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

Intrepid Mines Limited

January 03, 2007 14:32 ET

Intrepid Reports Final Results From the Paulsens Reserve Extension Drilling Program

TORONTO, ONTARIO--(CCNMatthews - Jan. 3, 2007) - Intrepid Mines Limited (TSX:IAU)(TSX:IXN)(ASX:IAU), an international gold and silver production, development and exploration company, reports the balance of results from the 2006 Paulsens extension drilling program.

The drilling program commenced in July and was designed for several purposes:

- To upgrade and expand the Paulsens resource. Holes targeted the down-plunge extension of the Upper and Lower Zones below the base of the current mine plan (300 metres depth).

- To provide information to extend mine reserves to 400 metres. Several holes were designed to test to greater depth to ascertain behaviour of the Zones at depth.

- To provide improved resource definition at higher levels where existing drill hole coverage is limited.

The completed program has tested mineralisation in a range of target areas down the plunge of the Paulsens orebody to 490 metres vertically below surface. Drilling has also tested the northern, down dip extent of Lower Zone mineralisation on several sections, and has produced multiple ore grade intercepts at vertical depths ranging from 185 metres to 450 metres (see attached longitudinal section). Significant results include 5.5 metres of 15 g/t gold, 10.7 metres of 15.8 g/t gold, 4.8 metres of 68.4 g/t gold and 3.2 metres of 13.48 g/t gold. The deepest significant intercept recorded to date is approximately 150 metres below the base of the current reserve.

Results to date demonstrate continuity to depth of the structural controls which govern the Upper and Lower Zones of the Paulsens orebody, although intersection of high grade mineralization has not been consistent. A key factor in developing resources at Paulsens is the identification of massive sulphide units which develop along the Upper (hanging wall) and Lower (foot wall) Zones within the Paulsens Mine sequence. The Paulsens Mine sequence is dominated by a large 30-40m thick massive to granular textured quartz vein with the Upper and Lower zones representing averages of 5m and 2m respectively on the veins margins. Deep drilling in the completed campaign has not encountered as much sulphide as expected, however as recently encountered in production areas of the mine, these units are quite variable and a greater drilling density will be required to better develop new deep extensions to the mine.

The completed campaign has also determined the existence of a sub-parallel fault which has offset the orebody at depth to as much as 90 metres (holes PLRCD0423, 424). Previous drilling in this area did not extend to sufficient depth to intersect the Upper and Lower Zones and further work will be required to develop mineral potential in the vicinity of these holes. Recent drilling indicates vein geometry is not impacted by the fault.

Looking forward to the exploration of the Paulsens Mine in 2007, additional drilling to improve resources and their quality will continue for the Upper and Lower Zones of the Paulsens Mine sequence. Exploration for alternate mineralised targets will also be undertaken to identify mineralised zones similar to the Apollo Lode. Economic mineralisation has been defined along the Melrose Fault at Apollo, to the north of, and away from, the Paulsens gabbro, a key traditional marker for the Paulsens Mine sequence. The Apollo Lode is associated with narrow, folded quartz veining and although of limited tonnage, the Apollo Lode has been developed on two levels, confirming the potential for economic mineralisation associated with dilational sites along the extent of the Melrose Fault. Geophysical tools will also be tested to identify sulphide concentrations as a focus for drilling.

Information obtained from this drill program will be included in a new resource estimate to be conducted by mine staff and external consultants. The report is expected in the first quarter of 2007.



Paulsens Extension Drilling Results

------------------------------------------------------------------------
HOLE ID EASTING NORTHING ARGET ORE DEPTH WIDTH GRADE
(PMG) (PMG) ZONE (m) (m) g/t gold
------------------------------------------------------------------------
PLRCD0405 9550.15 50514.698 NSR
------------------------------------------------------------------------
CZ 450.00 1 2.55
------------------------------------------------------------------------
LZ 462.90 0.69 5.31
------------------------------------------------------------------------
PLRCD0406 9500.13 50503.90 UZ 416.48 1.70 2.54
------------------------------------------------------------------------
LZ dolerite
------------------------------------------------------------------------
(i) PLRCD0407 9449.96 50533.02 UZ 471.00 1.42 2.11
------------------------------------------------------------------------
LZ 503.24 0.46 10.80
------------------------------------------------------------------------
(i) PLRCD0410 9450.07 50496.37 UZ 422.22 1.18 6.43
------------------------------------------------------------------------
CZ 432.40 1.60 3.30
------------------------------------------------------------------------
LZ 464.00 1.71 15.26
------------------------------------------------------------------------
(i) PLRCD0411 9499.95 50481.60 UZ 403 2.45 29.67
------------------------------------------------------------------------
Includes 1.00 58.10
------------------------------------------------------------------------
PLRCD0412 9549.91 50355.37 UZ NSR
------------------------------------------------------------------------
(i) PLRCD0413 9650.11 50386.01 UZ 237.31 10.69 15.78
------------------------------------------------------------------------
includes 0.69 136.00
------------------------------------------------------------------------
CZ 253.00 1.19 17.26
------------------------------------------------------------------------
CZ 259.90 4.10 4.30
------------------------------------------------------------------------
LZ 281.92 0.58 40.10
------------------------------------------------------------------------
PLRCD0414 9750.06 50486.71 LZ NSR
------------------------------------------------------------------------
PLRCD0415 9800.16 50395.04 LZ 273 1.85 3.08
------------------------------------------------------------------------
(i) PLRCD0416 9899.89 50369.68 LZ 219.32 0.68 12.45
------------------------------------------------------------------------
(i) PLRCD0417 9900.19 50419.88 LZ NSR
------------------------------------------------------------------------
PLRCD0418 9450.03 50369.82 UZ 360.00 0.95 2.72
------------------------------------------------------------------------
CZ 378.79 0.71 3.73
------------------------------------------------------------------------
(i) PLRCD0419 9500.00 50409.72 UZ 327.00 4.80 68.42
------------------------------------------------------------------------
includes 2.5 2.5 105.24
------------------------------------------------------------------------
(i) PLRCD0420 9600.12 50421.673 UZ 275.53 5.50 14.97
------------------------------------------------------------------------
LZ 314.00 1.75 4.25
------------------------------------------------------------------------
PLRCD0421 9400.01 50571.73 UZ 483.00 1.00 15.45
------------------------------------------------------------------------
CZ 503.80 1.20 5.23
------------------------------------------------------------------------
CZ 517.95 1.05 3.29
------------------------------------------------------------------------
LZ 532 1.00 2.89
------------------------------------------------------------------------
PLRCD0422 9399.81 50514.80 UZ NSR
------------------------------------------------------------------------
LZ dolerite
------------------------------------------------------------------------
PLRCD0423 9599.96 50485.68 UZ 416 1 10.10
------------------------------------------------------------------------
LZ NSR
------------------------------------------------------------------------
PLRCD0424 9599.80 50441.93 UZ 298 3.20 13.48
------------------------------------------------------------------------
LZ NSR
------------------------------------------------------------------------

Nb: 2.0g/t Au lower cut. No upper cut applied. - PLRCD0408 and
PLRCD0409 did not reach target.
UZ: Upper Zone CZ: Central Zones - mineralisation within
main quartz body between UZ and LZ.
LZ: Lower Zone
(i) previously reported drill results


On behalf of the Board of Directors of Intrepid Mines,

Laurence Curtis, President & CEO

Information in this announcement is based on information compiled by Erik Norum, MAIG, Exploration Manager, Intrepid Mines Limited Australia, 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. Norum 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.

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 164,259,243 shares comprised of 136,571,789 ordinary shares of Intrepid Mines Limited quoted on the TSX:IAU and ASX:IAU and 27,687,454 Exchangeable Shares of Intrepid NuStar Exchange Corporation quoted on the TSX:IXN.

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.

CUSIP: Q4968A

ABN: 11 060 156 452

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http://www.ccnmatthews.com/docs/intrepid.pdf

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