Intrepid Mines Limited
TSX : IAU
ASX : IAU
TSX : IXN

Intrepid Mines Limited

January 11, 2008 10:59 ET

Intrepid Announces 23% Resource Expansion at Casposo Project, Argentina

TORONTO, ONTARIO--(Marketwire - Jan. 11, 2008) - Intrepid Mines Limited (TSX:IAU)(TSX:IXN)(ASX:IAU), an international precious metals production, development and exploration company, announced today the results of an updated mineral resources estimate at the Casposo mining project, San Juan province, Argentina.

The resources review and update was conducted by AMEC Americas Limited (AMEC) and includes drilling information completed and compiled subsequent to the cut-off date for the resources and reserves reported in, and the basis for, the March 2007 Feasibility Study and its related Technical Report provided in May, 2007 (SEDAR filing June 5, 2007).

The highlight of the Resource Update is an increase of approximately 97,000 ounces (23%) of gold equivalent in the Kamila deposit's global indicated mineral resources, comprising 55,000 ounces of gold and 2,396,000 ounces of silver. This represents an increase to 368,000 and 10.6 million ounces of gold and silver respectively in the Indicated category at an average grade of 6.27 grams per tonne gold equivalent (g/t AuEq).

"The expanded estimates released today provide further evidence of the value being created for Intrepid shareholders at the Company's mining and development projects," said Laurence Curtis, President and CEO of Intrepid. "together with the recent EIS approval at Casposo (see press release dated December 21, 2007), we are now focused on moving forward with mining development plans."

The Resource Update has provided a significant increase to the size and extent of the Inca Vein located on the northern limit of the main Kamila Pit. Mining of this new resource area will require design of a broader open pit. The new additional Inca Vein mineralization also extends to depth and may allow for a deepening of the contemplated pit operation to access areas initially designed to mine the deep Aztec Vein via underground methods. New volumes of both waste and ore will be more completely defined in future mining optimization and reserve estimations. Such optimization will also include a trade-off study of final pit floor elevation and transition to underground mining.

While optimization is not complete, the increased resource offers a potential increase in mine life supporting Intrepid's decision to co-invest with the government of San Juan in extending the Province's power grid to Calingasta and improving the Company's ability to finance the project.

In the first quarter of 2008 Intrepid will continue sectoral permitting, initiate detailed engineering, undertake new mine design, reserve estimation and update the project's Feasibility Study.

Background

AMEC was requested to provide a new resource estimate using the following considerations;

The estimate is based on metal prices of US$650 per ounce gold and US$11 per ounce silver, gold and silver recoveries of 93.7% and 80.6% respectively, gold and silver sell costs of US$9.41 and US$0.567 per ounce respectively, and a resulting silver:gold ratio of 71.4:1.

Costs applied to the definition of mineral resources were:

- Mining: $0.84/tonne for open pit and $29.47/tonne underground

- Process Costs: $15.30 for open pit and $20.40 underground

- G&A Costs: $4.36 for open pit and $6.71 underground

Note 1: Evaluation of resource addition through drilling

AMEC has determined that approximately 85% of the incremental increase in resource ounces is attributed to new mineralized volumes of material defined by extension drilling. The main mineralized zones remain open at depth.

Note 2: Evaluation of resource addition through increased metal price

A comparison was completed to determine the incremental resources to be obtained from the changes in metal prices, updating gold and silver prices per ounce from US$450 and US$8.50 to US$650 and US$11 respectively. Change in metal prices account for approximately 15% of the increase in Kamila resource ounces. This small increase in ounces by price increase is a reflection of the robust grade of the resources as initially defined in the Feasibility Study and the well defined nature of vein domain boundaries.

AMEC conducted the Resource Update by defining potentially mineable 'in-pit' material using a Whittle pit shell with a cut-off grade of 1.06 grams per tonne gold equivalent and identifying 'outside-of-pit' material using a cut-off grade of 2.93 grams per tonne gold equivalent. Outside-of-pit material is largely located below the Whittle pit shell within the main Kamila vein domains and extensions to these. This 'outside-of-pit' material has the potential to be accessed by underground mining methods as contemplated in the Feasibility Study however new underground mine design to access this material was not contemplated in this Resource Update. Pit optimization and underground mining design to generate a new mineral reserve statement will be undertaken during the mine's early construction phase.



Cut-off Reso- Tonnes AuEq Au Ag AuEq Au Ag
AuEq(g/t) urce (mt) (g/t) (g/t) oz oz oz oz
Class
Kamila 1.06 Ind 2,101,000 6.43 4.78 118.2 435,000 323,000 7,984,000
pit 1.06 Inf 16,700 6.99 5.22 126.7 3,700 2,800 67,200
Kamila 1.06 Ind 81,000 6.86 5.70 82.6 18,000 15,000 215,000
SE pit 1.06 Inf 300 5.18 4.25 66.2 50 40 600
Merc-
ado 1.06 Ind 109,000 3.18 2.06 80.2 11,000 7,200 278,000
pit 1.06 Inf 0 0.00 0 0 0 0 0
In-pit 1.06 Ind 2,291,000 6.30 4.68 115.1 464,000 345,200 8,477,000
Total 1.06 Inf 17,000 6.96 5.20 125.6 3,800 2,800 67,800
Outs-
ide 2.93 Ind 2,690,000 6.02 2.66 239.8 52,000 23,000 2,074,000
of-Pit 2.93 Inf 16,000 6.37 2.60 268.7 3,300 1,300 138,000

Total
Resource:
In-pit Ind 2,560,000 6.27 4.47 128.2 516,000 368,200 10,551,000
and Outs-
ide pit Inf 33,000 6.69 3.86 194.0 7,100 4,100 205,800

Ind equals Indicated
Inf equals Inferred


Qualified Person Statement:

Information in this press release related to the resources estimate in the table above and its technical parameters are based on information provided by Qualified Persons as defined in Canadian National Instrument 43-101 (standards of Disclosure for Mineral Projects) and contained in the report "Casposo Gold Silver Project - Mineral Resource Update", November 2007. Richard Kilpatrick, P.Geol, Principal Geologist, (AMEC, Oakville) has directed the mineral resource update with assistance provided by Jeff Smith, Senior Geologist, (AMEC, Oakville) and Willie Hamilton, P.Eng., M.Sc. Senior Mining Engineer (AMEC, Oakville).

About Intrepid Mines:

Intrepid Mines Limited is an international gold and silver production, development and exploration company. The Company's producing property is the Paulsens Gold Mine, located in northwestern Australia. The Company's advanced development property is the Casposo Project located in San Juan Province, Argentina. The Company's exploration properties are located in Argentina, El Salvador, Mexico, Australia and Canada. The issued capital is 181,573,419 shares comprised of 163,686,266 ordinary shares of Intrepid Mines Limited on the TSX:IAU and ASX:IAU and 17,887,153 Exchangeable Shares of Intrepid NuStar Exchange Corporation quoted on the TSX:IXN.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This release contains certain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The TSX and ASX has neither approved nor disapproved the information contained in this press release. Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes "forward-looking statements". Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.

CUSIP: Q4968A

ABN: 11 060 156 452

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