Indico Identifies Two Large Copper-Moly-Gold Porphyry Targets at Ocana Project, Southern Peru Porphyry Belt

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 7, 2011) - Indico Resources Ltd. ("Indico" or the "Company") (TSX VENTURE:IDI) is pleased to announce that it has received positive results from its initial exploration program at the Ocaña project, located in the Southern Peru Porphyry Belt, Peru.

Mapping has identified two significant areas of outcropping porphyry oxidized copper mineralization with disseminated copper sulphides (chalcopyrite) noted locally. Molybdenite veining, common associated with mineralized porphyry systems, has also been observed as veins. Geochemical analysis from initial Talus Fines sampling has highlighted a large area of copper, gold and molybdenum anomalies over an area measuring approximately 4 kilometres by 2 kilometres. These anomalies are coincident with an area of extensive quartz stockwork porphyry host lithology and associated permissive alteration.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/indico_resources_march7_fig01.pdf

Exploration completed in the past three months includes a ground geophysical (magnetic) survey, detailed structural and alteration mapping, geochemical surveys (talus fines, rocks and trenching) and interpretation of satellite imagery. Two targets are essentially drill-ready with drilling planned for Q2 2011, subject to receipt of applicable permits and permissions.

The Ocaña Porphyry Project is located on the northern extension of the Southern Peru Porphyry Belt, 80 kilometres north of the Zafranal porphyry discovery.

Positive Geochemistry

Following detailed geochemical orientation on site, talus fines were identified as the most suitable method to rapidly identify reliable surface anomalies. Results in the core target area are very positive indicating two distinct porphyry targets, which are essentially drill-ready.

Copper anomalies range from 35 ppm to 1187 ppm, which is highly anomalous despite the fact that copper would normally be leached at surface in this environment (Figure 1A). Molybdenum (Moly) ranges from 0.7 ppm to 46 ppm (Figure 1B) and gold ranges from below detection to 0.12 g/t (Figure 1C).

Positive results are clustered around the Jimena porphyry target in the central portion of the property and the Waka Waka porphyry target to the east. In both cases, the interpretation of a mineralized porphyry system is strongly supported by altered and mineralized rock.

Satellite Imagery

An interpretation of satellite imagery has been completed to identify areas of most intense clay alteration, typically associated with large porphyry systems. Two areas of anomalies have been identified, coincident with the Jimena and Waka Waka porphyry targets. The existence of continuous porphyry alteration between the targets at depth cannot be ruled out since considerable scree-type cover is observed at surface and would obscure such anomalies.

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/indico_resources_march7_fig02.pdf

Geological Mapping

Geological mapping throughout the 110 square kilometre property has identified multiple intrusive events as would typically be expected in a large porphyry system

A schematic cross section is included to explain the pattern of lithology and alteration observed at surface and to provide context for potentially a mineralized porphyry system at depth. The cross section provides a conservative interpretation, indicating two separate porphyry bodies at depth. Drilling, in addition to testing the two porphyry centres observed at surface, will investigate the potential continuity of mineralization at depth and laterally between the targets.

To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/indico_resources_march7_fig03.pdf

Qualified Person

EurGeol Keith J. Henderson, P.Geo., Indico's Chief Scientific Officer, a Director, and a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information that forms the basis for this news release. Mr. Henderson is not independent of the Company as he is an officer and a shareholder.

Stock Options

The Company also announces that, pursuant to its 2004 Incentive Stock Option Plan, it has granted incentive stock options to directors, officers, employees and consultants of the Company to purchase up to an aggregate of 1,275,000 common shares in the capital stock of the Company. The options are exercisable on or before May 7, 2012 at a price of $0.53 per share.

About Indico Resources Ltd.

Indico Resources Ltd. is a Canadian exploration company focussed on porphyry copper exploration 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 six additional porphyry exploration projects and is in negotiation to acquire interests in additional porphyry exploration projects. The companies senior technical staff have a cumulative 40 years of porphyry exploration and resource definition experience. Management feels it is well qualified and well financed to medium medium-term corporate goals.

For further details on the Company, readers are referred to the Canadian regulatory filing on SEDAR at www.sedar.com.

ON BEHALF OF THE BOARD OF DIRECTORS

INDICO RESOURCES LTD.

Gary Freeman, President & CEO

Cautionary Statement

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.