Image Resources NL (ASX:IMA) Announce Scoping Study Update

Perth, Oct 13, 2008 (ABN Newswire) - As previously announced (June 2008 quarterly report), Image Resources NL (ASX:IMA)(PINK:IMREF) is carrying out a scoping study on the company’s existing Indicated and Inferred Resources totaling 6.4 million tonnes of heavy minerals in the North Perth Basin. Mining industry consultants have been engaged to identify potential mining options for the resources, with a brief to address both dry mining and dredging methods.

The scoping study was scheduled to be completed before now but has been delayed by difficulties in obtaining verifiable up to date commodity pricing information and by recent exchange rate fluctuations necessitating changes to economic models. These changes are anticipated to have a significant overall positive impact on the project economics.

Preliminary results from the study have been encouraging and highlight the Atlas resource as very promising and warranting infill drilling to bring it to Indicated Resource status. Drilling to achieve this objective is expected to commence in the December quarter.

The study also emphasises the economic significance of Image's high-TiO2 ilmenite (SR ilmenite) which is suitable as feed for synthetic rutile(SR) production. There are five SR ilmenite processing plants in the mid west and south west of Western Australia, which produce 86% of the world's synthetic rutile. Further mineralogical and chemical test work will be carried out on bulk samples to determine the proportion of SR ilmenite in each of Image's resources.

The study identifies that the Atlas and Hyperion resources, originally considered suitable for dry mining, may be amenable to dredging, which would be more profitable. Geotechnical test work is planned on the resources to assess their suitability for dredging. Image is also investigating other low cost mining options, particularly for the Calypso and Titan resources where the thickness of mineralisation reaches 80metres, commencing near surface.

The scoping study is expected to be completed before the end of the quarter and a further release is anticipated at this time.

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

About IMAGE RESOURCES NL

Image Resources is an active, innovative, Australian-based mineral explorer with a substantial portfolio of gold, nickel and mineral sand prospects in Western Australia. Incorporated in 1994, Image was formed to utilise an extensive Australian aeromagnetic database compiled over many years by the Company's founders. Image has used this powerful and unique data set, together with the experience and interpretive skills of its management, to acquire a range is prospects with high mineral potential.