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

Intrepid Mines Limited

December 18, 2006 19:59 ET

Intrepid Revises Pricing for Public Offering, Receives Westpac Waiver & Re-Files September 2006 Quarterly

TORONTO, ONTARIO--(CCNMatthews - Dec. 18, 2006) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

Intrepid Mines Limited (TSX:IAU)(TSX:IXN)(ASX:IAU), an International Gold and Silver Production, Development and Exploration Company, Today Announced That It Has Received Waivers for Potential Covenant Breaches of Certain Project Performance Ratios Related to the Westpac Finance Facility for the Quarters Ending on December 31, 2006 and March 31, 2007.

The Company has today re-filed the September 2006 Financial Report to reflect the events which have occurred subsequent to the September 30, 2006 quarterly in response to a request for more detail from the Ontario Securities Commission.

The Company also announced today, that the terms of its proposed public offering previously announced on November 29, have been revised and the offering will now comprise a minimum of C$4,900,000 and up to C$8,400,000 of units of the Company at a price of C$0.70 per unit.

Each unit shall consist of one ordinary share (the "Ordinary Shares") and one-half of an ordinary share purchase warrant (the "Purchase Warrants"). Each full Purchase Warrant shall entitle its holder thereof to purchase one additional Ordinary Share at a price of C$0.90 for a period of 18 months from closing.

The offering will be sold by Paradigm Capital Inc and Blackmont Capital Inc on a best efforts basis in the provinces of Alberta, British Columbia, Manitoba, Nova Scotia and Ontario and by sub-agents in other permitted jurisdictions, such as Australia, on a private basis to exempt persons. Hartleys and SHAW Stockbroking in Australia will be retained as selling agents to offer the units for sale on a private placement basis in Australia.

The Company will grant the agents an over-allotment option for a period of 30 days from the closing of the offering under which, if the Offering is fully subscribed, they may purchase up to 15 percent of the number of units offered under this offering to cover over-allotments, if any, and for market stabilization purposes.

Intrepid plans to use the net proceeds from the financing for payments under the Corporation's debt facility with Westpac Banking Corporation, completion of the Casposo Feasibility Study, engineering and establishment of Casposo, exploration in Argentina and El Salvador, General and Administration expenses and working capital.

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 150,414,243 shares comprised of 122,724,789 ordinary shares of Intrepid Mines Limited quoted on the (TSX:IAU) and (ASX:IAU) and 27,689,454 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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