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

Intrepid Mines Limited

December 13, 2006 09:00 ET

Intrepid Announces Covenant Waiver Received & Updates December Quarter Production Targets

TORONTO, ONTARIO--(CCNMatthews - Dec. 13, 2006) - Intrepid Mines Limited (TSX:IAU)(TSX:IXN)(ASX:IAU), an international gold and silver production, development and exploration company, is pleased to advise that it has received a waiver for the breach of certain project performance ratios related to the Westpac finance facility for September 30, 2006.

Waiver

Intrepid re-filed the September 2006 Interim Unaudited Consolidated Financial Statements on December 7, 2006, following the Westpac notification, in accordance with the Australian equivalents to International financial reporting Standards AASB 101. The breach notification was a consequence of the previously advised lower Reserve Estimate and the recent period of mine underperformance. The Company has been working with its consultants to address the reclassification of certain ore reserves and resources. It is anticipated that the application of mining parameters currently in operating practice at Paulsens and infill drilling completed during the period will allow improvement in future estimates of calculated reserves.

The Company advises that it has made all principal and interest repayments due under the facility, and has delivered all hedging commitments, on schedule.

Re-filing September 2006 Financial Report and MD&A

Following receipt of the waiver the September 2006 Interim Unaudited Consolidated Financial Statements and MD&A have been re-filed today.

December Quarter Production Targets

Projected production for the December 2006 quarter was 18,000 to 20,000 ounces (September 30 Quarterly Results), however, based on reconciled production data to date management believes the mine will underperform in the present quarter due to grade variability and dilution issues. Management notes that grade variability (a function of complex gold distribution) appears to be inherent to the Paulsens orebody, impacting the ability to generate precise production forecasts on a quarterly basis. Despite this variability in predictability over short periods, the mine has produced over 100,000 ozs since inception in June 2005 to September 2006. Management, together with independent consultants, are presently reviewing production and grade control data in an effort to improve grade control processes and mine performance.

On behalf of the Board of Directors of Intrepid Mines,

Laurence Curtis, President & CEO


About Intrepid Mines:

Intrepid Mines Limited has an international production, development and exploration profile, and holds interests in several gold-silver and silver-base metal properties in Australia, Argentina, El Salvador, and Canada, either directly or through joint venture partnership. The issued capital is 150,364,243 shares comprised of 121,025,056 ordinary shares of Intrepid Mines Limited quoted on the TSX:IAU and ASX:IAU and 29,339,187 Exchangeable Shares of Intrepid NuStar Exchange Corporation quoted on the 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 & 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

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