Intrepid Mines Limited
TSX : IAU
ASX : IAU

Intrepid Mines Limited

July 16, 2009 18:41 ET

Intrepid Mines Limited Releases Activities Report for Second Quarter

Three Months to 30 June 2009

BRISBANE, AUSTRALIA--(Marketwire - July 17, 2009) - Intrepid Mines Limited (TSX:IAU)(ASX:IAU) (the "Company") is pleased to announce the release its report on the quarter ended 30 June 2009 regarding mining production, development and exploration activities, as required under ASX listing Rule 5.1.1.

The full report is available on the Company's website (www.intrepidmines.com), will be available shortly with Intrepid's filings on Sedar (www.sedar.com) and can be reviewed through (Marketwire to www.marketwire.com.)

Numbers in brackets generally describe performance for the quarter ended 31 March 2009.

All dollar values are United States Dollars unless otherwise stated.

OVERVIEW

Finance

- Group profit after tax of $1.2 million and $5.1 million respectively (un-audited) for the three and six months ended 30 June 2009.

- Paulsens earnings of $8.6 million and $20.8 million (un-audited) before interest, taxes, depreciation and amortisation (EBIDTA) for the three and six months ended 30 June 2009 respectively.

- $20 million received on completion of Casposo sale.

- Cash balance at the date of this report was $39 million (no debt or hedge commitments).

Paulsens Operations

- Paulsens gold production of 20,031 fine ounces consistent with prior quarter (20,141 ounces).

- Cash costs higher at $484 per ounce (prior quarter $345 per ounce) primarily as a result of:

-- translating the Australian denominated cash costs into United States dollars at a much stronger exchange rate-negative impact of $78 per ounce (June 2009 quarter A$/US$0.7589 vs March 2009 quarter A$/US$0.6630); and

-- lower mine production ore grade with increases in hand held stoping and haulage cost and reduction in gold-in-circuit- negative impact of $59 per ounce.

Tujuh Bukit

- Subsequent to the quarter, the Company announced (10 July 2009) the signing of Heads of Agreement in respect of the Tujuh Bukit Sulphide Copper-Gold project with Vale Exploration Pty Ltd ("Vale"), which allows Intrepid to focus on creating near term value through the development of the gold-silver oxide project on a standalone basis while allowing the large scale sulphide copper-gold project to be progressed by in association with a world class partner.

- At Tujuh Bukit, holes GTD 59-70 were drilled into Zone B during the quarter and assay results announced to the market on 16 July 2009.

-- Hole GTD-64 intersected 46 metres at 2.12 grams per tonne gold, 11.48 grams per tonne silver, (2.30 grams per tonne gold equivalent);

-- Hole GTD-70 intersected 40 metres at 2.10 grams per tonne gold, 5.4 grams per tonne silver, (2.18 grams per tonne gold equivalent); and

-- Hole GTD-69 intersected 14 metres at 3.54 grams per tonne gold, 1.36 grams per tonne silver, (3.57 grams per tonne gold equivalent) and 14 metres at 2.89 grams per tonne gold, 1.64 grams per tonne silver, (2.91 grams per tonne gold equivalent).
Casposo

- Sale of the Casposo project in Argentina through the transfer of shares in Intrepid Minerals Corporation (IMC) to Troy Resources NL completed on 6 May 2009.

Exploration

- At Taviche in Mexico, a 1,500 metre diamond drilling program has commenced at the Higo Blanco jasperoid/vein breccia complex, targeting anomalous gold-silver surface geochemical responses and coincident IP anomalies.

- At Paulsens, 5,000 metres of RC drilling of seven near-mine and regional exploration targets is scheduled to commence in the third quarter.

Brad Gordon, Chief Executive Officer

17 July 2009

To view the full activities report, please visit the following link: http://media3.marketwire.com/docs/IAUactivitiesreport.pdf

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