Image Resources NL: Secures Underwriting Commitment for AU$25m Equity Raising

Perth - Image Resources NL (ASX:IMA) (OTCMKTS:IMREF) ("Image" or "the Company") is pleased to announce it has entered into two Equity Subscription Deeds ("Subscription Deeds") to fully underwrite the issue of 250 million fully paid ordinary Image shares at an issue price of 10 cents to raise AU$25M (before costs) ("Equity Raising").

- Image launches fully underwritten AU$25M Equity Raising

- Cornerstone investor secured for minimum 10.1% position

- Euroz appointed as Sole Lead Manager and Sole Book Runner

- Completion of Equity Raising to full subscription will complete total funding package required for Boonanarring

Vestpro International Limited ("Vestpro") and Million Up Limited ("Million Up") (together the "Subscribers") have executed Subscription Deeds which provide certainty to the Equity Raising. The combined commitment from the subscribers fully underwrites the raising with Vestpro guaranteed a minimum of 96,227,088 shares which is equivalent to 10.1% of the total shares on issue following the Equity Raising and issue of the Commitment Shares (see Note 1 below).

Euroz Securities Limited have been appointed Sole Lead Manager and Sole Bookrunner for the Equity Raising. A further announcement regarding the conclusion of the Equity Raising is expected to be made on 14 March 2018, unless the Equity Raising is extended.

The Company will be using the Share Placement Facility approved by Shareholders at the general meeting of shareholders held on 13 February 2018, to complete the Equity Raising

Funds from the Equity Raising 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, "The Boonanarring Project is one of the highest heavymineral (HM) grade, high-zircon, undeveloped mineral sands projects in Australia. Completion of this equity raising is the final step for full funding of the project which opens the door for work to begin on site construction and paves the way for the Company's long awaited and anticipated march to production."

The Boonanarring Project is fully permitted, requires project capital costs of only AU$52M, and has a construction lead time of an estimated six months. In addition, the Company already owns the processing equipment required to make an HMC product, and owns the land covering the first two years of ore reserves as well as the area required 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 immediately. Initial mining pre-strip and construction of the wet concentrator plant and associated production facilities are expected to be completed near the end of the 3rd Qtr. 2018, followed by commissioning and first production during the 4th Qtr. 2018.

On 8 March 2018 the Company announced it had 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") to raise AU$50M (see Note 2 below) from the issue of senior secured loan notes.

Key terms and conditions of the Subscription Deeds are summarized in Schedule 1 (see link below). Additional information on the Subscribers is presented in Schedule 2 (see link below).

Notes:

1 - Commitment Shares means (a) 56.255 million Image shares to be issued to the Loan Note Holders on drawdown of the loan as part of the fees under the Loan Note Subscription Agreement announced 8 March 2018, and (b) 35,198,459 Image shares to be issued to Murray Zircon Pty Ltd following a decision to mine by the Board of Image for Boonanarring, as part of the commitment to issue Deferred Shares as defined in, and in accordance with, the Share Consideration Deed dated 8 June 2016 between the Company and Murray Zircon Pty Ltd, and which Commitment Shares are anticipated to be issued in late March or early April 2018.

2 - 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/B9RTEXFD

To view Equity Raising Investor Presentation, please visit:
http://abnnewswire.net/lnk/16815O75

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