Aspose.Words API provide the feature to export images in word file to HTML as Base64 string. This way images are embedded in the HTML file and you don't need to upload any image folder / images separately. Following is the sample code:
//Open the Word document
Document doc = new Document("C:\\data\\image.doc");
//instantiate HTML saving options
Aspose.Words.Saving.HtmlSaveOptions option = new Aspose.Words.Saving.HtmlSaveOptions();
//Export the images in doc to Base64 string
option.ExportImagesAsBase64 = true;
//Save format is HTML
option.SaveFormat = Aspose.Words.SaveFormat.Html;
//Save the resultant HTML file
doc.Save("C:\\Data\\Image2.html",option);
Hope this helps.