28/07/2016

Assay results significantly increase size of the Naujombo gold anomaly, RAB drilling to commence at Kishugu and Naujombo in August

HIGHLIGHTS

• Surface soil results confirm Naujombo gold anomaly is 9.5km long and greater than 600m wide (at 10ppb)

• RAB drilling to commence in August - first drill testing at Naujombo and Kishugu

• Assay results of Naujombo soil sampling show surface soil values up to 811ppb Au (0.8g/t), supported by coherent multi-element anomalies (arsenic, silver, bismuth)

• Refinement of drill targeting at Naujombo to be supported by geophysical "gradient array induced polarisation" (GAIP) and in-fill soils programs

Indiana Resources Limited (ASX: IDA) ('IDA' or the 'Company') is pleased to provide an update on its exploration programs to advance the Naujombo and Kishugu gold prospects located in south-east Tanzania.

Recently received assay results returned for surface soil samples from Naujombo confirm an extensive, coherent gold anomaly that now measures 9.5km by 600m, with up to 0.8g/t Au within the main trend.

Indiana's Managing Director Campbell Baird commented:

"With our exploration programs now starting to gain pace in Tanzania, these gold results are very pleasing.

We currently have teams in the field carrying out in-fill soil programs and geophysical surveys at Naujombo and undertaking drill pad preparation at Kishugu and Naujombo.

It is an exciting time for Indiana, with the Company poised to drill test two significant gold targets in a region which has been poorly explored for gold."

Expansion of Naujombo

The July 2016 assay results presented are from soil sampling undertaken in 2015, but due to cost considerations were not assayed at that time.

The Naujombo gold prospect is a large gold-in-soil anomaly identified by soil sampling programs in 2014 and 2015. It was initially targeted because it exhibited a similar geophysical signature and a stream sediment gold anomaly to Indiana's other gold target Kishugu.1

In June 2016, Indiana reviewed the 2015 programs and identified around 200 new samples where it was felt that further information was needed to guide planned drilling programs. Samples were also reviewed in areas where it was considered that the anomaly remained open and thus potential extensions of the anomaly could be achieved.

The results of the July 2016 batch of samples are positive and accretive to the Naujombo prospect. Each sample was assayed for gold, platinum and palladium, with results producing the highest recorded gold assay (811ppb or 0.8g/t) at Naujombo as well as an additional four samples of greater than 50ppb (see Appendix B for JORC 2012 Table One Reporting). These higher results are distributed along the entire length of the anomalous trend, which is now interpreted to extend over 9.5km and greater than 600m wide (Figure 1).

Figure 1: Expanded >10ppb gold contours based upon the updated 2016 soils results. Note growth of interpreted anomaly to the south and north, now extending over 9.5km and greater than 600m wide

1 Since announcing these exploration results on 14 October 2014 and 30 November 2015, Indiana confirms that it is not aware of any new information or data that materially affects the information included in those announcements.

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The scale and level of gold anomalism at Naujombo is similar to that of Kishugu, with the two anomalies located 35km from one another, in a very similar structural setting (Figure 2). The potential exists to identify a significant gold camp should the anomalies confirm the presence of economic gold mineralisation. Figure 2 illustrates that Naujombo and Kishugu are associated with the same structural corridor and are located on the margin of similar circular magnetic features. Results have also shown that both anomalies exhibit very similar multi-element signatures typical of primary gold mineralisation (arsenic, bismuth and silver).2

Figure 2: Location of Kishugu & Naujombo within the broader Nachingwea property

Prior to the new assays, the Naujombo anomaly (>10ppb Au) was interpreted as being 6km x 600m (Figure 3). Gold assaying of the Naujombo anomaly had been quite sparse (approximately 450 samples on a limited 400m x 200m spacing) and the primary anomaly interpretation had been based on wide spaced but promising gold assays and in field XRF multi element analysis of elements such as arsenic. Figure 4 shows the arsenic in soils in comparison to the gold anomalism for the 2015 programs.

2 Since announcing these exploration results on 14 October 2014 and 30 November 2015, Indiana confirms that it is not aware of any new information or data that materially affects the information included in those announcements.

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Figure 3: 2015 Gold Results and 10ppb Contours of soil sampling at Naujombo. Anomaly interpreted at

6.5 km x 600 m3

Figure 4: 2015 Arsenic results of soil sampling at Naujombo and >10ppb gold contour4

3 Since announcing these exploration results on 7 May 2015, Indiana confirms that it is not aware of any new information or data that materially affects the information included in that announcement.

4 Since announcing these exploration results on 30 November 2015, Indiana confirms that it is not aware of any new

information or data that materially affects the information included in that announcement.

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