Indico Appoints New Director and Chief Operating Officer; Ocana Phase 2 Drill Programme Outlined

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 2, 2012) - Indico Resources Ltd. (TSX VENTURE:IDI)(OTCQX:IDIFF) ("Indico" or the "Company") is pleased to announce the appointment of Mr. Henk van Alphen to the Company's Board of Directors and Mr. John Drobe as the Company's Chief Operating Officer.

Mr. van Alphen has had a successful career in the mining business for over 25 years. Since 1999, Henk has been a director of Cardero Resource Corp., a mineral exploration company listed on the Toronto Stock Exchange and the NYSE-Amex, and was instrumental in establishing the Cardero Group of Companies. Henk holds senior management and director positions with several resource exploration and development companies. Having raised over $200 million for mining exploration, his leadership, knowledge and access to capital will be an invaluable asset to the Company.

Mr. John Drobe is a geologist with 25 years of experience, specializing in porphyry copper-gold, epithermal and skarn deposits throughout Latin America. John is currently Vice-President Exploration for Dorato Resources Inc., a mineral exploration company listed on the TSX Venture Exchange. Prior to joining Dorato, John held the position of Chief Geologist for Corriente Resources Inc., a mineral exploration company previously listed on the TSX and AMEX. John was responsible for all aspects of exploration and resource definition at Corriente's Mirador, Panantza, and San Carlos porphyry copper deposits.

Mr. van Alphen will be replacing Mr. Michael Kinley, who has resigned from the Board of Directors. The Company would like to express its sincere thanks to Michael for his years of service on the Board.

The Company also announces the granting of incentive stock options to certain of its directors, officers and consultants to purchase up to an aggregate of 1,200,000 common shares in its capital stock at a price of $0.21 per share, exercisable for a period of two years.

Ocaña Property Update - Phase 2 Drilling Proposal

Indico is preparing to initiate the Phase 2 drill programme at the Ocaña Copper Project (http://www.indicoresources.com/i/misc/ocana_2.gif). This programme will total 5000 metres and target 1) higher-grade hypogene mineralization within breccia at depth, and 2) shallow, high-grade copper oxide mineralization under the main ridge along the south edge of the alteration anomaly.

The Ocaña porphyry project covers 110 km² located on the northwest extension of the Southern Peru Porphyry Copper Belt (http://www.indicoresources.com/i/maps/Ocana_concessions_complete.jpg). Ocaña is accessible by an 85 km graded dirt road connected to the paved Pan American Highway. The Toquepala, Quellaveco, Cuajone, and Cerro Verde Mines are on regional trend to the southeast. Recent exploration in the belt has also resulted in discovery of the Zafranal copper - molybdenum - gold porphyry deposit (NI 43-101 compliant Measured & Indicated resources of 301MT of 0.47% copper and 0.08g/t gold, and additional Inferred resources of 51 MT of 0.32% copper and 0.06 g/t gold, located approximately 75 km to the southeast of the Ocaña Project. The geology and mineralization at Ocaña is similar to that at the Zafranal. The information in this release relating to regional geology, mines, deposits and projects was determined from the relevant company web sites and public filings.

Five drill holes were completed in Phase I, totaling 2,195 m (http://www.indicoresources.com/i/maps/Ocana_DDH_proposed2012_NR.jpg), and all contained strong hypogene mineralization over significant thicknesses. In addition, two holes located nearest the main east-west ridge (OKA-001 and 002) also intersected significant supergene copper oxide and sulphide at or near surface. Results for all five holes are summarized in Table 1. Notable in the initial phase of drilling was OKA-004, in which consistent hypogene mineralization at 0.25% copper (0.32% copper equivalent) terminated in increasing copper grades, with the last 15 m averaging 0.42% copper (http://www.indicoresources.com/i/misc/2011-11-08_NR3.jpg).

Phase 1 drilling indicates the mineralized system has dimensions of at least 840 m east-west and extends at least 250 m north-south. Phreatic breccia underlies most of this area and trends west-northwest and is continuous for more than 1 km, over a width of at least 200 m within the concession, and extending for another approximately 200 m off the property to the north. With these dimensions, the Ocaña porphyry could be comparable in size to the 351 MT Zafranal Cu-Mo porphyry, which is owned by AQM Copper and Teck Corporation (see below).

The Phase 2 drilling will test the depth and extent of the hypogene mineralization within the breccia, with emphasis on intersecting the source of highly-mineralization fragments intersected in OKA-003. It will also target the southern and eastern extents of shallow high-grade supergene mineralization intersected in holes OKA-001 and 002. The large ridge south of these holes may preserve a significant thickness of supergene copper, the northern edge of which was intersected by the Phase 1 holes.

Table 1: Detailed Drill Results - Phase 1 Drill Programme (2011)

Drill Hole	From (m)	To (m)	Interval	CuEq (%)*	Cu (%)	Mo (ppm)	Au (g/t)	Ag (g/t)	Mineral Zone
OKA-001 130°/-70°	2	46	44	0.824	0.734	105	0.032	1.3	oxide supergene
	46	192	146	0.308	0.232	97	0.022	1.1	hypogene
	192	447	255	0.217	0.153	98	0.014	0.6	hypogene
	447	697.8	250.8	0.126	0.094	44	0.009	0.4	hypogene
OKA-002 120°/-70°	4	24	20	0.776	0.183	742	0.254	3.6	oxide
	24	38	14	1.607	1.290	511	0.057	1.9	supergene
	38	150	112	0.334	0.209	136	0.057	1.5	hypogene
	150	406.3	256.3	0.211	0.154	71	0.015	0.9	hypogene
OKA-003 120°/-70° including	2	150	148	0.285	0.134	98	0.132	0.6	hypogene
	150	321	171	0.536	0.322	111	0.187	2.2	hypogene
	219	270	51	0.706	0.424	187	0.206	3.8	hypogene
	321	403.3	82.3	0.219	0.125	145	0.020	0.7	hypogene
OKA-004 310°/-80° including	57	356.7	299.7	0.318	0.253	70	0.027	1.1	hypogene
	300	356.7	56.7	0.449	0.368	89	0.030	1.5	hypogene
OKA-005 235°/-70°	63	84	21	0.669	0.605	73	0.018	1.4	mixed supergene
	84	216	132	0.340	0.270	72	0.023	1.7	hypogene
	216	276	60	0.210	0.164	42	0.020	1.0	hypogene

*Copper equivalent calculations represent the total metal value for each metal, multiplied by the conversion factor, summed and expressed in equivalent copper percentage. These results are exploration results only and no allowance is made from recovery losses that may occur should mining eventually result. These equivalent grades should not be interpreted as actual grades since the conversion rations vary with the volatile prices of Cu and Mo and the economic recoveries of Cu and Mo can vary significantly in actual extraction and processing. However, it is the company's opinion that elements considered here have a reasonable potential to be recovered. The three-year, moving-average metal prices used for the purposes of the equivalency calculations are copper $US3/pound, gold $US1200/ounce, molybdenum $US15/pound and silver $US21/ounce.

Qualified Person

John Drobe, P.Geo., and a qualified person as defined by National Instrument 43-101, has reviewed and takes responsibility for the scientific and technical information that forms the basis for this news release. Mr. Drobe is not independent of the Company as he is an officer and a shareholder.

About Indico Resources Ltd.

Indico Resources Ltd. is a resource exploration company focused in the discovery and exploration of porphyry copper-gold deposits in South America. The Ocaña Porphyry Project is the Company's primary exploration project and is currently the main focus of exploration activities. In addition, the Company has reviewed multiple additional porphyry exploration projects and is in negotiation to acquire interests in additional porphyry exploration projects. Please visit our website at www.indicoresources.com.

On behalf of Indico Resources Ltd.

Gary Freeman, President and Chief Executive Officer

Cautionary Statement Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward looking information" within the meaning of the British Columbia Securities Act and the Alberta Securities Act. Generally, the words "expect", "intend", "estimate", "will" and similar expressions identify forward-looking information. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, or that of our industry, to differ materially from those expressed or implied in any of our forward looking information. Statements in this press release regarding Indico's business or proposed business, which are not historical facts, are forward-looking information that involve risks and uncertainties, such as estimates and statements that describe Indico's future plans, objectives or goals, including words to the effect that Indico or management expects a stated condition or result to occur. Since forward-looking statements address events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties. The foregoing commentary is based on the beliefs, expectations and opinions of management on the date the statements are made. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.