Intrepid Mines Limited: Letter to Shareholders

BRISBANE, AUSTRALIA -- (Marketwired) -- 04/26/13 -- Intrepid Mines Limited (TSX: IAU)(ASX: IAU) (the 'Company') advises that the attached letter was mailed to shareholders today 26 April 2013.

Intrepid also advises that a copy of the requisition for a general meeting referred to in the shareholder letter has been placed on the Company's website at www.intrepidmines.com.

Directors
Ian McMaster (Chairman)
Colin G. Jackson (Deputy Chairman)
Brad A. Gordon (Managing Director)
Laurence W. Curtis (Non-executive Director)
Robert J. McDonald (Non-executive Director)
Alan Roberts (Non-executive Director)
Adrianto Machribie (Non-executive Director)
Garry Gill (Company Secretary)

Stock Exchange Listing
ASX and TSX symbol: IAU

Substantial Shareholders
Taurus Funds Management 8.5%
Acorn Capital 8.1%
Van Eck Associates 7.0%
Surya Paloh 5.0%

Issued Capital
555,792,572 shares
7,768,609 unlisted options
2,574,737 unlisted share rights
51,208,032 unlisted restricted performance rights

Shareholder Enquiries

Matters related to shares held,
change of address and tax file
numbers should be directed to:

Computershare Investor Services
GPO Box 2975, Melbourne, Victoria 3001, Australia

Telephone:  1300 850 505
            +61 3 9415 4000

Intrepid Mines

Letter to Shareholders

Dear Fellow Shareholder

Attempt to take Control of the Board

In my letter to you on 19 February, I advised you that a group called Quantum Pacific was contemplating trying to remove the entire Intrepid board (a copy of my letter is on our website at www.intrepidmines.com).

As you may have read in the press, we have now received a requisition from Quantum Pacific and others seeking the removal of 5 of the 7 directors of Intrepid Mines and the appointment of 4 directors nominated by Quantum Pacific and its associates.

We are required by the Corporations Act to convene a meeting of all Intrepid shareholders to consider the resolutions being proposed by Quantum Pacific. I am writing to let you know that we will convene this meeting within the next two to three weeks and will hold the meeting within 2 months of the notice being received from Quantum Pacific and its associates.

The Notice of Meeting we send you will outline why your directors reject the arguments being put forward by Quantum Pacific and its associates.

Until you receive the Notice of Meeting, you do not need to take any action in relation to your Intrepid shares.

Ahead of sending you the Notice of Meeting, I do want to make 3 simple points.

1.  Your board and management continue to work hard on a range of fronts to
    achieve our simple objective of restoring value for all of our
    shareholders (for more high level information about what we have been
    doing please see my last letter).
2.  As required by the Corporations Act, in the Notice of Meeting we will
    address the issues raised by Quantum Pacific and its associates. In the
    meantime, we remain of the view that we are not going to assist the
    protagonists in this dispute by disclosing information about our
    activities which could help them achieve their objectives.
3.  As you would expect, following receipt of the requisition from Quantum
    Pacific we have spoken with a number of major institutional
    shareholders. I am pleased to confirm that those shareholders continue
    to support your board and management. I would hope you would agree that
    the Intrepid Board and management is in the best position to understand
    the position the company now finds itself in, the potential of the Tujuh
    Bukit project, its historical development and the options for resolving
    the challenges we now face better than anyone who might recently have
    become a shareholder of the company to pursue their own interests.

As I said in my last letter, your directors appreciate the strong support that has been given to us by so many shareholders as we attempt to deal with this complex and challenging situation.

We look forward to your continuing support as we deal with this attempt by Quantum Pacific and its associates to take control of your company.

As always, if you have any questions about this or any other matters, please feel free to contact me or Brad Gordon.

Yours sincerely

Ian McMaster AM, Chairman

Inquiries regarding this letter may be directed to:

Ian McMaster AM
Chairman
(mobile) +61 419 476 980
or
Brad Gordon
Managing Director
Chief Executive Officer,
Brisbane, Australia
(office) +61 7 3007 8000
(mobile) +61 400 036 636
bgordon@intrepidmines.com

Contacts:

Intrepid Mines Limited

Brad Gordon

Managing Director - Chief Executive Officer

Brisbane, Australia

(office) +61 7 3007 8000 / (mobile) +61 400 036 636
bgordon@intrepidmines.com


Intrepid Mines Limited

Greg Taylor

Investor Relations

Toronto, Canada

(office) +1 905 337 7673 / (mobile) +1 416 605 5120
gtaylor@intrepidmines.com