Intrepid Mines Limited: Drilling Intercepts 533 g/t Silver-Equivalent Over 12.1 Metres at Taviche J-V, Mexico

BISBANE, AUSTRALIA, Aug 17 (MARKET WIRE) --
Intrepid Mines Limited ("Intrepid") (TSX: IAU)(ASX: IAU) is pleased to
report the assay results from the first three drill holes of a
1,500-metre drill program at Taviche JV Project in Oaxaca, Mexico. All
three holes intercepted consistent mineralization, with HBET-03
encountering 34.2 metres (m) averaging 219.5 grams per tonne (g/t) silver
equivalent at a depth of only 85 m, including 12.1 metres averaging 533.4
g/t silver equivalent, and 1.3 m grading 2,466.8 g/t silver equivalent
(see table below).

Intrepid, which is project manager, is earning a 35% share in the Taviche
Project, as is Aura Silver (TSX VENTURE: AUU) Pan American Silver (TSX:
PAA) holds the remaining 30% share.

The first phase of drilling is focused on the Higo Blanco silicified
limestone-volcanic complex. This is delineated by a two-kilometre wide
geologic structure containing a gold (Au)-silver (Ag)-antimony (Sb)
anomaly extending approximately seven kilometres along strike. Much of
the silver mineralization occurs in a brecciated silica replacement of
limestone, but a more gold-rich part of the system is associated with
extensive quartz veining in the overlying volcanic strata.

Drill holes HBET-01 and HBET-02 were designed to determine the geologic
structure of Higo Blanco with special attention given to the Mezcal vein.
This structure contains Au-enriched veins at surface, and seems to be
confined to the section where the structure intersects the volcanic
rocks. The vein system was confirmed to at least 100 metres in depth, and
in addition, HBET-02 encountered a silicified limestone breccia unit
containing much higher precious metal content at 62 m with 11.6 m
averaging a silver equivalent 166.3 g/t including 1.2 m grading 754.4 g/t
silver equivalent. HBET-03 was designed to intersect the silicified unit
to the east of the Mezcal structure.

Noted Brad Gordon, Chief Executive Officer of Intrepid Mines, "This
initial drilling provides exciting evidence that, in addition to our
producing Paulsen's gold mine in Australia, and our separate near surface
gold-silver oxide cap over a copper-gold porphyry at the Tujuh Bukit
Project in Indonesia, we may be adding an additional significant asset to
Intrepid's portfolio. Still, we are at an early stage and further
drilling is under way."

In addition, during February, 2008, the Taviche JV obtained the social
licence to operate in the area and is pleased to announce that on Aug. 9,
2009, the community renewed its support for the company's project. The
recent signing of this agreement allows the Taviche JV to enjoy access to
the community lands which encompass the entire Higo Blanco project. This
agreement includes a significant corporate social responsibility
component whereby the Taviche JV has supported and will continue
supporting projects selected by the community including road maintenance,
design and engineering of water projects, support for local schools and
clinic, reforestation and small business development. All projects are
designed to promote the community's sustainable development, increasing
their productivity, improving the environment and strengthening its
social fibre.

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Hole SAMPLE FROM TO LENGTH Au Ag AgEq
No. (m) (m) (m) (g/t) (g/t) (g/t)
HBET-01
Au-zone 2522-2542 0 29.55 29.55 0.50 15.39 45.5
Including 2534-2543 19.45 31.1 11.65 0.7 20.13 62.13
2542 28.05 29.55 1.50 1.89 108 221.4

HBET-02
Ag Zone 2581-2607 14.9 73.05 58.15 0.07 65.05 69.25
Including 2593-2607 59.5 73.05 13.55 0.13 137.5 145.3
2596-2607 61.5 73.05 11.55 0.15 157.3 166.3
2597 61.5 62.15 0.65 0.14 667 675.4
2607 71.85 73.05 1.20 0.19 743 754.4
Au zone 2642-2668 107.65 158.75 51.1 0.54 12.2 44.7
Including 2642-2649 107.65 117.45 9.8 0.87 12.39 64.3

HBET-03
Ag Zone 2679-2711 85 119.2 34.2 0.13 211.7 219.5
Including 2701-2711 107.1 119.2 12.10 0.24 519 533.4
2701-2705 107.1 111.8 4.7 0.15 1077 1086
2683 88.05 89.5 1.45 0.27 1100 1116.2
2701 107.1 107.9 0.80 0.12 646 653.2
2703 108.9 110.2 1.30 0.28 2450 2466.8
Au zone 2715-2727 135.00 149.1 14.1 0.56 3.44 37.18
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(i) Intervals shown are downhole intervals. True widths are not yet known
in the initial phase of drilling.

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.

QUALIFIED PERSON

The information in this announcement that relates to exploration results
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.

Statements relating to silver and 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. The drill programme at Taviche is
insufficiently advanced to define a resource estimate and it is uncertain
if further drilling will result in the determination of a resource
statement at the project.

SAMPLE ANALYSIS

Core samples collected by the Taviche JV have been analyzed by SGS Labs
in Durango, Mexico, for multi-element geochemical analyses by ICP-OES (40
element), gold by fire assay and AAS finish (greater than 0.005 g/t) and
silver by AAS (greater than 0.3 g/t). Silver values in excess of 300 g/t
are rerun by fire assay. Every tenth sample, a blank is included while
every 25th sample is a known standard.

SILVER EQUIVALENTS

Silver equivalent for the purposes of this drilling program is defined as
silver grade plus 60 times gold grade. Metallurgical recoveries and net
smelter returns are assumed to be 100 per cent for the silver equivalent
value. Base metal values are not included in the silver equivalent.

Contacts:
Intrepid Mines Limited - Brisbane, Australia
Brad Gordon
Chief Executive Officer
+61 7 3007 8011
bgordon@intrepidmines.com

Intrepid Mines Limited - Toronto, Canada
Greg Taylor
905-337-7673
Mobile: 416-605-5120
gtaylor@intrepidmines.com

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