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

Intrepid Mines Limited

October 15, 2006 17:00 ET

Intrepid Reports Positive Results From the Paulsens Reserve Extension Drilling Program

TORONTO, ONTARIO--(CCNMatthews - Oct. 15, 2006) - Intrepid Mines Limited (TSX:IAU)(TSX:IXN)(ASX:IAU), an international gold and silver production, development and exploration company, reports results from the first nine holes of the Paulsens extension drilling program.

The drilling program commenced in July and is aimed at upgrading and expanding the resource below the base of the current mine plan (300 metres depth) in order to extend mining reserves to 400 metres and improve resource definition at greater depth. Some holes are also targeting improved resource definition at higher levels where existing drill coverage is limited.

Drilling completed to date has produced multiple ore grade intercepts at vertical depths ranging from 185 metres to 450 metres (see attached longitudinal section: http://www.ccnmatthews.com/docs/intrepidmap.pdf). Significant results include 5.5 metres of 15 g/t gold, 10.7 metres of 15.8 g/t and 4.8 metres of 68.4 g/t gold. The deepest significant intercept recorded to date is approximately 150 metres below the base of the current reserve.

"The success of this reserve extension drill program to date bodes well for additional mine life at Paulsens" said Laurence Curtis, President and Chief Executive Officer, Intrepid Mines.

Completion of the drilling program is scheduled for November with receipt of all assay results expected by year end. Data from the completed program will then be incorporated into the Paulsens resource model and the mine plan updated.

Results to date demonstrate continuity of the orebody at depth and indicate that the objective of expanding reserves to at least 400 metres will be achieved. An updated resource and reserve statement for the mine as at 31 December 2006 will be released in the first quarter of 2007.



Paulsens extension drilling results table
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Easting Northing Depth Width Grade
Hole ID (PMG) (PMG) Ore Zone (m) (m) (g/t Au)
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PLRCD0407 9450 50533 UZ 471.00 1.42 2.11

LZ 503.24 0.46 10.8
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PLRCD0410 9450 50496 UZ 422.22 1.18 6.43

ND 432.40 1.60 3.30

LZ 464.00 1.71 15.3
-----------------------------------------------------------------
PLRCD0411 9500 UZ 403 2.45 29.7

includes 1.00 58.1

ND 410 3.00 9.08

ND 419.96 0.54 21.3
-----------------------------------------------------------------
PLRCD0413 9650 50386 UZ 237.31 10.69 15.8

includes 0.69 136

ND 253.00 1.19 17.3

ND 259.90 4.10 4.30

LZ 281.92 0.58 40.1
-----------------------------------------------------------------
PLRCD0416 9900 50370 LZ 219.32 0.68 12.5
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PLRCD0417 9900 50420 NSR
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PLRCD0418 9450 UZ 360.00 0.95 2.72

ND 378.79 0.71 3.73
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PLRCD0419 9500 UZ 327.00 4.80 68.4

includes 2.5 105
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PLRCD0420 9600 50422 UZ 275.53 5.50 15.0

LZ 314.00 1.75 4.25
-----------------------------------------------------------------

Note: 2.0g/t gold lower cut. No upper cut applied.

UZ: Upper Zone

ND: Not Defined -- mineralisation within the host quartz
body but outside the interpreted positions of the UZ and LZ.

LZ: Lower Zone

NSR: No significant result


In other activities, Intrepid is proceeding with its feasibility on the Casposo gold-silver project in Argentina and is currently drilling on its silver-gold San-Cristobal project in El Salvador, Central America.

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 150,032,576 shares comprised of 119,069,356 ordinary shares of Intrepid Mines Limited quoted on the TSX:IAU and ASX:IAU and 31,004,887 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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