INDAGO RESOURCES LTD Exploration Update Fri, 3 Jul 2009 19:12:00 +1000       8 months, 3 weeks ago

ASX Announcements 3 July 2009 Diamond drilling commences at the Kilimani Prospect Nyanzaga Project Lake Victoria Gold Fields Tanzania The Board of Indago Resources is pleased to announce the commencement of drilling at the Kilimani Prospect in Tanzania. Highlights • • • • Indago Resources Ltd (Indago) recently announced the Scoping Study results from the combined Nyanzaga Project comprising the Tusker and Kitongo deposit Kilimani forms part of the wider Nyanzaga acquisition and presents significant potential to deliver a near surface oxide open pit resource with highly encouraging intercepts The exploration target is 160 – 310koz of resource Kilimani is located less than 600 metres from Tusker providing an opportunity for any ore at Kilimani to be processed through the proposed CIL plant and extend the proposed production platform from Nyanzaga Diamond drilling commenced on the 3rd of July, and is designed to obtain further geological information from the Kilimani Prospect. The Information obtained will be used refine the geological model and direct infill RC drilling aimed at extending and further defining known mineralisation.

This additional drilling is being done with a view to defining a JORC compliant resource. RC drilling is scheduled to commence at Kilimani once RC drilling at Tusker is complete. Kilimani is located approximately 600 metres to the north east of the Tusker deposit, and is not part of the current Tusker Resource.

The Kilimani prospect is considered to have significant potential to delivery a near surface oxide open pittable resource. Based on successful exploration drilling Indago is targeting delivering a near surface oxide resource of 4 – 6 MT @ 1.2 – 1.6 g/t for a target endowment of 160 – 310,000 oz of gold. This target is based on existing 80 - 100 metre spaced historic drilling over a strike length of 650 metres.

Table 1 below summarises existing significant intersections through the mineralisation . Indago Resources Managing Director George Bauk said that Kilimani offered substantial upside to the recently outline Scoping Study base case. “Kilimani has the potential to deliver further gold ounces to the Nyanzaga Gold Project in Tanzania, over and above those already identified in our scoping study base case.

Successful resource definition at Kilimani will directly complement the existing Tusker resource.” said Mr Bauk. For further information contact: George Bauk Managing Director Indago Resources Limited T+61 08 6380 3600 Paul Downie / Shane Murphy FD Third Person T +61 8 ....