Minera IRL Announces Successful Feasibility Study for Don Nicolas Project in Argentina

London and Toronto, 14 February 2012: Minera IRL Limited ("Minera IRL" or the "Company"), (TSX:IRL) (AIM:MIRL) (BVL:MIRL), the Latin America gold mining company, is pleased to announce the results of a Feasibility Study for the Don Nicolas Project located in mining friendly Santa Cruz Province, Argentina.  The Don Nicolas Project is 100% owned by Minera IRL Patagonia SA, a subsidiary of Minera IRL Limited.  The study was managed by international engineering firm Wardrop, a Tetra Tech Company (Tetra Tech). 

Highlights:

• Don Nicolas Project on track to become Minera IRL's second producing mine with commercial gold and silver production targeted to commence in Q4 2013
• Based on a gold price of US$1,250 per ounce, NPV @ 5% real of US$44.7 million (pre-tax) and US$25.1 million (post tax); and IRR of 34.6% (pre tax) and 22.8%  (post tax)
• At a higher gold price of US$1,500 per ounce, NPV @ 5% real of US$82.2 million (pre-tax) and US$48.0 million (post tax); and IRR of 56.3% (pre-tax) and 38.1% (post tax)
• Ore treatment at a rate of 350,000 tonnes per annum to produce a steady-state average of 52,400 ounces of gold and 56,000 ounces of silver per year over an initial mine life of 3.6 years
• Life-of-mine cash operating cost, after silver credit, of US$528 per ounce gold
• Excellent brownfields exploration potential; 12,000 meters of RC drilling at Martinetas is scheduled to commence in March and is expected to add significantly to the mine life
• Study to increase production by heap leach treatment of low grade resources due for completion during second half 2012

 "The results of the Don Nicolas Feasibility Study confirm that Minera IRL can now proceed with the permitting and development of a new, highly profitable gold mine to complement the Corihuarmi Gold Mine in Peru." said Courtney Chamberlain, Executive Chairman of Minera IRL.  "We are very confident that the initial operation is only the starting point at Don Nicolas considering the upside potential in a number of areas.  We have already defined a substantial low grade resource that may be amenable to future heap leach treatment.  A 12,000 meter RC drilling campaign at Martinetas, scheduled to begin in March, is expected to add significantly to our resource base.  There is potential for a longer term underground operation at the Sulfuro deposit and, finally, we believe that there is excellent discovery potential from our regional exploration program."

International engineering firm Tetra Tech has managed the Don Nicolas Feasibility Study.  Coffey Mining Pty Ltd compiled the resource estimate.

The project is based on a Canadian National Instrument 43-101 compliant "High Grade"(above a 1.6g/t gold cut-off) Measured and Indicated Resource totalling 1.5 million tonnes, grading 6.0g/t gold and 13g/t silver containing 278,000 ounces gold and 639,000 ounces silver.  Mine design and production scheduling on this resource has resulted in Proven and Probable Mineral Reserves of 1.2 million tonnes grading 5.1g/t gold and 10g/t silver containing 197,000 ounces gold and 401,100 ounces silver (contained within the reported Measured and Indicated Resource).

An all open pit mining scenario has been adopted with ore production from two districts, Martinetas and La Paloma (location of the Sulfuro Vein), located approximately 50 kilometres apart.  The conventional crush, grind and carbon-in-leach (CIL) treatment plant at Martinetas will have a rate of 350,000 tonnes per annum providing a mine life of 3.6 years.  Average annual steady-state gold and silver production will be 52,400 ounces and 56,000 ounces respectively at a cash operating cost of US$528 per ounce after silver credits.  From the reserves outlined to date, peak production is scheduled to occur in Year 2 of operation at 63,800 ounces of gold and 92,200 ounces of silver.  Logistics are excellent, with close proximity to a major highway.  An adequate supply of ground water has been defined. 

Key performance and economic indicators are shown in following table.