Image Resources NL: Enters into AU$50 Million Senior Secured Debt Facility

Perth - Image Resources NL (ASX:IMA) (OTCMKTS:IMREF) ("Image" or "the Company") is pleased to announce that the Company has entered into a Loan Note Subscription Agreement ("LNSA") with Pala Investments Limited ("Pala") and Castlelake IV, L.P. and CL V Investment Solutions LLC which are entities controlled by Castlelake L.P. (collectively, "Castlelake") as the Loan Note Holders, to raise AU$50M1 from the issue of senior secured loan notes.

- AU$50M (see Note below) to be raised from the issue of senior secured loan notes

- Funds to be used for construction and commissioning of Image's high-grade, zircon-rich Boonanarring Mineral Sands project 80 km north of Perth

- Transfer of funds to be single tranche following satisfaction of customary conditions precedent

- Construction on track to begin no later than 31 March 2018

- Project commissioning scheduled for October 2018

Funds raised under the LNSA will be used for the construction and commissioning of an open cut mine and wet concentration plant at the Company's 100%-owned, high grade, zircon-rich Boonanarring Mineral Sands Project ("Boonanarring Project") located 80 km north of Perth in the infrastructure-rich North Perth Basin in Western Australia.

Managing Director Patrick Mutz commented, "Finalising an agreement to provide the Company with the project debt capital required to construct and commission the Boonanarring Project is a major milestone and should serve to boost investor confidence. It also allows the Company to continue to march confidently towards the finish line of its goal of transitioning to a profitable mining company."

The Boonanarring Project is one of the highest heavy-mineral (HM) grade, high-zircon, undeveloped mineral sands projects in Australia. The project is fully permitted, requires project capital costs of only AU$52M, and has a construction lead time of six months. In addition, the Company already owns the processing equipment required to make an HMC product as well as the land covering the first two years of ore reserves and of the area for the construction of the processing plant and related facilities. Importantly, the Company has also secured a binding off-take agreement for 100% of HMC production for the life of the mine.

Construction of the Boonanarring Project is on track to commence in March 2018. Initial mining prestrip and construction of the wet concentrator plant and associated production facilities are expected to be completed at the end of the 3rd Qtr. 2018, followed by commissioning and first production during the 4th Qtr.

Mr Mutz added, "The strong cashflows forecast in the Boonanarring/Atlas feasibility study, coupled with the recent rise in the price of zircon, provide a high level of confidence that the debt facility can be serviced comfortably during the relatively short life of the loan."

LNSA General Information

Drawdown of funds under the LNSA is subject to satisfaction of certain conditions precedent customary for a facility of this nature.

The Company was well supported by its financial advisors Jett Capital Advisors LLC (New York) which facilitated Image's introductions to Pala and Castlelake, and PCF Capital Group Pty Ltd (Perth) which provided advice and financial modelling services.

Key terms and conditions of the LNSA are summarized in Schedule 1. Additional information on the Loan Note Holders and Image's financial advisors is presented in Schedule 2.

Notes: US$ denominated Loan Notes equivalent to AU$50 million at signing of the LNSA

To view Schedule 1 and 2, please visit:
http://abnnewswire.net/lnk/N68Y21J2

About Image Resources NL:

Image Resources NL (ASX:IMA) is an emerging Mineral Sands producer focused on the development of its high-grade Boonanarring Project in the North Perth Basin while continuing to expand its resources and reserves base.



Contact:

Image Resources NL
Patrick Mutz Managing Director
T: +61-8-9485-2410
E: info@imageres.com.au
www.imageres.com.au