A mineral resource estimate has been reported in accordance with the requirements of the JORC Code (2012 edition) for Indo Mines Limited’s 70%-owned Kulon Progo iron sands project at Yogyakarta in Indonesia.

In surface sand on the resource block there are 106.9 million cubic metres in the measured and indicated categories for 206 million dry tonnes @ 13.74% iron, 1.81% TiO2 and 0.07% V2O5. In surface sand in the mining boundary there are 89.9 million cubic metres in the measured and indicated categories for 173.7 million tonnes @ 13.72% iron, 1.81% YiO2 and 0.07% V2O5.

In gravel units on the resource block there are 188.5 million cubic metres in the indicated category @ 7.22% iron, 0.90% TiO2 and 0.03% V2O5. In gravel in the mining boundary there are 150.3 million cubic metres of indicated resources @ 7.23% iron, 0.90% TiO2 and 0.03% V2O5.

The resource block is defined as all areas of the resource defined within the concession by exploration drilling at a 5% total iron cut-off. The mining boundary is defined as the resource block minus a 200-metre buffer zone between the high tide mark and the allowed mining area boundary at a 5% total iron cut-off.

The estimate was prepared by Brett Gunter of PT GMT Indonesia, a qualified geologist who has more than 25 years of relevant mining and geological experience in coal, bulk commodities and metals, working for major mining companies and for consultants.

PT GMT Indonesia was requested by Indo Mines to conduct a technical review and resource estimation of the PT Jogja Magasa Iron (JMI) concession area. The prospect area lies within the Daerah Istimewa Yogyakarta (DIY, Special Region of Yogyakarta). Kulon Progo is a joint venture between Indo Mines (70%) and PT Jogja Magasa Mining (JMM, 30%).

The iron sand deposit extends over a strike length of about 22km of coastline between the Bogowonto River and the Progo River. The deposit extends from the active shoreline for up to 1.8km inland from the coastline. The granted area of the JMI CoW covers approximately 15km of the potential deposit strike length.

The surface sand, gravel and silt units are all mineralized in the sense that they contain liberated magnetite that is potentially extractable. The surface sand is obviously the most attractive from a potential exploitation point of due to the higher grades and generally consistent nature of the horizon.