Minera IRL Announces Substantial Maiden Mineral Resource Concurayoc Zone, Ollachea Project, Peru

LONDON, UNITED KINGDOM--(Marketwire - Sept. 7, 2011) - Minera IRL Limited ("Minera IRL" or the "Company"), (TSX:IRL)(AIM:MIRL)(BVLAC:MIRL) the Latin American gold mining company, is pleased to announce the maiden mineral resource estimate at the Concurayoc Zone, Ollachea Project, Southern Peru.

Highlights:

• The maiden Inferred Mineral Resource at the Concurayoc Zone, applying a 2g/t gold bottom cut-off grade, totals 10.4 million tonnes grading 2.8g/t gold containing 0.9 million ounces
  
  
• The total Indicated Mineral Resource thus far defined at Ollachea is now 10.7 million tonnes grading 4.0g/t gold containing 1.4 million ounces plus an Inferred Mineral Resource of 13.7 million tonnes grading 2.8g/t containing 1.2 million ounces of gold
  
  
• The Concurayoc Zone is only 400 meters along strike to the west of the Minapampa Zones which contain the mineral resource underpinning the very positive Pre-feasibility reported in July 2011
  
  
• The Company considers that there is good potential to link the Minapampa and Concurayoc Zones with planned ongoing drilling

"The in-fill drilling at Concurayoc Zone, discovered in 2010, has been most encouraging demonstrating a very substantial new gold resource." said Courtney Chamberlain, Executive Chairman of Minera IRL. "The Minapampa and Concurayoc Zones are only separated by approximately 400 meters and we believe that geologically there is excellent potential for connecting these zones with further drilling. Gold mineralization at Ollachea is open ended in both directions along strike as well as down dip so we have every expectation that the resource will continue to grow. Approximately one kilometre of potentially economic mineralized extensions east of Minapampa will be explored by underground drilling from the recently announced exploration drive."

The total mineral resource estimate for Ollachea is now as follows:

Indicated Mineral Resource applying a 2.0g/t gold cut-off

Inferred Mineral Resource applying a 2.0g/t gold cut-off

This Canadian National Instrument NI43-101 compliant mineral resource estimate was carried out by consultancy Coffey Mining Pty Ltd. The new estimate at the Concurayoc Zone, which covers a strike length of 700 meters, was based upon 45 diamond drill holes on approximately an 80 meter grid for 16,943 meters. The mineral resource estimate, reported at a 2g/t gold bottom cut-off, includes top cutting as appropriate for each of the six broad gold-mineralized horizons, or "lenses", that have been quantified in the estimate.

The total mineral resource at Ollachea is based upon 165 diamond drill holes for 63,347 meters. The dip and spatial orientation of the mineralized zones at Concurayoc are broadly similar to the mineralized zones hosted within the Minapampa zones.

Within the six horizons identified at Concurayoc, mineral resource modelling has additionally identified seven discrete higher grade lenses. Examples of higher grade intersections include drill hole DDH10-130 which intersected 33 meters grading 4.57g/t gold including 12 meters grading 8.66g/t gold, DDH10-135 with 7 meters at 4.03g/t gold plus 4 meters at 8.68g/t gold, DDH11-168 with 9 meters grading 3.38g/t gold plus 4 meters at 22.0g/t gold and DDH11-171 with 7 meters at 17.6g/t gold.

The effective true width of mineralized intersections are expected to range between 67% to 98% of the width reported, with the majority of the drill holes reporting around 92% true width. The true width is dependent upon the variation of the angle of incidence between the trace of the Concurayoc exploration drill-hole(s) and the dip of the targeted mineralized horizon(s).

The recently completed positive Ollachea Pre-feasibility Study is predicated upon the Indicated Mineral Resource at Minapampa and Minapampa East which is only 400 meters from Concurayoc. As a result, the Company believes that the Concurayoc mineral resource has the potential to substantially enhance the future of the Ollachea mine development.

Following the release, Minera IRL plans to host a conference call at 8.30am Lima time, 9.30am Toronto time, 10.30am Argentina time and 2.30pm London time on September 7, 2011. To participate in the call please dial:

Additional information regarding Ollachea and Concurayoc can be found on the Minera IRL website www.minera-irl.com.

Resource Estimate Authorship and Methodology

The mineral resource estimate was prepared under the supervision of Mr Doug Corley, Member of the Australian Institute of Geoscientists, Associate Resource Geologist in Resource Modelling with Coffey Mining Pty Ltd and is recognized as a Qualified Person for the purposes of National Instrument 43-101.

On the basis of the confidence levels of the key criteria that were considered during the resource estimation, the mineral resource estimates provided in this press release have been classified and reported in accordance with CIM guidelines and National Instrument NI.43-101. At the reported cut-off grade of 2g/t gold, the mineralization; continuity, shape and distribution is considered to have reasonable prospects for economic extraction.

The Concurayoc resource estimate was based on 45 diamond drill holes totalling some 16,943 meters.

Mr Doug Corley conducted a field visit to the project site (June 2010) where he had the opportunity to interact with project geologists and related staff and to study the geology and associated mineralization in order to become familiar with the geological demeanour as well as continuity of grade distribution inherent to the Ollachea deposit.

Resource estimation methodology included completion using Ordinary Kriging for gold. The estimation was constrained within mineralized interpretations that were created with the assistance of the Minera IRL geological staff. The six potentially economic gold mineralized domains were interpreted using closely spaced north north-west, south south-east oriented, vertical transversal sections based on a combination of detailed geological observations and gold grade information.

Competent Persons Statement

The preparation of the technical information contained herein was supervised by Donald McIver, VP Exploration of the Company, MSc Exploration and Economic Geology, a Fellow of the Australian Institute of Mining and Metallurgy (AUSIMM), who is recognized as a Qualified Person for the purposes of National Instrument 43-101, and who has reviewed and approved the technical information in this press release.

Minera IRL Limited is the TSX, AIM and BVL, Lima listed holding company of precious metals mining and exploration companies focused in Latin America. Minera IRL is led by an experienced senior management team with extensive industry experience, particularly in operating in South America. The Group operates the Corihuarmi Gold Mine and the emerging Ollachea Gold Project in Peru as well as the Don Nicolas Project in Argentina.

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law or regulation, Minera IRL Limited does not intend to update any forward-looking statements to conform these statements to actual results.

Quality Assurance and Quality Control Procedures Disclosure

The Company has implemented and maintains a Minera IRL quality assurance/quality control (QA/QC) protocol on the Ollachea Project to ensure best industry practice in sampling and analysis of exploration and resource drill core samples. The insertion of field duplicates, certified standards and blank samples into the sample stream form part of the MIRL procedure (these act as an independent check on contamination, precision and accuracy in the analytical laboratory).

Assay results are reported once rigorous QAQC procedures have been approved.

Independent Audit Programs

Towards maintaining compliancy with international standards as they pertain to the minerals industry resource evaluation and estimation procedure, MIRL regularly contracts the services of industry experts to conduct detailed audits of established QAQC procedures.