Indico Announces Initial Results of Phase 3 Drill Programme at the Ocana Copper Porphyry Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Mar 3, 2014) - Indico Resources Ltd. ("Indico" or the "Company") (TSX VENTURE:IDI) is pleased to announce the initial drill results for the Phase 3 programme at Ocaña, with thirteen holes completed to date, totalling 1434 metres. Results for six of these holes are tabulated below, including the results of sequential copper leach tests that indicate how amenable the mineralization is to heap-leach processing. These first six holes mainly tested the northern extents of the supergene blanket, where it is thinner and eroded through in places. Subsequently we have drilled thick intervals of mainly chalcocite mineralization in the southeast corner and infill holes along the main ridge crest.

President & CEO Bob Baxter commented, "We are pleased to report the early results of our current work program. This program started on the flanks of the northern extremities of the oxide and enriched zone of mineralisation and confirms our understanding of this mineralisation. The acid consumption and recovery data generated from our analysis is also in keeping with our expectations".

The Ocaña Property consists of 22 concessions covering 110.24 km2 and is located on the northwest extension of the Southern Peru Porphyry Copper Belt, a trend defined in part by the Toquepala, Quellaveco, Cuajone, and Cerro Verde Mines to the southeast. Most recent exploration of the belt has resulted in discovery of the Zafranal copper-porphyry deposit, located approximately 75 km to the southeast of the Ocaña Property.

The current drill programme is primarily an infill programme to define a horizontal layer of near surface, supergene mineralization, and is designed to tighten the drill spacing to 100m and less. A Hydracore 4000 man-portable drill rig is being operated by Geotec S.A., and should be able to complete the programme by mid- to late April, 2014. Currently 32 holes are planned, totalling 3050 metres, and comprising mostly short, vertical holes to infill and further delimit near-surface, flat-lying supergene mineralization. Indico has recently signed a contract with Mining Plus Pty Ltd. to conduct a NI 43-101 compliant maiden resource estimate for Ocaña upon completion of this drill phase.

Soluble copper and acid consumption tests from these and previous results indicate the supergene mineralization should be amenable to low-cost, SX/EW heap-leach processing. Figure 1 shows the layout/density of the planned holes and highlights from this (in black) and Phase 2 (in grey) drilling. Additional maps and cross sections, as well as previous drill results, are available at http://www.indicoresources.com/s/Ocana.asp.

To close the programme, four additional longer holes (400 metres each) are planned to test the eastern limits of the larger hypogene mineralization, bringing the total to 4650 metres.

To view Figure 1 please visit the following link: http://media3.marketwire.com/docs/930712_image.jpg

Diamond Drilling and Sampling Procedures

The diamond drilling was completed using exclusively HQ core size. Core recovery was estimated to be greater than 95% for any given hole. Whole core was split in half with a manual core splitter for intervals of brittle copper oxides, and the remainder with a diamond saw. One half is collected for sample preparation and analysis, and the other half retained for future reference. Samples were collected on a 2.0m (leached, mixed and enriched zones) and 3.0m (hypogene zone) sample intervals. Indico on-site personnel rigorously mark, collect, and track samples which are then security sealed and shipped to Acme, Lima, Peru for preparation. Pulps are then forwarded to Acme's analytical lab in Santiago, Chile.

Analytical accuracy and precision are monitored by the analysis of reagent blanks, certified reference material, and duplicate (coarse rejects and quarter core) samples. Indico inserts blind certified reference material at regular intervals (1 in 20) into the sample sequence by field personnel in order to independently assess analytical accuracy. In addition, representative blind duplicate samples are routinely forwarded to Acme for additional quality control (1 in 20 coarse rejects, and 1 in 40 quarter core). Quality control is further assured by the use of certified reference material inserted 1 in 20 samples, including one standard certified for acid-soluble copper analysis. Multi-elements were assayed using Acme's 1E package which includes 4-acid digestion and ICP-ES finish; samples with >0.5% copper are reassayed using an atomic absorption (AAS) finish. Lower detection limits are as follows: Cu >0.001%, Mo >0.001%, Ag >0.5g/t . Sequential copper leach tests are done by method G904, and acid consumption by method G909. Gold is assayed by fire assay, in which fusion of a 30-gram aliquote is followed by AA finish; with a lower detection limit of 0.005 g/t. Acme has an 9001:2008 and 17025 International Standard Organization rating.

Qualified Person

John Drobe, P.Geo., Indico's Chief Operating Officer and a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information that forms the basis for this news release. Mr. Drobe is not independent of the Company, as he is an officer.

On behalf of Indico Resources Ltd.

Robert Baxter, President and Chief Executive Officer

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward looking information" within the meaning of the British Columbia Securities Act and the Alberta Securities Act. Generally, the words "expect", "intend", "estimate", "will" and similar expressions identify forward-looking information. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, or that of our industry, to differ materially from those expressed or implied in any of our forward looking information. Statements in this press release regarding Indico's business or proposed business, which are not historical facts, are forward-looking information that involve risks and uncertainties, such as estimates and statements that describe Indico's future plans, objectives or goals, including words to the effect that Indico or management expects a stated condition or result to occur. Since forward-looking statements address events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties. The foregoing commentary is based on the beliefs, expectations and opinions of management on the date the statements are made. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.