Perth, Aug 13, 2008 (ABN Newswire) - Image Resources (ASX:IMA)(PINK:IMREF) is pleased to announce the commencement of a 10,000m - 15,000m programme of air core drilling on its promising Eucla Basin tenements (466sq km) at the end of August. The programme has two areas of focus: the strike extension of the recent zircon rich Cyclone discovery on an adjoining tenement and several other exciting targets within the broad 28 km x 9 km area of prospectivity.

Diatreme Resources (DRX) has announced an Inferred Resource estimate for Cyclone of 1.8million tonnes of heavy minerals containing 740,000 tonnes of zircon (DRX ASX release 15 February 2008). Mineralised drillholes along Image's tenement boundary and the strike of the strandline strongly indicate that the resource extends into Image's tenements. Much of the drilling is aimed at delineating these extensions.

The other targets within the prospective area comprise a series of interpreted palaeocoastlines. Determining the controls to the formation of the palaeo-shorelines is the key to understanding the depositional history and identifying prospective strandline locations. The Image drilling programme will be aimed at achieving these objectives.

The Eucla Basin is an exciting new mineral sand province where the heavy mineral discoveries made to date have a much higher proportion of zircon compared to most mineral sand deposits elsewhere in the world. Development of mineral sand discoveries in the Eucla Basin is now underway as indicated by the recent grant of mining leases to Iluka, paving the way for mining of the Jacinth-Ambrosia deposits in 2010.

NOTE:

The information in this report is based on information compiled by George Sakalidis BSc (Hons), who is a member of the Australasian Institute of Mining and Metallurgy. George Sakalidis is managing director of Image Resources NL. George Sakalidis 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'. George Sakalidis consents to the inclusion of this information in the form and context in which it appears in this report.