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

Intrepid Mines Limited

January 23, 2008 16:01 ET

Intrepid Reports Operating Activities for the Quarter Ended December 31, 2007

PAULSENS DELIVERS SECOND HIGHEST QUARTERLY GOLD PRODUCTION ON RECORD

TORONTO, ONTARIO and PERTH, AUSTRALIA--(Marketwire - Jan. 23, 2008) - Intrepid Mines Limited (TSX:IAU)(TSX:IXN)(ASX:IAU), an international precious metals production, development and exploration company, reports operating activities for the quarter ended December 31, 2007. All dollar figures are in United States dollars unless otherwise indicated. Intrepid today filed its Activities Report for the quarter ended December 31, 2007 which is available on the Intrepid website www.intrepidmines.com and at www.asx.com.au. A summary of that report is provided below.

OVERVIEW

Operation

- Gold production was 21,426 fine ounces, up 28% (prior quarter 16,690 ounces), representing the second highest quarterly gold production on record

- Record spot prices achieved post quarter end A$1,018 per ounce

- Record mined contained gold at 23,583 ounces

- Site cash costs reduced to $357 per ounce, down 16% (prior quarter $426 per ounce) offsetting a 5% depreciation in the US dollar reporting currency

Development

- Casposo Environmental Impact Assessment approved and statement received

- National power grid option selected at Casposo delivering economic, community and environment benefits

- Updated Casposo resource received post quarter end, up 23% to 516,000 ounces gold equivalent (including 10.6 million ounces silver) - see press release dated January 11, 2008

Exploration

- Taviche (Mexico) drilling program 70% complete, awaiting final assays

- Paulsens underground resource extension planning has defined drill targets that will be tested in early 2008

Finance

- Gold revenue was $12.5 million, up 29% (prior quarter $9.7 million)

- Cash of $2.5 million at period end, up 67% (prior quarter $1.5 million)

- Hedge position rapidly declining (below 44,000 ounces at quarter end)

Corporate

- Proposed merger with ASX listed Emperor Mines Limited shareholder meeting target first week of March 2008



PRODUCTION UPDATE

3 months to 3 months to 3 months to 3 months to
December September June 30, March 31,
31, 2007 30, 2007 2007 2007
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Site Production Cash Cost $357/oz $426/oz $467/oz $361/oz
---------------------------------------------------------------------------
Total Cash Cost $378/oz $442/oz $485/oz $380/oz
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Gold produced 21,426oz 16,690oz 15,854oz 17,494oz
---------------------------------------------------------------------------
---------------------------------------------------------------------------


In the December 31, 2007 quarter, Intrepid produced 21,426 fine ounces of gold at a total site production cash cost of $357 per ounce. Total revenue for the quarter was $12.5 million. Cash balance at the period end was $2.5 million. In the December 2007 quarter, 11,992 ounces were delivered into scheduled hedges and 600 ounces into January 2008 hedges. At quarter end, 43,971 ounces remain hedged (as per the original schedule) at an average price of A$627 per ounce. The Westpac project finance facility balance at December 31, 2007 was $11.8 million.

The average grade of mined material improved by 25% from the previous quarter to 8.63 grams per tonne. Stoping operations contributed 86% of total mine production, similar to stope contributions in the September 2007. The transition into the higher grade areas of the Upper Zone ore system has, as expected, delivered improved performance this quarter.

DEVELOPMENT UPDATE

Casposo Environmental Impact Assessment

During the December 2007 quarter, Intrepid announced the receipt from Jose Luis Gioja, Governor of the Province of San Juan of the Casposo Project Environmental Impact Statement (Declaracion de Impacto Ambiental or 'DIA'). The DIA provides the operational standards and guidelines for the development of the Kamila and Mercado gold-silver deposit on the Casposo Property. (See press release dated December 19, 2007)

In addition, the Company negotiated an agreement that will see the future Casposo mine and the majority of the homes and businesses of approximately 8,000 inhabitants of the Department of Calingasta connected to the national power grid, replacing both the diesel powered generation plant currently used by the community and the five megawatt diesel plant that was planned for the mine during the feasibility study. The agreement calls for the Company to invest a total of $14.5 million dollars in the power line with $8 million as capital during the construction process and $6.5 million in staged payments over years two to five of the Casposo operation.

Intrepid will be moving quickly in 2008 to obtain the sectoral permits needed for the mining operation and to formally establish all protocols and reporting standards described in the DIA.

EXPLORATION

Casposo Continuing Exploration

Exploration at the Casposo Project during the quarter was undertaken at a reduced rate as Argentine staff contributed efforts to the completion of numerous components of the Casposo Environmental Impact Statement, financial stability report document and updated resource estimate. The last quarter saw mapping completed in a 10 square kilometre area north of Kamila and east of the Julieta prospect.

New exploration work is planned for the Casposo property in 2008 including continued resource drilling at Kamila and resource development drilling at Julieta.

Paulsens Exploration Property

During the December 2007 quarter, minimal surface exploration work was performed on the Paulsens regional property package as a whole due to other priorities. Work completed included evaluation of the iron ore potential and preparation for drill exploration of the Apollo and Paulsens East areas of the mine property.

During 2008, new exploration budgets will be applied to the Property both for resource development at the mine and intermediate stage development of exploration targets. Recent underground drilling has confirmed the extension of strong sulphide mineralization of the Upper Zone. The new intercept is located 25 metres south of the Upper Zone mineralization identified in surface hole PLRCD0419 (4.8 metres at 68 grams per tonne) in 2006 (see press release dated October 15, 2006). While assays are pending new drilling is being planned for the resource area.

Mexico Taviche

Intrepid optioned the Taviche property located in Oaxaca State, Mexico in 2006 from Plata Panamericana S.A. de C.V. The Taviche Property comprises two concessions totaling 13,724 hectares. Subsequently in 2007, Intrepid entered into an agreement with Aura Silver Resources Inc. whereby the companies will jointly earn a 70 percent interest in the concessions. Aura Silver completed funding of the first year agreement commitments with Plata Panamericana, and all future expenses are jointly funded. Intrepid acts as operator and began field activities in January 2007.

A 3,800 metre diamond drilling program was initiated on October 10th. A total of 18 holes from 100 to 225 metres in depth are planned to test areas of known high grade silver-gold mineralization including those adjacent to historic mines, strongly mineralized surface exposures and at significant vein structure intersections. At the Christmas season break, 2,700 metres of the drill contract had been completed with work scheduled to resume in early January 2008. Final assays on the 18 holes are expected in the current quarter.

CORPORATE UPDATE

In September 2007 the Company announced plans to merge with ASX listed Gold company Emperor Mines Limited. The new company will be a dynamic and well funded international gold producer, developer and explorer listed on both the TSX and ASX.

The combination of Emperor's balance sheet strength, Intrepid's producing Paulsens Gold Mine and its Casposo development project, and both companies' exploration assets, together with the combined skills of the two management teams, will create a well balanced company capable of adding significant value for its shareholders. Emperor advanced a A$5 million loan facility for exploration and working capital which is fully drawn.

The merger will take place by way of a scheme of arrangement, with Emperor shareholders receiving one Intrepid share for every 4.25 Emperor shares held.

The proposed merger with Emperor Mines Limited continued to develop with shareholder meeting materials being prepared during the quarter to be distributed in the next few weeks for a meeting in early March. The merger is conditional on Emperor Mines Limited achieving a Net Cash hurdle as defined in the Merger Implementation Deed. In addition, Emperor Mines Limited continued to pursue a sale of its PNG Tolukuma Gold Mine which is considered inconsistent with Intrepid's long term strategic growth objectives. If the merger proceeds, the merged company will be a dynamic and well funded international gold producer, developer and explorer listed on both the TSX and ASX.

As at December 31, 2007, issued securities consisted of:

- issued capital of 181,783,419 shares comprising 165,821,766 ordinary shares of Intrepid Mines Limited and 15,961,653 exchangeable shares of Intrepid NuStar Exchange Corporation

- 9,079,839 unlisted options to acquire ordinary shares

- 7,728,000 unlisted warrants to acquire ordinary shares

The exchangeable shares are held by Canadian former shareholders of Intrepid Minerals Corporation who elected to defer capital gains tax consequences of the July 2006 merger. All remaining exchangeable shares will compulsorily convert into ordinary shares by no later than July 2009.

CONFERENCE CALL

As is customary, the company will host a conference call today at 4:30 pm eastern time (8:30am - January 24 - Sydney time) to discuss the results. Laurence Curtis, President and CEO of Intrepid Mines, will chair the call. To participate in the conference call, please call five minutes prior to the scheduled start time. In North America the dial-in number is: 1-888-300-0053, the International dial-in number is: 1-647-427-3420, and in Australia the dial-in number is: 1-800-287 011 (The Conference ID #31848401).

For those unable to participate in the conference call at the scheduled time, a replay of the call will be available from January 23, 2008 until January 30, 2008. Replay access number is: 1-800-374-8183 or 1-402-220-0881 (Conference ID #31848401). A recorded version of the call will be available at www.intrepidmines.com for 90 days.

On behalf of the Board of Directors of Intrepid Mines,

Laurence Curtis, President & CEO

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 181,783,419 shares comprised of 166,229,266 ordinary shares of Intrepid Mines Limited on the TSX (TSX:IAU) and ASX (ASX:IAU) and 15,554,153 Exchangeable Shares of Intrepid NuStar Exchange Corporation quoted on the TSX (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

Contact Information