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

Intrepid Mines Limited

October 13, 2008 04:14 ET

Intrepid Mines Limited: Casposo Project Update

BRISBANE, AUSTRALIA--(Marketwire - Oct. 13, 2008) - Intrepid Mines Limited (TSX:IAU)(TSX:IXN)(ASX:IAU) (the "Company") wishes to provide the market with an update on the status of its Casposo Project in the San Juan Province of Argentina.

Given the dramatic impact of financial market turmoil on the availability of funds - with debt availability uncertain and equity markets effectively closed - the Company has taken the decision to postpone construction of the Casposo Project at this stage, notwithstanding some of the best gold and silver intersections in current extension drilling being received.

The results are from the Inca vein and include (full tabulation at the end of this release):

2.85m at 6.41g/t Au and 2,245g/t Ag from 206.25m in hole CA-08-229

2.67m at 2.62g/t Au and 341g/t Ag from 136.6m in hole CA-08-231

2.52m at 4.01g/t Au and 552g/t Ag from 165.5m in hole CA-08-233

2.57m at 2.85g/t Au and 594g/t Ag from 203m in hole CA-08-246

4.62m at 108.71g/t Au and 4,423g/t Ag from 142.9m in hole CA-08-250

4.86m at 13.34g/t Au and 755g/t Ag from 120.75m in hole CA-08-253

1.66m at 3.91g/t Au and 601g/t Ag from 114.75m in hole CA-08-257, and

1.82m at 2.57g/t Au and 404g/t Ag from 123.78m in hole CA-08-257

3.35m at 12.52g/t Au and 1,115g/t Ag from 144.88m in hole CA-08-259

(Intervals are true widths - full tabulation in the appendix to this release)

Resource extension drilling is ongoing and is part of a 13,000 metre programme aimed at identifying additional mineralisation within the immediate Casposo project area. Drilling has intersected the Kamila SE, B, and Inca veins and importantly has established the continuation of the Inca vein to the SE, and discovered a new mineralised zone within this vein. The diagrams below show the status of results as at September 2008.

These results provide significant encouragement that additional mineralised areas within the Casposo project area are likely to be defined with additional drilling and point to the potential for further positive reviews of the Casposo Resource estimate.

The Company remains confident of the viability of Casposo and remains committed to its development at a time when the cost of debt and equity financing does not erode the long term intrinsic value of the business, as it would today. A drilling programme to extend the mine life is underway, potentially enhancing the project's economics. Initial results from the drilling programme are noted above.

Meanwhile, the Company is actively reviewing alternative options to proceed with the development of Casposo without the need to undertake a fundraising. During this review process, the Company will moderate expenditure, and ensure that the Company is positioned to manage the Casposo asset in the manner which most enhances shareholder value.

In line with the decision to postpone construction at Casposo, the Company is reviewing the carrying value of this asset and will complete the review process as part of the September 2008 quarterly financial report.

Figure 1: Plan view of the Casposo vein system (red lines are quartz veins). Drill holes from the recent programme are shown in yellow. Black dots are collar positions of the historical drilling. The Inca vein extends to the SE (under cover, dashed pattern) and has been the focus of recent drilling.

Figure 1 available on the Marketwire Website at the following address: http://media3.marketwire.com/docs/PlanviewMayOctober2008_Drilling%20Program.pdf

Figure 2: Longitudinal section on Inca vein. The results of the May -- October 2008 drilling programme are shown and relate to the table below. The programme has resulted in the discovery of the Inca Southeast zone.

Figure 2 available on the Marketwire Website at the following addressi: http://media3.marketwire.com/docs/LongitudinalSectionIncaVein.pdf

This announcement contains certain forward-looking statements, relating to, but not limited to Intrepid's expectations, intentions, plans and beliefs. Forward-looking information can often be identified by forward-looking words such as 'anticipate', 'believe', 'expect', 'goal', 'plan', 'intend', 'estimate', 'may' and 'will' or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future outcomes, or statements about future events or performance. Forward-looking information may include reserve and resource estimates, estimates of future production, unit costs, costs of capital projects, and timing of commencement of operations and is based on 5 current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources and reserves, the grade and recovery of ore which is mined varying from estimates, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and other factors. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from those expressed or implied.

Shareholders and potential investors are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Intrepid undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

Statements relating to gold reserve and resource estimates are expressions of judgment, based on knowledge and experience and may require revision based on actual production experience. Such estimates are necessarily imprecise and depend to some extent on statistical inferences and other assumptions, such as gold prices, cut-off grades and operating costs, which may prove to be inaccurate. Information provided relating to projected costs, capital expenditure, production profiles and timelines are expressions of judgment only and no assurances can be given that actual costs, production profiles or timelines will not differ materially from the estimates contained in this announcement.

QUALIFIED PERSON

The information in this announcement that relates to exploration results is based on information compiled by or under the supervision of Malcolm Norris, (Member AusIMM), who is a full-time employee of Intrepid Mines Limited. Mr. Norris has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "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. Norris consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

QUALITY CONTROL

A Quality Control sampling programme of blanks and duplicates has been in operation at the Casposo Project since 2002 to monitor the integrity of all assay results. All core samples are split at the Company's Calingasta core facility and core samples with inserted control samples are currently shipped to Alex Stewart Assayers Argentina S.A. in Mendoza Argentina, where they are dried, crushed, split and 50 gram pulp samples are prepared for analysis. Gold values are determined by fire assay with an atomic absorption (AA) finish and Silver values are obtained using gravimetric methods for mineralized veins. These samples and those from other areas are also analyzed using an ICP multi-element scan.

GOLD EQUIVALENT REPORTING

The assumptions used by the Company in reporting on gold equivalent targets are as follows:



A Gold Price $ 733
B Silver Price $ 12
C Gold Recovery avg 93%
D Silver Recovery avg 80%

Equiv Calc = (733/12) X (0.93/0.80)
Equiv Calc 71



Appendix
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True Au
Hole No. From To Width Width Au Ag Equiv Vein
(m) (m) (m) (m) (g/t) (g/t)(g/t)(i)
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CA-08-228 28.70 30.65 1.95 1.50 0.09 7 0.19 B Vein SE
----------------------------------------------------------------------
CA-08-229 17.15 18.30 1.15 0.81 1.75 34 2.23 B Vein SE
----------------------------------------------------------------------
CA-08-229 206.15 212.90 6.75 2.85 6.41 2245 38.03 Inca Deep
----------------------------------------------------------------------
CA-08-229 206.15 208.10 1.95 0.82 17.60 6480 108.87 Inca
----------------------------------------------------------------------
CA-08-230 25.00 31.60 6.60 4.67 nsv B Vein SE
----------------------------------------------------------------------
CA-08-230 225.35 226.35 1.00 0.42 0.15 19 0.42 Inca
----------------------------------------------------------------------
CA-08-230 227.45 230.00 2.55 1.08 nsv Inca
----------------------------------------------------------------------
CA-08-231 22.60 23.80 1.20 1.04 0.08 10 0.22 B Vein SE
----------------------------------------------------------------------
CA-08-231 136.60 140.80 4.20 2.67 2.62 341 7.42 Inca Deep
----------------------------------------------------------------------
CA-08-232 73.40 76.40 3.00 2.66 0.65 28 1.04 B Vein
----------------------------------------------------------------------
CA-08-232 218.70 220.20 1.50 0.92 3.54 4 3.60 ?
----------------------------------------------------------------------
CA-08-232 249.85 251.30 1.45 0.89 0.20 31 0.64 Inca?
----------------------------------------------------------------------
CA-08-233 44.90 51.90 7.00 6.04 1.10 16 1.33 B Vein
----------------------------------------------------------------------
CA-08-233 165.50 168.80 3.30 2.52 4.01 552 11.78 Inca
----------------------------------------------------------------------
CA-08-233 201.50 202.50 1.00 0.77 2.36 285 6.37 Inca?
----------------------------------------------------------------------
CA-08-234 20.75 23.70 2.95 2.09 nsv B Vein
----------------------------------------------------------------------
CA-08-234 71.00 74.10 3.10 1.55 nsv Inca Deep
----------------------------------------------------------------------
CA-08-234 78.80 83.70 4.90 1.54 nsv Inca Deep
----------------------------------------------------------------------
CA-08-234 88.60 92.40 3.80 1.90 nsv Inca Deep
----------------------------------------------------------------------
CA-08-235 20.80 21.55 0.75 0.55 nsv B Vein
----------------------------------------------------------------------
CA-08-235 24.50 25.50 1.00 0.73 nsv B Vein
----------------------------------------------------------------------
CA-08-235 39.20 42.20 3.00 2.20 0.54 31 0.98 FZ/qv?
----------------------------------------------------------------------
CA-08-235 62.50 63.00 0.50 0.37 0.22 5 0.29 Inca Deep
----------------------------------------------------------------------
CA-08-236 215.80 218.60 2.80 0.96 1.12 136 3.03 Kamila SE
----------------------------------------------------------------------
CA-08-237 188.60 189.50 0.90 0.31 0.44 87 1.67 Kamila SE
----------------------------------------------------------------------
CA-08-237 191.50 193.50 2.00 0.68 2.34 463 8.85 Kamila SE
----------------------------------------------------------------------
CA-08-238 231.10 232.10 1.00 0.34 0.20 50 0.90 Kamila SE
----------------------------------------------------------------------
CA-08-239 285.00 285.90 0.90 0.31 0.12 59 0.95 Kamila SE
----------------------------------------------------------------------
CA-08-240 191.60 192.20 0.60 0.30 0.42 102 1.86 Inca Deep
----------------------------------------------------------------------
CA-08-240 210.70 211.95 1.25 0.63 nsv Inca Deep
----------------------------------------------------------------------
CA-08-240 222.70 226.50 3.80 1.90 0.29 61 1.15 Inca Deep
----------------------------------------------------------------------
CA-08-241 219.40 220.65 1.25 0.43 0.30 29 0.71 Kamila SE
----------------------------------------------------------------------
CA-08-243 224.20 227.20 3.00 1.72 0.29 45 0.92 Inca Deep
----------------------------------------------------------------------
CA-08-244 243.80 245.65 1.85 0.91 4.28 355 9.28 Kamila SE
----------------------------------------------------------------------
CA-08-245 129.10 131.30 2.20 1.57 0.10 14 0.30 Kamila SE
----------------------------------------------------------------------
CA-08-246 90.05 94.20 4.15 3.17 0.33 38 0.87 B Vein
----------------------------------------------------------------------
CA-08-246 203.00 207.00 4.00 2.57 2.85 594 11.22 Inca Deep
----------------------------------------------------------------------
CA-08-246 237.65 238.60 0.95 0.61 0.27 117 1.92 Inca Deep
----------------------------------------------------------------------
CA-08-247 161.80 164.30 2.50 1.78 0.25 47 0.91 Kamila SE
----------------------------------------------------------------------
CA-08-248 21.25 22.05 0.80 1.74 0.60 22 0.91 B Vein
----------------------------------------------------------------------
CA-08-248 104.90 106.20 1.30 0.93 0.03 41 0.60 Inca Deep
----------------------------------------------------------------------
CA-08-249 43.85 45.78 1.93 1.74 0.27 16 0.50 B Vein
----------------------------------------------------------------------
CA-08-249 53.65 55.40 1.75 1.58 2.63 58 3.45 B Vein
----------------------------------------------------------------------
CA-08-249 60.35 61.00 0.65 0.59 2.00 38 2.54 B Vein
----------------------------------------------------------------------
CA-08-249 193.30 195.65 2.35 2.03 0.06 4 0.12 Inca Deep?
----------------------------------------------------------------------
CA-08-250 142.90 150.10 7.20 4.62 108.71 4423 171.01 Inca Deep
----------------------------------------------------------------------
CA-08-250 142.90 144.50 1.60 1.03 437.61 13742 631.16 Inca
----------------------------------------------------------------------
CA-08-251 202.00 206.70 4.70 2.35 0.32 76 1.39 Inca Deep
----------------------------------------------------------------------
CA-08-252 45.45 48.05 2.60 2.24 nsv
----------------------------------------------------------------------
CA-08-252 54.35 59.95 5.60 5.42 nsv
----------------------------------------------------------------------
CA-08-252 199.50 200.35 0.85 0.65 0.44 150 2.55 Inca
----------------------------------------------------------------------
CA-08-252 218.15 218.70 0.55 0.42 nsv Inca
----------------------------------------------------------------------
CA-08-253 12.80 13.30 0.50 0.38 0.81 11 0.96 B Vein?
----------------------------------------------------------------------
CA-08-253 120.75 127.10 6.35 4.86 13.34 755 23.97 Inca
----------------------------------------------------------------------
CA-08-253 120.75 125.75 5.00 3.83 16.79 927 29.85 Inca
----------------------------------------------------------------------
CA-08-253 135.35 136.85 1.50 1.15 1.40 198 4.19 Inca
----------------------------------------------------------------------
CA-08-254 16.30 19.80 3.50 2.74 0.26 13 0.44 B Vein?
----------------------------------------------------------------------
CA-08-254 175.95 179.00 3.05 1.75 0.09 15 0.30 Inca
----------------------------------------------------------------------
CA-08-255 60.00 61.55 1.55 1.26 0.17 4 0.23 ?
----------------------------------------------------------------------
CA-08-255 231.10 232.85 1.75 1.24 1.26 582 9.46 Inca
----------------------------------------------------------------------
CA-08-256 58.90 59.40 0.50 0.47 nsv
----------------------------------------------------------------------
CA-08-256 100.00 101.00 1.00 0.94 0.31 34 0.79 Inca?
----------------------------------------------------------------------
CA-08-257 5.00 8.80 3.80 3.28 5.24 80 6.37 B vein
----------------------------------------------------------------------
CA-08-257 114.75 116.78 2.03 1.66 3.91 601 12.37 Inca
----------------------------------------------------------------------
CA-08-257 121.10 121.75 0.65 0.53 0.10 17 0.34 Inca
----------------------------------------------------------------------
CA-08-257 123.78 126.60 2.82 1.82 2.57 404 8.26 Inca
----------------------------------------------------------------------
CA-08-258 54.30 57.50 3.20 2.49 2.09 51 2.81 B Vein
----------------------------------------------------------------------
CA-08-258 59.50 61.00 1.50 1.17 0.23 24 0.57 B Vein
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CA-08-258 196.65 199.00 2.35 2.20 0.13 18 0.38 Inca
----------------------------------------------------------------------
CA-08-259 5.15 9.15 4.00 3.25 6.02 57 6.82 B vein
----------------------------------------------------------------------
CA-08-259 114.20 115.30 1.10 0.71 1.03 143 3.04 Inca Splay?
----------------------------------------------------------------------
CA-08-259 124.95 130.80 5.85 3.76 2.44 140 4.41 Inca
----------------------------------------------------------------------
CA-08-259 139.70 140.40 0.70 0.45 1.63 250 5.15 Inca Splay?
----------------------------------------------------------------------
CA-08-259 144.88 150.10 5.22 3.35 12.52 1115 28.22 Inca
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CA-08-259 144.88 146.90 2.02 1.30 31.20 2660 68.66 Inca
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nsv = no significant value

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