Intrepid Mines Limited

Intrepid Mines Limited

March 25, 2009 22:43 ET

Intrepid Mines Limited: Casposo Sold for US$22 Million

BRISBANE, AUSTRALIA--(Marketwire - March 26, 2009) - Intrepid Mines Limited (TSX:IAU)(TSX:IXN)(ASX:IAU) (the "Company") has agreed to sell the Casposo project in Argentina for a total consideration of US$22 million (approximately A$31 million) cash.

The purchaser, Troy Resources NL ("Troy"), has completed detailed technical, legal and corporate due diligence in respect of the project.

The purchase consideration is:

- US$20 million on completion of the sale transaction; and

- an additional US$2 million payable six months after the commencement of production at Casposo.

The sale is conditional on the normal governmental, regulatory or statutory approvals being obtained and completion of the reorganisation of Intrepid Minerals Corporation, the subsidiary company through which Intrepid holds Casposo.

Troy and Intrepid will act in good faith to settle a definitive agreement setting out the terms of the purchase and sale of the shares of IMC, which will contain covenants, representations and warranties that are customary in a transaction of this nature. The parties have further agreed to a reciprocal break fee of US$250,000, payable in the event that either party breaches the terms of the sale agreement.

Troy has advised that, given the advantages of its current operating presence in Latin America, surplus plant equipment and cash reserves, it is its current intention to commence construction at Casposo as soon as practically possible.

Troy anticipates continuing and extending the excellent relationship established by Intrepid with the San Juan Government and Governor.

Intrepid CEO, Brad Gordon, said the Casposo sale would allow the Company to focus its energies on its 80,000 ounce per annum Paulsens gold mine in Western Australia and provide additional financial flexibility in considering its options for developing the Tujuh Bukit gold-silver oxide resource in East Java, Indonesia, which is located directly above a significant but separate copper-gold sulphide mineralised zone.

"Intrepid is debt free and hedge book free and our Paulsens gold mine continues to generate healthy cash flow of approximately US$3M a month," Mr Gordon said. "This sale will add significantly to our cash balance and strong financial position, enabling us not only to focus on our two remaining assets but also to consider a range of corporate opportunities to further enhance our shareholder value and prospects."


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 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.

ABN: 11 060 156 452

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