INDEPENDENCE

Annual General Meeting

19 November 2003

TALK OUTLINE

Corporate Vision
Long Nickel Mine
Operations
Exploration Upside
Exploration Philosophy
Nickel & Gold Targets
Growth strategy

INDEPENDENCE AT A GLANCE as at 17.11.03

CORPORATE VISION

VISION:

• To build a major Australian resource house.

EXECUTION:

Mining growing reserve base by innovation and exploration
Exploration discover & develop new gold & nickel camps
Corporate mergers & acquisitions

SHARE STRUCTURE & MARKET CAPITALISATION

		Independence shares on issue (M)
Ordinary shares $(tradable - 50.4M)$	68.5M	50 100 150 200 Feb Ordinary shares Contributing shares Apr Options
Options	28.7M	Unlisted options Jun 2002 Market Aug capital isation
Contributing shares	9.9M	Oct Dec Feb
Unlisted options	4.6M 111.7M	Apr 2003 Jun⊯
Fully diluted Market		Aug
Capitalisation	\$105.7M	Oct
as at 18/11/03		50M 100M
		IGO fully diluted market capitalisation (\$M)

TOP TEN SHAREHOLDERS

Ordinary Shares

Perilya	20.7M	30.4%
ANZ Nominees	2.4M	3.5%
Virtual Genius	2.4M	3.5%
IME	2.0M	2.9%
J Schiller	2.0M	2.9%
Lion Selection	1.5M	2.2%
Rothschild	1.5M	2.2%
Westpac Nominees	0.7M	1.1%
J P Morgan Nominees	0.7M	1.1%
P Parker	0.7M	1.0%
(As at 13.11.03)	34.5M	50.7%

LONG NICKEL MINE GEOLOGICAL SETTING

One of the biggest Kambalda deposits, discovered in 1971.
Past production: 5.43Mt @ 3.7% Ni >200,000t Ni (\$2.4 billion @ \$12,000/Ni t)
Starting reserve: 27,000t Ni
Known metal in mine: 113,000t in 2 lava channels

PURCHASE COST / RESOURCE MASSIVE Nit

LONG CASH FLOW STATISTICS TO DATE

Production Aim:

• Safely produce +\$60M net cash after debt repayment and tax over 5 years.

Production Statistics:

Nov $02 -$ Sep $03$
Cash costs
IGO's Ni share
Revenue
$\bullet$ Operating cash flow
$\bullet$ Pre tax profit
$= 129,886t \omega 3.8\% Ni$
$= A$2.18/lb$ Ni*
$= 2,908t$ Ni
$= $39.6M$
$= $12.5M$
$= $8.3M$
* Excludes depreciation and amortization

LONG PRODUCTION TO DATE

Ore tonnes & grade

Nickel tonnes

$2003 - 2004$ LONG PRODUCTION PROFILE

Safety.
Stable, experienced & motivated work force.
Maximizing grade, minimizing dilution using innovative geology and geophysics.
Cost control.
Mine life.
Exploration upside.
Annual production increase.

LONG SAFETY

Mine start-up to present - ONLY 1 LTI

Reasons:

Shifts: $2 \times 10.5$ hrs/day (not 12hrs).
Salaried employees risk taking is reduced.
Regular safety meetings involving all.
Regular compulsory training.
Remote controlled equipment reduces exposure hours.
Highly experienced workforce.

LONG MINING TEAM

72 full time very experienced mining team.
Underground experience
Average experience
Long experience

1,240 man years 19.4 man years 240 man years

Owner operator with almost all of the team on salary.
99% retention rate.

MAXIMIZING HEAD-GRADE REDUCING DILUTION

Team work:
Integrated geology, engineering and operator approach resulting in good forward planning.
Mining method:
Jumbo flat-backing
Long hole pillar recovery
Hand-held mining
Innovation:
Mining underhand flat-backing trial
Geophysics blast hole conductivity logging
- $-EM$ torch

VISUAL BLAST HOLE LOGGING VS CONDUCTIVITY LOGGING

PORTABLE UNDERGROUND EM SYSTEM (EM TORCH)

Very portable
Runs on 12 volt batteries
3 different operating systems using same hardware:

Scale	Search (m)	Target size
Stope	$0 - 30m$	$5 \times 10m$
Stope extensions	$0 - 50m$	$50 \times 50m$
Exploration	$0 - 100m$	100 x 100m

LONG COST CONTROL

Gain share bonus employees share in above budget positive cash flow.
New mining gear maximizes availability.
Daily cost monitoring.
Very low personnel turnover.
Forward planning.

INCREASING MINE LIFE AT LONG

Category		Start-up Oct 2002	June 2003


Resources	1,233,000t @ 5.6% Ni			1,368,600t @ 6.0% Ni
		(69,000t Ni)	(82,700t Ni)

		746,000t @ 3.6% Ni		688,000t @ 4.0% Ni
Reserves
		(26,800t Ni)	(27,300t Ni)

Mine life		5 years	6 years

$\bullet$ +20% nickel tonne resource increase & 20% mine life increase.
IGO believes a minimum of 12,000t Ni will be converted to reserves in 2003 / 2004 increasing mine life to 8 years.
Further reserve increases are likely.

IN SITU MASSIVE Ni t

LONG COMPLEX JUNE 2003 RESERVES RESOURCES & PILLARS

FUTURE HIGH-GRADE ORE VICTOR SOUTH

LONG/VICTOR COMPLEX FLY THROUGH

INDEPENDENCE GOLD NL

ANNULAL PRODUCTION PROFILE GOAL

Location	Current	Goal	Haulage
	Ni t	Ni t


Long	4,700	4,700	Shaft

Gibb South	600		Decline


Victor South		4,800	Decline

Long South*		4,500	Shaft & Decline


TOTAL	5,500	14,000

160,000tpa $@$ 3.3% Ni increasing to 370,000tpa $@$ 3.8% Ni.
Shaft and Decline haulage capacity under utilized. * Yet to be proven up

IND) ZPINDENCE

AUSTRALIAN REGIONAL NICKEL & GOLD EXPLORATION STRATEGY

Looking for new mineral camps:

undercover, at depth and
in lightly or unexplored terrains

WMC DIAMOND DIVISION DATABASE - 100% IGO

$\bullet$ 24,000 samples.
\$40M replacement cost.
Cannot be duplicated due to Native Title.
Exclusive to IGO until August 2009.
WMC 1.5% gross royalty.

Numerous untested gold, nickel etc anomalies

NICKEL EXPLORATION

CHROMITE MORPHOLOGY & CHEMISTRY

Independence can distinguish chromite grains that:

form in ultramafics which carried nickel sulphides.
precipitate with nickel sulphides
(also picks up Ni rich meteorites and kimberlites).

COSMOS EXAMPLE

Kambalda, Cosmos, Widgiemooltha and other nickel camps rediscovered using this technique.
40 new nickel targets defined with potential new surface nickel sulphides.