Indo Mines Report Further Gold Intercepts at Northern Peru Copper Corp's Hilorico Gold Project in Peru

Northern Peru Copper, a company listed on the Toronto Stock Exchange (TSX: NOC), has reported further significant gold drill results from the latest five diamond holes drilled over the Hilorico gold prospect located approximately 1km from their large Galeno copper-gold- molybdenum porphyry deposit in northern Peru and 16 kilometres from Yanacocha, South America's largest gold mine.

Shareholders and investors of Indo Mines (ASX: IDO) are advised to refer to Northern Peru Copper's TSX announcement dated 5 July 2006.

Indo Mines Ltd, through its subsidiary Terrace Gold, has a 0.5% Net Smelter Return over the El Molino concession, which contains all of the Hilorico gold target and a portion of the Galeno Cu-Au-Mo deposit (refer to Indo Mines' ASX releases dated 4 th May and 19 th April 2006).

To date, approximately 6000 metres of diamond drilling for 17 holes have been drilled at Hilorico and results have been received for 13 of these holes. In the latest drilling, one of the holes, HR-06-13, returned 115.7 metres grading 1.1g/t gold and 9.06g/t silver from surface to 115.7m in completely oxidized and brecciated quartzite.

Indo Mines reported to ASX on 16 January this year that diamond hole HR-05-01, drilled by Northern Peru Copper, returned 201 metres grading 1g/t gold and 5.6g/t silver from 121 metres to 322 metres including 62 metres grading 1.48g/t gold and 2.6g/t silver in partially oxidized and brecciated quartzite.

Furthermore, Indo Mines reported to ASX on 4th May this year that diamond hole HR-05-07 drilled by Northern Peru Copper returned 213.4 metres grading 1.04g/t gold and 1.6g/t silver from 38 metres to 251.4 metres in completely oxidized brecciated quartzite. This included two high-grade zones of four metres and two metres grading 18.4 and 26.1g/t gold, respectively. The drilling at Hilorico has defined partially to completely oxidized, brecciated or faulted quartzites and sandstones, and semi-massive sulphides confirming the presence of a large epithermal gold system with potentially economic grades.

About Indo Mines Limited

Indo Mines Limited (Indo Mines)(ASX:IDO) is an Australian-based mining and metals company. The Company is engaged in the mineral exploration and development activities. It is engaged in the iron sands development in Indonesia segment. The Company holds interest in Sapex Oilfield Services Ltd, which is a supplier of composite mats and down hole tools to the energy industry. The Company, through PT Jogja Magasa Iron, holds interest in the Kulon Progo iron sands project. Its Jogjakarta Iron Project is located approximately 30 kilometers from the city of Jogjakarta, Indonesia.

 

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Northern Peru Copper

Indo Mines Limited