Intrepid Mines Limited Releases Activities Report for the Third Quarter Three Months to 30 September 2010

BRISBANE, AUSTRALIA -- (Marketwire) -- 10/27/10 -- Intrepid Mines Limited (TSX: IAU)(ASX: IAU) (the 'Company') is pleased to announce the release of its report for the quarter ended 30 September 2010 regarding development and exploration activities, as required under ASX listing Rule 5.1 and 5.3 as well the Company's Management's Discussion and Analysis and Interim Financial Report for the three and nine months ended 30 September 2010.

The documents are available on the Company's website (www.intrepidmines.com), and will be available shortly with Intrepid's filings on Sedar (www.sedar.com) and can be reviewed on the ASX website (www.asx.com.au).

All dollar values are United States Dollars unless otherwise stated.

OVERVIEW

Finance

--  Group profit after tax of $4.8 million for the three ended 30 September
    2010 and (loss after tax of $1.9 million nine months ended 30 September
    2010) - includes discontinued operations.

--  The sale of Paulsens to Northern Star Resources Limited ('Northern
    Star') was completed on 30 July 2010. The Sale was for a purchase
    consideration of up to A$40 million of which A$29 million has been
    received at balance date.

--  All Paulsens revenue and expenditure earned or incurred prior to the
    Completion Date has been recognised as the Consolidated Entity's
    transactions and on the Completion date, Northern Star became entitled
    to the economic benefit of mine operations effective 1 June 2010. The
    net proceeds of operations for the period from 1 June 2010 to 30 July
    2010 formed part of the post completion settlement calculation, were
    paid to Northern Star and were included in the gain on disposal.

--  Cash balance at quarter end was $41.5 million.

Tujuh Bukit

--  A renewal of the forestry exploration permit was granted to the
    Company's joint venture partner, PT IMN, during July 2010 and this has
    allowed for re-commencement of exploration activities, including
    drilling.

--  On 14 September 2010, the Company reported significant results from GTD-
    10-163, which intersected 589.5 metres averaging 0.57 grams per tonne
    gold, 0.65% copper and 122 ppm molybdenum.

--  On 29 September 2010, the Company released the maiden resource estimate
    for the Tumpangpitu porphyry zone was released. At a 0.2% copper cut-
    off, an Inferred resource estimate of 500Mt at 0.4% copper, 0.5 grams
    per tonne gold and 80ppm molybdenum was announced. This initial resource
    has been estimated by independent consultants Hellman and Schofield Pty.
    Ltd. and reported in accordance with the JORC Code and NI 43-101. Work
    continued on the Scoping Study for the oxide resource during the
    quarter. This study has been extended to include a range of further
    investigations including heap leaching to incorporate the large tonnage
    of low grade material below the process plant cut-off grade. Preliminary
    results were announced on 27 August 2010.

Paulsens Operations

--  The sale of Paulsens Gold Mine was completed on 30 July 2010. Mining
    performance for the month to completion date was 10,546 ounces.

FORESTRY ACTIVITIES

The Indonesian Forestry Law restricts non forestry activities within protected forests and prohibits mining using an open pit method in protected forest areas. The Zone A, Zone B and Zone C resources fall within a protected forest area. The Company, together with its Indonesian alliance partner, PT-IMN, is compiling a multi-faceted plan, which includes close liaison with relevant government officials and local leaders, to allow for a potential review of forest land status under Indonesian legislation, as part of the ongoing effort to enable the potential for open pit mining to be conducted. The Indonesian government has reiterated its commitment to promoting investment in the country, which the Company views as a positive sign.

QUALIFIED PERSON

The information in this report that relates to exploration results at Taviche, Tujuh Bukit and Shyri Project is based on information compiled by or under the supervision of Malcolm Norris, who is a member of The Australasian Institute of Mining and Metallurgy. Malcolm Norris is a full-time employee of Intrepid Mines Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the '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). Malcolm Norris consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to mineral resources at Tujuh Bukit is based on information compiled by or under the supervision of Dr Phillip Hellman, who is an independent consultant to Intrepid Mines Limited. Dr Hellman has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as an Independent Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and an Independent Qualified Person as defined in the Canadian National Instrument 43-101 (standards of Disclosure for Mineral Projects). Dr Hellman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Dr Hellman has undertaken independent verification sampling and assaying of drill core with a close agreement of results with those previously reported. A 40 x 40 x 6 metre block model was used for the quoted oxide estimates. A 40 x 40 x 15 metre block model was used for the quoted porphyry estimates.

FORWARD-LOOKING STATEMENTS

This announcement contains certain forward-looking statements relating to, but not limited to, Intrepid's expectations, intentions, plans and beliefs. Forward-looking information can often be identified by forward-looking words such as 'anticipate', 'believe', 'expect', 'goal', 'plan', 'intend', 'estimate', 'may' and 'will' or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future outcomes, or statements about future events or performance. Forward-looking information may include reserve and resource estimates, estimates of future production, unit costs, costs of capital projects, and timing of commencement of operations and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources and reserves, the grade and recovery of ore which is mined varying from estimates, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and other factors. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from those expressed or implied.

Shareholders and potential investors are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Intrepid undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

Statements relating to gold reserve and resource estimates are expressions of judgment, based on knowledge and experience and may require revision based on actual production experience. Such estimates are necessarily imprecise and depend to some extent on statistical inferences and other assumptions, such as gold prices, cut-off grades and operating costs, which may prove to be inaccurate. Information provided relating to projected costs, capital expenditure, production profiles and timelines are expressions of judgment only and no assurances can be given that actual costs, production profiles or timelines will not differ materially from the estimates contained in this announcement.

ABN: 11 060 156 452

Contacts:

Intrepid Mines Limited

Brad Gordon

CEO

Brisbane, Australia

+61 7 3007 8011
bgordon@intrepidmines.com


Intrepid Mines Limited

Greg Taylor

Toronto, Canada

+ 905 337-7673 or Mob: + 416 605-5120
gtaylor@intrepidmines.com
www.intrepidmines.com