Indico Mobilizes Drill Rig for Phase I Drilling at Ocana Project, Southern Peru; Defines Two New Copper-Gold Drill Targets & Expands Drill Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 11, 2011) - Indico Resources Ltd. ("Indico" or the "Company") (TSX VENTURE:IDI)(OTCQX:IDIFF) announces that following a successful drill permit application process, a rig is being mobilized to the Ocaña project in southern Peru and that drilling is expected to begin in the coming days. In addition, interpretation of new geophysical data has been completed, which supports the existing Jimena drill target (NR11-01 March 7, 2011) as well as defining two additional drill targets. As a result, the initial +2,000 metre drill program has been increased to +4,000 metres.

Drilling Update

The drill permit for the Ocaña project has been received and drilling will commence in the coming days. During the application, the Company completed two community workshops where community support for the project was receptive and overwhelming. Plans for an expanded (>4,000 metre) drill program are being finalized following positive results from the Company's geophysical exploration program, outlined in more detail below.

Geophysical Survey Details

A geophysical survey has been completed which includes 6 lines (a total of 8 line-kilometers) of Induced Polarization (IP) and 56 line-kilometers of ground magnetics (Figure 1).

The IP survey results indicates strong chargeability anomalies at a depth of 250 meters below surface at the Jimena target (Figures 2 & 3), adding geophysical support to the existing drill target. The data also identifies new drill targets: La Novia target (Figures 2 & 4), and the Exotica target (Figure 5).

Intensive (+/-100mV/50m dipole) Self-Potential (SP) anomalies define a prospective area for enriched exotic copper oxides mineralization - the SP anomaly of the Exotica target forms a broad linear target some 2 km's long and approximately 0.4 km's wide.

The ground magnetic survey outlined an elliptical northwest trending magnetic anomaly over the Jimena target. The magnetic anomaly is approximately 0.6 km x 0.3 km in size and coincides with Cu-Mo-Au geochemical anomalism from previously reported surface rock-chip, channel and talus sampling. The La Novia target identified 2 km's northwest of Jimena has a distinct magnetic anomaly and coincides clearly with a deeper (interpreted 250 meters) chargeable source and surface SP anomalies (Figure 6).

New Company Website & Investor Relations

The Company is pleased to announce the launch of its new website found at http://www.indicoresources.com.

"Although this website is merely a window on what we do, considerable thought has gone into the design of our web presence such that investors and prospective investors can find information on the Company without being inundated with technical information," stated Gary Freeman, Chief Executive Officer of Indico Resources.

In addition, the Company has strengthened its corporate team by retaining the services of Michael Pound to head Investor Relations. Mr. Pound brings 16 years of marketing, finance and client management experience to the team. He most recently served as Investor Relations for Platinum Group Metals and currently manages Investor Relations for Dorato Resources Inc. He will oversee development of the Company's investor relations strategy and will focus on increasing the Company's exposure in the financial community.

To view Figures 1 to 6 that accompany this press release, please visit: http://media3.marketwire.com/docs/idi-figs-0711.pdf.

Geophysical Terminology

Exotic copper mineralization is a complex hydrochemical process linking supergene enrichment, lateral copper transport, and precipitation of copper oxide minerals in the drainage network of a porphyry copper deposit.

Geophysical magnetic surveying essentially measures magnetic susceptibility in rocks. In general, after a magnetic survey is completed, the natural and induced fields are separated; then the residual induced (or anomalous) magnetic field is interpreted in terms of the magnitude and distribution of susceptible material under the ground. The resulting model of subsurface susceptibility must then be interpreted in terms of useful geologic parameters.

Chargeability of earth materials is essentially an electrochemical effect caused by many factors and if ground is chargeable, it responds as if resistivity was a complex quantity. Aspects affecting the chargeability of a sample include: types of minerals present.IP surveys are widely used for mapping of sulphide mineralization at depth.

Spontaneous potential (SP), also called self-potential, is a naturally occurring electric potential difference in the Earth, measured by an electrode relative to a fixed reference electrode. SP associated with a sulfide ore body result from the ohmic potential drop within the country rocks. The electric current is produced by separate but simultaneous reduction of oxidizing agents near the surface and oxidation of reducing agents at depth. The ore does not participate directly in either reaction, but serves as a conductor to transfer the electrons from the reducing agents to the oxidizing agents. The possibility for the above reactions to occur depends upon differences in oxidation potential of ground waters at different depths. In the zone beneath the water table, the potential is probably controlled by the oxidation-reduction equilibria of iron-rich minerals.

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.

The geophysical results were reviewed by Kuncho Kunchev, Indico's consulting geophysicist. Mr. Kunchev has over 25 years of experience as an exploration geophysicist. Most recently he has been working for Rio Tinto as a senior geophysicist exploring for gold, copper, base metals, diamonds and other types of mineral deposits. Mr. Kunchev is independent of the Company.

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. The company's senior technical staff has a cumulative 40 years of porphyry exploration and resource definition experience.

On behalf of Indico Resources Ltd.

Gary Freeman, President and Chief Executive Officer

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.