Release: Indo Mines Ltd: Concentrate sample dispatched

(20 June 2008)--Indo Mines Limited is pleased to advise that the Concentrate Sample for final smelting test work has been dispatched to Germany for full scale smelting tests. Construction of the Concentrator Pilot Plant for the flagship Jogjakarta Iron Sands Project was completed in Jogjakarta, Indonesia in April 2008. The Pilot Plant was fully commissioned in May 2008, and a 50 tonne concentrate sample at 55% Fe has been made and dispatched, together with a 120 tonne sample of coal, to the testing plant at Outotec in Germany.

Indo Mines Managing Director Phil Welten said ?this is a significant step in the development of the Project. The 50 tonne sample of concentrate will be used in the development of the Pig Iron Processing facility design as well as providing valuable information on the material handling and beneficiation characteristics of the sands.?

The Pilot Plant performed above expectations that resulted in the rapid beneficiation of the Iron Sands to achieve the targeted grade of 55% Fe concentrate. The plant also confirmed that a consistent grade and sized concentrate could be produced very economically, and further enhancements to the design may result in a substantial reduction in the unit cost of production.

The Company procured a 3 hectare property within the Project area to establish the Concentrator Pilot Plant and other facilities including:
? Trial mining pits,
? Rehabilitation demonstration areas, and
? A Training Center for instructing the local workforce on safety, mining and rehabilitation.

Welten said ?the engagement of Indonesian engineering companies and the local workforce was critical to the success of the Project.

This Project is a low risk, low cost mining operation with a long mine life. To maximise the potential, we remain committed to developing the Project using local Indonesian resources in a safe and effective manner in conjunction with the application of International best practice engineering, safety and environmental standards,? Welten said. (end of release)