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

Intrepid Mines Limited

October 31, 2006 09:00 ET

Intrepid Mines Reports Results for First Quarter 2007

TORONTO, ONTARIO--(CCNMatthews - Oct. 31, 2006) - Intrepid Mines Limited (TSX:IAU)(TSX:IXN)(ASX:IAU), an international gold and silver production, development and exploration company, reports operating results for the first quarter ended September 30, 2006. All dollar figures are in United States dollars unless otherwise indicated. Highlights from the quarter included:

OVERVIEW

- Merger between NuStar Mining Corporation and Intrepid Minerals Corporation completed. Company name was changed to Intrepid Mines Limited

- Initial results from Paulsens reserve extension drilling highly encouraging

- Positive drill results from Casposo, Argentina and San Cristobal, El Salvador

- Surface trench samples upgrade Cerro Norte prospect at Casposo

- Casposo tenement position expanded with Cristina gold project (30km south) acquisition

- Exploration portfolio expanded with the addition of Taviche high grade gold/silver property in Oaxaca, Mexico (option to earn an interest).



FINANCIAL RESULTS

3 months to 3 months 3 months 3 months to 3 months to
September to June to March December September
30, 2006 30, 2006 31, 2006 31, 2005 30, 2005
$000 $000 $000 $000 $000
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Gold and silver
revenue 8,145 12,053 10,234 8,804 7,783
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Other income 120 78 47 8 12
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Total gross revenues 8,265 12,131 10,281 8,812 7,795
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Net earnings /
(loss)(basic) (2,193) 2,334 1,151 (793) (1,727)
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Net earnings /
(loss) per share(1) ($0.01) $0.03 $0.01 ($0.01) ($0.02)
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(1) Net earnings per share applying the 12:1 consolidation to all periods for comparative purposes

Total revenue was $8.3 million for the three months ended September 30, 2006, up from revenue of $7.8 million in the year-earlier period.

Revenue from gold and silver sales for the September 2006 quarter totalled $8.1 million, compared to $7.8 million in the year-earlier period, generating an operating cash surplus for the quarter of $975,000, after expanded international regional exploration investment of $1.1 million. The merger contributed $3.5 million cash after cost for the quarter.

Investment in Paulsens extension drilling, mine development and the Casposo feasibility totalled $2.7 million for the quarter and $2.2 million was dedicated to debt retirement. The resulting reduction in cash for the quarter of $734 thousand compares to the increase in cash held in the comparative quarter of $173 thousand when debt repayments were $164 thousand.

Net loss for the quarter was $2.2 million, or $0.01 per share, compared to a net loss of $1.7 million, or $0.02 per share in the year-earlier period.



PRODUCTION UPDATE

3 months to 3 months 3 months 3 months to 3 months to
September to June to March December September
30, 2006 30, 2006 31, 2006 31, 2005 30, 2005
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Site production
cash cost $389/oz $264/oz $270/oz $286/oz $378/oz
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Total cash cost $406/oz $284/oz $287/oz $300/oz $390/oz
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Gold produced 16,388 oz 22,148 oz 20,528 oz 19,013 oz 17,159 oz
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In the first quarter, Intrepid produced 16,388 ounces of gold at a total cash cost of $406 per ounce, compared to 17,159 ounces produced at a total cash cost of $390 per ounce for the prior-year quarter.

The production deficit during the quarter resulted from lower than anticipated availability from underground equipment. The situation has been successfully addressed by the underground contractor replacing the primary underground production loader with a new machine. The multiplier effect of no loader on remote duty due to safety protocols resulted in changes to mine scheduling which, in turn, lead to a postponement of production from higher grade sections of the mine.

DEVELOPMENT UPDATE

- Paulsens - A 20 hole drilling program is targeting the extension of the mine orebody. Results available to date increase confidence that an extension of mine life will be achieved. This program will be completed by year end and results built into new resource and reserve estimates for the mine as at December 31, 2006.

- Casposo - AMEC engineers are confident that feasibility studies currently underway will be delivered on time, at calendar year end, with environmental impact studies to be submitted in the first quarter of calendar 2007. A new resource estimate is also expected at calendar year end which will include new positive results from the Inca vein. New discoveries (SEXT and Julieta veins) will be evaluated as contributors to mine sustainability.

EXPLORATION UPDATE

The Company is pleased with progress to date on its exploration projects.

- Intrepid continues to explore its grassroots projects near its core assets in Australia and Argentina. The Company will be evaluating its Ashburton province properties near the Paulsens mine throughout the next quarter with similar activity planned for the newly acquired Cristina property near the Casposo project in Argentina.

- Mexico has been selected by the newly merged Intrepid as a jurisdiction which combines high grade gold and silver targets and potential for rapid development of economic resources that fit the style of operations sought. For its first entry into Mexico Intrepid will explore the Taviche property in the state of Oaxaca. Taviche is a bonanza grade silver/gold project.

- In El Salvador, exploration on its wholly owned San Cristobal project has returned encouraging results during the quarter. Mapping, trenching and drilling operations for this phase of exploration are expected to continue to the end of the calendar year.

MERGER INTEGRATION AND OUTLOOK

The integration of NuStar Mining and Intrepid Minerals has been completed. The combined Company has the depth of experience and knowledge required to achieve economies of scale in efficiently delivering development of the Casposo Project.

For the quarter ending December 31, the Company is establishing total revenue guidance in a range of $9 million - $10 million. The Company expects gold production in the quarter to be in a range of 18,000 - 20,000 ounces. The Company expects gold production to be higher in the quarter due to anticipated improvements in equipment performance and the scheduled mining of higher grade areas at Paulsens.

On behalf of the Board of Directors of Intrepid Mines,

Laurence Curtis, President & CEO

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, El Salvador, and Canada, either directly or through joint venture partnership. The issued capital is 150,156,743 shares comprised of 120,491,756 ordinary shares of Intrepid Mines Limited quoted on the TSX:IAU and ASX:IAU and 30,664,487 Exchangeable Shares of Intrepid NuStar Exchange Corporation quoted on the TSX:IXN.

Qualified Person:

Information in this announcement is based on information compiled by William McGuinty, P. Geo., V.P. Exploration, who is a competent person as defined in the 2004 Edition of the JORC '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. McGuinty is a full time employee of Intrepid Mines Limited and has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity which is being undertaken, and consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

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.



Interim unaudited consolidated income statements
for the quarter ended September 30, 2006

Intrepid Mines Limited (formerly NuStar Mining Corporation Limited) and
its controlled entities

Three months ended September 30
2006 2005
$'000 $'000
-------------------------------

Revenue from continuing operations
Gold and silver sales 8,145 7,783
Other revenues from ordinary activities 120 12
-------------------------------
8,265 7,795

Expenses
Cost of gold and silver sold - excluding
depreciation and amortisation 6,437 6,351
Cost of gold and silver sold - depreciation
and amortisation 1,941 2,123
Exploration and evaluation expenditure 957 214
General and administration expenses
- General 664 282
- Option value expense 27 2
Borrowing costs 398 550
Foreign exchange loss 34 -
-------------------------------
Loss before income tax expense (2,193) (1,727)

Income tax expense - -

-------------------------------
-------------------------------
Loss attributable to members of the
Company (2,193) (1,727)
-------------------------------
-------------------------------

Number of common shares (calculated including
Intrepid NuStar Exchange Corporation listed
shares in 2006 and on a consolidated basis
for 2005)

Basic weighted average outstanding during
period 149,117,646 82,493,803

Diluted weighted average outstanding during
period 162,024,304 83,265,316

Cents Cents
Net loss per share - Basic ($0.01) ($0.02)
Net loss per share - Diluted ($0.01) ($0.02)


Interim unaudited consolidated balance sheets
as at September 30, 2006

Intrepid Mines Limited (formerly NuStar Mining Corporation Limited)
and its controlled entities


September 30, June 30,
2006 2006
$'000 $'000
--------------------------
Assets
Current assets
Cash and cash equivalents 6,093 6,827
Receivables 1,345 2,064
Inventories 2,282 2,107
Other financial assets 325 -
--------------------------
Total current assets 10,045 10,998
--------------------------

Non-current assets
Plant and equipment 11,537 11,883
Mining properties 86,522 15,946
Deferred tax asset - 6,536
Other 523 456
--------------------------
Total non-current assets 98,582 34,821
--------------------------
Total assets 108,627 45,819
--------------------------
--------------------------

Liabilities
Current liabilities
Payables 5,571 4,295
Interest bearing liabilities 7,966 8,156
Provisions 462 359
Financial instruments 7,704 7,828
--------------------------
Total current liabilities 21,703 20,638
--------------------------

Non-current liabilities
Interest bearing liabilities 9,378 11,130
Provisions 349 361
Financial instruments 10,138 12,618
Deferred tax liability 14,994 -
--------------------------
Total non-current liabilities 34,859 24,109
--------------------------
Total liabilities 56,562 44,747
--------------------------
--------------------------
Net assets 52,065 1,072
--------------------------
--------------------------

Equity
Contributed equity 95,724 46,677
Reserves (including financial instruments) (9,822) (13,730)
(Accumulated losses) (33,885) (31,692)
Cumulative translation adjustments 48 (183)
--------------------------
Total equity 52,065 1,072
--------------------------
--------------------------


Interim unaudited consolidated cash flow statements
for the quarter ended September 30, 2006

Intrepid Mines Limited (formerly NuStar Mining Corporation Limited)
and its controlled entities

Three months ended
September 30
2006 2005
$'000 $'000
------------------
Cash flows from operating activities
Proceeds from gold and silver sales 8,979 8,690
Payments to suppliers and employees (7,857) (5,697)
Interest received 120 12
Borrowing costs (267) (102)
------------------
Net cash inflow from operating activities 975 2,903
------------------

Cash flows from investing activities
Payments for development of mine properties (2,718) (1,734)
Payments for property, plant and equipment (312) (830)
Cash acquired on Merger, net of transaction costs 3,520 -
------------------
Net cash inflow/(outflow) from investing activities 490 (2,564)
------------------

Cash flows from financing activities
Repayment of borrowings (2,247) (164)
Net proceeds from issue of shares (net of costs) 42 -
------------------
Net cash outflow from financing activities (2,205) (164)
------------------
Effect of exchange rate on cash and cash equivalents 6 (2)
------------------
Net (decrease)/increase in cash held (734) 173
Cash at beginning of period 6,827 692
------------------
Cash at end of the reporting period 6,093 865
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CUSIP: Q4968A

ABN: 11 060 156 452

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