PAPUA NEW GUINEA - Mt Kare option advances

Indochine Mining has progressed plans to acquire the potentially world-class Mt Kare Gold Project following ministerial approval for the transfer and extension of the project's exploration licence.

The notification of the extension of term and transfer has now been provided by the Mineral Resources Authority of PNG to Summit Development, a private PNG company.

Indochine has an option to acquire Summit and the project, and has agreed to provide finance of up to Aus$4 million to Summit for the option, which will form part of the full consideration.

The Mt Kare project is in Enga Province, 20km southwest of Barrick's multi-million ounce Porgera gold mine. Mt Kare, shares a similar geological setting and style of mineralization to the Porgera mine.

Upon completing the transaction, Indochine and Summit will begin work on converting the NI 43-101 resource statement to a JORC-code compliant resource statement and begin a full feasibility study focusing on metallurgy, processing options and environmental studies, which will include an updated independent genealogical and social mapping study. Once this is achieved, discussions may be held with potential partners to expedite development of the project.

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