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1 Report to shareholders 16 July 2012 Intrepid Mines Limited ASX and TSX : IAU Inquiries regarding this report and Company business may be directed to: Brad Gordon Managing Director Chief Executive Officer, Brisbane, Australia (office) (mobile) bgordon@intrepidmines.com or Greg Taylor Investor Relations Toronto, Canada (office) (mobile) gtaylor@intrepidmines.com Intrepid Mines Limited abn Level Upper Edward Street Spring Hill Qld 4004 T: W: Tujuh Bukit, Indonesia Project Update Near-surface gold-silver oxide resource; ydevelopment potential rapidly advancing; ythe in-fill and definition drilling programme to convert Inferred Resource to Indicated Resource has been completed; yresource update scheduled late August 2012; yengineering study due March 2013 quarter. Tumpangpitu copper-gold porphyry yon-going deep drilling continues to return high grade copper and gold intersections, including: 227m at 1.24% copper and 1.54g/t gold; 222m at 0.37% copper and 0.33g/t gold; 480m at 0.50% copper and 0.35g/t gold; 404m at 0.68% copper and 0.64g/t gold; and, 505m at 0.37% copper and 0.24g/t gold. ythird porphyry resource update scheduled September 2012; yinitial Preliminary Economic Assessment scheduled March 2013 quarter. 16 July 2012: Intrepid Mines Limited (ASX,TSX: IAU) ( Intrepid or the Company ) is pleased to provide an update on recent developments and plans at its copper-gold-silver project, Tujuh Bukit, (80% economic interest) in Indonesia (the Project ). Brad Gordon, Intrepid s CEO, said, As we have promised our loyal shareholders all along, we remain extremely active in advancing this world class project and we have been rewarded by very positive results on several fronts. These latest drill results on the main Tumpangpitu porphyry have enabled us to define a new high grade zone on the eastern edges of the target area. However, the depth potential of this resource is still to be thoroughly tested. Meanwhile, we are advancing the smaller, but not insignificant, oxide project as quickly as we can, with a view based on peer company valuations, that this project alone justifies our current share market capitalisation.

2 Page 2 Introduction: Tujuh Bukit is located on the island of Java in Indonesia, and covers 11,621 hectares under two IUPs, which is the form of exploration/mining title introduced under the 2009 Indonesian Mining Law. Intrepid has acquired an 80% economic interest in the Project through a joint venture agreement with Indonesian company PT Indo Multi Niaga ( PT IMN ). Tujuh Bukit comprises several mineral prospects, of which the Tumpangpitu Prospect, in the south east portion of the Project area, continues to be the major focus for exploration activity. There are five zones of known near surface gold-silver oxide mineralisation and deeper sulphide copper-gold mineralisation within Tumpangpitu. Tumpangpitu is one of five copper-gold porphyry resource areas identified by the Company which make up the multiporphyry system at Tujuh Bukit. The main Tumpangpitu porphyry resource area currently measures a surface area of approximately 3.4 kilometres ( km ) by 2.8km and contains an Inferred resource (prepared by independent consultants H&S Consulting Pty Ltd. in accordance with the JORC Code and NI ), estimated at 1.7 billion tonnes at 0.41% copper ( Cu ) and 0.46g/t gold ( Au ), at a cut-off grade of 0.2% Cu for 15 billion pounds of contained copper and 25 million ounces of contained gold. Project expenditure, solely funded by the Company to date in compliance with the joint venture agreement, is US$95 million. Development plan Gold-silver Oxide Project: Intrepid continues to advance its gold-silver Oxide Project area with plans to advance it towards production as an open pit, heap leach mine, as soon as possible, subject primarily to permitting. In-fill and definition drilling has recently been completed on the oxide resource area, which consists of three mineralised zones generally located above the Tumpangpitu porphyry. This near surface resource has been estimated at 130Mt at 0.55g/t Au and 18g/t silver ( Ag ) for 2.4 million ounces of contained gold and 80 million ounces of contained silver, at a cut-off grade of 0.2g/t Au (see Intrepid news release of 14 December, 2010). An updated Mineral Resource Estimate on the Oxide Project is scheduled to be completed in late August This is to be followed by an Engineering Study, which is being prepared by AMEC and due during the March 2013 quarter. A Preliminary Economic Assessment (PEA) was released in April 2011, prepared by Kappes Cassiday and Associates (KCA), of Reno, Nevada, based upon column leach and other metallurgical tests performed at their laboratory. That report estimated annual gold equivalent production from an open pit oxide mine of 143,000 ounces at a cash cost (net of silver credits) of US$376 per ounce at a capital cost to first production of US$204 million. KCA are also involved in assisting AMEC with additional metallurgical testing and engineering activities during this current phase of the project s development. Project drill activity There are currently eight drill rigs operating at Tujuh Bukit, including one which has just concluded in-fill drilling on the oxide resource, as well as five undertaking extension drilling on the main Tumpangpitu porphyry resource, and two more at Salakan. It is expected that the total number of drills will be reduced to six, when the fleet will be supplemented with the deep drill, which has a capability of drilling up to 2,000 metres and will be the largest, helicopter-moveable, drill rig in the world. Latest Tumpangpitu drilling results: Assay results from deep drill holes GTD , GTD , GTD , GTD , GTD and GTD (see tables and map below), in the on-going drilling program at the Tumpangpitu copper-gold porphyry within the Project continue to return high grade copper and gold intersections. This drilling has also enabled the Company to begin to define (a second / another ) high grade coppergold zone on the eastern side of the main resource area. GTD is located on section 11,620N (see Fig. 9), approximately 160m north of GTD , (see drill collar map) which contains weak mineralisation and further helps define the eastern extents of mineralisation. There is no drilling grid north of GTD GTD is located on section 10,660N (see Fig. 4), approximately 160m due south of hole GTD (689m at 1% Cu and 0.85g/t Au; see Intrepid announcement of 27 February 2012), in-filling between holes GTD and GTD (563.7m at 0.2% Cu and 0.33g/t Au and 598.9m at 0.7% Cu and 0.52g/t Au respectively; see Intrepid announcement of 16 August 2011). The hole failed in bad ground and ended in mineralisation. GTD provides further definition of a high grade copper and gold zone on the eastern side of the 1.7 billion tonne ( Bt ) resources announced in December 2011 (1.7Bt at 0.41% Cu and 0.46g/t Au; see Intrepid announcement of 7 December 2011). Report to Shareholders

3 GTD is located on section 10,500N (see Fig. 3), approximately 160m south of GTD and 80m east of GTD (429m at 0.53% Cu and 0.38g/t Au; see Intrepid announcement of 13 January 2011). GTD provides further definition of the high grade eastern portion of the deposit in this area. GTD is located on section 10,660N (see Fig. 4) and 240m west of GTD The hole provides further geological information and helps constrain mineralisation within the porphyry. GTD is located on section 11,220N (see Fig. 7) and provides valuable infill information on the geology and continuity of mineralisation in the central portion of the deposit. GTD is located on section 11,620N (see Fig. 9), 80m east of GTD (230m at 0.35% Cu and 0.47g/t Au; see Intrepid announcement of 16 August 2011). The hole provides valuable in-fill information on the geology and continuity of mineralisation in the north-eastern portion of the deposit. Development Plan Porphyry projects These latest drilling results from Tumpangpitu will be incorporated into a third updated porphyry Mineral Resource Estimate, scheduled for release in September At the same time, the Company s technical team is continuing to prepare a Preliminary Economic Assessment ( PEA ) of the Tumpangpitu porphyry resource, which is due during the March 2013 quarter. AMEC has been engaged as the primary engineering consultant and will be responsible for the report preparation. Follow-up drilling is expected to commence at porphyry targets around Katak and Candrian once initial drilling is completed at Salakan. (See Intrepid releases of 22 March 2010 and 30 May 2011) Other Study Activities: Additional activities supporting the Oxide Project Engineering Study and the Porphyry Project Preliminary Economic Assessment include project area environmental and socio-economic baseline surveys, potential port location assessments, field geotechnical assessments for facility locations and more detailed metallurgical testwork programs. Assisting AMEC in the preparation of the Oxide Project Engineering Study is Australian Mine Design and Development Pty Ltd (AMDAD) and Golder Associates, who are responsible for the Oxide Project mine engineering and geotechnical assessments respectively. H&S Consulting, who have had an extensive association with the project, will continue to provide independent resource assessment services. PT Hatfield Indonesia have been engaged to progress the project s environmental, social and health impact assessment (ESHIA) activities which will culminate in the preparation and submission of the project AMDAL, the Indonesian equivalent of an environment impact statement. The timing of the AMDAL submission will be closely linked with the forestry rezoning and project permitting activities. Meanwhile, deep drilling at Tumpangpitu, which has penetrated approximately 1,000m from surface, has not yet delineated the limit of mineralisation at depth. A deep drill capable of penetrating approximately 2,000m is currently being built and is expected to start drilling on the Project in October On-going drilling at the Salakan prospect in the northern portion of Tujuh Bukit has intercepted copper and gold mineralisation but has not yet delivered the significant results that had been anticipated. This round of drilling, utilizing two of the eight drills currently on site, is expected to conclude in August 2012, after which time the Company will provide a further update. Report to Shareholders Page 3

4 Figure 1: Project location map. Figure 2: Drillhole collars location map. Page 4 Report to Shareholders

5 Hole ID From (m) To (m) Interval (m) Cu (%) Au (g/t) Ag (g/t) Mo (ppm) As (ppm) GTD EOH m , , , * 1, GTD EOH 673.5m , including GTD EOH m , GTD EOH m , , , including 606 1, GTD EOH m , including * GTD EOH m , * 1, * Intercept includes internal waste (>2 either <0.2% Cu or <0.2 g/t Au) Hole ID Northing Easting RL Azimuth Dip GTD GTD GTD GTD GTD GTD All surveys are with DGPS.; Grid WGS84 Zone 50 Report to Shareholders Page 5

6 Figure 3. Figure 4. Page 6 Report to Shareholders

7 Figure 5. Figure 6. Report to Shareholders Page 7

8 Figure 7. Figure 8. Page 8 Report to Shareholders

9 Figure 9. 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 forwardlooking 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. Report to Shareholders Page 9

10 Competent Person and Qualified Person The information in this report that relates to exploration results at Tujuh Bukit is based on information compiled by or under the supervision of Gary Snow, who is a fellow of The Australasian Institute of Mining and Metallurgy as well as the Australian Institute of Geoscientists. Gary Snow is employed by 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 (standards of Disclosure for Mineral Projects). Gary Snow 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 is based on information compiled by or under the supervision of Robert Spiers, who is a member of the Australian Institute of Geoscientists. Mr Spiers 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. Mr Robert Spiers is an independent consultant to Intrepid Mines Limited and a full time employee of H&S Consultants Pty Ltd (formerly Hellman & Schofield Pty Ltd). He consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 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. PT IMN received an extension of the Forestry Exploration Permit dated 7 July 2014, which allows for exploration activities within forestry areas. Sample Analysis Intrepid exercises a strict chain of sample custody in its drilling program at Tujuh Bukit. Joint Venture personnel remove core from the drill rig and deliver it to a project geologist who logs the core and marks the core into two metre sample intervals. Intrepid and Joint Venture personnel supervise the immediate splitting, sawing and bagging of samples, and packaging of groups of samples for dispatch to the laboratory. The remainder of the split core remains on site. Samples are securely packaged, batched, and then transported under supervision to Intertek s laboratory facility in Jakarta. At the laboratory, the samples are prepared by crushing and pulverizing and a 30 gram charge is assayed for gold by conventional fire assay and/or atomic absorption methods. Multi-element ICP analysis is carried out using a multi-acid digestion process. All samples that contain silver and/or copper, lead, and zinc values that exceed the upper detection limits for ICP are re-analysed by conventional atomic absorption methods to determine the absolute values of these metals. Directors Colin G. Jackson (Chairman) Brad A. Gordon (Managing Director) Ian McMaster (Deputy Chairman) 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 8.0% Van Eck Associates 6.9% Issued Capital 525,885,308 shares 4,710,972 unlisted options 4,014,632 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: Page 10 Report to Shareholders