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

Intrepid Mines Limited

February 22, 2007 09:16 ET

Intrepid Announces Update to Resource and Reserve at Paulsens

TORONTO, ONTARIO--(CCNMatthews - Feb. 22, 2007) - Intrepid Mines Limited (TSX:IAU)(TSX:IXN)(ASX:IAU), an international gold and silver production, development and exploration company, announced an update to the resource/reserve estimates for the Paulsens Mine in Australia as at December 31, 2006.

At Paulsens, from inception through to December 31, 2006, gold production totaled 117,266 ounces from 488,260 tonnes processed, at an average grade of 7.94 grams per tonne gold and mill recovery of 94.1%. The mine is expected to produce an average of 75,000-80,000 ounces of gold per year for the first five years of operation.

Resources and reserves have been updated for the Paulsens Mine (as of December 31, 2006) resulting in an increase in both categories. The previous estimates were carried out in August 2006 (see press release dated October 2, 2006). Since that time a program of surface drilling comprising 20 holes for 7,591 metres was completed with results included in the current model (see press release dated January 3, 2007). In addition, a detailed review was undertaken by independent consultant ResEval to examine the mine model and review grade control data as well as reconciliation of mill production data.

The new resource (Measured plus Indicated) is 1,105,000 tonnes grading 10.7 grams per tonne for 379,700 ounces of gold. In addition, the Inferred resource is 122,000 tonnes at 9.3 grams per tonne for 36,300 ounces of gold (see Table 1). The main change has been the increase in Indicated Mineral Resource in the deeper portion of the deposit after incorporation of the results from the 2006 drilling program. The increase to Measured and Indicated resources since the last estimate (see press release dated October 2, 2006) net of mining depletion was 77,100 ounces gold.

The new reserve (Proven and Probable) at Paulsens is 821,000 tonnes grading 9.22 grams per tonne for 243,000 ounces of gold (see Table 2). The increase to reserve since the last estimate (see press release dated October 2, 2006) net of mining depletion was 66,150 ounces gold.

The new reserve was calculated at a cut-off of 4.8 grams per tonne gold versus the August reclassification of 4.0 grams per tonne gold in conformance with revised stope design parameters.

Based on these updated reserves the Paulsens mine has a defined three year mine plan at current production targets. In addition, deeper exploration below the 300 metre historical reserve limit continues to provide further opportunity to expand the mine resource.

Further diamond drilling will be conducted from underground during 2007-2008 in order to convert these deeper resources into reserves. The deepest intersection of the Paulsens vein structure to date is 490 metres vertically below surface (approx 150 metres below the current mine reserve). The structure remains open at depth.



Table 1. Mineral Resources of the Paulsens Deposit as at December 31, 2006

Paulsens Deposit February 2007 Resource Estimate (1,2,3)

4.0g/t Cutoff Grade
-------------------------------------------------------------------------
Measured Indicated Total Measured & Indicated
----------------------------------------------------------------
Zone Tonnes Au Tonnes Au Tonnes Au Au
T g/t T g/t T g/t Ounces
-------------------------------------------------------------------------
Upper 342,000 8.2 494,000 11.0 836,000 9.9 264,900
Lower 50,000 18.0 219,000 12.2 269,000 13.3 114,800
Other
-------------------------------------------------------------------------
Total 392,000 9.4 713,000 11.4 1,105,000 10.7 379,700
-------------------------------------------------------------------------

Inferred
---------------------------
Zone Tonnes Au Au
T g/t Ounces
-------------------------------------------------------------------------
Upper 42,000 7.0 9,900
Lower
Other 80,000 10.3 26,500
-------------------------------------------------------------------------

Total 122,000 9.3 36,400
-------------------------------------------------------------------------

(1) Estimate of undiluted resource remaining at December 31, 2006, using
cutoff grade of 4.0g/t Au for resources confined to 1210mRL - 640mRL
mine levels.

(2) The mineral resource estimates for the Paulsens mine set out in the
above table were prepared under the supervision of Paul Payne CPGeo,
the Qualified Person, in compliance with National Instrument 43-101.

(3) The resource estimate is inclusive of the reserve.


Table 2. Ore Reserves of the Paulsens Deposit as at December 31, 2006

Paulsens Deposit February 2007 Reserve Estimate (1)

4.8g/t Cutoff Grade
-------------------------------------------------------------------------
Proven Probable
--------------------------------------------------------------
Zone Tonnes Au Au Tonnes Au Au
T g/t Ounces T g/t Ounces
-------------------------------------------------------------------------
Upper 218,000 7.1 49,900 388,000 10.1 126,000
Lower 56,000 12.0 21,600 146,000 9.4 44,000
Stockpiles 13,000 5.7 2,400
-------------------------------------------------------------------------
Total 287,000 8.0 73,900 534,000 9.9 170,000
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Total
--------------------------
Zone Tonnes Au Au
T g/t Ounces
-------------------------------------------------------------------------
Upper 606,000 9.0 175,900
Lower 202,000 10.1 65,600
Stockpiles 13,000 5.7 2,400
-------------------------------------------------------------------------
Total 821,000 9.2 243,000
-------------------------------------------------------------------------


(1) The mineral reserve estimates for the Paulsens Mine set out in the above table were prepared under the supervision of Neville Price and Per Scrimshaw, the Qualified Persons, in compliance with National Instrument 43-101.

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, Central America and Canada, either directly or through joint venture partnership. The issued capital is 164,259,243 shares comprised of 136,833,089 ordinary shares of Intrepid Mines Limited quoted on the TSX:IAU and ASX:IAU and 27,426,154 Exchangeable Shares of Intrepid NuStar Exchange Corporation quoted on the TSX:IXN.

Qualified Person:

Information in this announcement that relates to Ore Reserves is based on information compiled by Mr Neville Price and Mr Per Scrimshaw who are both Members of the Australasian Institute of Mining and Metallurgy. Neville Price and Per Scrimshaw are consultant mining engineers and full-time employees of Mintech Services Pty Ltd. Neville Price and Per Scrimshaw have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Neville Price and Per Scrimshaw consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Information in this announcement that relates to Ore Resources is based on information compiled by Mr. Paul Payne who is a competent person as defined in the 2004 Edition of the JORC 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and is a Qualified Person as defined in the Canadian National Instrument 43-101 (standards of Disclosure for Mineral Projects). Mr. Payne is a Principal Geologist with Resource Evaluations Pty Ltd and has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity which is being undertaken, and consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

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.

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