Image Resources NL : Boonanarring Annual Ore Reserve Update

For personal use only

11 March 2022

______________________________________________________________________________________

BOONANARRING ANNUAL ORE RESERVE UPDATE

_______________________________________________________________________________________________________________________

Image Resources NL (ASX: IMA) ("Image" or "the Company") provides an annual update of Ore Reserves at its 100%-owned,high-grade,zircon-rich Boonanarring and 100%-owned,high-grade Atlas mineral sands projects located in the infrastructure-rich North Perth Basin in Western Australia. This update is presented as at 31 December 2021 to align with the Company's calendar year reporting period.

• Boonanarring Ore Reserves of 3.9Mt at 7.1% THM and 19% zircon in the HM
• Atlas Ore Reserves unchanged at 9.5Mt at 8.1% THM and 11% zircon in the HM
• Total Ore Reserves at Boonanarring and Atlas stand at 13.4Mt at 7.8% THM and 13% zircon in the HM

The Ore Reserves update for Boonanarring was prepared and reported by Entech Pty Ltd in accordance with the guidelines of the JORC Code (2012). See Schedule 1 for additional details.

Table 1. December 2021 Boonanarring Ore Reserve Summary1-5

Classification	Ore Tonnes	THM	Slimes	Oversize	% of total heavy minerals (THM)
	million	%	%	%	Zircon	Rutile	Leucoxene	Ilmenite
Proved	2.8	7.4	12	4.5	20	2.9	1.8	49
Probable	1.1	6.2	15	6.1	17	4.8	6.2	43
Sub-total	3.9	7.1	13	4.9	19	3.4	2.9	48

Table 1 notes:

1. Mineral Resources have been reported as inclusive of Ore Reserves.
2. The mineral assemblages are reported as a percentage of in-situ THM content.
3. Estimates have been rounded to the nearest 100,000 t of ore, 0.1% for THM/oversize/rutile/leucoxene and 0% for slimes/ilmenite/zircon.
4. Ore Reserves are reported as material within pit designs but limited to below a top-of- ore surface generated from consideration of the optimisation value modelling and current geological domain interpretation.
   5. All tonnages and grades have been rounded to reflect the relative uncertainty of the estimate, thus sum of columns may not equal.

Table 2. December 2020 Boonanarring Ore Reserve Summary1-5

Classification	Ore Tonnes	THM	Slimes	Oversize	% of total heavy minerals (THM)
	million	%	%	%	Zircon	Rutile	Leucoxene	Ilmenite
Proved	3.9	8.1	13	5.0	23	2.9	3.0	52
Probable	2.2	7.3	18	7.8	28	4.6	4.8	44
Sub-total	6.1	7.8	15	6.0	24	3.5	3.6	49

Image Resources NL | ABN 57 063 977 579 Level 2, 7 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 www.imageres.com.au

Page 1 of 36

For personal use only

Table 2 notes:

1. Mineral Resources have been reported as inclusive of Ore Reserves.
2. The mineral assemblages are reported as a percentage of in-situ THM content.
3. Estimates have been rounded to the nearest 100,000 t of ore, 0.1% for THM/oversize/rutile/leucoxene and 0% for slimes/ilmenite/zircon.
4. Ore Reserves are reported as material within pit designs but limited to below a top-of-ore surface generated from consideration of the optimisation value modelling and current geological domain interpretation.
5. All tonnages and grades have been rounded to reflect the relative uncertainty of the estimate, thus sum of columns may not equal.

The primary contributor to the decrease in tonnes of ore from the 2020 to the 2021 Ore Reserve estimate was depletion from ore mining as presented in Figure 1.

Figure 1: Change in Ore Tonnes (Mt)

The primary contributors to the decrease in heavy minerals (HM) ore grade from the 2020 to the 2021 Ore Reserve estimate were the mining depletion of higher grade ore from Blocks A, B and C and the inclusion of lower grade Domain 200 material as planned dilution in the ore feed.

Figure 2: Change in Heavy Mineral Ore Grade

Similarly, zircon grade as a proportion of THM decreased from 24.6% to 19.2% as a result of mining depletion of higher zircon grade reserves in Blocks A, B and C.

	Image Resources NL | ABN 57 063 977 579
Level 2, 7 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA	6872
	T: 08 9485	2410
Page 2 of 36	www.imageres.com.au

For personal use only

The primary contributor to the decrease in tonnes of total in-situ heavy minerals (HM) from the 2020 to the 2021 Ore Reserve estimate was depletion of HM inventory due to ore mining as presented in Figure 3. This was offset slightly by increases due to pit design changes.

Figure 3: Change in HM Tonnes (Mt)

The reduction to total in-situ ZrO2 tonnes from the 2020 to the 2021 Ore Reserve was primarily depletion of ZrO2 tonnes due to ore mining as presented in Figure 4.

Figure 4: Change in ZrO2 Tonnes (Mt)

Ore Reserves and Mine Life

Image's 2017 Bankable Feasibility Study (see 30 May 2017 ASX announcement - Strong Bankable Feasibility Study Results Boonanarring / Atlas Project) outlined the planned mining of the Boonanarring deposit followed by a relocation of the wet concentration plant (WCP) to the Atlas deposit area, after exhaustion of Ore Reserves at Boonanarring, and continuation of mining of Atlas on its Ore Reserves.

Based on the updated Ore Reserves estimate above, as at 31 December 2021, current remaining Ore Reserves at Boonanarring is scheduled to be depleted in Q1 2023, following which, the WCP

	Image Resources NL | ABN 57 063 977 579
Level 2, 7 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA	6872
	T: 08 9485	2410
Page 3 of 36	www.imageres.com.au

will be relocated to the Atlas Project, where it will be operated on current Atlas Ore Reserves and any newly identified Ore Reserves in the Atlas area.

		Atlas Ore Reserves
only		The high-grade Atlas deposit has current Ore Reserves of 9.5Mt at 8.1% THM. This remains
	unchanged from 31 December 2020.
	Total Ore Reserves
		The total combined Ore Reserves for Boonanarring and Atlas are 13.4Mt at 7.8% THM (see Table
		3). Therefore, total remaining mine-life based on current Boonanarring and Atlas Ore Reserves is
		approximately 3.8 years at a processing rate of 3.5Mt per annum.
					Table 3. Boonanarring and Atlas Ore Reserves
use
			Ore Reserves - Strand Deposits; in accordance with the JORC Code (2012)
		Project/Deposit		Category	Tonnes		HM		Slimes		HM Tonnes		VHM		Ilmenite		Leucoxene		Rutile		Zircon
					(million)		(%)		(%)		(million)		(%)		(%)		(%)		(%)		(%)
	Boonanarring		Proved	2.8		7.4		12		0.21		73.7		49		1.8		2.9		20
	Boonanarring		Probable	1.1		6.2		15		0.07		71		43		6.2		4.8		17
personalFor	Total Boonanarring			3.9		7.1		13		0.28		73.3		48		2.9		3.4		19
Atlas1		Probable	9.5		8.1		16		0.8		73.3		51		4.5		7.5		11
	Total Atlas			9.5		8.1		16		0.8		73.3		51		4.5		7.5		11
	Total Ore Reserves			13.4		7.8		15		1.08		73.3		50		4.1		6.4		13

Notes: 1 - Atlas Reserves refer to the 30 May 2017 release "Ore Reserves Update for 100% Owned Atlas Project" http://www.imageres.com.au/images/joomd/149611340720170530ORERESERVESUPDATEFOR100OWNEDATLASP ROJECT.pdf.As shown in Table 3, the Ore Reserves at Atlas are unchanged from the 30 May 2017 announcement and the Company is not aware of any new information or data that materially affects this information for the period ending 31 December 2021.

	Image Resources NL | ABN 57 063 977 579
Level 2, 7 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA	6872
	T: 08 9485	2410
Page 4 of 36	www.imageres.com.au

For personal use only

Image Resources Background Information

Image is an established, profitable mineral sands mining company, operating open-cut mining and ore processing facilities at its 100%-owned,high-grade,zircon-rich Boonanarring Mineral Sands Project located 80km north of Perth, Western Australia, in the North Perth Basin. Boonanarring is arguably one of the highest-grade,zircon-rich, mineral sands projects in Australia.

The project was constructed and commissioned on-time and on-budget in 2018. Production of HMC commenced December 2018 and ramped-up to exceed name-plate capacity in only the second month of operation (January 2019).

The Company repaid its outstanding debt ahead of schedule in February 2021 and paid an inaugural dividend of $0.02 per share in April 2021, after only two years as an active mining company (CY2019 and CY2020), and is on-track to meet its market guidance for CY2021 which is similar to CY2020.

Since February 2021 Image is focused on a multi-pronged growth strategy which includes (1) maintaining its strong economic performance at Boonanarring and continuing at its 100%-owned Atlas, Helene and Hyperion projects; (2) progressing a feasibility study at its 100%-owned Bidaminna project in support of development of a second mining and processing centre to be operated in parallel with operations at Atlas; (3) evaluating the economic potential of its two 100%- owned gold tenements and King Farmin tenement, all located SE of Kalgoorlie; and (4) investigate opportunities outside of the Company's current mineral sands portfolio to identify a larger potential mine-life deposit for development.

This document is authorised for release to the market by:

Patrick Mutz Managing Director [phone]

	Image Resources NL | ABN 57 063 977 579
Level 2, 7 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA	6872
	T: 08 9485	2410
Page 5 of 36	www.imageres.com.au