Mumbwa Project, Zambia Exploration Update

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Mumbwa Project, Zambia – Exploration Update

Intrepid Mines Limited (ASX: IAU) (“Intrepid” or “Company”) is pleased to advise that assay results for the 2016 drilling program have been received. The drilling program was successfully completed on 6 August 2016 with a total of 2,251 metres drilled across 12 holes at Target H. The drilling was designed to further test the ground surrounding previous positive results at Target H (refer ASX announcements dated 16 November 2015 and 8 February 2016). Significant recent intersections include:

HDD_014, 30 metres at 2.13% copper from 15 metres




HDD_015, 8.75 metres at 1.63% copper from 2.25 metres



Due to the highly oxidised and clay rich nature of the mineralisation identified in the near surface material at Target H, samples have also been submitted for metallurgical testing to determine whether the copper can be recovered successfully and economically. The results of the metallurgical testing are expected to be reported early in the December 2016 quarter.

ASX Announcement

29 July 2016

ASX Announcement

30 September 2016

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Table 1. 2016 exploration program drill holes

BHID East North RL Azimuth Dip Depth

HDD_006 485776.8 8369253 1301 310 -60 414

HDD_007 485734 8369379 1302 310 -60 423

HDD_008 485485.1 8369277 1367 310 -85 330

HDD_009 485686 8369194 1310 310 -60 102

HDD_010 485735 8369481 1310 310 -60 143

HDD_011 485663 8369250 1306 310 -60 204

HDD_012 485706 8369334 1304 290 -60 126

HDD_013 485732 8369424 1304 270 -60 102

HDD_014 485737 8369531 1305 310 -60 108

HDD_015 485733 8369580 1306 310 -60 99

HDD_016 485800 8369557 1300 310 -60 102

HDD_017 485758 8369407 1301 310 -60 98

Total drilled 2,251

The Company has received assay results for the following drill holes from the 2016 drilling program at Mumbwa:

HDD_006 – Assay Results

HDD_006 was drilled on an azimuth of 310, inclined 60 degrees to a depth of 414 metres. This hole was drilled as a step-out from HDD_005.

A series of 238 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 2. Summary of assay results for drill hole HDD_006 (azi 310, dip 60° EOH 414 m)

From To Interval Cu % Au g/t

362 366 4 0.28 0.011

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HDD_007 was drilled on an azimuth of 310, inclined 60 degrees to a depth of 423 metres. This hole was drilled approximately 100 metres along strike from HDD_005 targeting the shallow wad zone as well as deeper hematite breccia hosted mineralisation. The best intercept includes 23 metres at 1.87% copper from 23 metres within a broader intercept of 34 metres at 1.38% copper from 19 metres.





9 14.75 5.75 0.39 0.012

19 53 34 1.38 0.009

Including

23 46 23 1.87 0.010

396 400 4 0.39 0.077


HDD_008 was drilled on an azimuth of 310, inclined 85 degrees to a depth of 330 metres. This hole was drilled from the top of the Target H hill targeting the near surface extension of the hematite breccia zone.





28 36 8 0.35 0.067

44 78 34 0.30 0.011

84 86 2 0.29 0.001

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HDD_009 was drilled on an azimuth of 310, inclined 60 degrees to a depth of 102 metres. This hole was drilled approximately 100 metres due south of HDD_005 targeting the shallow wad zone.

A series of 57 samples, including quality control samples, were submitted to the laboratory for analysis. No intersections above the cut-off criteria are reported.


HDD_010 was drilled on an azimuth of 310, inclined 60 degrees to a depth of 143 metres. This hole was drilled approximately 100 metres along strike from HDD_007 targeting the shallow wad zone. The best intercept includes 8 metres at 0.74% copper from 26 metres.





26 52 26 0.47 0.032

Including

26 34 8 0.74 0.014

55 58 3 0.39 0.059


HDD_011 was drilled on an azimuth of 310, inclined 60 degrees to a depth of 204 metres. This hole was drilled approximately 50 metres along strike to the southwest of HDD_005 targeting the shallow wad zone. The best intercept includes 19 metres at 0.76% copper from 12 metres.



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12 31 19 0.76 0.004

37 48 11 0.47 0.062

51 63 12 0.88 0.209

Including

51 54 3 1.90 0.590

66 68 2 0.47 0.086

71 74 3 0.50 0.115

78 80 2 0.42 0.281

139 141 2 0.34 0.039

155 157 2 0.42 0.156

160 162 2 0.29 0.011


HDD_012 was drilled on an azimuth of 290, inclined 60 degrees to a depth of 126 metres. This hole was drilled approximately 50 metres along strike from HDD_010 targeting the shallow wad zone.



HDD_013 was drilled on an azimuth of 270, inclined 60 degrees to a depth of 102 metres. This hole was drilled approximately 50 metres along strike from HDD_012 targeting the shallow wad zone as well as deeper hematite breccia hosted mineralisation.



HDD_014 was drilled on an azimuth of 310, inclined 60 degrees to a depth of 108 metres. This hole was drilled at approximately 50 metres spacing between HDD_005 and HDD_007 targeting the shallow wad zone. The best intercept includes 30 metres at 2.13% copper from 15 metres within a broader intercept of 54 metres at 1.39% copper from 8 metres.



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8 62 54 1.39 0.011

15 45 30 2.13 0.005


HDD_015 was drilled on an azimuth of 310, inclined 60 degrees to a depth of 99 metres. This hole was drilled as a step-out approximately 50 metres to the east of HDD_012 targeting the shallow wad zone. The best intercept includes 8.75 metres at 1.63% copper from 2.25 metres.





2.25 11 8.75 1.63 0.011

Including

4 9 5 2.35 0.007

32 45 13 0.50 0.069


HDD_016 was drilled on an azimuth of 310, inclined 60 degrees to a depth of 102 metres. This hole was drilled approximately 50 metres along strike from HDD_015 targeting the shallow wad zone as well as deeper hematite breccia hosted mineralisation. The best intercept includes 14 metres at 1.13% copper from 5 metres.



Table 9. Summary of assay results for drill hole HDD_016 (azi 310, dip 60° EOH 102.1 m)


5 19 14 1.13 0.005

29 45 16 0.42 0.016

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HDD_017 was drilled on an azimuth of 310, inclined 60 degrees to a depth of 98 metres. This hole was drilled approximately 50 metres along strike and a slight easterly step-out from HDD_007 targeting the shallow wad zone. The best intercept includes 9 metres at 0.70% copper from 14 metres.





14 23 9 0.70 0.007

62 75 13 0.63 0.005

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Figure 1. Location of Target H

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Figure 2. Location of 2016 drilling at Target H on Digital Elevation Model (DEM)

Enquiries regarding this announcement may be directed to: Tony De Santis Acting Chief Executive Officer +61 2 9357 9000 [email protected]

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Notes:

Sampling and assaying of the drill core collected follows a standard site protocol with samples being submitted to the Australian Laboratory Group (ALS) preparation facility in Ndola, Zambia before being shipped to ALS in Vancouver, Canada for analysis.

A total of 34 elements were analysed. Multi-element analyses were performed using a multi acid digest (Hydrofluoric, Nitric, Perchloric, Hydrochloric) with Inductively Coupled Plasma – Atomic Emission Spectroscopy (ICP-AES) finish. Gold analyses were performed using 30g lead collection fire assay with an ICP-AES finish. All analyses were completed by the fully ISO 17025 accredited (under CAN-P-1579) ALS Laboratory in Vancouver, Canada.

A Quality Assurance/Quality Control (“QA/QC”) program includes chain of custody protocol, a systematic submittal of 20% QA/QC samples including field duplicates, field blanks and certified reference samples into the flow of samples submitted to the laboratory and submission of samples for umpire analysis by a second accredited laboratory.

A cut-off grade of 0.25% copper, a maximum internal dilution of 2 metres (drilled thickness) and a drilled thickness of >2 metres are used as a guideline when delineating the drilled thickness intervals of mineralisation, with length-weighted average grades reported. True-widths are not quoted. No upper limit has been applied to copper grades in these exploration results.

ATTRIBUTION

The information in this report which relates to exploration results at the Mumbwa Project in Zambia is based on information compiled by Mr Michael J Robertson, MSc, Pr.Sci.Nat., MSAIMM who is a member of the South African Institute of Mining and Metallurgy, which is a Recognised Professional Organisation (‘RPO’). Mr Robertson has more than 22 years’ experience in mineral exploration and is a full-time employee of The MSA Group. Mr Robertson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined in the 2012 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 Robertson has consented to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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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.

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building long - term value

Appendix1: JORC Code, 2012 Edition

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria JORC Code explanation Commentary

Sampling techniques Nature and quality of sampling (eg, cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Aspects of the determination of mineralisation that are Material to the Public Report.

In cases where ‘industry standard’ work has been done this would be relatively simple (eg, ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual

Assay results from Diamond Drilling at Target H during the 2016 field season, are presented here.

Core was logged for lithology, regolith state, alteration, mineralisation, structure and density before being half split (HQ) or quarter split (PQ). Sampling was done following IAU protocols and QAQC procedures as per industry best practice.

Sampled on nominal 1m intervals varied in order to respect geological boundaries in mineralised zone, 2m outside mineralised zone.

Sample is dried, crushed (~2mm), milled and 200g split taken for four acid digest followed by ICP-AES, and a 30g lead collection fire assay with ICP-AES finish for Au.

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commodities or mineralisation types (eg, submarine nodules) may warrant disclosure of detailed information.

Drilling techniques Drill type (eg, core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

Standard tube diamond core was HQ predominant with PQ pre-collars. Core was oriented using a Reflex ACT II.

Drill sample recovery Method of recording and assessing core and chip sample recoveries and results assessed.

Measures taken to maximise sample recovery and ensure representative nature of the samples.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Core recoveries are logged. Core recoveries for the 2016 drilling program currently average 93.58%.

Core is reconstructed on angle iron for measurement against driller’s blocks, marking of orientation lines and recording of driller’s breaks.

Diamond core has high recoveries.

Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

All core has been logged for geological (lithology, mineralisation, alteration) and structural (alpha/beta angles, RQD, defect count) information. All data are stored in a database.

All core was photographed.

All core was logged.

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Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

The total length and percentage of the relevant intersections logged.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

Whether sample sizes are appropriate to the grain size of the material being sampled.

All core is cut with purpose built core saws onsite, with half core (HQ and NQ size) collected for sampling, ensuring the same side of the core is consistently sampled. In the case of PQ size core, quarter core was cut and sampled. Field duplicates were submitted to monitor QC of sample preparation and laboratory assay precision.

Samples were submitted to the ALS Laboratory preparation facility in Ndola, Zambia and crushed to 70%<2mm with a 250g subsample split (rotary and riffler) for

pulverising to 85% <75µm. Regular

sizing checks were undertaken and reported.

Sample sizes are appropriate to the grain size of the material being sampled.

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

For geophysical tools, spectrometres, handheld XRF

Samples were submitted for a four acid digest (sulphuric, nitric, perchloric and hydrofluoric) and ICP-AES finish for multi-elements and 30g fire assay and ICP-AES finish for gold.

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instruments, etc, the parametres used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie, lack of bias) and precision have been established.

QA/QC procedures include; a chain of custody protocol, the systematic submittal of 20% QA/QC samples including field duplicates, field blanks and certified reference samples into the flow of samples submitted to the laboratory. Re-assaying of the mineralised zones and submission of samples for umpire analysis by a second accredited laboratory will be carried out prior to inclusion in any updated Mineral Resource Estimate.

Verification of sampling and assaying The verification of significant intersections by either independent or alternative company personnel.

The use of twinned holes.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

Discuss any adjustment to assay data.

Significant intersections are reported by The MSA Group which is an independent contractor providing geological services to the company.

HDD_001 is a partial twin of HRC_002 which failed at 94 metres, results for HRC_002 were announced on the 9th of April 2015, no holes were twinned during the 2016 field season

Data entry and verification is undertaken by MSA following an established protocol, all data is stored in a digital database and regularly backed-up.

No statistical adjustments to data have been applied.

Location of data points Accuracy and quality of surveys used to locate drill holes (collar and

Hole collars are surveyed by differential GPS at the end of each

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down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

Specification of the grid system used.

Quality and adequacy of topographic control.

phase. Down hole surveys were collected every 6m (inclined holes) and 12m (vertical holes) using Reflex and Gyro instruments during different phases of the project. Appropriate QC procedures were applied to verify down hole surveys.

The grid system for Kitumba is UTM WGS84, Zone 35 South.

An airborne laser elevation survey was flown as part of the FalconTM

dataset acquired in 2006.

Data spacing and distribution Data spacing for reporting of Exploration Results.

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

Whether sample compositing has been applied.

No resources reported at Target H, however hole spacing is nominally 50 metres along strike, width across strike is unknown

Not reported here.

Results not composited.

Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this

Target H holes has been drilled predominantly on an azimuth of 310 perpendicular to the mapped (IP and surface structural mapping) NE striking structural trend.

No orientation based bias had been identified in the data to this point

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should be assessed and reported if material.

Sample security The measures taken to ensure sample security.

An unbroken sample chain of custody was implemented, as follows:

Plastic sample bags sealed and placed inside poly-weave bags sealed with cable ties

Sample shipments examined on arrival at the laboratory and the sample dispatch form signed and returned with a confirmation of the security seals and the presence of all samples comprising each batch.

Audits or reviews The results of any audits or reviews of sampling techniques and data.

No laboratory audits were carried out during the 2016 field season.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)


Mineral tenement and land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

The security of the tenure held at the time of reporting along with any

All holes presented are located entirely within the 100% owned Kitumba Mining licence 19820-HQ-LML.

The mining licence was granted on the 21st of November, 2014 for a period of 25 years.

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known impediments to obtaining a licence to operate in the area.

Exploration done by other parties Acknowledgment and appraisal of exploration by other parties.

The Mumbwa Project operated under a joint venture between BHP Billiton and Blackthorn Resources from 2008-2011. Blackthorn Resources was acquired by Intrepid Mines in 2014

Geology Deposit type, geological setting and style of mineralisation.

The Mumbwa project area is recognised as having IOCG type characteristics; the Kitumba deposit is located 7.5 km to the northwest of Target H. Kitumba is hosted in a hematite breccia complex within intrusives of the Hook Granitoid suite (Early Cambrian to Neoproterozoic). Mineralisation at Kitumba is supergene in nature (chalcocite, malachite, chalcosiderite, native copper) to 400+m, hypogene mineralisation consists primarily of chalcopyrite and pyrite. Target H is hosted in brecciated metasediments and a highly developed supergene zone with copper wad and malachite mineralisation.

Drill hole Information A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

See Tables in text of report. For

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easting and northing of the drill hole collar

elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar

dip and azimuth of the hole

down hole length and interception depth

hole length.

If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

Data aggregation methods In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg, cutting of high grades) and cut-off grades are usually Material and should be stated.

Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

Length-weighted average grades reported. No upper limit has been applied to copper grades in these exploration results.

A cut-off grade of 0.25% Cu, a maximum internal dilution of 2m (drilled width) and a drilled thickness of >2m are used as a guideline when delineating the drilled thickness intervals of mineralisation, unless otherwise stated.

All metal grades reported are single element.

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The assumptions used for any reporting of metal equivalent values should be clearly stated.

Relationship between mineralisation widths and intercept lengths

These relationships are particularly important in the reporting of Exploration Results.

If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg, ‘down hole length, true width not known’).

True-widths are not quoted, as the mineralised zones are associated with sub-vertical zones of brecciation.

Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

Plan maps (Figures 1 and 2) are contained within this announcement.

Balanced reporting Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

All results are reported.

Other substantive exploration data Other exploration data, if meaningful and material, should be reported including (but not limited to):

There is no outstanding exploration data considered material that has

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geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

not been previously reported or is not contained within this report.

Further work The nature and scale of planned further work (eg, tests for lateral extensions or depth extensions or large-scale step-out drilling).

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

Future drilling on the Mumbwa project will focus on testing the lateral extent of Target H and other satellite targets surrounding Kitumba.

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Documents

Mumbwa Project, Zambia Exploration Update