Intermin Resources : 25 07 2017 Teal Operations Update

ASX/Media Release

Dated: 25 July 2017

ASX CODE IRC, IRCOA

SHARE PRICE

$0.09

SHARES ON ISSUE

218.4M

OPTIONS (IRCOA) 23.7M ($0.17)

OPTIONS (UNLISTED)

5.0M ($0.075)

1.75M ($0.125)

MARKET CAP

~19.7M (undiluted)

BOARD

Peter Bilbe Chairman

Peter Hunt Non-Executive Director

Jon Price Managing Director

Lorry Hughes Executive Director

COMPANY SECRETARY

Bianca Taveira

INVESTOR/MEDIA

ENQUIRIES

Jon Price Lorry Hughes

KEY GOLD PROJECTS

Teal Goongarrie Lady

Anthill Peyes Farm Windanya Blister Dam Kanowna North

Yarmony Black Flag Olympia

WEBSITE

www.intermin.com.au

• Reconciled final grades, recoveries and costs received for Northern section of the Teal pit

• Ore grade averaged 3.02g/t Au, 4% above the mine predicted grade of 2.90g/t

• Gold recoveries to date of 94% exceed Feasibility Study estimates of 90% for oxide ore1

• Revenue to date of over $7.5m at an average gold price received of A$1,681 per ounce

• Repayment of RM Contracting capital investment of $2.1m complete2

• Return of Intermin's capital investment of $2.1m and asset recovery charge of $2.15m expected in August under the terms of the Mining Alliance2

• Teal on track to produce 15,000 - 16,000 ounces at All In Cost (AIC) of A$1,030 - A$1,090 per ounce generating net cash flow to Intermin of $5m - $6m at a $1,600/oz gold price3

• Mining, haulage and processing of ore from southern section of the Teal Gold Mine continues with completion of Stage 1 expected early in the December Quarter3

  Figure 1: Ore mining continues in the southern section of the Teal Gold Mine

  Commenting on progress at Teal, Intermin's Managing Director, Mr Jon Price said:

  "It is extremely pleasing to see reconciled ore grades and recoveries exceeding our Feasibility Study estimates in the north of the pit and provides confidence as we complete mining in the south and progress feasibility work on our future mining projects.

  "As Teal continues to deliver significant cash flow to the business, we look forward to seeing the results of the 32,000m drilling program now underway and the completion of mine development studies at Goongarrie Lady and future stages at Teal."

  1 As announced to the ASX on 6 July and 27 July 2016. 2 As announced to the ASX on 19 July 2016

  3 As announced to the ASX on 14 June 2017, see also Competent Persons Statement on page 4 and Forward Looking and Cautionary Statement on page 5.

  ACN 007 761 186 ABN 88 007 761 186 Head Office: 163 Stirling Highway Nedlands

  Postal: PO Box 1104, Nedlands WA 6909 T: +61 8 9386 9534 | F: +61 8 9389 1597 | E: iadmin@intermin.com.au | W: www.intermin.com.au

  Overview

  Intermin Resources Limited (ASX: IRC) ("Intermin" or the "Company") provides the following operational update from Intermin's 100% owned Teal Gold Mine, located 11km north west of Kalgoorlie-Boulder in Western Australia (Figure 2).

  Figure 2: Teal gold mine location plan and associated infrastructure

  Mining has been completed in the northern section of the Teal Stage 1 pit and all ore has been delivered to Paddington Mill and processed.

  Under the terms of the Paddington Agreement (announced to the ASX on 27 July 2016), Paddington pays 50% gross revenue based on 80% of the mine predicted grade within 15 days and the remainder on completion of final grade, moisture, metallurgical recovery and cost reconciliation within the following six weeks.

  Sampling for all five batches mined in the northern section of the pit through the dedicated sampling plant has been completed with all laboratory results received and cost reconciliation completed.

  Claimed mine production totalled 53,000t at an average fully diluted grade of 2.9g/t Au for 4,460 ounces recovered at as assumed 90% recovery.

  Final reconciled production for the five batches totalled 51,000t grading 3.02g/t Au for 4,609 ounces recovered at a final agreed 94% recovery.

  Total revenue received to date totals $7.7m at an average gold price received of $1,681 per ounce. Under the terms of the mining alliance contract with RM Contracting (announced to the ASX on 19 July 2016), RM has now received repayment of its initial capital investment of $2.1m.

  Intermin expects to receive return of its capital investment of $2.1m followed by the asset recovery charge of $2.15m in August prior to the profit share component. Intermin's share of the final cash flow from the Project is estimated at

  $5 - 6m and is expected in the September and December Quarters1.

  Ore mining continues in the southern section of the Teal Stage 1 pit on day shift with regular ore batches to be delivered until mine completion scheduled for October 2017.

  Teal Stage 1 produces 15,000 - 16,000 ounces at an All in Cost (AIC) estimated at $1,030 - $1,090 per ounce2.

  Figure 3: Ore haulage continues from the southern half of the Teal Stage 1 open pit

  1 As announced on the 6 July and 11 October 2016, See also Competent Persons Statement on page 4 and Forward Looking and Cautionary Statements on page 5

  2 As announced to the ASX on 14 June 2017, See also Competent Persons Statement on page 4 and Forward Looking and Cautionary Statements on page 5

  About Intermin

  Intermin is a gold exploration and mining company focussed on the Kalgoorlie and Menzies areas of Western Australia which are host to some of Australia's richest gold deposits. The Company is developing a mining pipeline of projects to generate cash and self- fund aggressive exploration, mine developments and further acquisitions. The Teal Stage 1 gold mine is currently in production.

  Intermin is aiming to significantly grow its JORC-Compliant Mineral Resources, complete definitive feasibility studies on core projects and build a sustainable development pipeline.

  Intermin is targeting the definition of significant high grade open cut and underground gold deposits, has acquired highly prospective tenure and will continue to actively pursue consolidation and value-adding joint venture opportunities for the benefit of all stakeholders.

  Intermin Resources Limited - Summary of Gold Mineral Resources

  Deposit (1g/t cut-off)	JORC Code	Measured			Indicated			Inferred			Total Resource
  		Mt	Au (g/t)	Oz	Mt	Au (g/t)	Oz	Mt	Au (g/t)	Oz	Mt	Au (g/t)	Oz
  Menzies
  Pericles	2012	0.53	2.49	42,500	0.53	2.49	42,500
  Yunndaga	2012	1.58	2.03	103,000	1.58	2.03	103,000
  Bellenger	2012	0.24	2.63	19,900	0.07	2.49	5,910	0.31	2.59	25,810
  Kalgoorlie
  Teal	2012	0.33	2.56	27,423	0.61	1.98	38,760	0.55	2.25	38,260	1.49	2.18	104,443
  Peyes Farm	2012	0.15	1.74	8,300	0.36	1.72	19,980	0.51	1.73	28,280
  Jacques Find	2012	0.26	3.22	26,680	0.26	3.22	26,680
  Goongarrie	2012	0.20	3.30	21,321	0.07	1.64	3,707	0.27	2.86	25,028
  TOTAL	0.33	2.56	27,423	1.73	2.36	130,781	2.89	2.13	197,537	4.95	2.24	355,741

  Notes:

• Competent Persons Statement - The information in this report that relates to Exploration results, Mineral Resources or Ore Reserves is based on information compiled by Messrs David O'Farrell, Simon Coxhell and Andrew Hawker. All are Members of the Australasian Institute of Mining and Metallurgy and are consultants to Intermin Resources Limited. The information was prepared and first disclosed under the JORC Code 2004 and has been updated to comply with the JORC Code 2012. Messrs O'Farrell, Coxhell and Hawker have sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity that they are undertaking to qualify as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration, Results, Mineral Resource and Ore Reserves'. Messrs O'Farrell, Coxhell and Hawker consent to the inclusion in this report of the matters based on their information in the form and context in which they appear.

2. Forward Looking Statements - No representation or warranty is made as to the accuracy, completeness or reliability of the information contained in this release. Any forward looking statements in this release are prepared on the basis of a number of assumptions which may prove to be incorrect and the current intention, plans, expectations and beliefs about future events are subject to risks, uncertainties and other factors, many of which are outside of Intermin Resources Limited's control. Important factors that could cause actual results to differ materially from the assumptions or expectations expressed or implied in this release include known and unknown risks. Because actual results could differ materially to the assumptions made and Intermin Resources Limited's current intention, plans, expectations and beliefs about the future, you are urged to view all forward looking statements contained in this release with caution. The release should not be relied upon as a recommendation or forecast by Intermin Resources Limited. Nothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

Visit us at www.intermin.com.au

For further information, please contact: