Intrepid Mines Limited: Tujuh Bukit Indonesia NI 43-101 / JORC Compliant Technical Report Filed

BRISBANE, AUSTRALIA -- (Marketwire) -- 06/02/11 -- Intrepid Mines Limited (TSX: IAU)(ASX: IAU) (the 'Company') announces that the technical report entitled 'Preliminary Economic Assessment Tujuh Bukit Oxide Project Technical Report' dated 1 June 2011, has been filed on SEDAR (www.sedar.com) as well as with the ASX (www.asx.com) (see the Company's news release of 20 April 2011 for the detail of the oxide resource update).

The PEA was prepared by Kappes Cassiday, of Reno, Nevada, based upon column leach and other metallurgical tests performed at their laboratory.

The heap leach PEA is based on the Company's December 2010 resource estimate of the near surface oxide resource at Tujuh Bukit (see the Company's announcement of 14 December 2010) - which is separate from the far larger, underlying porphyry resources - and produced a positive conceptual economic analysis for the project. Significantly, the PEA, based on conservative assumptions, demonstrated a life of project annual average production of 143,000 recovered ounces of gold for 9 years at a cash cost of US$376 per ounce, net of silver credits at US$16.50 per ounce. The project delivers a post-tax cumulative cashflow of US$445 million, an NPV (at a 10% discount rate) of US$180 million and an IRR of 31%, at a gold price of US$1,050 per ounce. The production and financial numbers are reported on a project basis (Intrepid Mines Ltd holds an 80% economic interest in the project).

The study also shows the deposit has considerable leverage to metal prices. At a gold price of US$1,450 per ounce and silver price of US$38 per ounce, post-tax cumulative cashflow increases to US$942 million (a NPV (10%) of US$446 million and an IRR of 54%).

The project has further significant potential with respect to increased resource tonnages at heap leach cut off grades and increases to silver recovery with a dedicated grinding circuit for material grading plus 100g/t silver.

The Company's board has approved immediate progress towards commencement of a pre- feasibility study, comprising in-fill drilling, metallurgical test work, engineering design and financing evaluation, with the forestry approval process to be conducted in parallel.

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 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.

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 area of the Porphyry copper-gold resource estimate, and the Zone A, Zone B and Zone C oxide resource estimate areas fall within a protected forest area. Intrepid's Alliance partner, PT IMN, is working with relevant Indonesian authorities regarding a potential review of forest land status. There is no assurance that the forestry reclassification will take place in this instance.

Qualified Person

The information in this announcement that relates to exploration results at Tujuh Bukit is based on information compiled by or under the supervision of Malcolm Norris, who is a full-time employee of Intrepid Mines Limited. Mr. Norris 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 a Qualified Person as defined in the Canadian National Instrument 43-101 (standards of Disclosure for Mineral Projects). Mr. Norris consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

ABN: 11 060 156 452

Contacts:

Intrepid Mines Limited

Brad Gordon, Chief Executive Officer, Brisbane, Australia

61 7 3007 8011 or Mobile: 61 400 036 636
bgordon@intrepidmines.com


Intrepid Mines Limited

Greg Taylor, Toronto, Canada

905 337 7673 or Mobile: 416 605 5120
gtaylor@intrepidmines.com
www.intrepidmines.com