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

Intrepid Mines Limited

December 17, 2008 22:04 ET

Intrepid Mines Limited: Tujuh Bukit Project Zone A Resource Confirms Multi-Million Ounce Oxide Potential

HIGHLIGHTS: - Inaugural 1.47 million ounce gold equivalent Inferred Resource at Zone A (mineralisation remains open to the south) - Tujuh Bukit inventory, Zone A plus Zone C, now totals 2.57 million ounces gold equivalent in the Inferred Resource category - Drilling continues in Zone B, with three holes completed. - In addition to the shallower targets, deep copper - gold porphyry/high sulphidation drilling continues.

BRISBANE, AUSTRALIA--(Marketwire - Dec. 17, 2008) - Intrepid Mines Limited (TSX:IAU)(TSX:IXN)(ASX:IAU) reports that an Inferred Resource of 1.47 million ounces gold equivalent at a cut-off of 0.5 grams / tonne gold equivalent has been estimated for Zone A in the oxide and partial oxide zones of the Tumpangpitu area of the Tujuh Bukit Project in Indonesia.

This includes 1.10 million ounces gold equivalent in the near surface oxide only zone. Mineralisation in many holes commenced at or near the surface.

The resource has been estimated by Independent Consultants Hellman and Schofield Pty. Ltd. and reported in accordance with the JORC Code. It is based on drill data from the 80 x 80 metre grid that covers an area of approximately 480 metres x 350 metres. The new results do not include deeper sulphidic copper-gold mineralisation previously discovered by Intrepid near Zone A. In particular hole GTD-08-35 intersected 627.2 metres of 0.44% copper and 0.45 grams per tonne gold from 222 metres downhole.

Zone A is one of four zones of known oxide and sulphide gold-silver mineralisation within the Tumpangpitu Prospect. The Zone C resource was announced in July 2008 at 1.1 million ounce gold equivalent at a cut-off of 0.5 grams per tonne gold equivalent.

Together, Zone A and Zone C Inferred Resource estimates contribute 1,493,000 ounces of gold and 68.3 million ounces of silver (2.57 million ounces gold equivalent) to Intrepid's rapidly increasing resource inventory. This is a significant development for the Company and provides the basis for a significant growth path in future years.

Intrepid is confident that the resource base at Tumpangpitu will continue to grow by defining additional oxide gold-silver ounces and by pursuing the deeper copper and gold potential.

CEO Brad Gordon said: "This new resource brings the total to 2.57 million ounce gold equivalent and confirms the potential of Tujuh Bukit as an internationally significant resource and company-making find. This resource is based only on Zones A and C with two zones at Zone B now being drilled."



Summary of Inferred Resource Estimates, by AuEq cut-offs, Zone A

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Cut-off Tonnes AuEq (g/t) Au (g/t) Ag (g/t) Oz AuEq (m)
(AuEq)
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0.50 43,556,919 1.05 0.62 27.8 1.47
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0.75 24,349,305 1.40 0.86 34.8 1.10
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1.00 16,325,249 1.67 1.08 38.1 0.88
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Data are shown for Gold Equivalent (AuEq) cut-off values. The gold equivalent ratio for silver has been set at 65:1 based on US$650/oz gold and US$10/oz silver. Historical bottle roll tests have shown recoveries of 83% Au and 84.5% Ag, supporting a 65:1 ratio. Recently received CIL metallurgical testing results from Zone C achieved recoveries of approximately 90% for both Au and Ag at a grind of 80% passing 75 um.

Further details of the resource estimation, at various gold only cut-off values, and on the basis of oxide, and mixed mineralisation are tabulated below.

The delivery of the Zone A Inferred Resource achieves one of the Company's stated goals for the project for 2008.

To view a map of Zones A, B, and C, please visit the following link: http://media3.marketwire.com/docs/iaumap1.jpg

Plan showing the location of the Zone A drilling relative to Zones B, B south and C, and to the distribution of deep drill holes targeting copper-gold porphyry and high sulphidation mineralisation.

To view a map of Zone A Drill Hole Location, please visit the following link: http://media3.marketwire.com/docs/iaumap2.jpg

Diagram (UTM grid lines are at 200m intervals) showing the location of drill holes within Zone A. The holes have been drilled primarily to the southwest, with a few to the northeast, at dips of -50 and -60 degrees (see section below). Zone A sits over a topographic high and mineralisation occurs at or close to the surface, particularly on the southwest flank. The level of oxidation is variable but in places extends as semi-oxidised zones to greater than 400m down hole.

Drilling at Zone A for the oxide resource estimate comprised 16 diamond drill holes completed by Intrepid Mines and JV partner PT Indo Multi Niaga during 2008. Zone A also includes historical holes GT 001A and GT 001B drilled by Golden Valley Mines, and GT 10, GT 12 drilled by Golden Valley Mines in JV with Placer Dome.

Total meterage for holes drilled in 2008 within Zone A is 6263m, and drilling by Golden Valley/Placer totalled 1220m.

To view a cross secion on grid line 11120N, please visit the following link: http://media3.marketwire.com/docs/iaumap3.jpg

Cross section on local grid line 11120N which includes holes 49, 41 and 43. The red colouring is greater than 0.2g/tAu, the line graph is g/tAg. The topography is shown in the green line and at its peak is approximately 480 metres above sea level.

APPENDIX

The tables below show the various tonnages, grades, and contained metal equivalence at various gold equivalent and gold only cut-off values.



Inferred - Oxide and Mixed
Cut-off (AuEq) Tonnes AuEq (g/t) Au (g/t) Ag (g/t) Oz AuEq (m)

0.50 43,556,919 1.05 0.62 27.8 1.47
0.75 24,349,305 1.40 0.86 34.8 1.10
1.00 16,325,249 1.67 1.08 38.1 0.88


Inferred - Oxide
Cut-off (AuEq) Tonnes AuEq (g/t) Au (g/t) Ag (g/t) Oz Eq (m)

0.50 29,356,023 1.13 0.76 24.2 1.07
0.75 17,652,729 1.48 1.02 30.2 0.84
1.00 12,788,993 1.72 1.21 33.0 0.71


Inferred - Mixed
Cut-off (AuEq) Tonnes AuEq (g/t) Au (g/t) Ag (g/t) Oz Eq (m)

0.50 14,200,896 0.88 0.34 35.2 0.40
0.75 6,696,576 1.19 0.46 47.2 0.26
1.00 3,536,256 1.48 0.61 56.9 0.17


Inferred - by Au cutoff
Oxide and Mixed
Cut-off (Au) Tonnes AuEq (g/t) Au (g/t) Ag (g/t) Oz AuEq (m)

0.50 18,403,992 1.47 1.09 24.5 0.87
0.75 11,712,594 1.78 1.38 26.0 0.67
1.00 8,514,152 1.99 1.57 27.2 0.54


Oxide
Cut-off (Au) Tonnes AuEq (g/t) Au (g/t) Ag (g/t) Oz Eq (m)

0.50 16,128,792 1.46 1.13 21.0 0.76
0.75 10,777,650 1.76 1.40 23.5 0.61
1.00 8,033,864 1.98 1.59 25.6 0.51


Mixed
Cut-off (Au) Tonnes (m) AuEq (g/t) Au (g/t) Ag (g/t) Oz Eq (m)

0.50 2,275,200 1.55 0.80 49.0 0.11
0.75 934,944 1.94 1.10 54.6 0.06
1.00 480,288 2.17 1.35 53.3 0.03


The Indonesian Forestry Law restricts non forestry activities within protection forests and prohibits mining using an open pit method in protection forest areas. Intrepid's Alliance partner, PT IMN, is working with relevant Indonesian authorities to allow for a review of forest land status if the exploration activities support such a decision. The Zone A Resource falls within a protection forest area, and there are risks attendant upon the reclassification process.

Forward-looking statements

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.

Statements relating to gold 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.

Qualified Person

The information in this announcement that relates to mineral resources is based on information compiled by or under the supervision of Dr. Phillip Hellman, who is an independent consultant to Intrepid Mines Limited. Dr Hellman 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 an Independent Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and an Independent Qualified Person as defined in the Canadian National Instrument 43-101 (standards of Disclosure for Mineral Projects). Dr Hellman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Dr Hellman has undertaken independent verification sampling and assaying of drill core with a close agreement of results with those previously reported. A 40 x 40 x 6 metre block model was used for the quoted estimates. If smaller selective mining units are considered it is estimated that an approximate 10 to 20% lift in grade may result. In future, increasing the drilling density in areas of higher gold grades is anticipated to achieve a higher grade outcome.

The information in this announcement that relates to exploration results is based on information compiled by or under the supervision of Malcolm Norris, 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 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.

Sample Analysis

Intrepid exercises a strict chain of sample custody in its drilling program at Tujuh Bukit. Joint Venture personnel remove core from the drill rig and deliver it to a project geologist who logs the core and marks the core into two metre sample intervals. Intrepid and Joint Venture personnel supervise the immediate splitting, sawing and bagging of samples, and packaging of groups of samples for dispatch to the laboratory. The remainder of the split core remains on site.

Samples are securely packaged, batched, and then transported under supervision to Intertek's laboratory facility in Jakarta. At the laboratory, the samples are prepared by crushing and pulverizing and a 30 gram charge is assayed for gold by conventional fire assay and/or atomic absorption methods. Multi-element ICP analysis is carried out using a multi-acid digestion process. All samples that contain silver and/or copper, lead, and zinc values that exceed the upper detection limits for ICP are re-analysed by conventional atomic absorption methods to determine the absolute values of these metals.

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