Intrepid Mines Limited: Paulsens Sale-Proxy Voting

BRISBANE, AUSTRALIA -- (Marketwire) -- 06/23/10 -- Further to the announcement made on 21 June 2010 regarding developments at the Paulsens gold mine in Western Australia ('Paulsens'), it is confirmed that the Directors of Intrepid Mines Limited (TSX: IAU)(ASX: IAU) ('Intrepid' or the 'Company') recommend that Intrepid shareholders vote against the proposed sale of Paulsens at the upcoming Intrepid General Meeting.

At the time of despatch of the Intrepid Notice of Meeting ('NoM') on 26 May 2010, the Intrepid Board of Directors recommended that shareholders vote in favour of the sale of Paulsens. As a result of the new circumstances detailed in the release to the market on 21 June 2010, the Directors now recommend that Intrepid shareholders vote against the proposed sale. As a result of the change in recommendation by the Directors, the Chairman currently intends to vote any undirected proxies granted to him, against the proposed sale of Paulsens to Northern Star Resources Limited ('NSR').

Under the terms of the letter agreement between Intrepid and NSR ('Letter Agreement'), Intrepid shareholder approval is a condition precedent to completion of the sale of Paulsens. To ensure compliance with the terms of the Letter Agreement, Intrepid intends to proceed with the General Meeting.

NSR has today announced that it considers that the withdrawal of Intrepid Board support of the Paulsens sale to be a breach of the Letter Agreement and has reserved its rights in that regard, should the sale of Paulsens not be approved by Intrepid shareholders. Intrepid rejects this view and notes that the Letter Agreement does not in any way bind the Intrepid Directors to make a positive recommendation in relation to the proposed sale of Paulsens.

Should shareholders who have already submitted a Proxy Form choose to revoke their proxy, they may do so by completing a new Proxy Form, inserting the name of the person being appointed as proxy in the blank space provided in the Proxy Form and sending the completed and executed Proxy Form to:

Intrepid Mines Limited
Level 1
490 Upper Edward Street                BY NO LATER THAN
Spring Hill, Queensland                10:00 AM AEST ON
Australia 4004                           25 JUNE 2010
Fax: +61 7 3007 8080
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Equity Transfer & Trust Company
200 University Avenue, Suite 400       BY NO LATER THAN
Toronto, Ontario                        5:00 PM EDT ON
Canada M5M 4H1                           24 JUNE 2010
Fax: +1 416 361 0470

Any Proxy Form or replacement Proxy Form received after that time will not be valid for the Meeting. New blank Proxy Forms and Proxy Revocation Forms are available on the Company's website and copies are attached to this announcement.

Alternatively, a shareholder may revoke a proxy in writing, executed and delivered in the same way as the original Proxy Form, at any time up until the commencement of the General Meeting or delivered to the Chairman of the General Meeting on the day of the Meeting or any adjournment thereof, prior to the time of voting.

If a shareholder wishes to confer discretionary authority on the Proxy (or Chairman of the Meeting) with respect to voting at the shareholders' meeting, then the box opposite the resolution can be left blank. Where discretionary authority has been conferred on the Chairman of the meeting, the Chairman will vote the shares represented by that proxy in accordance with the recommendation of the Board of Directors at the time of the vote. Canadian Shareholders who receive their Meeting materials from Broadridge Investor Communications Solutions ('Broadridge') must return replacement proxy forms, once voted, to Broadridge for the proxy to be dealt with.

The Company further advises its intention to remain in dialogue with NSR, with a view to agreeing terms which would address the increase in forecast cash flows from Paulsens. If discussions lead to a further variation to the offer made by NSR, an adjournment of the shareholder meeting may be sought to allow shareholders adequate opportunity to consider any further additional information relating to the transaction prior to voting on the sale proposal.

To view the proxy form associated with this press release, please visit the following link: http://media3.marketwire.com/docs/IAUproxy0623.pdf

ABN 11 060 156 452

Contacts:

Intrepid Mines Limited

Brad Gordon

Chief Executive Officer

+61 7 3007 8011
www.intrepidmines.com