BRISBANE, AUSTRALIA--(Marketwire - Feb. 24, 2012) - Intrepid Mines Limited (News - Market indicators)(ASX:IAU) (the "Company") is pleased to announce the release of its Annual Financial Report as well as its Management's Discussion and Analysis for the three and twelve months ended 31 December 2011.

The documents are available on Sedar (www.sedar.com) and on the ASX website (www.asx.com.au) as well as on the Company's website (www.intrepidmines.com).

All dollar values are United States Dollars unless otherwise stated.

OVERVIEW

Tujuh Bukit

• Tumpangpitu porphyry copper-gold zone Inferred Resource expanded by 70% to 1.7 billion tonnes at 0.41% copper and 0.46 g/t gold (at a cut-off grade of 0.2% copper):
• 15 billion pounds of copper and 25 million ounces of contained gold;
  • areal extent 3.4 kilometres (km) by 2.8 km;
  • 41 holes for 36,600 metres; and
  • geological potential foreshadowed at an additional 40% to 60% at a slightly reduced grade.
• Candrian Prospect (2.2 km east of the main Tumpangpitu copper-gold deposit) confirmed as the third gold-copper porphyry system discovery with an aerial extent of at least 1.8 km by 0.6 km wide.
• Drilling commenced at the highly prospective Salakan porphyry target in January 2012.
• Oxide pre-feasibility study on-going:
  • In-fill drilling and further metallurgical test work commenced; and
  • Environmental, Social and Health Impact Assessment awarded to PT Hatfield.
• Shareholder's Agreement:
  • Intrepid has an 80% economic interest in the Tujuh Bukit IUPs, derived through contractual arrangements with the tenement holder, PT Indo Multi Niaga ("PT IMN"); and
  • negotiations with PT IMN to finalise the shareholders' agreement (the commercial terms upon which the conversion and share issue will be effected were agreed between the parties in June 2011) were ongoing during the quarter. Once completed, PT IMN will be converted to a foreign investment company, in which Intrepid will acquire an 80% direct equity stake.

Finance

• Total comprehensive loss of $6.8 million and $29 million for the three and twelve months ended 31 December 2011 (includes discontinued operations).
• Interest income was $1.3 million and $5.8 million respectively for the three and twelve months ended 31 December 2011.
• During the quarter, the Group advanced $2,273,000 to PT Indo Multi Niaga (PT IMN), Intrepid's joint venture partner in Indonesia, to meet PT IMN's 20% share of on-going exploration expenditure above the initial Intrepid sole-funding commitment of A$50 million. The total advanced during the year to PT IMN is $4,948,000.
• Cash balance and term deposits at quarter end totalled $150.1 million.

Forward-looking statements

This announcement contains certain forward-looking statements, relating to, but not limited to Intrepid's expectations, intentions, plans and beliefs. Forward-looking information can often be identified by forward-looking words such as 'anticipate', 'believe', 'expect', 'goal', 'plan', 'intend', 'estimate', 'may' and 'will' or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future outcomes, or statements about future events or performance. Forward-looking information may include reserve and resource estimates, estimates of future production, unit costs, costs of capital projects, and timing of commencement of operations and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources and reserves, the grade and recovery of ore which is mined varying from estimates, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and other factors. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from those expressed or implied.

Shareholders and potential investors are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Intrepid undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

Statements relating to gold resource estimates are expressions of judgment, based on knowledge and experience and may require revision based on actual production experience. Such estimates are necessarily imprecise and depend to some extent on statistical inferences and other assumptions, such as gold prices, cut-off grades and operating costs, which may prove to be inaccurate.

Forestry Activities

The Indonesian Forestry Law restricts non forestry activities within protected forests and prohibits mining using an open pit method in protected forest areas. The area of the Porphyry copper-gold resource estimate, and the Zone A, Zone B and Zone C oxide resource estimate areas fall within a protected forest area. Intrepid's Alliance partner, PT IMN, is working with relevant Indonesian authorities regarding a potential review of forest land status. There is no assurance that the forestry reclassification will take place in this instance. PT IMN received an extension of the Forestry Exploration Permit dated 7 July 2010, which allows for exploration activities within forestry areas.

Qualified Person

The information in this announcement that relates to exploration results is based on information compiled by or under the supervision of Malcolm Norris, who is a consultant employed by Intrepid Mines Limited. Mr. Norris 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" and a Qualified Person as defined in the Canadian National Instrument 43-101 (standards of Disclosure for Mineral Projects). Mr. Norris consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Quality Control

Intrepid exercises a strict chain of sample custody in its drilling program at Tujuh Bukit (Indonesia). Joint Venture personnel remove the core from the drill rig and deliver it to a project geologist who logs the core and marks the core into two metre sample intervals. Intrepid and Joint Venture personnel supervise the immediate splitting, sawing and bagging of samples, and packaging of groups of samples for dispatch to the laboratory. The remainder of the split core remains on site.

Samples are securely packaged, batched, and then transported under supervision to Intertek's laboratory facility in Jakarta. At the laboratory, the samples are prepared by crushing and pulverizing and a 30-gram charge is assayed for gold by conventional fire assay and/or atomic absorption methods. Multi-element ICP analysis is carried out using a multi-acid digestion process. All samples that contain silver and/or copper, lead, and zinc values that exceed the upper detection limits for ICP are re-analysed by conventional atomic absorption methods to determine the absolute values of these metals.

Resource Estimation Notes

Geological interpretations of the copper mineralisation provided by Intrepid were used to define a "top-of-porphyry" surface to restrict estimates to geologically reasonable limits. The block model was coded by oxidation zone and estimates were restricted to the sulphide or transitional zones as well as to the potential porphyry zone. 6m length-weighted composites from the transitional and sulphide zones were used to estimate, via Ordinary Kriging, Cu, Au, Mo, As, SG and Ag into a 40 x 40 x 15 metre block model. Silver values within the primary mineralisation are low (eg < 5g/t) and their estimates are not reported.

Inferred Resources are defined on the basis of a 120m x 120m x 80m search ellipsoid using a maximum of 32 6m composites and a minimum of 12. Two more passes to 240m x 240m x 160m were used to generate "potential" blocks within the constraints of the porphyry model. In general, these potential blocks define extra similar tonnages at similar grades to the quoted estimates. These, however, do not constitute "resource estimates" and there is no guarantee that they will be upgraded to resources with further drilling. Drill spacing of the deeper holes is approximately 200m x 200m. However, there are a considerable number of shallower holes that intersected copper mineralisation in transitional and primary mineralisation. Approximately 5% of quoted resources are from transitional mineralisation. 5172 6m composites of Cu and Au are available for estimation together with 5072 Mo, 4955 As and 3446 SG values. Composites from the porphyry zone number 2408, 2408, 2379, 2402 and 1684 for Cu, Au, Mo, As & SG, respectively.

Two different software products were used to provide estimates as well as two different operators. Results closely agree within the meaning of "Inferred". Cross sections of the modelled results were plotted in juxtaposition with assay and geological data to check for geological plausibility. It is noted that there is considerable scope to add to the quoted resource with most sections having significant areas that are yet to be drill tested.

Due to the preliminary nature of the project pit optimisation has not yet been undertaken resulting in uncertainty as to how much of the resource may report to a conceptual pit. At a 0.2% Cu cut off grade the following tonnages occur at > 0m elevation, 0 to - 200m, -200m to -400m and -400m to -600m: 58mt, 131mt, 196mt and 114mt respectively. Although these depths preclude open pit mining in the deeper portions of the resource, the possibility of bulk underground mining techniques (eg block caving) remains.

Sample Analysis

Intrepid exercises a strict chain of sample custody in its drilling program at Tujuh Bukit. Joint Venture personnel remove core from the drill rig and deliver it to a project geologist who logs the core and marks the core into two metre sample intervals. Intrepid and Joint Venture personnel supervise the immediate splitting, sawing and bagging of samples, and packaging of groups of samples for dispatch to the laboratory. The remainder of the split core remains on site.

Samples are securely packaged, batched, and then transported under supervision to Intertek's laboratory facility in Jakarta. At the laboratory, the samples are prepared by crushing and pulverizing and a 30 gram charge is assayed for gold by conventional fire assay and/or atomic absorption methods. Multi-element ICP analysis is carried out using a multi-acid digestion process. All samples that contain silver and/or copper, lead, and zinc values that exceed the upper detection limits for ICP are re-analysed by conventional atomic absorption methods to determine the absolute values of these metals.