed the suitability of the material for most major applications


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Appendix 6

Atlas Reserve Classification Criteria


Study Level

Minimum PFS required Study technical parameters and costs have been completed to Feasibility Study level

Mineral Resource

Resource modeling and quantities Refer Appendices 2 and 4

Cut-off grade parameters Not specifically addressed. Calculated in optimisation routine and reporting. Block values used due to multiple products

Mining Factors

Optimisation Completed for the latest Resource model dated April 2011.

Mine Design Detailed consideration given to practical mining sequence which provides optimum grade management in the early stages. Ore, waste and backfill volumes have been calculated on a monthly basis and smoothed as necessary. Ore mining and waste movement methods and equipment assumed to be similar to Boonanarring.

Mine Geotechnical The deposit is shallow with a strip ratio of 1:1 Conservative wall angles of 35 degrees have been adopted at this stage. Site investigation and analysis will be carried out carried at the next stage of the studies Wall angles will allow for expected groundwater conditions

Hydrological Studies Stage 1 hydrological and hydrogeological investigations, modeling and reporting have been completed by URS, with overall project management by MWES.

Mining Method Dry mining has been assumed for both overburden removal and ore mining. Contractor cost estimates are based on the figures used for Boonanarring. This will be further refined at the next stage of the studies.

Grade Control Grade control (GC) has been considered, suggesting sampling at the PCP and SCP. The main requirement for GC will be the delineation of the edges of the ore zone and the definition of the top and base of the ore zone. Grade control costs have been based on the Boonanarring estimates (c.f.) which are considered conservative for the Atlas deposit. In-pit spotting by experienced technicians will be used as necessary.

Mineral Resource Model Refer Appendices 2 and 4. Modelling of ore outlines, HM grade and mineral assemblage is considered to be in line with industry best practice.


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Mining Dilution Sub-blocking for the optimisation routines has resulted in the inclusion of a minor amount of planned dilution through the re-blocking routines

Mining Recovery 100% ore recovery has been assumed. This will be controlled closely through grade control due to the high in-pit value of the ore.

Minimum Mining Widths Sufficient room has been allowed for ore mining, MFU operation and effective water drainage and pumping from the pit. Generally the minimum width at Atlas is 40m except at the ends of the pit limits. This will be reviewed in more detail at the next stage of mine planning.

Mine Infrastructure Capital and operating cost estimates for the mining contractor’s site establishment and general mine support activities have been derived from the Boonanarring estimates (c.f.)

Inclusion of Inferred Resources There are no Inferred Resources included in the mining inventory at Atlas

Sensitivity of Project to Inferred Resources Not applicable

Metallurgical factors

Metallurgical Process Process testwork was carried out at AML in Perth based on representative bulk samples. Process flowsheet design and performance were developed by the project team in conjunction with MSP Engineering and reviewed by Mineral Technologies (MT) as independent expert.

Metallurgical Test work

Bulk Samples/ Pilot Plant studies Process testwork has been carried out on a representative bulk sample prepared from drill composites across the Atlas deposit.

Deleterious Elements Monazite levels in the ore are low by regional standards. A detailed radioactive material management plan has been developed. Final products also have low U+Th levels by regional and global standards.

Appropriate mineralogy to meet product specifications

Detailed mineralogy has been carried out as part of the resource modeling (c.f.) and the process testwork and product quality assessment.

Environmental

Environmental Studies – Status The project is expected to be assessed by OEPA at the level of Public Environmental Review (PER). Some hydrology, flora and fauna fieldwork required to support this PER has been completed. This work will be progressed at the next stage of the studies.

Waste Rock Characterisation Soils and waste classification, together with a desktop PASS assessment will be completed as part of the next stage of the studies


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Waste Storage Sites and Design Options Detailed scheduling of waste movement, back-filling and surplus waste storage requirements will be carried out as part of the mine planning and scheduling. Sand tails from the Wet Concentrator Plant will be returned to the pit void after cycloning to dewater the material. Slimes will be pumped to solar drying cells before being re-handled back to the void. The mining void will be rehabilitated to pre-mining profile and land use progressively as mining advances


Status of approvals for residue storage and waste dumps

To be addressed as part of the PER and also to be covered as part of the Mining Proposal. There will be no residual tailings dams or waste dumps after final land rehabilitation. Allowance has been made in operating costs for the estimated annual Mining Rehabilitation Levy cost.

Infrastructure

Geotechnical assessment Site test work and analysis of bearing pressures for the planned plant site will be carried out at the next stage of the studies. The general area is relatively level, well drained and stable and is expected to be suitable for construction.

Availability of land for plant development Image has progressed with Native Title negotiations over the part of the deposit which is located on Vacant Crown Land, to the stage of an agreed Term Sheet. Final documentation the formal agreement is in progress. Negotiations for mining access to the remaining mining areas will be progressed as part of the next stage of the studies.

Power Cost estimates assume site generated power supplied from LNG tanks on site.

Water Image plans to drill and test a deep production bore located sufficiently remote from the western edge of the deposit to ensure minimal impact on local water resources. Subject to obtaining the necessary approvals, this bore is planned provide all the required process make-up water (2Glpa)

Transportation (particularly for bulk commodities) Detailed logistics studies have been carried out for transport of HMC to either Bunbury or Geraldton. A Traffic Impact Statement and costed design for upgrading of the local road junction with the Brand Highway have yet to be completed.

Labour The location of the Atlas project remote from Perth will require accommodation to be provided in Cervantes Detailed manning schedules and prevailing costs have been developed for each stage of the project.


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Accommodation Site accommodation will be required as above. Capital and operating costs have been developed for this camp

Costs and Revenue Factors

Capital Costs – Mine Developed in conjunction with experienced mining contractor

Capital Costs – Plant and Infrastructure Costs for relocation of the plant and facilities from Boonanarring to Atlas have been developed by MSP Engineering to +/-25% accuracy

Capital Costs – Other Developed in house to the appropriate level of detail and based on local operating experience

Operating Costs – Mine Developed in conjunction with experienced mining contractor based on Boonanarring costs.

Operating Costs – Plant Developed by MSP Engineering to +/-15% accuracy

Operating Costs – Other Developed in house to the appropriate level of detail and based on local operating experience

Product Prices and Penalties

Assumptions and sources re Metal pricing Advice from industry literature, analysts’ metrics and experience mineral sands marketing consultant

Allowances for deleterious elements As above.

Derivation of transport charges Detailed logistics study. Sales prices are FOB

Exchange Rates and their source Based on available economic forecasts and in-house assumptions

Sell Costs, including Royalties Industry standard sales commission rates and State Royalties.

Source, or basis, of treatment and refining charges and penalties

Preliminary and confidential discussions with potential toll treatment facilities.

Market Assessment This area needs to be addressed in more detail at the next stage of the studies and after detailed discussions with potential customers. Image will not produce sufficient volumes of any product to materially affect overall market supply or pricing

Demand, supply and stock situation As Above

Consumption trends As Above

Factors likely to affect demand and supply As Above

Customer and Competitor Analysis As Above

Likely Market Windows As Above

Price and Volume forecasts, including basis of forecasts

As Above

Customer specifications, testing and acceptance requirements for Industrial Minerals

Final product specifications and samples of one ilmenite grade were produced from the bulk sample testwork. Samples were sent to prospective customers who validated the assay results and confirmed the suitability of the material for High TiO2 grade ilmenite applications

Documents

ROBUST PROJECT ECONOMICS FOR BOONANARRING AND ATLAS