IGO LIMITED — Capital/Financing Update 2003

Oct 1, 2003

2 October 2003

Australian Stock Exchange Limited Company Announcements Level 10, 20 Bond Street SYDNEY NSW 2000

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LONG NICKEL MINE - JUNE 2003 ORE RESOURCES AND RESERVES

Independence Gold NL's wholly owned subsidiary Lightning Nickel Pty Ltd, commissioned independent consultants to complete the June 2003 Long Nickel Mine resource and reserve estimations. Cube Consulting Pty Ltd and BFP Consultants Pty Ltd were contracted to estimate the resources and reserves respectively.

Independence Gold NL is pleased to announce that the undiluted resource base (including the reserves) has been increased by 20%, or 13,700 contained nickel (Ni) tonnes, to 82,700 Ni tonnes (Table 1). The Company believes that at least 12,000 tonnes of the non-reserve nickel metal component of the resources will be converted to reserves over the coming year. Resource ore tonnages have been estimated at a 1% Ni cut-off grade using a 2 dimensional metal accumulation of grade, thickness and density interpolated by ordinary kriging into 20m by 20m blocks for each mineralised ore surface. This block model was then subjected to depletion by mining and barren porphyry pillars to arrive at the stated resource tonnes and grade.

The diluted proven and probable reserves have been increased to 27,300 Ni tonnes, following the mining of 3,000t of Ni during the year (Table 2). A 2% Ni cut-off grade has been used as an average for a combination of stoping methods. This cut-off estimation has included all operating costs and a conservative nickel-recovered revenue as supplied by Lightning Nickel. The new reserve total has extended mine life at current extraction rates to 2008.

The reserve has been estimated by BFP Consultants using stoping block models overlaid on the wire-frame models supplied by Cube Consulting. Dilution factors of between 5 and 25%, and mining recovery factors of between 40% and 90%, were added according to the proposed mining method. Note that some blocks to be mined by the trial underhand cut and fill method have a 40% recovery factor applied until the method is proven. Should this eventuate then it is expected up to a further 6,600 tonnes of Ni in pillars will become part of the reserve, and that mining recovery would be at least 80%. It is also expected that an additional 6,000 tonnes of Ni will be added to the reserve by the conversion of inferred resources in the Victor South ore body, when further confirmation drilling takes place in the March quarter of 2004. These additions would represent an extension of mine life until 2010.

As well as these incremental nickel reserve additions, a large exploration program is currently in progress to locate new resources and reserves in the vicinity of the mine. This program is focussing on targets such as Long South which can be brought into production relatively cheaply and quickly near to existing underground infrastructure.

Mud

CHRISTOPHER BONWICK Managing Director

PO Box 893, South Perth. Western Australia, 6951 Phone: (08) 9367 2755 Facsimile: (08) 9367 3288 Email: contact@independencegold.com.au Website: www.independencegold.com.au

			Undiluted Resources as at 30 June 2003
		Tonnes	Ni %	Ni Tonnes
Long Stopes	Measured	406,000	6.8	27,700
	Indicated	339,000	5.8	19,500
	Inferred	58,000	4.1	2,400
	Sub-Total	803,000	6.2	49,600
Long Pillars*	Measured	83,500	6.0	5,100
(extractable)	Indicated	87,700	6.1	5,300
	Inferred	à.	ä,
	Sub-Total	171,200	6.1	10,400
Victor South	Measured
	Indicated	106,000	7.7	8,100
	Inferred	258,000	4.9	12,700
	Sub-Total	364,000	5.7	20,800
Gibb South	Measured	u	à,
	Indicated	17,400	7.4	1,300
	Inferred	13,000	4.8	600
	Sub-Total	30,400	6.3	1,900
TOTAL		1,368,600	6.0	82,700

Table 1: Long Nickel Mine - Resources at 1% Ni cut-off

* An additional 27,000 nickel metal tonnes remain in pillars where further work is required to determine whether this nickel can be mined.

		Mining Reserve as at 30 June 2003 2
		Tonnes	Ni %	Ni Tonnes
Long 12-16L	Proven	358,000	3.8	13,600
	Probable	116,000	3.1	3,600
	Sub-Total	474,000	3.6	17,200
Long 7-11L	Proven	10,000	4.0	400
	Probable	72,000	3.8	2,800
	Sub-Total	82,000	3.9	3,200
Victor South	Proven
	Probable	105,000	5.7	5,900
	Sub-Total	105,000	5.7	5,900
Gibb South	Proven	19,000	4.0	700
	Probable	9,000	3.1	300
	Sub-Total	28,000	3.7	1,000
TOTAL		688,000	4.0	27,300

$\tilde{\mathbf{x}}$

Table 2: Long Nickel Mine - Reserves at 2% Ni cut-off

Notes:

$2$ Nickel in reserves comprises part of the stated resource tonnes.

$\tilde{\boldsymbol{s}}$ An additional 6,000 nickel tonnes is expected to be converted from resource to reserve status once decline drilling confirms the current model. This drilling is scheduled to be completed during the March 2004 quarter.

$\frac{1}{4}$ The Competent Persons and Members of the AusIMM with the appropriate experience in reporting the above are Rick Adams and Ted Coupland of Cube Consulting and Gary Davison of BFP Consultants.

Included in the JORC classified resources is a total of 171,200 ore tonnes @ 6.1% Ni representing extractable pillars. If the current Research & Development study into the underhand cut and fill mining technique proves successful, it is estimated that up to 6,600 nickel tonnes will be converted from resource to reserve increasing the total reserve to 33,900 contained nickel tonnes.