Intrepid Mines Limited

Intrepid Mines Limited

January 29, 2008 09:15 ET

Intrepid Mines: Paulsens Gold Mine-Six Tonnes of Gold and Extension Drilling Commences

TORONTO, ONTARIO--(Marketwire - Jan. 29, 2008) - Intrepid Mines Limited (TSX:IAU)(TSX:IXN)(ASX:IAU), an international gold and silver production, development and exploration company, following its second highest quarterly gold production (see press release dated January 23, 2008) and a 23% upgrade of its Argentinean gold and silver project resource (see press released dated January 11, 2008), announced today that it has achieved the six tonne milestone at its Australian gold project.

Following a successful December 2007 quarter, where Paulsens Gold Mine produced 21,426 ounces of gold at site cash costs of US$357 per ounce, the Paulsens team this week poured the sixth tonne of fine gold with Mill Superintendent Mr Phil O'Neil and Gold Room Supervisor Mr Wes Marendziak present for the shipment, having both joined the Paulsens team prior to its first gold pour in June 2005. Spot sales last week totalled 1,349 ounces achieving a new record price for the Paulsens Gold Mine of A$1,020 per ounce (an additional 300 ounces were set aside to extinguish the remaining balance of the January hedges).

Intrepid President and CEO Mr Laurence Curtis said "We are pleased to have achieved this significant milestone which follows a challenging year in 2007. We have refocused our exploration efforts at Paulsens based on work completed over the past several quarters to gain a better understanding of the deposit"

An initial mine extension drilling program begins this week from underground focusing on the faulted offset of the Upper Zone first identified during resource drilling in late 2006. "The Upper Zone is currently the mine's main producing area and the potential of a repeated structure continuing at depth is very exciting" according to Mr Laurence Curtis, who went on to note that, "The drilling beginning this week is the first of a succession of programs to expand the Paulsens reserves and draw value from the quality team and infrastructure in place at Paulsens."

Intrepid has a full, challenging and exciting year ahead in 2008 with a number of short to medium term goals to unlock the value of the Company's assets for shareholders, including:

- completing the merger with Emperor Mines

- eliminating Paulsens project debt

- extinguishing hedge commitments through gold delivery

- expanding Paulsens reserves, and

- building a second gold mine, at its Casposo project, in Argentina.

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 181,783,419 shares comprised of 166,361,766 ordinary shares of Intrepid Mines Limited quoted on the TSX:IAU and ASX:IAU and 15,421,653 Exchangeable Shares of Intrepid NuStar Exchange Corporation quoted on the TSX:IXN.


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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ABN: 11 060 156 452

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