Release: Indo Mines: Positive grade variability for Yogyakarta iron sands project

(22 March 2007) -- The board of Indo Mines Limited is pleased to announce that based on the results of an independent analysis undertaken of the Yogyakarta Iron Sands Project.

Indo Mines commissioned the review of the Yogyakarta Iron Sands Project mineral resource as part of the overall Scoping Study to ensure that there was little variability in grade conditions across the 22 kilometre long by 1.8 kilometre wide deposit

This is an important facet of the Scopirig Study, as it will determine the complexity of the mining process and the impact on the downstream concentrating and processing requirements.

Based on the results of the independent analysis, the Company has determined that there is no significant variability both along the resource and with depth. This is expected to simplify both mining and concentrating options in the final flowchart and will enable the current metallurgical test work program to be optimised.

The initial mining of the Yogyakarta iron Sands Project mineral resource (as announced on 27 September 2006) of 605 million tonnes of Iron Sands (grading at 10.8% Fe) will focus on the Surface Sand Unit which contains 273 million tonnes of Iron Sands (grading at 14.2% Fe), or the equivalent of about 39 million tonnes of Fe. This resource is sufficient to support an expected production level of 500,000 tonnes of pig iron annually for a minimum of 20 years.

The completion of this analysis provides further support for the prospectivity of the project as the Company moves to the completion of metallurgical test work and the finalisation of the Scoping Study. (end of release)