Intrepid Mines Limited: Share Placement to Surya Paloh

BRISBANE, AUSTRALIA -- (Marketwire) -- 07/31/12 -- Intrepid Mines Limited ("Intrepid", the "Company") (TSX: IAU)(ASX: IAU) announces an agreement for the placement of 27,680,017 ordinary shares, representing approximately 5% of the Company's expanded issued capital, to prominent Indonesian businessman, Surya Paloh.

Surya Paloh is a prominent political and business figure in Indonesia. He is the founder and owner of the first Indonesian news television network, Metro TV, and the Media Group, which publishes the Media Indonesia and Lampung Post newspapers. The Media Group is highly regarded for informing and focussing Indonesian public opinion on issues of the day.

Mr Paloh has extensive interests in the hotel and property sectors and in oil and gas operations. He also owns Indonesia's largest catering company, which services major oil rigs and mining operations across the country.

Mr Paloh and the Media Group are at the forefront of socially responsible and community-oriented business practices, having led major disaster response and fundraising initiatives following the 2004 Aceh tsunami and subsequent natural disasters in Indonesia.

Mr Paloh and his associates will be working closely with the Company and assisting engagement with key Indonesian stakeholders, particularly in both central and local government. As a substantial shareholder in Intrepid, whose interests are now fully aligned with existing Intrepid shareholders, Mr Paloh is well-placed to assist in promoting the Company's profile and business interests within Indonesia.

Intrepid CEO, Brad Gordon, said: "We are delighted to be associated with Mr Paloh, whose extensive networks and vast experience in navigating the waters of Indonesian business will greatly benefit the Company both in safeguarding its existing interests in Indonesia and in expanding within the local resources sector. This association extends the Company's assimilation into Indonesia and follows the appointment of Adrianto Machribie to the board of Intrepid in November 2011 and the recent opening of a Representative Office in Jakarta.

We look forward to a close relationship with Mr Paloh, whose interests are now well-aligned with those of our existing shareholders through a share acquisition scheme which recognises the potential contribution of Mr Paloh to assist in rebuilding shareholder value in the Company."

The Transaction

Intrepid and Surya Paloh ("Subscriber") have entered into a Subscription Agreement, under the terms of which the Company undertakes to issue 27,680,017 ordinary shares to the Subscriber for a nominal price, subject to provisional TSX approval being obtained.

Additionally, the Company will issue to the Subscriber, for no consideration, 25,604,016 Performance Rights to ordinary shares, which vest upon the daily volume-weighted average price of the Company's shares equalling or exceeding A$1.00 for one full calendar month on the ASX and C$1.00 for one full calendar month on the TSX, and which lapse after one year should vesting not have occurred. This target would represent value uplift of over four times based on current market prices.

The Company has further agreed to issue an additional 25,604,016 Performance Rights to ordinary shares, subject to requisite TSX approvals being obtained. The Performance Rights vest upon the daily volume-weighted average price of the Company's shares equalling or exceeding A$1.20 for one full calendar month on the ASX and C$1.20 for one full calendar month on the TSX, and lapse after one year should vesting not have occurred. This target would represent value uplift of over five times based on current market prices.

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.

Directors
Colin G. Jackson (Chairman)
Ian McMaster (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)
Nyla Bacon (Company Secretary)

Stock Exchange Listing
ASX and TSX symbol: IAU

Substantial Shareholders
Taurus Funds Management 9.0%
Acorn Capital 7.9%
Van Eck Associates 6.5%

Issued Capital
525,920,331 shares
5,606,730 unlisted options
4,462,511 unlisted share 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: 1 800 805 505
           +61 3 9415 4000

Contacts:

Intrepid Mines Limited

Brad Gordon

Chief Executive Officer

Brisbane, Australia: +61 7 3007 8011

Mobile: +61 400 036 636
bgordon@intrepidmines.com


Intrepid Mines Limited

Greg Taylor

Toronto, Canada: +905 337 7673

Mobile: +416 605 5120
gtaylor@intrepidmines.com
www.intrepidmines.com