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

Intrepid Mines Limited

February 28, 2007 10:19 ET

Intrepid Mines Announces Convertible Financing for Paulsens Mine

PERTH, AUSTRALIA--(CCNMatthews - Feb. 28, 2007) - Intrepid Mines Limited (TSX:IAU)(TSX:IXN)(ASX:IAU), an international gold and silver production, development and exploration company, announces that it has selected Claymore Capital Pty Ltd to provide an unsecured short dated convertible loan of A$5.0 million net of facility fees. The loan will bear interest at a rate of 12.0% per annum calculated quarterly in arrears and subject to shareholder approval may be convertible into equity. Finalisation of the facility is subject to completion of documentation and the consent of the Company's bankers.

The proceeds from the financing will be used to re-establish working capital levels at the Paulsens Mine which had been depleted following a period of below target performance.

The Company has been actively addressing mine grade issues at Paulsens and is pleased to announce that steady improvement has been recorded this year with gold production from scheduled mining areas in recent weeks with mill grades up 30%.

The PURT review is continuing and the economic benefit of opportunities identified to date are being investigated. Recent weeks performance does not provide assurance of continuing grade improvement but has increased the Company's confidence in the mining model.

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.

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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