1 TITLE PAGE

TECHNICAL REPORT MINERAL RESOURCE ESTIMATES FOR THE PAULSENS GOLD MINE

Pilbara, Western Australia

Prepared by:

Jonathon Abbott, BASc Appl. Geol, MAusIMM Brook Ekers, BASc Appl. Geol, MAIG

FOR INTREPID MINES LTD

AUSTRALIA

JANUARY , 2010

INTREPID MINES PTY LTD TEL : +61 7 3007 8000 LEVEL 1, 490 UPPER EDWARD STREET , SPRING HILL FAX : +61 7 3007 8080 QLD 4004 AUSTRALIA EMAIL : [email protected]

INTREPID MINES LIMITED , JANUARY 2010 MINERAL RESOURCE ESTIMATES , AUSTRALIA

2 TABLE OF CONTENTS

1 TITLE PAGE ...... 1 2 TABLE OF CONTENTS...... 2 3 SUMMARY ...... 6 4 INTRODUCTION...... 7 5 RELIANCE ON OTHER EXPERTS...... 7 6 PROPERTY DESCRIPTION AND LOCATION...... 7 7 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY...... 8 8 HISTORY ...... 9 8.1 PROJECT HISTORY AND OWNERSHIP ...... 9 8.2 PRODUCTION ...... 9 8.3 VOYAGER EXPLORATION ...... 10 8.4 PREVIOUS RESOURCE ESTIMATES ...... 10 9 GEOLOGICAL SETTING ...... 11 9.1 REGIONAL GEOLOGY ...... 11 9.2 LOCAL GEOLOGY ...... 11 9.3 PROPERTY GEOLOGY ...... 12 10 DEPOSIT TYPES ...... 12 11 MINERALIZATION...... 12 11.1 PAULSENS MINERALIZATION ...... 12 11.2 VOYAGER RESOURCE DOMAINS ...... 16 12 EXPLORATION...... 19 13 DRILLING ...... 19 14 SAMPLING METHOD AND APPROACH...... 22 14.1 INTRODUCTION ...... 22 14.2 SAMPLING METHODS ...... 22 14.3 SAMPLING INCLUDED IN CURRENT ESTIMATES ...... 23 14.3.1 Sampling types and phases ...... 23 14.3.2 Sample spacing and coverage ...... 23 14.4 NUMBER OF SAMPLES AND SAMPLE LENGTHS ...... 25 14.5 MINERALIZED DOMAIN INTERSECTIONS ...... 25 15 SAMPLING PREPARATION, ANALYSES AND SECURITY...... 34 15.1 INTRODUCTION AND SUMMARY ...... 34 15.2 SAMPLE PREPARATION AND ANALYSES ...... 34 15.3 QUALITY CONTROL FOR GOLD ANALYSIS ...... 34 15.3.1 Submitted blind standards ...... 34 15.3.2 Submitted blank samples ...... 35 15.3.3 Laboratory internal standards...... 36 15.3.4 Laboratory internal analytical blanks...... 36 15.3.5 Laboratory internal repeats...... 36 15.4 DENSITY MEASUREMENTS ...... 37 16 DATA VERIFICATION ...... 40 17 ADJACENT PROPERTIES ...... 40 18 MINERAL PROCESSING ...... 40 19 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ...... 40 19.1 MINERAL RESOURCE ESTIMATES ...... 40

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19.1.1 Introduction...... 40 19.1.2 Data compilation...... 42 19.1.3 Mineralized domains ...... 42 19.1.4 Definition of mineralized intervals for resource estimate ...... 43 19.1.5 Composites used for estimation...... 46 19.1.6 Estimation of domain orientation ...... 49 19.1.7 Kriging of gold grades...... 50 19.1.8 Densities assigned to current estimate ...... 50 19.1.9 Composites versus estimated with gold grades ...... 51 19.1.10 Resource classification...... 52 19.1.11 Model estimates...... 54 19.2 MINERAL RESERVE ESTIMATES ...... 55 20 OTHER RELEVANT DATA AND INFORMATION...... 55 21 INTERPRETATION AND CONCLUSIONS ...... 56 22 RECOMMENDATIONS...... 57 22.1 INTRODUCTION ...... 57 22.2 STAGE ONE ...... 58 22.3 STAGE TWO ...... 58 22.4 STAGE THREE ...... 59 23 REFERENCES...... 61 24 DATE AND SIGNATURE PAGE ...... 62 24.1.1 Jonathon Abbott...... 62 24.1.2 Brook Ekers ...... 63 25 ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT PROPERTIES AND PRODUCTION PROPERTIES ...... 64

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List of Figures

FIGURE 1: PAULSENS SITE PLAN ...... 8 FIGURE 2: PAULSENS LOCATION ...... 9 FIGURE 3: PAULSENS GENERAL REGIONAL GEOLOGY ...... 11 FIGURE 4 SCHEMATIC CROSS -SECTIONAL VIEW OF PAULSENS MINERALIZATION ...... 13 FIGURE 5: EXAMPLE CORE PHOTOGRAPHS OF VOYAGER MINERALIZATION (PDU1098)...... 15 FIGURE 6: CROSS SECTION VIEWS OF MINERALIZED DOMAINS AND SAMPLING TRACES ...... 17 FIGURE 7: PLAN VIEWS OF MINERALIZED DOMAINS AND SAMPLING TRACES ...... 18 FIGURE 8: MINERALIZED DOMAINS AND SAMPLING TRACES ...... 21 FIGURE 9: MINERALIZED DOMAINS AND INTERCEPTS COLOURED BY GOLD GRADE ...... 24 FIGURE 10: DIAMOND CORE SAMPLE LENGTHS ...... 25 FIGURE 11: HISTOGRAMS OF INTERSECTION TRUE WIDTHS AND DOWN -HOLE : TRUE WIDTH RATIO ...... 26 FIGURE 12: SUBMITTED BLANK ASSAY RESULTS VERSUS SAMPLE IDENTIFIER ...... 35 FIGURE 13: ALS INTERNAL REPEAT ASSAYS FOR VOYAGER DRILLING ...... 37 FIGURE 14: ALS PYCNOMETER VERSUS SITE IMMERSION MEASUREMENTS ...... 38 FIGURE 15: PYCNOMETER DENSITY VERSUS GOLD GRADE ...... 39 FIGURE 16: EXAMPLES OF SUPPLIED AND MODIFIED DOMAIN INTERSECTIONS ...... 45 FIGURE 17: CUMULATIVE DISTRIBUTION OF RESOURCE COMPOSITES BY DOMAIN ...... 47 FIGURE 18: HISTOGRAMS OF ESTIMATED DOMAIN DIPS ...... 49 FIGURE 19:K RIGED ESTIMATES VERSUS COMPOSITE GRADES ...... 51 FIGURE 20: LONG SECTION VIEWS SHOWING OUTER EXTENTS OF INDICATED RESOURCE ...... 53 FIGURE 21: REMAINING VOYAGER LOWER ZONE MINERALIZATION ...... 55 FIGURE 22: PROPOSED DRILLING STAGES ...... 60

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List of Tables

TABLE 1: PAULSENS MINERAL RESOURCE ESTIMATE DECEMBER 2009...... 6 TABLE 2: PAULSENS PRODUCTION ...... 9 TABLE 3: HISTORICAL VOYAGER INTERSECTIONS ...... 10 TABLE 4: MARCH 2009 RESOURCE ESTIMATE ...... 10 TABLE 5: DIAMOND DRILL HOLES INTERSECTING MINERALIZED DOMAINS ...... 20 TABLE 6: DRILL HOLES AND FACE SAMPLING INTERSECTING MINERALIZED DOMAINS ...... 23 TABLE 7: SAMPLE LENGTHS WITHIN MINERALIZED DOMAINS ...... 25 TABLE 8: SAMPLE LENGTHS WITHIN MINERALIZED DOMAINS ...... 26 TABLE 9: DRILL HOLE INTERSECTIONS ...... 27 TABLE 10: BLIND STANDARDS RESULTS FOR VOYAGER DRILLING ...... 35 TABLE 11: BLANK RESULTS FOR VOYAGER DRILLING ...... 35 TABLE 12: ALS INTERNAL STANDARDS FOR 2009...... 36 TABLE 13: ALS INTERNAL BLANKS FOR 2009...... 36 TABLE 14: ALS INTERNAL REPEATS VOYAGER RESOURCE DRILLING ...... 37 TABLE 15: ALS PYCNOMETER VERSUS SITE IMMERSION MEASUREMENTS ...... 38 TABLE 16: PAULSENS RESOURCE ESTIMATE DECEMBER 2009...... 42 TABLE 17: SUMMARY OF SUPPLIED AND MODIFIED DRILL CORE MINERALIZED INTERCEPTS ...... 44 TABLE 18: DIAMOND CORE COMPOSITE LENGTH SUMMARY ...... 46 TABLE 19: COMPOSITE STATISTICS BY RESOURCE DOMAIN ...... 47 TABLE 20: UPPER CUTS APPLIED TO ESTIMATES ...... 47 TABLE 21: CUT COMPOSITES FROM EACH DOMAIN ...... 48 TABLE 22: KRIGING RUNS ...... 50 TABLE 23: VARIOGRAM MODELS ...... 50 TABLE 24: SEARCH CRITERIA ...... 50 TABLE 25: PRE -MINING RESOURCE ESTIMATE ...... 54 TABLE 26: PAULSENS REMNANT RESOURCE ESTIMATE DECEMBER 2009 ...... 55 TABLE 27: PAULSENS MINERAL RESOURCE ESTIMATE DECEMBER 2009...... 56 TABLE 28: ESTIMATED COSTS OF PROPOSED VOYAGER DRILLING ...... 60 TABLE 29: SUMMARY OF REHABILITATION BONDS LODGED WITH DMP ...... 64 TABLE 30: OPERATING EXPENDITURE RESULTS FOR 2009 ...... 65

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3 SUMMARY The Paulsens Gold project (Paulsens) is located in the Pilbara region of Western Australia 7 kilometers off the Nanutarra Munjina road and 190 kilometers to the west of Paraburdoo. The project is owned and operated by Intrepid Mines Limited (Intrepid). After completion of a feasibility study in 2004, construction of the 250,000 tonne per year mine commenced in July of 2004 and concluded in early May of 2005. The first gold pour occurred in June 2005. Since then the mine and mill have been expanded to 330,000t per year and is currently producing at an average of 75,000 ounces of gold per year. The operation is currently mining about 330,000 tonnes per year from underground, which is processed on site. The current mining method at Paulsens utilises long hole retreat bench stoping methods and air leg mining techniques. Ore is processed on site by conventional carbon in leach (CIL) methods. The mine operates on a fly in - fly out basis with around 80 people on site at any time. Paulsens is a mesothermal, orogenic lodestyle gold deposit with mineralization occurring within a structurally controlled quartz veining, hosted by a folded, sedimentary sequence. Gold is associated with quartz, carbonate and pyrite with high gold grades commonly associated with massive sulphide zones. Shallow portions of the Paulsens mineralization have been largely depleted, with remaining Mineral Resources restricted to deeper mineralization designated as the Voyager Zone which includes upper and lower domains at the hanging wall and footwall of the quartz vein respectively. Very little of this mineralization has been exposed by mining development and it has been largely defined by surface and underground diamond drilling undertaken by Intrepid. Future exploration programmes are proposed to improve drill coverage of the Voyager mineralization and test for potential down-dip extensions and lode repetitions offset by thrust faults. The current Mineral Resource estimates are based on sampling from 225 diamond holes, of which the majority represent underground diamond drilling undertaken by Intrepid during 2008 and 2009. Gold grades were estimated by Ordinary Kriging of nominally one meter composited gold grades within mineralized wireframes interpreted on the basis of geological logging and assayed gold grades. The resource estimates presented in Table 1 represent the remnant Paulsens mineralization reported above a cut off grade of 4.0 g/t excluding small isolated zones that are not amenable to eventual economic extraction. The figures in this table are rounded to reflect the accuracy of estimates and exhibit rounding errors.

Table 1: Paulsens Mineral Resource Estimate December 2009 Au Contained Au Tonnes g/t Oz Voyager Upper Indicated 138,000 15.0 66,400 Inferred 40,000 14 18,000 Voyager Lower Indicated 66,000 11.0 23,300 Inferred 70,000 9 21,000 Total Indicated 204,000 13.7 89,700 Inferred 110,000 11 39,000

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4 INTRODUCTION This Technical Report has been prepared for Intrepid Mines Limited by Mr Brook Ekers, Geology Manager Paulsens Gold Mine, and Mr Jonathon Abbott, a consulting geologist with independent consultants Hellman & Schofield Pty Ltd. Section 24 specifies the Qualified Persons responsible for each section of the report. The Technical Report details the methodology and results of the December 2009 Mineral Resource Estimates as reported in a stock exchange announcement dated the 8 th of December 2009. This report has been prepared for Intrepid Mines Limited by Mr Brook Ekers, who is Geology Manager Paulsens Gold Mine and a full time employee of Intrepid Mines Limited, and Mr Jonathon Abbott, a consulting geologist with independent consultants Hellman & Schofield Pty Ltd. Mr Ekers has been employed at the Paulsens mine site since March 2004 and Mr Abbott visited the site 11 th to 13 th of November 2008. The report is primarily based on sampling data and geological interpretations compiled by Intrepid geologists based at the Paulsens mine site.

5 RELIANCE ON OTHER EXPERTS The report authors do not rely on other experts for any aspects of this report. Section 24 specifies the Qualified Persons responsible for each section of the report.

6 PROPERTY DESCRIPTION AND LOCATION The mine site covers 134 hectares, inside a cattle proof fence and containing the mine, processing plant, tails storage area, waste rock storage areas, explosive compound, lay-down area, crushing facility, core yard, water and effluent treatment, all offices, workshops and camp. An exploration core yard is located 3 kilometers from site and is still to be moved, or buried at end of mine life. Coordinates of the portal to underground workings are 22.579205°S 116.242403°E The mine and infrastructure are wholly contained by mining leases M08/099 and M08/196, both of which are in good standing. Expiry dates for these tenements are the 13th of February 2011 and 2nd of March 2020 respectively. Annual expenditure requirement for the two relevant mining leases is A$18,400 and A$80,000, and annual rents are A$2,752.64 and A$11,986.00. Total annual rents for all tenements (predominately for exploration) is A$84,700 with an expenditure commitment of A$922,320. The mining leases are delineated using heavy duty steel fence posts at each boundary corner with either a trench marking the line to the next corner or stacked rocks highlighting the line to the next corner. The historic Paulsens/Melrose, Belvedere and Monster Lode gold mines, and Tombstone (historically known as Belfry or Blacks) copper mine is located within Intrepid’s tenement holdings though outside mining leases M08/099 and M08/196. Notice of intent to mine on M08/099 and M08/196 is NOI number 3161. The local indigenous group the Puutu Kunti Kurrama and Pinikura people are due payments of A$2 per ounce poured. The West Australian Government realises a gold royalty of 2.5% on metal value. Paulsens is some distance from the coast, National Parks, major river systems, wetlands, DEP Environmental Protection Policy areas and the occupied town sites. Both tenements and associated Miscellaneous Licences are granted and are wholly owned by Intrepid Mines Limited.

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In the Wyloo - Mt Stuart District, cattle raising or activities associated with mining are currently the primary land uses. Mine closure criteria are being established to support a pastoral end use. The Paulsen operations are located on the Mt Stuart Pastoral Lease and the Project Area has been fenced to exclude stock. Figure 1 shows the site infrastructure relative to lease boundaries. This figure is presented in Map Grid of Australia (MGA94) coordinates. Unless otherwise specified, all other coordinate references in this report are in the Paulsens local mine grid.

Figure 1: Paulsens site plan

7 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY Paulsens is located in the Pilbara region of Western Australia, approximately 190 kilometers west- northwest of Paraburdoo and 7 kilometers north of the sealed highway between Paraburdoo and Nanutarra at an elevation approximately 200 meters above sea level ( Figure 2). Access to the mine site is via a well maintained gravel road which connects with the highway. Regular daily flights from Perth to Paraburdoo provide access to the region and mine site personnel use these flights or a charter flight to nearby Wyloo Station air strip. Mining personnel are generally sourced from Perth. The climate is hot and generally dry and experiences hot summers and mild winters. The area is on the fringe of the cyclone belt and can receive significant rainfall as a result of cyclone activity. However, the project is far enough inland to generally not be impacted by cyclonic winds. The local topography is gently rolling with some prominent mesa-type hills and a small but steep hill in the immediate vicinity of the project marking the outcrop of the Paulsens quartz vein. Vegetation comprises low shrubs, spinifex and occasional trees and the principal agricultural activity is low density cattle ranching.

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Figure 2: Paulsens Location The mine operates year round. Power is generated on site with diesel powered generators operated by Power West. Diesel is supplied by road from Karratha, Western Australia, 400 kilometers away on sealed roads. Water is pumped from near surface aquifers with relevant licenses in place. Waste rock is stored on site for future use as armouring on the nearby tailing storage area once mining ceases.

8 HISTORY

8.1 Project history and ownership Historical underground mining was carried out at the project area in the 1930s and modern exploration of the area commenced in the early 1980s. The Paulsens property changed hands between different companies until 2004 when NuStar Mining Corporation Pty Limited (NuStar) was created, with the objective of implementing the underground development of Paulsens. During 2006, NuStar merged with Canadian company Intrepid Minerals Corporation to form the dual listed entity Intrepid Mines Limited (Intrepid). In 2008, further corporate activity resulted in the merger of Intrepid and Emperor Mines Limited. Paulsens is wholly owned by Intrepid.

8.2 Production The current operation at Paulsens commenced in late 2004 with the development of an underground mine. A conventional carbon in leach treatment plant with nominal capacity of 250,000 tonnes per annum was commissioned in 2005. Since commencement of operations up to and including 31 December 2009, approximately 1,497,000 tonnes of ore has been processed with a mill recovery of 94% and a gold grade of 7.6 g/t for approximately 342,000 ounces produced. Table 2 presents mine production for the project to the end of December 2009. Table 2: Paulsens production

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Tonnes Au Contained Gold Year (x1000) g/t (1000 oz) 2005 175 8.3 47 2006 326 7.5 78 2007 326 7.4 77 2008 326 7.9 82 2009 344 7.3 80 Total 1,497 7.6 365 8.3 Voyager exploration Although exploration of the Voyager mineralization comprises some mapping of development faces face sampling, and sludge hole sampling of holes drilled with a production drill rig it is dominated by surface and underground diamond drilling, with underground diamond drilling providing the majority of exploratory sampling. Prior to commencement of infill drilling of the Voyager zone in 2008. Exploration drilling results for Voyager were limited to broadly spaced surface drill holes Table 3 presents mineralized intercepts for these drill holes and Table 6 lists sampling to date in the Voyager area. Table 3: Historical Voyager intersections Drill Hole Year drilled Company Intersection PLRCD134 1998 Taipan 1m @ 0.77g/t PLRCD142 1998 Taipan 1.5m @ 4.93 PLRCD142 1998 Taipan 2m @ 8.18 PLRCD133 1998 Taipan dyke PLRCD325 2001 St Barbara 2m @ 6g/t PLRCD0422 2006 Intrepid 3.5m @ 0.7g/t PLRCD0421 2006 Intrepid 1m @ 15g/t PLRCD0407 2006 Intrepid 1.4m @ 2.1g/t PLRCD0407 2006 Intrepid 0.5m @ 10.8 g/t PLRCD0410 2006 Intrepid 1.2m @ 6.2g/t PLRCD0410 2006 Intrepid 2.4m @ 11.4g/t 8.4 Previous resource estimates Table 4 shows resource estimates for Voyager from the March 2009 Technical report. Previous resource estimates for Paulsens did not include Voyager as a separate zone. Historic resource estimates for the other Paulsens zones are available in previous Technical reports. These other lodes have been depleted by mining and are not covered by the current report. The estimates in Table 4 are from the resource model evaluated for estimates greater than 4 g/t gold excluding mined and inaccessible areas. As presented in this table, the estimates for each zone are reported as un-rounded numbers with the combined totals rounded to reflect the accuracy of estimates and exhibit rounding errors. The rounded estimates are reported in accordance with NI43- 101 guidelines. Table 4: March 2009 resource estimate Indicated Inferred Tonnes Au g/t Tonnes Au g/t Voyager Upper Zone 9,301 7.12 28,918 7.17 Voyager Lower Zone - - 92,180 10.17 Total 9,301 7.12 121,099 9.45 Total Rounded 9,300 7.10 120,000 10

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9 GEOLOGICAL SETTING 9.1 Regional Geology The Paulsens project is located within the Ashburton geological province, an arcuate belt of Proterozoic Wyloo Group volcanics and sediments lying along the southern and western fringe of the Achaean Hamersley Basin iron ore province. The Wyloo Group is overlain stratigraphically by the Proterozoic sediments of the Bangemall Basin to the south. The project's regional geological setting is presented in Figure 3.

Figure 3: Paulsens General Regional Geology 9.2 Local Geology The Paulsens deposit lies within the Wyloo Dome, a west-northwest trending regional anticlinal and domal structure. Archaean Fortescue Group metasediments and metavolcanics of the Hamersley Basin are exposed in the core of the dome and form the host rocks of the Paulsens deposit. The sequence is cut by a series of steeply dipping gabbro and dolerite dykes. The principal regional structure is the Wyloo dome, with the principal fold axis in the Paulsens area plunging to the northwest at approximately 35 o. The host argillite sediments of the Fortescue Group are exposed in the core of the dome, and in the Paulsens area, sub-outcrop and dip to the northwest. The Melrose Fault, (predominantly bedding plane slip in response to folding) displaces the Paulsens gabbro, showing an apparent dextral displacement of around 250 meters. The sediments responded to the faulting in a ductile fashion and show a relatively minor zone of clay in shearing along the fault zone, whereas the faulting of the relatively tough and brittle gabbro provided the structural displacement and brecciation for emplacement of the Paulsens quartz vein and gold mineralization. The Paulsens mineralization and surrounding sediments show a regional axial plane cleavage, striking northwest and dipping steeply to the southwest, related to the Wyloo folding, which forms a

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gentle anticlinal fold in the sediments and the quartz body. The later Billeroo dyke intrusions are mainly oriented along the cleavage direction. 9.3 Property Geology The Paulsens mineralization is hosted by a massive quartz vein, which occupies the Melrose Fault, a bedding slip fault zone. The vein and sediments are exposed within the core of the Wyloo anticlinorium. The quartz vein outcrops and forms a prominent 30m high hill at the Paulsens prospect. The argillites dip to the northwest at 30 to 40o. The Melrose Fault is parallel to bedding, dipping at a similar angle to the northwest. The immediate footwall of the fault can be marked by a graphitic shale unit, the result of local shearing. The argillite is cut by a northwest-trending 60 meter wide gabbro body, which itself is cut and displaced by the Melrose Fault, showing an apparent 250 meter dextral displacement. The massive quartz vein occurs principally within the portion of the fault adjacent to the gabbro body. Whereas the argillites have deformed in a ductile fashion, it is assumed that the more rigid gabbro has undergone brittle failure, leading to a zone of structural disruption, brecciation and dilation which has facilitated the penetration of silica-rich fluids resulting in the emplacement of the quartz-carbonate vein. The bulk of the vein is barren, with the mineralization focused along the hanging wall (Upper zone) and footwall (Lower zone) contacts. It is assumed that the late stage movement resulted in further brecciation along the contact zone of the quartz vein with the argillites and provided channel ways for the introduction of late-phase quartz-carbonate-sulphide-gold rich fluids. While the principal ore zones occur along the upper and lower contacts of the quartz body, occasional less continuous mineralization is intersected elsewhere within the quartz vein or along splay faults intersecting the upper argillite. The mineralized zones have a northeast-southwest strike length of 100-200 meters and plunge to the northwest at an average dip of around 30-35o, sub-parallel to bedding. Drilling has defined a down- plunge extent in excess of 1,000 meters and to a depth of approximately 500 meters. Step-out drilling has shown that the mineralization is still open down plunge, though with variable grade, with intersections to around 500 meters depth. Post emplacement of the quartz vein, numerous steeply-dipping dolerite dykes have intruded, cutting the argillite, the quartz vein and mineralization along the trend of the Wyloo cleavage. The dykes are from 1 to 10 meters in thickness and are estimated to cut out approximately 10% of the mineralization.

10 DEPOSIT TYPES Paulsens is a mesothermal, orogenic lodestyle gold deposit. Mineralization is hosted by vein quartz filling of voids, created in response to compression and subsequent uplift of the Wyloo Dome. Future down dip exploration will focus on lode repetitions offset by thrust faults.

11 MINERALIZATION

11.1 Paulsens Mineralization The following description of Paulsens mineralization concentrates on Voyager mineralization which is the focus of the current report. Descriptions of the other mineralized Paulsens zones at are available in previous Technical Reports.

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Section 19.1.3 includes a description of the continuity, length, widths and depths of the mineralized domains included in the current resource estimate. Paulsens is a structurally controlled deposit. Gold mineralization is hosted within a folded, bedding parallel quartz vein up to 40 meters thick within an offset of gabbro. It is coincident with the Melrose Fault (bedding slip fault in response to folding) and with the Wyloo anticlinal fold hinge. The location of the quartz vein is interpreted to be influenced by the rigid gabbro dyke located within a fold hinge. The Paulsens mineralization comprises an Upper and Lower Zone, located along the hanging wall and footwall contacts respectively of a massive quartz carbonate vein (Figure 4). Gold mineralization has also been intersected within the hanging wall sediments and within the body of the quartz vein, but these intersections tend to be isolated with little demonstrated continuity. Voyager, faulted off the main quartz body by the Apollo fault structure, has the same Upper and Lower Zone positions. Paulsens Deposit Geometry

• apparent dilational jog-vein along offset gabbro contact • distinct upper and lower ore bodies • offset by steep faults

• intruded by steeply dipping dykes sub- parallel to steep faults

Figure 4 Schematic cross-sectional view of Paulsens Mineralization (modified slightly from Gray D. 2007), Updip of the Voyager split. Gold is associated with quartz, carbonate (ankerite and dolomite) and pyrite, but principally with pyrite. Very minor arsenopyrite is also present. High grade gold intervals are commonly associated with massive sulphide zones, but significant grades also occur where the pyrite is more disseminated. Gold is distributed along crystal planes and micro-fractures within the pyrite grains and is readily recoverable by conventional cyanidation. Native gold has been identified but is reported to represent only a minor percentage of the total contained gold. Three main host settings for the gold mineralization have been recognized in the Paulsens deposit. These are sulphides, quartz/carbonates and country rock. The gold is associated predominantly with the sulphides. The sulphides can be present as massive material or laminated bands in quartz or as disseminated material in the quartz carbonates. There is an imperfect correlation between the gold grade and the content of sulphide as samples with relatively low sulphide content can yield a high gold grade. Copper sulphide has been detected in the mineralization ranging from chalcopyrite which is relatively cyanide-insoluble to chalcocite, which is readily soluble in cyanide solution.

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The host rock is an argillite and carbonaceous argillites are present particularly along the footwall contact of the Lower zone. This carbonaceous argillite is a source of the high cyanide consumption properties of parts of the ore in treatment at Paulsen’s. Figure 5 presents example photographs of a drill hole intersection with the Voyager mineralization.

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Figure 5: Example core photographs of Voyager mineralization (PDU1098)

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11.2 Voyager resource domains The Voyager Upper Zone mineralization has been sampled over a strike length of approximately 470 meters, with vertical coverage extending for approximately 310 meters from 540 mRL to 850 mRL. True thicknesses of drill hole intersections with this zone range from 0.4 to 8.2 metres and average approximately 2.9 metres. Sampling of the Voyager Lower Zone extends over 560 meters of strike length, and a vertical extent of approximately 310 meters between 550 and 860 mRL. True thicknesses of drill hole intersections with this zone range from 0.1 to 6.6 metres and average approximately 1.1 metres Voyager Lower Zone includes an area with anomalously high grade drill intercepts centred at approximately 9,350 mE, 700 mRL. This area represents only 3% of the Voyager Lower Zone volume and was treated as a separate sub-domain for resource estimation. As shown by the example cross sections and plan views presented in Figure 6 and Figure 7 the Voyager mineralized domains have highly variable orientations. These figures present the mineralized domains at the section midpoint and sampling traces coloured by type within 10 meters of the section. The along strike and down-dip gaps in the mineralized domains shown by these figures represent barren cross cutting dykes. Figure 6 and Figure 7 show that each of the mineralized domains have relatively consistent, generally east-west strikes and highly variably dips reflecting the folding of the quartz vein which hosts the mineralization. The apparent variation in strike shown for Voyager Lower Zone at 700 mRL reflects the open westerly plunging antiformal, folding of the domain in this area. Orientations of the Voyager Upper Zone domain range from sub-vertical to flat lying with an average dip of 45 o towards the north. The Voyager Lower Zone also varies from approximately sub-vertical to flat lying. The low grade sub-domain has an average dip of 48 o towards the north. The high grade sub-domain occurs within a steeply dipping portion of the domain, with an average sub-vertical dip.

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9,520 mE 9,350 mE

Figure 6: Cross section views of mineralized domains and sampling traces

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780 mRL

700 mRL

` Figure 7: Plan views of mineralized domains and sampling traces

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12 EXPLORATION Details of regional exploration programmes undertaken by Intrepid in the Paulsens region are described in previous Technical Reports. The current report covers Voyager mineralization located around, and beneath the base of current underground development at approximately 330 meters below surface. Although exploration of the Voyager mineralization comprises some mapping of development faces face sampling, and sludge hole sampling of holes drilled with a production drill rig it is dominated by surface and underground diamond drilling, with underground diamond drilling providing the majority of exploratory sampling. These drilling and associated sampling programmes are described in sections 13,14 and 15 of this report. Section 19 includes interpretation of the drilling results. All diamond drilling has been undertaken by contract drilling companies supervised by Intrepid Geologists. Underground diamond drilling included in the current estimate was undertaken by Barminco diamond drilling contractors, with the surface drilling undertaken by several contractors. The sampling database compiled for the current study includes only sampling identified as intersecting the interpreted mineralized domains included in the current estimate. Down hole EM (elecrto magnetic) and MMR (magnetometric resistivity) geophysics was run on the latest 5 deep diamond holes into Voyager. This recent exercise was a world first for the particular tool employed. The Magnetometric Resistivity (MMR) method is based on the measurement of the low-level, low-frequency magnetic fields associated with noninductive current flow in the ground. A component of the magnetic field is measured in the vicinity of one or more grounded electrodes. The results are still being processed but it is hoped that this technique will be able to identify the disseminated sulphide bearing ore up to 100 metres off the drillhole trace.

13 DRILLING This section discusses diamond drilling that intersects the mineralized domains included in the current estimate and does not reflect the large dataset of Paulsens sampling within the now depleted shallower mineralization. Drilling in shallower portions of the deposit is discussed in previous Technical Reports for the Paulsens mine. Since sludge holes drilled with a underground production drill rig are not included in the current resource estimates they are excluded from this summary. All diamond drilling has been undertaken by contract drilling companies supervised by Intrepid Geologists. Underground diamond drilling included in the current estimate was undertaken by Barminco diamond drilling contractors, with the surface drilling undertaken by several contractors. Table 5 summarises diamond drilling included in the current resource database and Figure 8 presents long section and plan views of the mineralized domains relative to drill hole and face sampling traces. This table and figure include only sampling intersecting the mineralized domains included in the current estimate. The pre 2009 surface diamond holes included in the current estimate were drilled with reverse circulation (RC) pre-collars to an average depth of 286 meters. Each of these holes intersect mineralization within the diamond cored portion of the hole and no RC sampling was included in the current modelling. The 2009 surface holes were drilled with a diamond rig from surface. Table 5 demonstrates that the resource drilling is dominated by underground diamond drilling conducted by Intrepid during 2008 and 2009 which provides 91% of the drill holes included in the

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resource estimate. In total Intrepid's drilling provides 95% of the resource drill holes, with drilling by previous explorers contributing 5%. Figure 8 shows that many drill holes intersect the mineralization at oblique angles. The proportion of obliquely oriented holes increases towards the peripheral, east and west portions of the domains and these areas are dominated by obliquely oriented holes. The Voyager Upper Zone mineralization has been sampled over a strike length of approximately 470 meters, with vertical coverage extending for approximately 310 meters from 540 mRL to 850 mRL. Sampling of the Voyager Lower Zone extends over 560 meters of strike length, and a vertical extent of approximately 310 meters between 550 and 860 mRL.

Table 5: Diamond drill holes intersecting mineralized domains Company Period Holes Meters Number Proportion Surface diamond Taipan 1998 6 3% 2,618 St Barbara 2001-2004 4 2% 1,760 Intrepid 2006 7 3% 3,414 Intrepid 2009 4 2% 2,651 U'ground diamond Intrepid 2008-2009 204 91% 29,247 Total 225 100% 39,690

Section 14 summarises drilling results. As discussed in Section 14.5, the relationship between down- hole and true thickness of mineralized domain intersections is highly variable and averages approximately 0.7 for both domains included in the current estimates.

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Long Section (Looking North)

Plan View

Figure 8: Mineralized domains and sampling traces

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14 SAMPLING METHOD AND APPROACH

14.1 Introduction This section discusses on the sampling intersecting the mineralized domains included in the current estimate and does not reflect the large dataset of Paulsens sampling within the now depleted shallower mineralization that does not form part of the current study and is discussed in previous Technical Reports for the Paulsens mine.

14.2 Sampling methods The Voyager mineralization covered by the current study has been sampled by surface and underground diamond drilling, sludge holes drilled with a production drilling rig and rock chip face samples. Results from face sampling and sludge holes drilled with underground production rigs were used to aid interpretation of the mineralized domains, but were not used for estimation of gold grades. Although earlier surface diamond holes were drilled with reverse circulation (RC) pre-collars, each of these holes intersect mineralization within the diamond cored portion of the hole and no RC sampling was included in the current modelling. Only diamond core sampling was used in the current estimates. As discussed in Section 13, this sampling is dominated by surface and underground drilling by Intrepid which provides approximately 91% of the resource drill holes. Although the following description of sampling methodology is for Intrepid's drilling, earlier explorers are understood to have used similar practises. Sampling of sludge holes, face samples and reverse circulation drilling that is not included in the current estimates, and is not discussed in this report. Core sample lengths are selected on the basis of rock type with sample intervals consisted with logged mineralized quartz contacts. Section 11 describes the characteristics of the mineralized quartz veins at Paulsens. Sample intervals are generally between 0.3 and 1.0 meters, however intervals with logged visible gold are is present it will be sampled selectively. Barren rock types such as dolerite and host sediments away from the mineralized veins and barren quartz are commonly not sampled and coded GNS (geologically not sampled). All diamond core is geologically logged, and sample intervals marked up as described above. The core sampling is undertaken at the Paulsens Mine Property by Intrepid field staff under the supervision and direction of Intrepid geologists. Sample intervals are marked and for LTK48 sized core whole core samples are collected. NQ2 sized core is halved with a diamond saw, and half core samples are collected with the remaining half core retained. Core samples are collected in labelled calico sample bags, which are placed into larger, heavy duty plastic bags for transport to the commercial assay laboratory. All core is geologically logged and whole core samples (if LTK48 size, NQ2 sized core is cut and half cored) are marked and prepared for shipping at the Paulsens Mine Property and sent to an independent laboratory (ALS) for assay. The remaining half core is stored on site. As shown by the example core photographs presented in Figure 5 core recovery within the mineralization is generally very good and averages close to 100% and the samples are representative of the mineralization grades.

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14.3 Sampling included in current estimates

14.3.1 Sampling types and phases The sampling database compiled for the current study includes only sampling identified as intersecting the interpreted mineralized domains included in the current estimate. Table 6 summarises sampling included in the current resource database and Figure 8 presents long section and plan views of the mineralized domains relative to drill hole and face sampling traces. This table and figure include only sampling intersecting the mineralized domains included in the current estimate. The pre 2009 surface diamond holes included in the current estimate were drilled with reverse circulation (RC) pre-collars to an average depth of 286 meters. Each of these holes intersect mineralization within the diamond cored portion of the hole and no RC sampling was included in the current modelling. The 2009 surface holes were drilled with a diamond rig from surface. Table 6 demonstrates that the resource drilling is dominated by underground diamond drilling conducted by Intrepid during 2008 and 2009. Figure 8 shows that many of these drill holes intersect the mineralization at oblique angles. The proportion of obliquely oriented holes increases towards the peripheral, east and west portions of the domains and these areas are dominated by obliquely oriented holes.

Table 6: Drill holes and face sampling intersecting mineralized domains Company Period Holes Meters Surface diamond Taipan 1998 6 2,618 St Barbara 2001-2004 4 1,760 Intrepid 2006 7 3,414 Intrepid 2009 4 2,651 U'ground diamond Intrepid 2008-2009 204 29,247 Subtotal DDH 225 39,690 Sludge Intrepid 2008 27 376 Face Intrepid 2009 98 469 Total 350 40,535

14.3.2 Sample spacing and coverage Figure 9 presents vertical long sections of diamond drill hole intersection points with the resource domains coloured by gold grade. These figures show that data coverage is variable, and that both of the Voyager domains are only broadly and irregularly sampled below approximately 700 mRL. For both domains, sample spacing in the most densely sampled areas approximates 20 by 20 meters. The Voyager Upper Zone mineralization has been sampled over a strike length of approximately 470 meters, with vertical coverage extending for approximately 310 meters from 540 mRL to 850 mRL. Sampling of the Voyager Lower Zone extends over 560 meters of strike length, and a vertical extent of approximately 310 meters between 550 and 860 mRL.

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Voyager Upper Zone (Looking North)

Voyager Lower Zone (Looking North)

Figure 9: Mineralized domains and intercepts coloured by gold grade

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14.4 Number of samples and sample lengths Table 7 summarises the length of assayed diamond core sample intervals within the resource domains and Figure 10 shows histograms of sample lengths representing the proportion of drilling within each domain. This table and figure demonstrate that although there is considerable variation in sample lengths, the dominant sample length for each domain is one meter. Table 7: Sample lengths within mineralized domains Voyager Upper Voyager Lower Combined Number 1,206 711 1,206 Average 0.81 0.76 0.81 Minimum 0.10 0.09 0.10 Median 0.93 0.80 0.90 Maximum 2.00 2.00 2.00 Proportion <0.5 m 9% 13% 11% of drilling 0.5 – 1.0 m 31% 35% 26% by sample 1.0 m 43% 37% 49% length. >1.0 m 17% 15% 14%

50%

40%

30% n io rt o p ro P 20%

10%

0% 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0 Length (m) Voy UZ Voy LZ Figure 10: Diamond core sample lengths

14.5 Mineralized domain intersections Table 9 lists the diamond drill hole intersections included in the current estimates based on the modified domain intersections as described in section 19.1.4. The gold grades shown in this table represent length weighted averages of individual sample intervals. For each intersection the true width was estimated by measuring perpendicular to the local domain dip with the drill hole trace presented on a north-south cross section. Since the mineralized domains strike at close to east-west, this measurement reasonably approximates the true thickness. The small proportion of intervals without estimated true thicknesses represent cases where the drill hole does not cross cut the full thickness of the mineralized domain such as drill holes which were collared in mineralization Table 7 and Figure 11 summarise the down-hole, and estimated true thicknesses of the mineralized domain intersections. Ten intercepts for which the drill hole trace does not cross the full domain thickness are not included in this summary, Due to the wide range of drilling orientations, and highly variable mineralized domain geometry, the relationship between down-hole and true thicknesses is highly variable.

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The ratio between down-hole and true thickness ranges from 0.05 for holes that are close to down dip to 1.0 for holes that are close to perpendicular to the mineralized domain, with an average ratio of approximately 0.7 for both mineralized domains included in the current estimate. Table 8: Sample lengths within mineralized domains Down-hole Length (m) True Thickness (m) Ratio True: Down-hole Voy. Voy Total Voy. Voy Total Voy. Voy Total Upper Lower Upper Lower Upper Lower Number 189 198 387 189 198 387 189 198 387 Average 4.98 2.71 3.82 2.93 1.42 2.16 0.68 0.66 0.67 Minimum 0.75 0.36 0.36 0.40 0.10 0.10 0.10 0.05 0.05 Median 4.05 1.97 2.90 2.60 1.20 1.70 0.72 0.69 0.70 Maximum 32.5 29.4 32.5 8.20 6.60 8.20 1.00 1.00 1.00

Voyager Upper true widths Voyager Lower true widths

16% 100% 16% 100%

12% 75% 12% 75%

e e on iv on iv ti t ti t r la r la o 8% 50% u o 8% 50% u p m p m ro u ro u P C P C

4% 25% 4% 25%

0% 0% 0% 0% 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 True thickness (m) True thickness (m)

Voyager Upper down-hole : true width Voyager Lower down-hole : true width

12% 100% 12% 100%

9% 75% 9% 75%

n ve n ve io ti io ti rt la rt la o 6% 50% u o 6% 50% u p m p m ro u ro u P C P C

3% 25% 3% 25%

0% 0% 0% 0% 0.00 0.25 0.50 0.75 1.00 0.00 0.25 0.50 0.75 1.00 True thickness: Down-hole length True thickness: Down-hole length

Figure 11: Histograms of intersection true widths and down-hole: true width ratio

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Table 9: Drill hole intersections Drill Interval (m) Length (m) Domain Au Intersection mid-point Hole From To Down-hole True g/t mE mN mRL PLRC325D 517.65 524.05 6.40 4.20 Upper 0.48 9,305 50,406 712 PLRC325D 528.00 529.30 1.30 1.30 Lower 0.25 9,305 50,405 705 PLRCD0405 439.66 444.00 4.34 2.90 Upper 0.08 9,542 50,368 789 PLRCD0405 462.90 463.59 0.69 0.60 Lower 5.31 9,542 50,361 769 PLRCD0407 470.26 472.42 2.16 2.10 Upper 1.50 9,458 50,382 762 PLRCD0407 503.24 503.70 0.46 0.45 Lower 10.80 9,459 50,372 732 PLRCD0410 463.29 465.72 2.43 1.70 Lower 11.31 9,465 50,339 774 PLRCD0411 402.25 405.45 3.20 3.00 Upper 22.98 9,501 50,342 831 PLRCD0411 441.75 443.20 1.45 1.20 Lower 0.08 9,501 50,330 794 PLRCD0421 475.31 484.00 8.69 8.20 Upper 2.01 9,401 50,407 757 PLRCD0421 531.07 534.26 3.19 2.80 Lower 1.95 9,401 50,389 707 PLRCD0423 401.93 404.07 2.14 1.80 Upper 0.78 9,593 50,349 826 PLRCD0423 446.40 447.45 1.05 0.60 Lower 0.01 9,592 50,335 784 PLRCD105 339.50 344.00 4.50 2.70 Lower 6.53 9,684 50,326 863 PLRCD106 360.80 363.80 3.00 2.30 Lower 1.18 9,722 50,366 842 PLRCD112 405.20 407.80 2.60 0.90 Upper 0.17 9,616 50,359 804 PLRCD134 492.00 496.00 4.00 3.20 Upper 0.26 9,353 50,385 728 PLRCD134 514.50 515.40 0.90 0.80 Lower 0.04 9,356 50,383 707 PLRCD142 449.65 452.50 2.85 2.80 Upper 2.72 9,455 50,398 770 PLRCD142 479.00 480.00 1.00 0.90 Lower 2.86 9,458 50,395 741 PLRCD143 367.00 370.10 3.10 2.30 Lower 1.74 9,654 50,343 842 PLRCD351 374.55 376.75 2.20 2.00 Lower 8.31 9,701 50,351 839 PLRCD388 369.58 370.19 0.61 0.57 Lower 5.29 9,715 50,332 863 PLRCD393 410.05 412.00 1.95 1.20 Lower 0.38 9,670 50,373 809 PLDD012 605.00 607.25 2.25 2.10 Upper 1.16 9,157 50,379 665 PLDD012 613.25 614.05 0.80 0.60 Lower 1.60 9,157 50,376 658 PLDD013 647.10 653.00 5.90 1.70 Upper 4.42 9,161 50,440 591 PLDD013 687.00 687.50 0.50 0.20 Lower 3.19 9,160 50,429 555 PLDD014 541.23 548.00 6.77 6.50 Upper 5.99 9,217 50,437 705 PLDD014 580.69 583.39 2.70 2.40 Lower 0.00 9,214 50,423 671 PLDD015 587.40 590.00 2.60 1.70 Upper 6.66 9,254 50,443 656 PLDD015 623.70 653.10 29.40 3.20 Lower 1.14 9,256 50,426 609 PDU381 75.67 81.08 5.41 - Upper 33.91 9,528 50,343 829 PDU382 51.70 57.50 5.80 1.80 Upper 3.19 9,554 50,335 843 PDU382 61.70 64.60 2.90 2.30 Upper 31.27 9,551 50,336 834 PDU382 115.45 116.24 0.79 0.60 Lower 0.08 9,538 50,341 784 PDU383 81.10 102.79 21.69 2.80 Upper 1.91 9,539 50,359 813 PDU383 111.89 118.29 6.40 1.50 Upper 2.58 9,531 50,366 792 PDU383 134.89 153.05 18.16 1.90 Upper 0.44 9,523 50,375 766 PDU384 82.03 114.49 32.46 3.80 Upper 28.45 9,541 50,362 806 PDU384 126.15 131.00 4.85 1.00 Upper 0.63 9,533 50,372 779 PDU385 58.35 71.28 12.93 4.10 Upper 21.02 9,575 50,344 832 PDU441 71.58 78.97 7.39 3.40 Lower 5.26 9,707 50,349 849 PDU442 50.50 54.83 4.33 2.40 Lower 0.01 9,688 50,337 862 PDU447 90.10 92.10 2.00 0.95 Lower 0.01 9,560 50,323 829 PDU448 167.20 169.07 1.87 1.00 Lower 0.01 9,602 50,358 773 PDU449 88.06 91.54 3.48 1.50 Lower 4.94 9,586 50,328 849 PDU475 89.60 96.72 7.12 2.40 Upper 4.71 9,599 50,348 828 PDU476 94.41 96.10 1.69 1.00 Upper 3.27 9,573 50,365 807 PDU476 149.10 152.30 3.20 1.70 Lower 9.63 9,594 50,377 758 PDU477 123.40 128.80 5.40 5.00 Upper 1.33 9,533 50,379 769 PDU477 134.30 135.30 1.00 0.90 Lower 0.02 9,534 50,382 761 PDU478 101.00 108.00 7.00 0.50 Lower 0.07 9,537 50,326 830 PDU479 85.30 89.72 4.42 4.40 Upper 0.67 9,482 50,357 810 PDU479 106.55 115.30 8.75 4.40 Upper 2.49 9,488 50,360 787 PDU480 146.60 150.35 3.75 3.20 Upper 0.19 9,533 50,380 770 PDU480 165.95 169.00 3.05 1.90 Lower 4.78 9,542 50,385 754 PDU481 140.20 143.75 3.55 3.00 Upper 3.33 9,494 50,384 760 PDU481 148.00 149.05 1.05 0.90 Lower 0.39 9,495 50,385 754

Table 9: Drill hole intersections Drill Interval (m) Length (m) Domain Au Intersection mid-point

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Hole From To Down-hole True g/t mE mN mRL PDU487A 128.00 131.05 3.05 1.70 Lower 31.52 9,484 50,339 781 PDU489 155.35 157.25 1.90 1.50 Lower 0.18 9,470 50,354 745 PDU490 155.40 156.15 0.75 0.60 Lower 0.19 9,446 50,355 739 PDU491 134.00 141.20 7.20 6.20 Upper 2.20 9,469 50,376 765 PDU491 168.00 168.70 0.70 0.50 Lower 0.00 9,480 50,380 736 PDU492 117.40 119.90 2.50 1.50 Upper 4.07 9,449 50,369 778 PDU492 166.00 166.80 0.80 0.70 Lower 70.50 9,460 50,373 732 PDU494 135.80 144.00 8.20 8.00 Upper 0.86 9,438 50,379 756 PDU494 161.00 164.90 3.90 3.20 Lower 1.18 9,440 50,383 733 PDU495 132.70 139.05 6.35 6.00 Upper 0.55 9,435 50,402 765 PDU495 180.00 181.70 1.70 1.70 Lower 0.01 9,439 50,417 722 PDU496 138.90 143.14 4.24 4.00 Upper 0.41 9,429 50,393 756 PDU496 181.33 183.65 2.32 2.20 Lower 0.28 9,431 50,404 716 PDU499 153.00 158.00 5.00 4.90 Upper 0.33 9,383 50,412 751 PDU499 185.00 186.00 1.00 0.90 Lower 6.19 9,377 50,423 723 PDU499 200.82 205.00 4.18 3.70 Lower 27.78 9,374 50,429 708 PDU500 153.22 158.00 4.78 4.70 Upper 1.18 9,381 50,410 750 PDU500 182.00 184.00 2.00 1.90 Lower 1.92 9,376 50,420 725 PDU500 205.55 210.32 4.77 2.30 Lower 154.1 9,372 50,429 702 PDU500 243.50 246.40 2.90 1.50 Upper 0.01 9,365 50,442 669 PDU501 218.36 226.19 7.83 6.20 Upper 0.10 9,286 50,404 719 PDU501 244.00 246.00 2.00 1.60 Lower 0.84 9,274 50,409 701 PDU506 104.50 107.25 2.75 1.60 Lower 3.35 9,462 50,324 801 PDU507 103.80 107.25 3.45 1.90 Upper 0.85 9,433 50,346 789 PDU507 134.00 136.55 2.55 1.50 Lower 7.66 9,438 50,343 760 PDU508 105.00 109.00 4.00 3.90 Upper 0.99 9,410 50,351 787 PDU512 97.90 100.57 2.67 1.80 Lower 0.26 9,430 50,326 800 PDU523 113.43 114.10 0.67 0.40 Lower 2.36 9,481 50,318 805 PDU525 104.65 108.95 4.30 2.20 Lower 5.08 9,427 50,332 790 PDU527 102.43 105.47 3.04 2.00 Upper 1.50 9,405 50,349 791 PDU527 151.16 152.23 1.07 0.30 Lower 22.39 9,399 50,346 743 PDU528 120.40 124.37 3.97 2.30 Upper 6.07 9,385 50,354 775 PDU528 143.47 150.26 6.79 2.40 Upper 1.41 9,380 50,354 751 PDU528 178.08 178.80 0.72 0.60 Lower 6.56 9,372 50,353 720 PDU530 152.60 158.75 6.15 5.30 Upper 2.77 9,357 50,359 750 PDU531 163.00 167.00 4.00 2.80 Upper 2.60 9,333 50,357 752 PDU531 177.00 178.28 1.28 1.10 Lower 0.02 9,327 50,357 741 PDU553 114.00 117.33 3.33 0.90 Lower 0.29 9,529 50,324 824 PDU555 91.72 93.67 1.95 1.20 Upper 1.29 9,515 50,337 833 PDU556 78.50 81.70 3.20 2.10 Upper 3.58 9,492 50,345 828 PDU557 74.67 76.92 2.25 1.70 Upper 1.46 9,478 50,345 825 PDU588 40.37 44.00 3.63 3.60 Upper 3.63 9,548 50,345 831 PDU589 39.70 40.94 1.24 0.80 Lower 0.19 9,540 50,331 836 PDU590 44.40 46.00 1.60 1.20 Upper 0.27 9,523 50,335 833 PDU591 43.22 45.00 1.78 1.78 Upper 8.83 9,539 50,350 829 PDU592 49.40 54.80 5.40 3.90 Upper 8.56 9,514 50,344 827 PDU593 44.60 46.00 1.40 1.20 Upper 8.56 9,530 50,350 828 PDU594 109.63 112.00 2.37 1.20 Lower 7.11 9,468 50,326 794 PDU596 101.08 102.52 1.44 0.70 Lower 1.88 9,447 50,325 798 PDU602 107.20 108.45 1.25 1.00 Lower 4.76 9,405 50,336 789 PDU678 35.42 40.00 4.58 2.20 Upper 3.03 9,587 50,343 839 PDU679 30.75 32.81 2.06 1.10 Upper 14.42 9,596 50,337 852 PDU679 43.00 44.00 1.00 0.80 Lower 0.00 9,602 50,333 843 PDU681 35.81 40.00 4.19 1.70 Upper 0.08 9,605 50,338 850 PDU681 52.70 54.59 1.89 0.60 Lower 0.08 9,615 50,334 839 PDU682 38.70 40.50 1.80 1.60 Upper 1.34 9,602 50,341 844 PDU682 68.10 71.15 3.05 2.10 Lower 2.88 9,619 50,335 821 PDU701 63.95 78.40 14.45 5.90 Upper 2.67 9,558 50,353 821 PDU701 148.90 153.25 4.35 4.35 Lower 3.68 9,630 50,335 791

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Table 9: Drill hole intersections Drill Interval (m) Length (m) Domain Au Intersection mid-point Hole From To Down-hole True g/t mE mN mRL PDU702 57.55 65.07 7.52 1.70 Upper 2.73 9,547 50,356 818 PDU702 137.68 142.53 4.85 2.40 Lower 1.39 9,615 50,339 783 PDU703 52.01 58.49 6.48 3.00 Upper 1.49 9,534 50,360 808 PDU703 101.79 102.54 0.75 0.70 Lower 0.46 9,567 50,353 775 PDU704 47.17 53.90 6.73 2.70 Upper 0.18 9,519 50,364 803 PDU704 89.00 90.40 1.40 1.00 Lower 0.07 9,542 50,358 772 PDU706 77.00 79.30 2.30 0.94 Upper 2.34 9,560 50,363 805 PDU706 142.00 143.80 1.80 1.10 Lower 0.00 9,615 50,359 771 PDU722 123.00 124.78 1.78 0.90 Lower 0.03 9,379 50,341 776 PDU725 323.00 325.18 2.18 1.40 Lower 0.02 9,199 50,353 654 PDU726 212.49 216.70 4.21 3.80 Upper 0.46 9,305 50,396 714 PDU726 231.60 234.26 2.66 1.80 Lower 0.04 9,297 50,399 698 PDU726 334.73 345.00 10.27 4.30 Lower 3.96 9,250 50,423 605 PDU726 404.90 413.35 8.45 1.70 Upper 0.16 9,221 50,441 545 PDU727 156.73 160.00 3.27 2.90 Upper 0.14 9,369 50,415 753 PDU727 187.00 188.68 1.68 1.50 Lower 0.28 9,362 50,427 727 PDU727 197.76 203.56 5.80 2.20 Lower 37.20 9,358 50,432 716 PDU727 217.32 224.82 7.50 - Upper 8.15 9,353 50,440 698 PDU736 0.00 2.00 2.00 - Upper 4.17 9,552 50,336 843 PDU736 7.45 11.00 3.55 1.70 Upper 7.84 9,555 50,336 835 PDU736 47.00 48.60 1.60 1.50 Lower 0.74 9,568 50,337 799 PDU737 61.00 66.80 5.80 1.80 Lower 23.88 9,613 50,334 797 PDU738 41.87 43.73 1.86 0.10 Lower 0.01 9,613 50,334 845 PDU740 17.00 24.86 7.86 1.60 Upper 0.27 9,590 50,341 844 PDU742 0.00 3.45 3.45 - Upper 0.01 9,572 50,334 845 PDU742 18.00 21.56 3.56 1.50 Lower 2.68 9,588 50,328 849 PDU756 42.92 44.28 1.36 0.60 Lower 17.94 9,430 50,322 806 PDU756 87.40 96.57 9.17 - Upper 3.07 9,394 50,349 787 PDU775 146.00 149.00 3.00 2.40 Lower 0.99 9,361 50,344 758 PDU776 141.00 145.45 4.45 1.80 Upper 0.66 9,357 50,349 765 PDU776 157.70 159.95 2.25 1.40 Lower 1.71 9,351 50,348 750 PDU777 141.28 148.22 6.94 2.22 Upper 2.01 9,371 50,354 757 PDU778 168.50 173.55 5.05 4.70 Upper 1.07 9,362 50,364 732 PDU778 180.50 181.90 1.40 1.10 Lower 0.13 9,359 50,365 722 PDU779 201.00 203.00 2.00 1.90 Upper 0.01 9,334 50,371 711 PDU779 210.17 213.17 3.00 2.80 Lower 1.73 9,330 50,372 702 PDU780 200.20 202.50 2.30 2.10 Upper 0.89 9,334 50,373 712 PDU781 162.64 169.46 6.82 5.70 Upper 0.60 9,376 50,366 733 PDU781 186.00 187.27 1.27 1.10 Lower 0.01 9,371 50,367 713 PDU782 161.05 165.00 3.95 3.80 Upper 15.22 9,386 50,365 734 PDU782 181.00 182.32 1.32 1.10 Lower 2.06 9,382 50,366 716 PDU797 36.20 44.00 7.80 4.80 Upper 1.81 9,488 50,352 815 PDU797 75.10 75.90 0.80 0.70 Lower 4.93 9,505 50,334 790 PDU798 47.07 50.45 3.38 2.60 Upper 0.11 9,500 50,350 815 PDU799 54.52 61.00 6.48 1.80 Upper 7.34 9,503 50,364 798 PDU799 96.51 99.16 2.65 1.90 Lower 3.36 9,526 50,358 766 PDU800 109.40 113.00 3.60 2.50 Upper 0.02 9,563 50,379 786 PDU800 117.60 127.90 10.30 3.10 Upper 0.01 9,572 50,380 778 PDU801 103.73 108.00 4.27 1.40 Upper 0.18 9,552 50,377 779 PDU801 131.00 133.30 2.30 1.60 Lower 13.72 9,572 50,380 762 PDU802 96.40 104.90 8.50 4.00 Upper 0.39 9,535 50,380 768 PDU802 118.86 123.77 4.91 3.30 Lower 2.60 9,547 50,382 752 PDU803 96.85 102.90 6.05 4.70 Upper 8.60 9,532 50,389 768 PDU803 121.74 124.70 2.96 1.10 Lower 1.33 9,547 50,393 750 PDU804 90.65 93.00 2.35 2.10 Upper 0.01 9,515 50,389 766 PDU804 93.80 96.00 2.20 1.60 Lower 0.48 9,517 50,390 763 PDU805 77.90 84.89 6.99 6.40 Upper 0.32 9,490 50,394 768 PDU805 113.00 115.00 2.00 0.90 Lower 3.64 9,497 50,403 738 PDU805 118.00 127.85 9.85 1.70 Lower 0.34 9,499 50,406 729

INTREPID MINES LIMITED PAGE 29 INTREPID MINES LIMITED , JANUARY 2010 MINERAL RESOURCE ESTIMATES , AUSTRALIA

Table 9: Drill hole intersections Drill Interval (m) Length (m) Domain Au Intersection mid-point Hole From To Down-hole True g/t mE mN mRL PDU806 78.80 86.14 7.34 1.70 Upper 0.07 9,481 50,395 765 PDU806 125.63 128.36 2.73 1.80 Lower 0.26 9,487 50,407 723 PDU807A 75.05 80.00 4.95 4.20 Upper 0.23 9,477 50,400 771 PDU807A 115.04 122.00 6.96 6.60 Lower 7.66 9,481 50,414 733 PDU808 83.60 87.60 4.00 4.00 Upper 0.60 9,470 50,390 760 PDU808 113.65 115.00 1.35 1.20 Lower 16.92 9,471 50,395 731 PDU809 81.35 87.00 5.65 5.30 Upper 0.31 9,456 50,395 763 PDU809 129.00 132.15 3.15 2.00 Lower 0.14 9,452 50,407 718 PDU872 62.00 68.00 6.00 0.80 Upper 2.92 9,429 50,346 792 PDU872 76.00 79.00 3.00 - Upper 13.14 9,423 50,355 785 PDU878 0.00 1.19 1.19 - Lower 0.13 9,618 50,335 845 PDU897 43.60 48.05 4.45 2.40 Upper 1.78 9,517 50,351 820 PDU898 33.40 40.10 6.70 4.10 Upper 1.71 9,506 50,350 817 PDU899A 29.30 31.40 2.10 1.50 Upper 0.48 9,496 50,352 810 PDU900 18.50 21.30 2.80 2.70 Upper 0.27 9,475 50,350 815 PDU906 8.65 12.55 3.90 2.60 Upper 1.68 9,559 50,350 823 PDU907 7.20 14.30 7.10 5.60 Upper 2.75 9,565 50,348 826 PDU908 13.00 18.65 5.65 3.02 Upper 8.75 9,574 50,345 831 PDU909 15.56 16.90 1.34 0.70 Upper 9.79 9,574 50,347 823 PDU909 31.48 32.30 0.82 0.40 Upper 3.53 9,587 50,355 820 PDU910 237.00 240.00 3.00 2.90 Upper 45.71 9,276 50,380 705 PDU910 253.80 258.00 4.20 3.90 Upper 0.01 9,267 50,383 689 PDU910 265.00 266.40 1.40 1.10 Lower 0.02 9,263 50,385 681 PDU911 220.48 224.71 4.23 3.40 Upper 3.05 9,289 50,408 717 PDU911 254.17 255.17 1.00 0.80 Lower 0.13 9,272 50,416 691 PDU911 315.90 321.29 5.39 2.40 Lower 5.39 9,238 50,433 640 PDU911 380.00 381.47 1.47 1.00 Upper 4.70 9,206 50,451 589 PDU912 189.25 191.50 2.25 1.80 Upper 13.29 9,331 50,413 734 PDU912 213.40 214.40 1.00 0.96 Lower 2.43 9,321 50,421 714 PDU912 236.00 238.80 2.80 0.84 Lower 2.54 9,311 50,429 694 PDU912 284.85 291.45 6.60 2.90 Upper 0.31 9,290 50,446 651 PDU913A 153.00 159.00 6.00 5.60 Upper 4.25 9,381 50,413 752 PDU914 140.96 146.93 5.97 4.10 Upper 5.15 9,429 50,412 759 PDU914 176.29 177.00 0.71 0.60 Lower 2.20 9,431 50,425 729 PDU914 191.68 196.77 5.09 4.50 Lower 0.55 9,432 50,431 713 PDU914 218.00 221.00 3.00 1.80 Upper 0.07 9,433 50,441 690 PDU916 66.67 68.70 2.03 1.80 Lower 6.91 9,450 50,331 791 PDU917 71.50 72.33 0.83 0.80 Lower 8.10 9,460 50,334 782 PDU918 58.10 61.00 2.90 1.50 Upper 7.15 9,422 50,344 797 PDU918 72.42 73.80 1.38 1.20 Lower 3.17 9,417 50,333 791 PDU919 62.00 64.00 2.00 1.60 Upper 1.58 9,421 50,345 789 PDU919 75.00 76.70 1.70 1.30 Lower 0.97 9,417 50,336 782 PDU920 57.00 60.00 3.00 2.70 Upper 1.67 9,427 50,354 784 PDU920 78.00 79.30 1.30 0.90 Lower 0.41 9,421 50,342 769 PDU921 57.30 63.00 5.70 5.30 Upper 1.63 9,422 50,354 785 PDU921 79.40 80.00 0.60 0.30 Lower 3.14 9,415 50,341 771 PDU922 82.00 89.00 7.00 6.40 Upper 0.90 9,429 50,361 747 PDU922 101.00 102.95 1.95 1.70 Lower 0.08 9,425 50,355 732 PDU923 63.00 67.55 4.55 2.70 Upper 1.46 9,431 50,353 774 PDU923 80.00 82.00 2.00 1.40 Lower 1.14 9,427 50,344 762 PDU924 93.56 98.00 4.44 3.50 Upper 0.50 9,412 50,364 739 PDU924 109.00 110.84 1.84 1.50 Lower 0.06 9,407 50,360 727 PDU925 95.00 101.00 6.00 2.50 Upper 0.03 9,607 50,371 783 PDU925 122.00 123.22 1.22 1.00 Lower 0.00 9,607 50,376 759 PDU926 124.00 125.40 1.40 0.95 Lower 13.97 9,622 50,380 758 PDU928 96.80 99.85 3.05 1.90 Lower 0.93 9,689 50,369 820 PDU929 72.52 76.36 3.84 2.10 Lower 3.37 9,656 50,360 820 PDU930A 57.26 58.90 1.64 1.05 Upper 4.35 9,627 50,355 824 PDU930A 104.20 106.40 2.20 2.10 Lower 0.08 9,639 50,357 778

INTREPID MINES LIMITED PAGE 30 INTREPID MINES LIMITED , JANUARY 2010 MINERAL RESOURCE ESTIMATES , AUSTRALIA

Table 9: Drill hole intersections Drill Interval (m) Length (m) Domain Au Intersection mid-point Hole From To Down-hole True g/t mE mN mRL PDU931 65.00 68.00 3.00 2.10 Lower 32.25 9,656 50,350 831 PDU932 48.14 53.55 5.41 1.80 Upper 0.15 9,622 50,353 830 PDU932 102.05 103.95 1.90 1.60 Lower 3.60 9,632 50,353 779 PDU936 38.00 39.00 1.00 0.60 Upper 0.01 9,617 50,338 845 PDU936 42.90 44.80 1.90 0.70 Lower 0.10 9,617 50,336 840 PDU937 42.00 43.92 1.92 1.60 Upper 0.00 9,605 50,344 838 PDU937 91.34 94.18 2.84 1.50 Lower 0.25 9,602 50,336 789 PDU948 59.80 60.65 0.85 0.55 Lower 0.01 9,567 50,320 812 PDU948 109.00 111.10 2.10 1.90 Upper 2.65 9,600 50,358 812 PDU950 103.25 105.60 2.35 1.20 Upper 0.45 9,571 50,368 795 PDU952 94.20 98.00 3.80 1.10 Lower 1.21 9,552 50,358 770 PDU956 42.40 43.76 1.36 1.10 Lower 0.42 9,525 50,317 812 PDU957 48.10 49.44 1.34 0.50 Lower 10.09 9,518 50,322 805 PDU957 87.00 89.65 2.65 2.10 Upper 7.05 9,513 50,361 802 PDU958 54.80 56.20 1.40 0.95 Lower 6.45 9,512 50,327 798 PDU958 93.00 93.95 0.95 0.90 Upper 0.00 9,503 50,363 791 PDU959 46.46 48.30 1.84 1.50 Lower 0.28 9,513 50,318 823 PDU960 51.90 52.26 0.36 0.30 Lower 0.14 9,506 50,321 822 PDU961 61.44 63.28 1.84 1.20 Lower 0.47 9,504 50,330 794 PDU961 92.45 99.63 7.18 4.40 Upper 5.04 9,493 50,361 785 PDU962 52.70 54.20 1.50 - Upper 2.07 9,593 50,349 829 PDU973 163.60 166.70 3.10 2.80 Upper 1.80 9,359 50,411 747 PDU973 197.15 198.40 1.25 1.00 Lower 0.01 9,348 50,422 718 PDU973 212.00 213.50 1.50 1.30 Lower 141.0 9,343 50,426 705 PDU973 267.00 274.05 7.05 3.70 Upper 0.01 9,324 50,445 654 PDU974 170.80 173.85 3.05 2.60 Upper 2.83 9,356 50,405 739 PDU974 221.30 224.06 2.76 1.50 Lower 0.01 9,340 50,420 694 PDU974 274.60 281.08 6.48 6.00 Upper 0.11 9,322 50,438 645 PDU975 169.00 181.70 12.70 - Upper 7.34 9,398 50,438 738 PDU987 165.00 167.00 2.00 1.80 Upper 1.74 9,370 50,399 740 PDU987 196.47 198.45 1.98 1.60 Lower 0.22 9,363 50,407 710 PDU987 291.13 292.86 1.73 0.70 Lower 0.46 9,341 50,433 622 PDU988 66.10 70.70 4.60 4.20 Upper 0.80 9,422 50,360 769 PDU991 60.93 65.93 5.00 2.60 Upper 3.23 9,408 50,354 790 PDU991 83.04 85.40 2.36 1.40 Lower 3.97 9,396 50,342 778 PDU993 79.67 82.00 2.33 1.50 Upper 0.67 9,396 50,353 775 PDU993 91.65 95.20 3.55 1.40 Lower 2.59 9,388 50,347 767 PDU999 70.90 74.80 3.90 3.20 Upper 4.46 9,418 50,379 759 PDU999 118.05 120.55 2.50 2.00 Lower 0.03 9,400 50,370 717 PDU1000 107.35 110.70 3.35 2.40 Upper 0.46 9,390 50,364 736 PDU1000 129.00 130.80 1.80 1.30 Lower 0.10 9,379 50,359 719 PDU1004 89.17 92.34 3.17 2.70 Upper 0.53 9,391 50,388 753 PDU1004 144.00 146.28 2.28 1.80 Lower 2.25 9,360 50,386 708 PDU1006 80.43 84.00 3.57 3.20 Upper 1.08 9,409 50,391 752 PDU1006 127.91 129.61 1.70 1.50 Lower 0.07 9,389 50,391 710 PDU1008 66.70 74.70 8.00 4.80 Upper 0.18 9,429 50,411 759 PDU1008 102.80 103.95 1.15 1.00 Lower 0.00 9,421 50,420 728 PDU1008 121.45 123.00 1.55 0.80 Lower 0.20 9,416 50,425 711 PDU1010 65.50 67.85 2.35 1.80 Upper 0.86 9,464 50,406 761 PDU1010 96.00 97.00 1.00 1.00 Lower 5.29 9,470 50,413 733 PDU1011 37.28 38.27 0.99 0.50 Lower 16.70 9,474 50,325 796 PDU1012 58.83 63.47 4.64 2.00 Lower 33.67 9,457 50,341 771 PDU1014 31.47 32.18 0.71 0.40 Lower 0.25 9,483 50,326 795 PDU1015 49.92 53.11 3.19 1.70 Lower 5.16 9,470 50,341 775 PDU1016 58.66 59.31 0.65 0.50 Lower 0.01 9,479 50,349 757 PDU1020 22.14 24.08 1.94 1.70 Upper 6.11 9,476 50,362 788 PDU1021 24.67 28.60 3.93 3.20 Upper 1.53 9,475 50,365 780

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Table 9: Drill hole intersections Drill Interval (m) Length (m) Domain Au Intersection mid-point Hole From To Down-hole True g/t mE mN mRL PDU1022 41.00 44.00 3.00 1.60 Upper 0.31 9,503 50,363 767 PDU1022 58.58 61.00 2.42 2.10 Upper 0.09 9,503 50,379 761 PDU1022 80.00 80.63 0.63 0.50 Lower 0.00 9,503 50,398 753 PDU1022 86.46 89.70 3.24 1.00 Lower 7.96 9,502 50,405 750 PDU1022 97.00 103.96 6.96 3.20 Upper 25.00 9,502 50,417 745 PDU1023 48.30 52.70 4.40 2.10 Upper 0.82 9,517 50,371 771 PDU1023 67.50 69.00 1.50 1.40 Upper 0.44 9,521 50,388 767 PDU1023 73.00 76.00 3.00 1.70 Upper 20.47 9,522 50,394 765 PDU1027 83.00 84.40 1.40 0.94 Upper 0.01 9,566 50,380 785 PDU1030 58.05 61.40 3.35 1.10 Lower 5.95 9,449 50,329 793 PDU1030 86.00 90.50 4.50 1.70 Upper 0.39 9,425 50,343 797 PDU1031 48.80 52.00 3.20 1.60 Lower 7.43 9,459 50,327 792 PDU1032 35.15 36.05 0.90 0.60 Lower 0.07 9,480 50,330 791 PDU1033 94.70 96.80 2.10 1.20 Lower 2.18 9,603 50,332 791 PDU1034 100.30 104.00 3.70 2.40 Lower 12.86 9,614 50,330 801 PDU1041 83.70 85.00 1.30 0.90 Lower 0.12 9,512 50,365 749 PDU1041 97.54 99.88 2.34 1.50 Lower 0.00 9,503 50,375 744 PDU1041 131.00 132.00 1.00 0.50 Lower 10.65 9,483 50,398 732 PDU1041 149.00 150.00 1.00 0.70 Lower 0.10 9,472 50,411 726 PDU1041 172.80 175.90 3.10 1.50 Lower 2.35 9,457 50,428 717 PDU1041 183.90 191.00 7.10 4.30 Upper 15.54 9,449 50,438 713 PDU1042 196.60 198.00 1.40 1.00 Lower 0.03 9,464 50,447 686 PDU1042 200.90 202.00 1.10 0.60 Upper 0.21 9,463 50,450 684 PDU1043 74.84 77.00 2.16 0.90 Lower 2.38 9,527 50,368 756 PDU1043 90.00 90.80 0.80 0.60 Lower 0.01 9,519 50,379 751 PDU1043 122.00 124.00 2.00 1.40 Lower 0.07 9,503 50,406 741 PDU1043 153.20 156.80 3.60 2.60 Upper 45.18 9,488 50,432 731 PDU1044A 114.26 116.40 2.14 0.90 Lower 24.04 9,519 50,403 736 PDU1045 34.93 36.00 1.07 0.83 Lower 3.46 9,557 50,340 792 PDU1045 58.10 65.12 7.02 6.20 Upper 0.14 9,548 50,364 799 PDU1046 103.00 103.50 0.50 0.25 Lower 5.32 9,540 50,399 739 PDU1046 118.00 121.30 3.30 1.90 Upper 0.03 9,536 50,413 733 PDU1047 106.00 108.00 2.00 1.20 Lower 12.80 9,558 50,405 735 PDU1047 113.00 116.55 3.55 1.40 Upper 0.03 9,557 50,412 732 PDU1048 80.85 94.80 13.95 5.10 Lower 33.55 9,575 50,390 749 PDU1049A 37.54 38.30 0.76 0.56 Lower 1.19 9,586 50,343 779 PDU1050 85.27 86.10 0.83 0.83 Lower 4.75 9,437 50,338 771 PDU1050 135.00 143.40 8.40 5.10 Upper 0.99 9,430 50,388 754 PDU1050 182.14 201.41 19.27 3.50 Upper 5.54 9,423 50,438 739 PDU1051 100.46 101.00 0.54 0.30 Lower 0.19 9,415 50,341 754 PDU1051 128.84 133.36 4.52 2.10 Upper 0.16 9,405 50,366 741 PDU1051 191.64 192.00 0.36 0.30 Lower 0.01 9,386 50,417 715 PDU1051 210.60 211.30 0.70 0.60 Lower 3.73 9,380 50,434 707 PDU1051 217.20 218.55 1.35 1.10 Upper 0.25 9,378 50,440 704 PDU1052 117.75 120.00 2.25 1.40 Lower 10.32 9,392 50,345 744 PDU1052 140.00 149.70 9.70 4.90 Upper 1.37 9,380 50,365 732 PDU1052 192.20 193.70 1.50 0.70 Lower 0.14 9,358 50,402 711 PDU1052 221.00 225.00 4.00 2.00 Lower 85.08 9,345 50,425 698 PDU1052 256.00 258.80 2.80 2.30 Upper 0.20 9,330 50,452 682 PDU1053 247.90 252.90 5.00 4.00 Lower 4.50 9,341 50,434 660 PDU1053 266.00 266.93 0.93 0.60 Upper 0.10 9,336 50,447 653 PDU1055A 181.28 187.05 5.77 - Lower 0.31 9,307 50,350 731 PDU1055A 273.45 278.36 4.91 1.50 Upper 0.88 9,240 50,402 698 PDU1055A 338.24 349.68 11.44 7.40 Upper 0.47 9,193 50,445 673 PDU1056 36.86 37.40 0.54 0.50 Lower 8.62 9,584 50,339 799 PDU1070A 271.67 274.38 2.71 2.20 Lower 1.64 9,287 50,425 659 PDU1070A 304.43 305.18 0.75 0.70 Upper 4.51 9,271 50,448 645 PDU1072 89.75 91.70 1.95 1.20 Upper 82.63 9,355 50,428 734 PDU1072 109.90 111.30 1.40 1.00 Lower 0.03 9,347 50,421 717

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Table 9: Drill hole intersections Drill Interval (m) Length (m) Domain Au Intersection mid-point Hole From To Down-hole True g/t mE mN mRL PDU1073 107.60 121.10 13.50 5.30 Upper 4.31 9,352 50,441 705 PDU1075 67.30 74.10 6.80 6.00 Upper 29.41 9,387 50,426 744 PDU1075 107.00 108.90 1.90 1.20 Lower 0.04 9,382 50,411 711 PDU1078 60.12 62.44 2.32 1.90 Upper 12.58 9,429 50,426 755 PDU1078 109.82 113.53 3.71 3.20 Lower 0.14 9,435 50,401 712 PDU1079 66.70 71.52 4.82 3.90 Upper 2.96 9,446 50,422 754 PDU1079 105.00 108.00 3.00 2.40 Lower 0.27 9,459 50,403 724 PDU1080 70.45 77.00 6.55 5.00 Upper 20.14 9,465 50,423 760 PDU1091 78.20 82.80 4.60 3.40 Upper 43.23 9,476 50,426 758 PDU1092 68.00 74.00 6.00 5.30 Upper 38.70 9,441 50,430 745 PDU1092 85.79 87.48 1.69 1.10 Lower 7.97 9,446 50,425 731 PDU1093 68.88 72.43 3.55 2.70 Upper 13.21 9,426 50,436 740 PDU1093 76.70 79.83 3.13 1.40 Lower 4.55 9,427 50,434 733 PDU1094 60.20 63.05 2.85 2.80 Upper 3.81 9,416 50,426 754 PDU1094 105.66 109.00 3.34 2.30 Lower 0.07 9,425 50,405 714 PDU1095 66.95 71.00 4.05 3.90 Upper 17.31 9,411 50,432 743 PDU1095 85.00 86.00 1.00 0.85 Lower 0.00 9,412 50,427 727 PDU1096 66.00 69.00 3.00 3.00 Upper 53.51 9,405 50,436 742 PDU1096 77.00 80.93 3.93 0.90 Lower 0.71 9,406 50,434 731 PDU1096 101.48 106.33 4.85 1.00 Lower 0.20 9,406 50,428 707 PDU1097 66.77 69.95 3.18 2.70 Upper 55.21 9,391 50,435 743 PDU1097 85.43 87.61 2.18 1.20 Lower 0.18 9,388 50,430 725 PDU1098 69.95 73.00 3.05 2.30 Upper 63.39 9,381 50,439 741 PDU1098 109.00 127.05 18.05 2.40 Lower 29.03 9,368 50,429 697 PDU1099 113.88 121.13 7.25 4.50 Upper 3.96 9,342 50,440 707 PDU1100 114.22 124.13 9.91 7.30 Upper 24.86 9,327 50,432 717 PDU1100 130.00 132.83 2.83 1.70 Lower 15.38 9,320 50,429 707 PDU1101 127.30 133.14 5.84 4.20 Upper 19.44 9,308 50,428 720 PDU1102 137.82 141.34 3.52 2.10 Upper 10.67 9,297 50,435 717 PDU1102 171.74 172.28 0.54 0.35 Lower 0.15 9,274 50,431 694 PDU1103 139.00 143.00 4.00 1.90 Upper 77.53 9,302 50,441 708 PDU1103 173.22 179.00 5.78 1.10 Lower 15.61 9,278 50,438 682 PDU1103 231.00 259.86 28.86 2.30 Lower 30.96 9,232 50,433 631 PDU1104 120.38 123.00 2.62 2.20 Upper 12.31 9,324 50,438 714 PDU1105A 160.40 164.50 4.10 2.40 Upper 68.64 9,265 50,435 720 PDU1106 149.00 171.41 22.41 3.80 Upper 15.65 9,286 50,444 696 PDU1107 122.00 124.00 2.00 2.00 Upper 0.00 9,415 50,361 742 PDU1107 200.80 202.00 1.20 1.00 Lower 0.01 9,396 50,428 706 PDU1107 212.60 214.15 1.55 1.30 Upper 0.57 9,393 50,438 700 PDU1108 120.70 126.70 6.00 1.30 Lower 5.29 9,417 50,357 732 PDU1108 136.00 139.65 3.65 1.50 Lower 0.00 9,414 50,368 724 PDU1108 162.00 164.00 2.00 1.80 Lower 3.35 9,408 50,388 711 PDU1108 215.25 216.00 0.75 0.65 Lower 0.02 9,397 50,431 682 PDU1108 226.40 227.40 1.00 0.90 Upper 3.54 9,394 50,440 675 PDU1109 122.26 127.14 4.88 2.60 Upper 36.82 9,323 50,441 711

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15 SAMPLING PREPARATION, ANALYSES AND SECURITY

15.1 Introduction and summary This section describes sample preparation, analysis and security for the recent Intrepid assaying that provides the majority of data for the current resource estimates. Previous Technical reports for the Paulsens project provide a description of earlier sampling phases. All analyses of Intrepid's recent diamond core samples were undertaken by ALS Chemex – Australian Laboratory Services Pty Limited(ALS). Sample preparation is undertaken at ALS in Karatha, and the prepared samples are sent to ALS laboratory in Perth, for analysis. ALS Chemex in Perth have AS/NZS ISO 9001:2000 certification. This does not cover the sample preparation facilities in Karratha. However the Karatha laboratory follows the same quality management system and although they are not audited by NCSI are audited internally. Data available to demonstrate the quality of the ALS assaying of Intrepid drill samples comprises submitted and internal laboratory reference standards, submitted coarse blanks, laboratory internal analytical blanks and laboratory repeat analyses. As described in the following sections, although the assay repeatability is highly variable reflecting the distribution of gold at Paulsens, both sets of standards assays show that the ALS assaying is free of any significant analytical bias. Paulsens remote location and access that is restricted to Intrepid staff ensures the security of samples before they are transported to Nanutarra Roadhouse by Intrepid staff, and then to the assay laboratory in Karatha by courier. The report author considers that the sampling preparation, security and analytical procedures are adequate to form the basis of the current estimates.

15.2 Sample preparation and analyses Core sampling is undertaken at the Paulsens Mine Property by Intrepid field staff under the supervision and direction of Intrepid geologists. Sample intervals are marked and for LTK48 sized core whole core samples are collected. NQ2 sized core is halved with a diamond saw, and half core samples are collected with the remaining half core retained. Core samples are collected in labelled calico sample bags, which are placed into larger, heavy duty plastic bags for transport to the ALS laboratory in Karatha. All sample preparation is undertaken by ALS staff. With the exception of the initial sample collection on site, no aspect of the sample preparation is undertaken by an employee, officer, director or associate of Intrepid. Upon receipt by ALS in Karatha the core samples are dried, weighed and crushed to are weighed and crushed to 70% passing -6 mm mesh. The crushed material is split and a portion is pulverised. A 100 gram pulp is sent to ALS Perth, Western Australia for assay. A 30 gram portion of the pulp is treated by Fire Assay method with atomic absorption finish (Au-AA25). A second pulp sample split (150- 200 gram) is kept in Karratha. Sample rejects are discarded after 90 days. Over limit samples (>100 ppm Au) are re-analysed using ALS’ dilution method (Au-DIL). 15.3 Quality control for gold analysis 15.3.1 Submitted blind standards Diamond core sample submissions to the assay laboratory routinely include samples of certified reference standards. These samples are submitted as blind standards without identification of the standard value to the laboratory.

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Table 10 summarises assay results for blind standards associated with Intrepid drill holes included in the current estimate. This table demonstrates that assay results for blind standards generally closely match expected value and show a lack of consistent bias in the ALS fire assays. Table 10: Blind standards results for Voyager drilling Standard Expected Assay Results (Au g/t) Average Assay/ Value Au g/t No. Min Avg Max Expected Value SE44 0.606 26 0.51 0.61 0.65 100% SF23 0.831 29 0.77 0.83 0.90 100% SI25 1.801 23 1.69 1.81 1.92 100% SJ22 2.604 17 2.23 2.65 2.82 102% SL20 5.911 21 5.42 6.00 6.67 101% SP27 18.1 41 16.25 18.1 19.30 100%

15.3.2 Submitted blank samples Diamond core sample submissions to the assay laboratory routinely include samples of geologically identified barren core such as un-mineralized gabbro or sediment collected from away from the mineralized zone. These samples are submitted as blind blanks without identification of their status to the laboratory. Table 11 and Figure 13 summarise assay results for submitted blank samples associated with 2008 and 2009 Intrepid drill holes included in the current estimate. In this table and figure samples assaying at below the detection limit of 0.01 g/t are entered as 0.005 g/t. Figure 13 shows blank assay results plotted against sample identifier which provides an indication of assay date. This table and figure demonstrate that assay results for the blank samples are dominantly very low grade with no indication of significant contamination or misallocation of samples Table 11: Blank results for Voyager drilling Number 137 Average 0.02 g/t Maximum 0.22 g/t Proportion at detection limit 57% Proportion >0.01 21% Proportion >0.02 14% Proportion >0.05 5% Proportion >0.1 3%

0.25

0.20

0.15 /t g u A 0.10

0.05

0.00 5 9 2 3 5 4 1 9 0 7 3 2 2 6 8 1 8 5 3 5 4 2 6 8 1 6 7 3 9 8 7 2 6 4 4 1 0 0 2 6 3 8 9 1 6 0 3 5 6 7 8 9 1 2 3 4 4 5 5 6 6 6 6 6 6 6 7 7 7 7 P P P P P P P P P P P P P P Sample ID

Figure 12: Submitted blank assay results versus sample identifier

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15.3.3 Laboratory internal standards Analytical results reported by ALS routinely include results for the laboratories internal reference standards which are sourced from commercial suppliers. Table 12 summarises assay results for laboratory internal standards for batches of Paulsens assays submitted during 2009. This period was selected to provide an indication of assay laboratory performance during the period covering the majority of assaying included in the current model. Consistent with Intrepid's blind standards (Section 15.3.1), assay results for ALS internal standards generally closely match expected value and show a lack of consistent bias in the ALS fire assays. Table 12: ALS internal standards for 2009 Standard Expected Assay Results (Au g/t) Average Assay/ Value Au g/t No. Minimum Average Maximum Expected Value OXD73 0.416 11 0.40 0.42 0.44 101.0% SE44 0.606 36 0.57 0.61 0.68 101.0% Si42 1.761 408 1.50 1.78 1.92 100.9% SJ39 2.641 100 2.48 2.64 2.77 100.1% ST-432 6.770 428 6.13 6.85 7.47 101.1% ST-448 13.29 130 12.05 13.4 14.15 100.8%

15.3.4 Laboratory internal analytical blanks Analytical results reported by ALS routinely include results for the laboratories internal analytical blank analyses. Table 13 summarises assay results for these analytical blanks for batches of Paulsens assays submitted during 2009. This period was selected to provide an indication of assay laboratory performance during the period covering the majority of assaying included in the current model. The analytical blanks show consistently low gold grades, with 95% of samples reporting at below the detection limit of 0.01 g/t, and 5% reporting a value of 0.01 g/t. Table 13: ALS internal blanks for 2009 Month Number of Assays Proportion of assays Below Detection 0.01 g/t Total Below Detection 0.01 g/t <0.01 <0.01 January 38 - 38 100% - February 29 3 32 91% 9% March 29 2 31 94% 6% April 65 - 65 100% - May 57 - 57 100% - June 56 3 59 95% 5% July 72 4 76 95% 5% August 79 13 92 86% 14% September 62 1 63 98% 2% October 38 4 42 90% 10% November 12 - 12 100% - Total 537 30 567 95% 5% 15.3.5 Laboratory internal repeats ALS internal laboratory repeat assays for assay results from Intrepid's Voyager resource drilling are summaries in Table 14 and Figure 13 . The considerable scatter shown by repeat analyses of pulverised sample material reflects the highly variable distribution of gold mineralization at Paulsens.

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Table 14: ALS internal repeats Voyager resource drilling Full dataset 0.1 to 50 g/t Au Repeat Au g/t Original Au g/t Original Au g/t Repeat Au g/t Number 153 101 Mean 13.53 13.96 7.26 7.53 Variance 1,286 1,678 105.6 123.2 Coef. Variance 2.65 2.93 1.42 1.47 Minimum 0.00 0.01 0.11 0.10 1st Quartile 0.13 0.17 0.58 0.39 Median 0.99 0.76 1.79 1.90 3rd Quartile 10.05 9.02 10.55 9.46 Maximum: 247.0 369.7 46.80 49.80 Pearson 0.94 0.80 Spearman 0.85 0.77

Scatter Plot Full dataset Scatter Plot <50 g/t Au

400 50

40

300

30

/t /t g g u200 u A A y y a a s s A A t t ea a p e 20 e ep R R

100

10

0 0 0 100 200 300 400 0 10 20 30 40 50 Original Au g/t Original Au g/t Figure 13: ALS internal repeat assays for Voyager drilling

15.4 Density Measurements Sampling data compiled for the current review includes ALS pycnometer density measurements for 612 sample intervals with lengths ranging from 0.09 to 1.38 meters and averaging 0.85 meters. Water immersion results were supplied for 325 of these samples. The water immersion measurements were performed by Intrepid on the half core for the full length of each sample interval. The samples were not wax coated or oven dried and therefore do not allow for moisture content or porosity. However for Pycnometer measurements performed on pulverised samples do not allow for porosity, and for porous or highly fractured samples such as commonly encountered in oxidised zones can significantly overstate bulk density. The density measurements include two anomalous samples from drill hole PDU1103 with pycnometer results of 1.57 and 1.71 t/m 3 which are considerably lower than the immersion densities of 2.49 and 2.59 t/m 3 for these samples. Table 15 and Figure 14 compare pycnometer and immersion density results for samples with both measurement types subdivided by resource domain. This table and figure demonstrate that with the exception of the two anomalous samples from PDU1103 the immersion and pycnometer results are

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generally similar, with the pycnometer measurements showing slightly higher values. This comparison suggests that, as expected for the competent, un-weathered Voyager mineralization, moisture and porosity do not significantly affect the pycnometer results. The slight difference between immersion and pycnometer measurements shown by this comparison is not significant at the current stage of resource evaluation and the larger dataset of pycnometer measurements provides a more robust basis for evaluation of mineralization density.

Table 15: ALS pycnometer versus site immersion measurements Full dataset Background Voyager Upper Zone Voyager Lower Zone Pycno. Immers. Pycno. Immers. Pycno. Immers. Pycno. Immers. (t/m 3) (t/m 3) (t/m 3) (t/m 3) (t/m 3) (t/m 3) (t/m 3) (t/m 3) Number 325 254 28 43 Mean 2.75 2.72 2.69 2.66 3.03 2.98 2.93 2.92 Difference -1.1% -1.2% -1.8% -0.3% Variance 0.09 0.09 0.02 0.02 0.27 0.31 0.26 0.24 Coef. Var 0.11 0.11 0.05 0.05 0.17 0.19 0.17 0.17 Minimum 1.57 2.14 1.57 2.14 2.56 2.53 1.71 2.41 1st Quartile 2.61 2.59 2.61 2.58 2.66 2.63 2.61 2.57 Median 2.68 2.65 2.67 2.64 2.78 2.69 2.71 2.67 3rd Quartile 2.79 2.77 2.77 2.74 3.35 3.18 3.27 3.21 Maximum 4.34 4.50 3.47 3.39 4.31 4.50 4.34 4.40

Scatter Plot Quantile-Quantile Plot 5 4.0

4 3.5

3) /m (t r ) e 3 et m m t/ o 3 ( 3.0 n S c L y A P S L A

2 2.5

1 2.0 1 2 3 4 5 2.0 2.5 3.0 3.5 4.0 Site Immersion (t/m 3) Site (t/m 3) Background Voy Upper Voy Lower Background Mineralised Figure 14: ALS pycnometer versus site immersion measurements

Figure 15 compares pycnometer density measurements with assayed gold grade, and demonstrates a tendency for density to increase with increasing gold grade. This trend appears to reflect the general relationship between higher gold grades and sulfide mineralization exhibited by the Paulsens mineralization.

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5

3) 4 m t/ ( er et m o n yc P S L A3

2 0 10 20 30 40 50 Gold Grade (Au g/t) Voy UZ Voy LZ Figure 15: Pycnometer density versus gold grade

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16 DATA VERIFICATION

Section 15 describes quality control measures pertaining to the ALS fire assaying that provides the majority of analytical data included in the current estimate. The database of information used on site is constantly being used and verified. Assays are directly imported into site database minimising data entry mistakes. The Qualified Person for this section, Mr. Brook Ekers, has verified the data as much as practicable.

As described in Section 19, while compiling sampling data for the current study, H&S compared gold grades shown in raw laboratory source files with the database entries compiled by Intrepid for the 2009 ALS assaying which provides the majority of resource sampling. Of the 8,827 assays checked by H&S, no discrepancies were noted confirming the reliability of assay handling procedures.

17 ADJACENT PROPERTIES

This section not applicable to the current report.

18 MINERAL PROCESSING

Evaluation of the Voyager mineralization is still at an early stage, and no Voyager specific metallurgical test-work has been completed. However, the Voyager mineralization is comparable to the shallower mineralization mined at Paulsens to date, and is anticipated to exhibit similar metallurgical properties.

A selection of Voyager samples have been submitted to Australian Metallurgical & Mineral Testing Consultants (Ammtec) for metallurgical testing with results expected for early 2010.

19 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES 19.1 Mineral Resource Estimates

19.1.1 Introduction In November 2009, Hellman & Schofield Pty Ltd (H&S) was commissioned by Intrepid Mines Ltd (Intrepid) to update Mineral Resource estimates for the Voyager zones at the Paulsens Gold Mine. Intrepid specified that the updated estimates are not required to include the other lodes at Paulsens as these zones have been largely depleted, and have had no additional resource drilling since H&S last compiled resource estimates for these zones in March 2009. The work reported herein was undertaken by Jonathon Abbott, MAusIMM, who is a full-time employee of H&S and is a Qualified Person as defined by NI43-101 standards (CIM, 2005). Mr Abbott visited the site project site from the 11th to 13th of November 2008. Neither H&S, nor Mr Abbott have or have previously had any material interest in Intrepid or the projects in which Intrepid has an interest. H&S’s relationship with Intrepid is solely one of professional association between client and independent consultant. This report was prepared in return for professional fees based upon agreed commercial rates and the payment of these fees is in no way contingent on the results of the report.

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The current estimates were produced using a similar process to previous H&S estimates for Paulsens (Ekers etal, 2009) and are based on sampling data and mineralization interpretations provided by Intrepid in November 2009. H&S have not assessed the reliability of the sampling and assaying or completed a detailed review of the validity or adequacy of the sampling database. Mr Brook Ekers, Geology Manager for Intrepid is accepting responsibility for these aspects of the resource estimates. The estimates are based on sampling from 225 diamond holes, of which the majority (204) represent underground diamond drilling undertaken by Intrepid during 2008 and 2009. Pre-collared surface diamond holes drilled by Intrepid and other companies provide only a small proportion (21 holes) of the resource data. Results from face sampling and sludge holes drilled with underground production rigs were used to aid interpretation of the mineralized domains, but were not used for estimation of gold grades. For the 2009 ALS assaying which provides the majority of resource sampling the gold grades in laboratory source files were compared with the database entries compiled by Intrepid. Of the 8,827 assays checked no discrepancies were noted confirming the reliability of Intrepid's assay importing procedures. Due to the narrow, highly variable nature of the mineralization and commonly oblique drill intersections, generating robust wireframe models of the mineralization in the current resource is difficult. The supplied wireframes do not always neatly intersect all drill hole traces at the geological or grade intervals that represent Intrepid’s intended interpretation. Each mineralized intercept was investigated by H&S and modified on a case by case basis. Modifications to the supplied wireframes included exclusion of minor additional cross cutting dykes, and the subdividing the Voyager Lower Zone into two sub-domains representing an anomalously high grade portion and the dominant generally lower grade portions of the domain. Gold grades were estimated by Ordinary Kriging of nominally one meter composited gold grades within the mineralized wireframes incorporating upper cuts of 50 to 100 g/t. For each resource domain, the search ellipsoid was aligned with the average mineralization domain. For Voyager Upper Zone the variogram models used for estimation were aligned with the local mineralization orientation of each block, whereas for Voyager Lower Zone they were aligned with the average orientation of each sub-domain. Gold grades were Kriged into parent blocks of 10 by 4 by 10 meters (east, north, elevation) which were sub-blocked to a minimum of 1.0 by 0.25 by 0.25 meters for accurate domain boundary resolution. Vulcan and Gemcom software were used for data compilation, wire-framing and composite calculation. GS3, the resource estimation software developed by H&S, was used for grade estimation. A sub-blocked Vulcan format model was created for use by Intrepid and derivation of resource estimates. The resource estimates presented in Table 16 represent the remnant Paulsens mineralization reported above a cut off grade of 4.0 g/t excluding small isolated zones that are not amenable to eventual economic extraction. The wireframe used to define remaining mineralization and exclude isolated un- mineable zones were provided by Intrepid. The current estimates include only the Voyager zones, as virtually all other areas of Paulsens mineralization have been depleted by mining. The figures in this table are rounded to reflect the accuracy of estimates and exhibit rounding errors. Evaluation of the current mineral resource estimates for Voyager is still at an early stage, and Mineral Reserves have not yet been defined for this area. The extent to which the Mineral Resource estimates may be affected by mining, metallurgical and infrastructure factors has not been established.

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Table 16: Paulsens resource estimate December 2009 Tonnes Au Contained Au g/t Oz Voyager Upper Indicated 138,000 15.0 66,400 Inferred 40,000 14 18,000 Voyager Lower Indicated 66,000 11.0 23,300 Inferred 70,000 9 21,000 Total Indicated 204,000 13.7 89,700 Inferred 110,000 11 39,000

19.1.2 Data compilation The current estimates are based on sampling data supplied by Intrepid. The working sampling database compiled by H&S includes only sampling identified by Intrepid as intersecting the interpreted mineralized domains included in the current estimate. The variably entered below detection assays were replaced with a value of 0.005 g/t. For the Paulsens databases, un-sampled intervals are generally assigned gold grade entries of -555 g/t for intervals considered by the logging geologist as being barren and not worth assaying, or -50 g/t for potentially mineralized intervals without assay results, such as pending results or core loss. For previous studies the -50 g/t entries were assigned a null value and excluded from estimates, and the - 555 g/t entries were initially assigned values of 0.001 g/t. Some of the -555 g/t intervals exist within drill hole intercepts contained within the mineralization wireframes, which is inconsistent with these intervals being geologically identified as barren. For the current estimates, all un-sampled were assigned a null value, excluding all -555 and -50 g/t intervals within the mineralized domains from resource estimates. 19.1.3 Mineralized domains The mineralized domain wireframes used for the current study were supplied by Intrepid with minor modifications by H&S as described below. As shown by the example cross sections and plan views presented in Figure 6 and Figure 7 orientations of these domains are highly variable. These figures present the mineralized domains at the section midpoint and sampling traces coloured by type within 10 meters of the section. The along strike and down-dip gaps in the mineralized domains shown by these figures represent barren cross cutting dykes. Orientations of the Voyager Upper Zone domain range from sub-vertical to flat lying with an average dip of 45 o towards the north. The Voyager Lower Zone also varies from approximately sub-vertical to flat lying. The low grade sub-domain has an average dip of 48 o towards the north. The high grade sub-domain occurs within a steeply dipping portion of the domain, with an average sub-vertical dip. The supplied wireframes representing Voyager Upper and Lower Zone mineralization locally overlap. Although the overlapping volume is only very small, and is a reflection of the difficulties associated with wireframing such variable shapes, such overlaps can cause block model coding inconsistencies and require correction for use in resource estimates. Intrepid specified that for the current study the Voyager Upper Zone should be assigned priority over Voyager Lower Zone. Paulsens mineralization is locally cross cut by generally steeply dipping barren late stage dolerite dykes. Although the supplied mineralized wireframes were generally interpreted to exclude this material, comparisons of the supplied mineralization and dyke wireframes showed some small areas in which dykes had not been properly accounted. The dyke wireframe supplied by Intrepid includes invalid triangles and is not suitable for directly trimming the mineralized wireframes. For the current study the mineralized wireframes were trimmed by triangulations interpreted by H&S on the basis of the supplied dyke wireframe. This

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trimming was designed primarily to appropriately reduce the volume of mineralization included in estimates. Due to the highly variable distribution of the wireframes and dykes, precise interpretation of the local dyke positions is not possible prior to mine development. Allowance for this additional dyke material reduces the volume of both mineralized domains by 2.6%. The Voyager Lower Zone includes an area with anomalously high grade drill intercepts centred at approximately 9,350 mE, 700 mRL. This area, represents only 3% of the Voyager Lower Zone volume and was treated as a separate sub-domain for resource estimation.

19.1.4 Definition of mineralized intervals for resource estimate Data files supplied to H&S for the current review include a Vulcan map file listing drill hole and face sample intercepts with the mineralized domains. To ensure consistency between resource composites and Intrepid’s interpretation, it was intended to use this file to define the mineralized sampling intervals for each domain. Comparison of the intercepts from the Vulcan map file and the geological logging and assay intervals showed several anomalies with some of the defined mineralized intercepts matching neither geological logging or sampling intervals. Review of the available data, and discussions with Intrepid geologists, suggest that these inconsistencies result from three main reasons: 1. Due to the thin, highly variable mineralization shapes, and commonly oblique intersections between drill holes and wireframes generating robust and consistent wireframes is difficult. Even for drill holes with snapped outline strings, the resulting triangulations commonly irregularly intersect the drill hole traces giving unintended drill hole intersections. 2. For a small proportion of inconsistent intercepts, the cross sectional strings used to generate the wireframes were not snapped to drill hole traces. 3. For a small proportion of holes, database entries do not accurately represent narrow mineralized zones. Inconsistencies between wireframe intersections and the geologist’s intended mineralization interpretation leads to the defined intersections incorrectly excluding high grade assay intervals and including lower grade material which was not intended to form part of the mineralized domain. This will tend to lower the average grade of sampling identified as lying within the mineralized domains and reduce the grade of estimates resources. To ensure the current resources honour Intrepid’s intended mineralization interpretation, each drill hole intervals were checked and manually modified on a case by case basis to ensure consistency with geological logging and or sample intervals. Figure 16 presents example plots of drill hole traces relative to mineralized domains showing supplied intercepts that are inconsistent with the geological logging and sampling intervals, and the intercepts as modified by H&S. These figures show the intercepts as coloured bars on the hole trace, assay intervals annotated by gold grades, and geological logging intervals annotated by lithological code. The mineralized wireframes are presented at the cross section midpoint. Table 17 compares the number, total length and average gold grades of the assayed portions of supplied and modified mineralized domain intercepts for diamond drilling. This table demonstrates that for both mineralized domains the intercept modifications have slightly reduced the combined intercept lengths, and increased the average grade by an average of 9%.

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Table 17: Summary of supplied and modified drill core mineralized intercepts Number Meters Au g/t Supplied 208 1,035 6.54 Voyager Upper Zone Modified 197 972 7.17 Difference -5% -6% 10% Supplied 209 572 9.27 Voyager Lower Zone Modified 200 543 9.95 Difference -4% -5% 7% Supplied 417 1,607 7.51 Combined Modified 397 1,515 8.17 Difference -5% -6% 9%

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PDU479 Supplied Intervals Modified Intervals

PDU727 Supplied Intervals Modified Intervals

Figure 16: Examples of supplied and modified domain intersections

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19.1.5 Composites used for estimation

The current model was generated from nominally one meter down-hole composites which honour domain boundaries. Sampling intercepts were based on a Vulcan map file supplied by Intrepid with modifications by H&S as described above. Only composites from diamond holes were included in the current estimate. Previous reviews of Paulsens sampling data show that results from sludge holes and face samples are of uncertain quality and therefore excluded from the estimates.

With the exception of composites from three Voyager Lower Zone intercepts with total lengths of less than 0.5 meters, composites at domain boundaries less than 0.5 meters long were merged with the previous up-hole composite, giving a dataset with composite lengths generally ranging from 0.5 to 1.5 meters in length. As shown by the summary of diamond core composite lengths presented in Table 18 the majority of mineralized composites are one meter in length, and average composite length is one meter.

Table 18: Diamond core composite length summary Composite Length (m) < 1.0 Meter >1.0 Meter Number Min. Avg Max. No. Prop’n No. Prop’n Voyager UZ 974 0.50 1.00 1.48 87 9% 83 9% Voyager LZ Low G. 504 0.36 0.99 1.48 92 18% 74 15% High G. 45 0.50 0.98 1.18 5 11% 2 4% Total 549 0.36 0.99 1.48 97 18% 76 14% Total 1523 0.36 1.00 1.48 184 12% 159 10%

Table 19 shows composite statistics by mineralized domain and Figure 17 shows cumulative distribution plots of the resource composite grades by resource domain. This table and figure demonstrate that although Voyager Upper Zone and the low grade sub-domain of the Voyager Lower Zone show broadly similar grade distributions, that from the Voyager Lower Zone high grade sub- domain is notably higher grade.

For each mineralized domains the composite grades are highly variable as reflected by the high coefficients of variation, with mean grades strongly influenced by a few high grade outliers. Treatment of these high grade outliers in resource estimates represents a significant source of potential model inaccuracy.

As tabulated in Table 20 , upper cuts were selected for each mineralized domain from ranked lists of diamond core composites. The selected upper cuts range from the 82 nd to the 98 th percentile of the datasets and significantly reduce the average composite grade. The upper cut applied to the high grade Voyager sub-domain represents a lower percentile than the other domains reflecting the smaller size of this dataset, and the clustering of high grade composites in a small number of drill holes.

Table 21 lists the cut composites for each domain, and provides an indication of the outlier values and their impact on domain statistics.

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Table 19: Composite statistics by resource domain Voyager Upper Voyager Lower Low Grade High Grade Combined Number 974 504 45 549 Mean 7.22 6.36 51.9 10.1 Variance 777 265 6,514 933 Coefficient of variation 3.86 2.56 1.56 3.03 Minimum 0.00 0.01 0.01 0.01 1st Quartile 0.10 0.08 0.09 0.08 Median 0.73 0.67 5.63 0.77 3rd Quartile 3.88 5.10 61.7 5.76 Maximum 588.0 140 355 355

Figure 17: Cumulative distribution of resource composites by domain

Table 20: Upper cuts applied to estimates Voyager Upper Zone Voyager Lower Zone Voyager Lower Zone Low Grade High Grade Number 974 504 45 Mean (Au g/t) 6.67 6.36 51.9 Upper cut (Au g/t) 55 50 100 Number composites cut 22 13 8 Percentile 98% 97% 82% Cut average (Au g/t) 5.26 5.29 33.7

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Table 21: Cut composites from each domain Rank Voyager UZ Voyager LZ LG Voyager LZ HG Hole Interval Au g/t Hole Interval Au g/t Hole Interval Au g/t 1 PDU384 92.03-93.03 588 PDU1103 239.0-240.0 140 PDU500 206.55-207.55 355 2 PDU384 91.03-92.03 303 PDU1048 91.85-92.85 115 PDU500 207.55-208.55 238 3 PDU1105A 163.4-164.5 184 PDU1048 89.85-90.85 112 PDU973 213.0-213.5 219 4 PDU1103 140.0-141.0 180 PDU1012 60.83-61.83 108 PDU1052 224.0-225.0 214 5 PDU381 76.67-77.67 174 PDU1048 90.85-91.85 105 PDU1098 111.0-112.0 198 6 PDU1075 67.30-68.30 155 PDU737 62.0-63.0 98.3 PDU727 202.76-203.56 154 7 PDU1100 114.22-115.22 154 PDU1103 244.0-245.0 92.7 PDU1098 110.0-111.0 136 8 PDU1043 153.2-154.2 137 PDU1048 92.85-93.85 86.3 PDU973 212.0-213.0 102 9 PDU910 237.0-238.0 132 PDU492 166-166.8 70.5 10 PDU1098 70.95-71.95 124 PDU1103 242.0-243.0 70.4 11 PDU1103 142.0-143.0 120 PDU931 65.0-66.0 66.5 12 PDU1072 89.75-90.75 116 PDU1103 246.0-247.0 66.4 13 PDU1097 66.77-67.77 111 PDU1103 238.0-239.0 53.4 14 PDU1022 102.0-103.0 89.8 15 PDU1101 127.3-128.3 86.8 16 PDU1096 68.0-69.0 70.8 17 PDU1091 82.2-82.8 70.2 18 PDU1092 73.0-74.0 69.0 19 PDU1091 81.2-82.2 66.0 20 PDU1091 80.2-81.2 61.7 21 PDU782 164.05-165 59.8 22 PDU1092 69.0-70.0 58.6 23 PDU1022 103-103.96 56.2

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19.1.6 Estimation of domain orientation Although the resource domains are interpreted with relatively consistent strikes they show considerable dip variation. For each block within the mineralized domains the domain’s dip was estimated with the strike assumed to be constant. For each domain, sectional strings were digitized at lode mid points for north-south cross sections. The dip was calculated at two meter intervals along the section lines, and assigned to the 10 by 4 by 10 meter resource parent blocks using a simple inverse distance weighting technique. The plots presented in Figure 18 show the range of dips estimated for each domain. Orientations of the Voyager Upper Zone domain range from sub-vertical to flat lying with an average dip of 45 o towards the north. The Voyager Lower Zone also varies from approximately sub-vertical to flat lying. The low grade sub-domain has an average dip of 48 o towards the north. The high grade sub- domain occurs within a steeply dipping portion of the domain, with an average sub-vertical dip.

Voyager Upper Zone

40%

3 1 %

30%

n io rt o20% p ro P 1 0 % 9 % 7 8 10% % % 5 6 % % 4 % 2 %

0% < - 0 1 2 3 4 5 6 7 8 - 8- 7- 6- 5- 4- 3- 2- 1 - 0 0 0 0 0 0 0 0 9 0 0 0 0 0 0 0 0 1 ------0 7- 6- 5- 4- 3- 2- 1- 0- 0 2 3 4 5 6 7 8 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Dip

Voyager Lower Zone - Low Grade

1 20% 8 %

15% 1 2 1 % 1 % 1 n 0 io 9 % rt % o10% p 8 ro 7 % P %

5 4 % 4 % 5% 3 % % 3 2 2 % % % 1 % 0 0 0 0 % % % % 0% < ------0 1 2 3 4 5 6 7 8 > - 8 7 6 5 4 3 2 1 - 0 0 0 0 0 0 0 0 = 9 0 0 0 0 0 0 0 0 1 ------9 0 7- 6- 5- 4- 3- 2- 1- - 0 2 3 4 5 6 7 8 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Dip

Voyager Lower Zone - High Grade 5 6 60% %

40% 3 4 % n io rt o p ro P

20%

5 % 2 2 % 0 0 0 0 0 0 0 0 0 0 0 % 0 1 1 % % % % % % % % % % % % % % 0% < ------0 1 2 3 4 5 6 7 8 > - 8 7 6 5 4 3 2 1 - 0 0 0 0 0 0 0 0 = 9 0 0 0 0 0 0 0 0 1 ------9 0 7- 6- 5- 4- 3- 2- 1- - 0 2 3 4 5 6 7 8 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Dip

Figure 18: Histograms of estimated domain dips

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19.1.7 Kriging of gold grades

Table 22 lists the Kriging runs undertaken for the current estimate. For the Voyager Upper Zone, five Kriging runs were undertaken with variably oriented variogram models and the appropriate estimate was assigned to each parent block on the basis of local domain orientation. For each Kriging run the search ellipsoid was aligned with the average domain orientation. For each sub-domain of the Voyager Lower Zone, one Kriging run was undertaken with the search ellipsoid and variogram models aligned with the average domain orientation. The ellipsoid rotations listed in Table 22 which align the x, y and z ellipsoid axes with the strike, dip and across strike directions respectively are defined in the anticlockwise positive convention used by many software packages including GS3 and differ from the convention used in Vulcan. One set of variograms ( Table 23 ) modelled for the December 2008 study from a closely sampled portion of the Upper Zone mineralization was used for each domain in the current estimate with appropriate rotations. The search criteria used for estimation ( Table 24 ) included five progressively relaxed search passes. The search criteria were designed to estimate most blocks within the mineralized domains while ensuring that where possible blocks were informed by reasonably close data. All domains were estimates with hard boundaries, with the exception of the high grade Voyager Lower Zone sub- domain, which was estimated with a soft boundary to the low grade sub-domain. Search pass five is particularly broad relative to the mineralization continuity. However this pass was used only for estimation of Inferred resources, and contributes only 4% of the total estimate. Table 22: Kriging runs Domain Kriging Block Dip (North) Ellipsoid Variogram Run Range Average Orientation Orientation Rotation Voyager UZ 1 <10 1o 52 o to 000 1 to 000 Z+0, X-1 2 10 to 40 26 o 52 o to 000 26 to 000 Z+0, X-26 3 40 to 70 56 o 52 o to 000 56 to 000 Z+0, X-56 4 >70 86 o 52 o to 000 86 to 000 Z+0, X-86 Voyager LZ - low grade 1 All -49 49 o to 000 49 o to 000 Z+0, X-49 Voyager LZ - high grade 1 All -90 -90 o to 000 -90 o to 000 Z+0, X-90

Table 23: Variogram models

Nugget (C 0) First Structure (C 1) First Structure (C 2) 0.10 0.68 exp(8.0,9.5,3.5) 0.22 exp (21,14,4.0)

Table 24: Search criteria Search Radius Minimum Minimum Maximum Pass (strike, dip, cross strike) Data Octants Data 1 20,20,20 8 2 32 2 30,30,30 8 2 32 3 30,30,30 8 2 32 4 60,60,60 4 1 32 5 120,120,120 4 1 32 19.1.8 Densities assigned to current estimate

Section 15.4 describes density measurements available for the Voyager mineralization.

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The current estimates assume a density of 3.0 and 2.9 t/m 3 for the Voyager Upper and Lower Zones, respectively. These values are supported by the average immersion and pycnometer measurements available for each domain. The relationship between density and gold grade suggests that these fixed densities may slightly overstate the density of low grade portions of the domains, and understate the density of very high grade zones. However at the scale of the mining operation the potential under or overstatement is unlikely to be an issue. For the combined portions of mineralization of economic interest, such as those above the 4.0 g/t cut off grade specified by Intrepid the applied densities appear to be sufficiently accurate for the current stage of resource evaluation

19.1.9 Composites versus estimated with gold grades

Figure 19 compares average estimated gold grade with average cut composite grade by elevation for the mineralized domains included in the current estimate. These figures show that although the Kriged estimates are more smoothed than the average composite grades, they generally closely follow the trends shown by the composite mean grades with the exception of areas of very limited sampling at the upper and lower extents of domains.

Voyager Upper

12 400

9 300

s. p m /t co g r u 6 200 e A b m u N

3 100

0 0 880 860 840 820 800 780 760 740 720 700 680 660 640 620 600 580 560 540 520 mRL

Comp. Avg Estimated No. Comps

Voyager Lower

30 120

20 80 s. p m /t co g r u e A b m u N 10 40

0 0 880 860 840 820 800 780 760 740 720 700 680 660 640 620 600 580 560 540 520 mRL

Comp. Avg Estimated No. Comps

Figure 19:Kriged estimates versus composite grades

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19.1.10 Resource classification The narrow complex shapes of the Paulsens mineralization, highly variable nature of the gold grades and variable drill coverage makes accurate resource estimation difficult. Grade estimates are strongly influenced by treatment of a small number of samples with high gold grades. Reliably estimating local resources for the Voyager Lower Zone domain is particularly difficult because of the generally narrow widths of this domain. For the current estimates, all blocks estimated by search pass one and two within classification polygons defining the more closely sampled portions of each domain are classified as Indicated. All other estimates, including search pass three to five blocks, and all blocks outside the classification polygons are classified as Inferred. Figure 20 shows long sectional views of the resource domains showing the classification polygons which define the outer limits of Indicated estimates. The classification scheme applied to the current estimates assigns all of the Voyager Lower Zone high grade sub-domain to the Indicated category, and classifies all Voyager Upper and Lower Zone estimates below 640 and 670 mRL respectively as Inferred. Although the current estimates reasonably represent the average grade of the mineralized domains as shown by the available sampling information, they are likely to suffer from local inaccuracies. H&S therefore recommends caution in interpreting results of the models over relatively small areas.

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Voyager Upper Zone

Voyager Lower Zone

Figure 20: Long section views showing outer extents of Indicated resource

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19.1.11 Model estimates

Table 25 summarises the in-situ pre-mining estimates by domain and resource classification for the entire estimated lodes and at the 4.0 g/t gold cut off grade specified by Intrepid for resource reporting. The figures in this table are presented for internal auditing and are not rounded to reflect the accuracy of estimates.

Table 25: Pre-mining resource estimate Zero cut off Indicated Inferred Tonnes Au g/t Tonnes Au g/t Voyager Upper 408,148 6.48 235,870 4.14 Voyager Lower 183,772 5.19 189,205 4.60 Total 591,920 6.08 425,075 4.35 4.0 g/t cut off Indicated Inferred Tonnes Au g/t Tonnes Au g/t Voyager Upper 170,504 13.28 61,073 11.13 Voyager Lower 74,502 10.38 78,214 8.96 Total 245,006 12.40 139,286 9.91

For the current study, Intrepid provided a description, and wireframe defining the extents of mining development. Mining and development of Voyager mineralization has not yet progressed below 785 mRL. Although all Voyager Upper Zone mineralization above this elevation has been depleted, or sterilised by previous mining operations, some Voyager Lower Zone mineralization remains above 785 mRL in the northern portion of the deposit.

To outline remaining resources, H&S produced a triangulation representing the remaining Voyager Upper and Lower Zone mineralization. This triangulation is based on descriptions and wireframes provided by Intrepid and captures all modelled mineralization below 785 mRL, and the northern portion of Voyager Lower Zone above 785 mRL identified by Intrepid as being accessible for future mining. Figure 21 presents a long section view of the Voyager Lower Zone domains and diamond drill intercepts showing the extents of remnant mineralization for this domain.

Table 26 shows the estimated remaining resources by domain and resource classification for entire lodes at zero cut off and at the 4.0 g/t cut off grade specified by Intrepid for resource reporting. The figures in this table are presented for internal auditing and are not rounded to reflect the accuracy of estimates.

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Figure 21: Remaining Voyager Lower Zone mineralization

Table 26: Paulsens remnant resource estimate December 2009 Zero cut off Indicated Inferred Tonnes Au g/t Tonnes Au g/t Voyager Upper 334,601 7.16 234,041 4.17 Voyager Lower 169,293 5.33 188,257 4.62 Total 503,895 6.55 422,297 4.37 4.0 g/t cut off Indicated Inferred Tonnes Au g/t Tonnes Au g/t Voyager Upper 144,142 14.61 61,073 11.13 Voyager Lower 69,320 10.68 78,214 8.96 Total 213,462 13.34 139,286 9.91

19.2 Mineral Reserve Estimates

Evaluation of the current mineral resource estimates for Voyager is still at an early stage, and Mineral Reserves have not yet been defined for this area. The shallower Paulsens zones have been depleted, and no Mineral Reserves are currently estimated for Paulsens.

20 OTHER RELEVANT DATA AND INFORMATION

This section is not relevant to this report.

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21 INTERPRETATION AND CONCLUSIONS Shallow portions of the Paulsens mineralization have been largely depleted, with remaining Mineral Resources restricted to deeper mineralization designated as the Voyager Zone which includes upper and lower domains at the hanging wall and footwall of the Paulsens quartz vein respectively. The current Mineral Resource estimates are based on sampling from 225 diamond holes, of which the majority represent underground diamond drilling undertaken by Intrepid during 2008 and 2009. The quality and reliability of the sampling data has been sufficiently verified to form the basis of Indicated and Inferred Mineral Resource estimates. The 2008 and 2009 drilling programmes were designed to improve understanding of the Voyager mineralization, and the results obtained have met this objective. The Voyager Upper Zone mineralization has been sampled over a strike length of approximately 470 meters, with vertical coverage extending for approximately 310 meters from 540 mRL to 850 mRL. True thicknesses of drill hole intersections with this zone range from 0.4 to 8.2 metres and average approximately 2.9 metres. Sampling of the Voyager Lower Zone extends over 560 meters of strike length, and a vertical extent of approximately 310 meters between 550 and 860 mRL. True thicknesses of drill hole intersections with this zone range from 0.1 to 6.6 metres and average approximately 1.1 metres. Voyager Lower Zone includes an area with anomalously high grade drill intercepts centred at approximately 9,350 mE, 700 mRL. This area, represents only 3% of the Voyager Lower Zone volume and was treated as a separate sub-domain for resource estimation. Sample coverage of the Voyager mineralization is irregular. More broadly sampled areas of the mineralization are less well defined, with the uncertainties associated with the reliability of resource estimates in these areas reflected by classifying such estimates as Inferred. The current resource estimates are derived from gold grades were estimated by Ordinary Kriging of nominally one meter composited gold grades within mineralized wireframes interpreted on the basis of geological logging and assayed gold grades. The summary of resource estimates presented in Table 16 represents the remnant Paulsens mineralization reported above a cut off grade of 4.0 g/t excluding small isolated zones that are not amenable to eventual economic extraction. The figures in this table are rounded to reflect the accuracy of estimates and exhibit rounding errors. Evaluation of the current mineral resource estimates for Voyager is still at an early stage, and mine planning for ore resource estimates has not been completed. The shallower Paulsens zones have been depleted, and no Mineral Reserves are currently estimated for Paulsens.

Table 27: Paulsens Mineral Resource Estimate December 2009 Tonnes Au Contained Au g/t Oz Indicated 204,000 13.7 89,700 Inferred 110,000 11 39,000

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22 RECOMMENDATIONS

22.1 Introduction

Key points from preliminary review of the current Voyager resource estimates comprise: • A shallowly plunging high-grade zone along the hinge of the Voyager Upper Zone fold forms the majority of the potentially mineable resource. The hinge zone forms a continuous shoot that has been defined over approximately 300 meters length by around 20 meters wide with both limbs being a much larger area of mostly similar but sub-grade material. • Preliminary mine planning investigations of the high grade shoot suggest that economics will very sensitive to gold grade. A robust resource estimate, and a mine plan optimising grade and minimizing dilution, is therefore critical to success. • Definition of the edges of the high-grade shoot will also be critical as small changes in width of the high-grade zone could have a relatively large impact on the mined tonnages. A two meter change in down dip (across-plunge) extent of the shoot gives a 10% change in mineralization tonnage or the gold grade of the extracted ore. • The high-grade hinge zone is still open down plunge, although this is limited by the room available before encountering dykes and bounding gabbro. It may continue for an additional approximately 150 meters, and could be reasonably expected to be of similar grade. The dip may steepen in response to the Apollo fault.

A three stage drilling programme has been proposed on the basis of the points outlined above, with the area covered by each phase presented schematically in Figure 22 . Stage two and Three are contingent on successful results from the proceeding phase. It is envisaged that the detailed planning of successive drill phases will depend on progressive results of the each phase. The three proposed drilling phases are: • Stage One: Increasing confidence in the known Indicated and Inferred Voyager Resource above 690 mRL • Stage Two: Testing further down plunge for extensions to Voyager below 690 mRL. This stage involves the resource definition, and ultimately the successful development and extraction, of this hinge zone extension. • Stage Three: Exploring for the Voyager 2 zone which is predicted to be further down plunge in the Paulsens mineralized system, on the other side of the Apollo Fault. Initial drilling will be from surface, but Stage Two development of the Voyager Hinge Zone extension may get the underground development down to a position enabling further exploration drilling for Voyager 2 from underground.

The drilling phases ore described below and cost estimates are summarised in Table 28 . All cost estimates in this section are in Australian dollars and are based on site experience of average unit costs.

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22.2 Stage One

The following Stage One steps are proposed: • After receipt of the recently run MMR Geophysics report (due early 2010), drill 4 wedges off the 2009 deep diamond drill holes from surface to target down plunge of the current resource ($225,000). • Drill from the 803 mRL drill drive extensions to closely sample the mineable area of the hinge zone, to confirm the grade and test the edges of the zone. 3,000 meters of drilling at $150 per meter for a cost of $450,000 is planned for completion by end of April 2010. The hinge itself is reasonably well drilled at less than 20 meter centres down the hinge-line. The grade estimation risk will be mitigated further by closer drill density with short holes from the extended 803 drill drive. Where possible more drilling will also target better definition of the edge of the high-grade hinge zone. The transition from high grades to low grades is not visual, and definition of the optimal change from higher grades to below cut-off grades (particularly on the northern limb rollover) has not been fully completed due to lack of suitable drilling sites. The northern limb will be more easily drilled from the new decline, once it is has been developed to these depths.

22.3 Stage Two

Stage Two of Voyager involves the resource definition, and ultimately the successful development and extraction, of the hinge zone extension below 690 mRL. The following Stage Two steps are proposed: • After receipt of results of the previous 4 wedges, drill 2 further wedges in March 2010 off the 2009 deep diamond drill holes from surface to target further down plunge of the current resource. The proposed drilling includes two holes to 300 meters depth at $250 per meter for $150,000. Run further Geophysics surveys down these new holes, if required ($50,000). • Estimate scoping level resource for the Stage Two extension if possible in April 2010, to ascertain if drilling from underground is warranted. • Extend the 690 mRL drill drive by 50 meters at a cost of $5,000 per meter for $250,000. to allow underground drilling down plunge from Stage One with 6 by 100 meter holes at $150 per meter for $90,000) during May 2010. • Extend the 690 mRL drill drive a further 50 meters for a cost of $250,000 in June and July to gain better position for the close space resource drilling of the Voyager Extension, and a possible drill platform for Voyager 2 exploration holes. • While the 690 mRL drill drive is being extended during June and July, conduct underground drilling from suitable new decline drill positions to target the steep lower and upper zone limb positions not accessible from the 803 mRL drill drive. Proposed drilling comprises 10 by 100 meter drill holes at $140 per meter for $140,000. • Underground close spaced resource drilling from the 690 mRL drill drive Stage Two Extension during August and September. Proposed drilling comprises 14 holes by 200 meters deep at $150 per meter for $420,000.

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22.4 Stage Three

Stage Three of the proposed drilling is to explore for the Voyager 2 ore body, predicted to be further down plunge within the Paulsens mineralized system, on the other side of the Apollo Fault.

It should be noted that the use of a new down hole geophysical technique, MMR, may be extremely useful in “seeing” the mineralisation up to 100 meters off-hole, and significantly reducing the risk of missing the mineralization in follow-up drilling. Running geophysics is expected to cost around $30,000-$50,000 at the end of each program. If this technique proves to be less successful, the whole Voyager 2 exploration concept will be reconsidered.

Contingent on success at every step, the following Stage Three steps are proposed:

• Design and submit POW in January, and resolve heritage issues, for drilling two parent holes from surface to target Voyager 2. The collars are in the vicinity of an area of heritage significance, which should be avoided, rather than attempt to gain permission to drill in the area. • Drill two parent holes to 800 meter depth at $200 per meter for $320,000 in April to June with the holes drilled just far enough apart for the MMR geophysical surveys influence to just overlap. Run geophysical surveys down these new holes ($30,000). • After completion of the MMR survey, drill 4 daughter holes targeting the Voyager 2 mineralization during June to August. The four daughter holes are proposed to be drilled to 300 meters depth at cost of $200 per meter for $240,000. • Estimate scoping level resource for Voyager 2 if possible in September 2010 to ascertain if drilling from underground is warranted. • Underground exploration drilling from the end of the 690 mRL drill drive Stage Two Extension with 6 by 400 meter holes proposed at $150 per meter for $360,000 during October and November 2010. Further geophysical surveys will be run if required. • Update the scoping/inferred resource estimate in December 2010.

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Table 28: Estimated costs of proposed Voyager drilling Meters Unit rate Cost Stage One Four wedged daughter holes 1,125 $200 /m $225,000 Drilling from 803 mRL drill drive 3,000 $150 /m $450,000 Subtotal $675,000 Stage Two Two wedged daughter holes 600 $250 /m $150,000 Geophysics $50,000 690 mRL drill drive extension 50 $5,000 /m $250,000 Underground drilling from 690 mRL 600 $150 /m $90,000 690 mRL drill drive extension 50 $5,000 /m $250,000 Decline drilling 1,000 $140 /m $140,000 Drilling from extended 690 mRL drive 2,800 $150 /m $420,000 Subtotal $1,150,000 Stage Three Parent holes from surface 1,600 $200 /m $320,000 Geophysics $30,000 Wedged daughter holes 1,200 $200 /m $240,000 Drilling from 690 mRL drill drive 2,400 $150 /m $360,000 Geophysics $30,000 Subtotal $980,000 Total $2,805,000

Proposed 803 DD new Parent Holes Wedging off Existing Holes STAGE 1 690 DD Options 1 & 2

Voyager R esource and Prelim Stope Shapes STAGE 2

Voyager 2 STAGE 3

Figure 22: Proposed drilling Stages

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23 REFERENCES

CIM (2005): National Instrument Definition Standards, Canadian Institute of Mining Metallurgy and petroleum. EKERS, B., SCRIMSHAW, P & ABBOTT, J. (2009): Technical Report Mineral Resources and Reserves for the Paulsens Gold Mine. Technical Report prepared for Intrepid Mines Ltd GRAY, D. (2007): Structural Review – Paulsens Mine. Unpublished report for Intrepid Mines Ltd.

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24 DATE AND SIGNATURE PAGE

24.1.1 Jonathon Abbott Jonathon Abbott Hellman & Schofield Pty Ltd

102 Colin Street, West Perth, Western Australia, AUSTRALIA Telephone: 618 9485 0403, Fax: 612 9485 0406 Email: [email protected]

CERTIFICATE of AUTHOR

I, Jonathon Abbott, BASc, MAusIMM, do hereby certify that: a. I am a Consulting Geologist with: Hellman & Schofield Pty Ltd 102 Colin Street West Perth, Western Australia AUSTRALIA b. This Certificate applies to the technical report titled “Technical Report Mineral Resource Estimates for the Paulsens Gold Mine Pilbara, Western Australia” prepared for Intrepid Mines Ltd dated January 2010 (the “Technical Report”) relating to Paulsens property. c. I graduated with a Bachelor of Applied Science in Applied Geology from the University of South Australia in 1990. I am a member of the Australasian Institute of Mining and Metallurgy. I have worked as a geologist for a total of 17 years since my graduation from university. I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. d. I have been involved with the Paulsens Project since 2008, and visited the project site from the 11th to 13 th of November 2008. e. I am responsible for section 19.1 of the Technical Report. f. I am independent of the issuer as defined in Section 1.4 of the Instrument. g. I have been involved with resource estimation for the project since 2007. h. I have read National Instrument 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument and form. i. As of the date of this Certificate, to the best of my knowledge, information and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading. Dated this 22 nd day of January, 2010.

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24.1.2 Brook Ekers Brook Ekers Intrepid Mines Limited

Paulsens Gold Mine Western Australia [email protected] Telephone: 618 9346 0088

CERTIFICATE of AUTHOR

I, Brook Ekers, BASc, MAusIMM, do hereby certify that: a. I am Geology Manager with: Intrepid Mines Limited Level 1, WBM Building 490 Upper Edward Street Spring Hill QLD 4004 b. This Certificate applies to the technical report titled “Technical Report Mineral Resource Estimates for the Paulsens Gold Mine Pilbara, Western Australia” prepared for Intrepid Mines Ltd dated January 2010 (the “Technical Report”) relating to Paulsens property. c. I graduated with a Bachelor of Applied Science in Applied Geology from the University of Technology, Sydney, in 1992. I am a member of the Australian Institute of Geoscientists. I have worked as a geologist for a total of 16 years since my graduation from university. I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfil the requirements to be a “qualified person” for the purposes of NI 43-101. d. I have been involved with the Paulsens Project since March 2004, generally based on site. e. I am responsible for sections 1,2,3,4,5,6,7,8,9,10,11,12,13,14,15,16,17,18,19.2,20,21,22,23,24 and 25 of the Technical Report. f. I am a full time employee of Intrepid Mines Limited and am not independent of the issuer as defined in Section 1.4 of the Instrument, however I am reporting as factually and unbiasedly as possible. g. I am a full time employee of Intrepid Mines Limited and have worked on the Paulsens project since March 2004. h. I have read National Instrument 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument and form. i. As of the date of this Certificate, to the best of my knowledge, information and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading. Dated this 22 nd day of January, 2010.

Brook Ekers

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25 ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT PROPERTIES AND PRODUCTION PROPERTIES Mining Method The current mining method at Paulsens utilises long hole retreat bench stoping methods and air leg mining techniques. Structurally controlled boundaries are generally used and empirical design data used to determine hydraulic radius for stope geometry controls.

Metallurgical Process The metallurgical process selected involves multi-stage crushing, ball milling, thickening of grinding circuit product, cyanide leaching using the carbon-in-leach (“CIL”) process, disposal of the leach residue to the tailings storage facility, cold cyanide and then hot acid washing of loaded carbon to remove copper and then nickel, elution of the washed carbon to remove gold, electrowinning of gold from loaded eluate and smelting of cathodes and slimes to produce gold bullion. The ore processed on site is recovered using industry standard practices. There are no unfavourable elements of the ore which would constitute any other form of recovery processes to be utilised. Mill recovery has been in excess of 96% and dore purity has been at times above 92%.

Commodity Markets As a result of the operation of the Paulsens Gold Mine, the Company produces gold through its operations. There is a world wide gold market into which the Company can sell its gold. Gold is a metal that is traded on world markets, with benchmark prices generally based on the London market (London fix). Given the nature of the market for gold, the Company is not dependent on any particular purchaser.

Contracts Paulsens uses the services of contractors for mining, crushing, power generation, flights and camp accommodation to operate the Paulsens Gold mine. All major contracts are secure and are reviewed in relation to current industry standards on a regular basis.

Environmental Considerations Permitting approvals for the establishment of the Paulsens Gold Mine were received from the State Mining Engineer and the Department of Environment in November 2004. Other permits or licences received to allow mining to proceed included 5C Groundwater Well Licences and modifications to the Prescribed Premises Licence. The rehabilitation bonds are lodged with the DMP are shown in Table 29 .

SUMMARY OF REHABILITATION BONDS LODGED WITH DMP AND CLOSURE DEMOLITION ESTIMATES FOR THE PAULSEN’S GOLD MINE AT DECEMBER 2008 (MORATORIUM)

Closure Liability Area of Disturbance (ha) Current $AUD Lease/Tenure Bonds Comments

$AUD Approved Actual Demo Rehab Developments have been bonded using the new M08/99 - Mine and Plant 20 20 796,000 95,000 95,000 DMP (2009) Moratorium Bond Rates. These rates are the same as current bonding rates imposed in 2007. M08/196 – TSF – Village Demo costs relate to steel framed buildings, vent fans, 42 42 77,000 348,000 348,000 Gold Plant, foundations, WWTP. Main access road will remain at closure as Pastoral L08/14 - Access Roads 5.6 5.6 0.0 17,000 17,000 Road.

Moratorium to December 2009 means Bond Rates TOTAL 67.6 67.6 873,000 460,000 460,000 will not change following AER review early in 2009.

Table 29: Summary of Rehabilitation Bonds lodged with DMP

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Taxes Royalties are paid to the state government at a rate of 2.5% of the value of ounces produced expressed in Australian Dollars .In addition the local indigenous community are paid a royalty $A2.00 / ounces produced. The Australian Federal tax rate applicable to the project is 30%. Tax losses may be carried forward indefinitely subject to satisfying proscribed tests. Suppliers of goods and services include GST at 10% on the invoice value of taxable supplies made to Paulsens. The GST incurred on business inputs can be recovered from the Federal Government by filing monthly returns.

Capital and Operating Costs The Paulsens Gold Mine has established consistency in both operating and capital costs for the project over the last 4 years. The operation has established service contracts and supply agreements that are currently in place. Table 30 outlines the operating expenditure results for 2009 by quarter. Table 30: Operating Expenditure Results for 2009 3 months to 3 months to 3 months to 3 months to 12 months to 31 March 30 June 30 September 31 December 31 December 2009 2009 2009 2009 2009 Mining * ($/t) 47 60 81 77 66 Processing**($/t) 28 33 36 42 34 Administration**($/t) 11 10 13 12 11 Total($/t) 86 103 130 131 111 Site production cash cost ($/oz) 312 468 585 743 508 Royalties and refining net of silver credits ($/oz) 33 16 22 32 26 Total cash cost($/oz) 345 484 607 775 534 *on tonnes mined, ** on tonnes treated Total costs per tonne for the December quarter were higher due to lower ounces produced (15,810 ounces in December Vs 19,107 during September 2009 quarter – negative impact of $127 per ounce), provision for Paulsens employee redundancy (negative impact $31 per ounce), exchange rate movements (negative impact of $56 per ounce) and partially offset by reduction in operating costs. The operation will process the remaining mineralisation (pre Voyager) by the end of the first quarter in 2010. The operation will then embark on a production hiatus of 3 to 6 months whilst work continues on assesing the economic viability of the Voyager resource.

Economic Analysis As stated above the economic analysis of the Voyager resource is currently been undertaken with the operation expected to go into a production hiatus late in the first quarter of 2010. Preliminary reserve work has been completed by Per Scrimshaw from Creative Mines and further mine design work is required before any reserves can be finalised.

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