IGO LIMITED - Capital/Financing Update 2006

10 October 2006

ASX ANNOUNCEMENT

Corporate Summary
ASX Code: - GLA
Issued Capital: 40 Mil
Market Cap: AS6 Mil	Pei for ÍĠ La.
Contact Details
284 Oxford Street	Gŀ SQ
LEEDERVILLE	Ex
Western Australia 6007	оf beo
+61 8 9443 1600 Tel:
+61 8 9443 2859 Fax:	Gl thi nic of
[email protected]	tan
www.gladiatorresources.com.au	Mı
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Enquiries:	EN joi
John Palermo
Chairman	$\alpha_{\rm W}$ sui
Doug Cunningham	ou
Director	La.
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GLADIATOR LINKS WITH IGO TO UNLOCK NICKEL POTENTIAL AT LAKE LEFROY

rth-based explorer Gladiator Resources Ltd (ASX: GLA) has joined rees with successful nickel producer Independence Group NL (ASX: O) to test the nickel potential of magnetic anomalies located around the ke Lefroy salt lake system south of Kalgoorlie.

adiator's nickel sulphide targets will be explored using leading-edge OUID EM technology owned by international major Anglo American ploration (Australia) Pty Ltd (Anglo) which can scan vast surface areas lake and salt flats that cannot be explored by conventional EM techniques cause of conductive lake sediments.

adiator Chairman John Palermo said a joint venture with IGO agreed to s week would allow Gladiator to apply a global approach to unlocking the kel potential of its world-class Mt Hogans tenements, 25 kilometres east Kambalda, where previous exploration had identified high-priority nickel gets at Lisa's Dune and SA22 prospects.

Palermo said IGO had a strong focus on Lake Lefroy and had developed significant data base on the area as well as having already reported a large A nickel anomaly at the Lake Lefroy Ultramafic Dome under existing nt ventures

Ve expect the revolutionary SQUID EM technology to be particularly ited to the Gladiator's Lisa's Dune prospect and other magnetic highs on r Hogans tenements which are partially covered by the Lake Lefroy and ke Randall salt pans," Mr Palermo said.

isa's Dune has always been a high priority target for Gladiator because it mprises an interpreted ultramafic strike length of 28 kilometres, seventye per cent $(75%)$ of which is within our tenements," he said.

Palermo said Gladiator had agreed to allow IGO to farm-in on the nickel thts on all of Gladiator's $325km^2$ of contiguous tenement holdings at Mt legans. Gladiator's tenements also surround Mincor's Carnilya Hill high de nickel mine on three sides.

Ve regard this as a major step forward for Gladiator. IGO is a proven ploration performer that has the technology, financial ability, know-how d commitment to develop new nickel mines in the Kalgoorlie-Kambalda region," Mr Palermo said.

Key points of JV:

IGO to spend a minimum of \$2.0 million over 3 years to earn a 70% interest in the nickel rights.
IGO to spend a minimum of \$140,000 in the first 12 months before it may withdraw.
Gladiator may dilute to 20% which would then be free carried to Bankable Feasibility Study. $\blacksquare$
If IGO uses the SOUID EM, Anglo will be entitled to a 1% royalty in any related subsequent discoveries. If the discovery of an ore body exceeds a predetermined size, Anglo may convert its royalty into an 80% interest of IGO's project equity under the IGO Anglo licensing arrangements. The minimum threshold for Anglo is 100,000 tonnes of contained nickel metal as delineated by a feasibility study.
Subject to any third party rights of Anglo, both parties may sell their interest at any time with both parties having a first right of refusal over the other party's interest.
The agreement is subject to conditions precedent, namely the approval of the Joint Venture by Anglo and satisfactory due diligence by IGO.

Mr Palermo said the joint venture was part of the Company's strategy to maintain an aggressive exploration profile.

"This JV will take our exploration efforts to a new level and allow our shareholders to participate far more vigorously in the search for nickel at east Kambalda than would otherwise have been possible." he said.

"We will now have a partner that is a major nickel producer at the nearby Long Nickel Mine and who shares our enthusiasm for the exploration potential of the east Kambalda region."

Mr Palermo said the terms of the joint venture were favorable for Gladiator shareholders because while giving important momentum to the nickel search, it freed the Company to continue exploration pursuits on the Hogans tenements for gold and other non-nickel resources.

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For further information:
Mr John Palermo		Mr Doug Cunningham
Chairman		Director
	Telephone: +61 8 9443 1600		Telephone: +61 8 9443 1600
	Facsimile: +61 8 9443 2859		Facsimile: +61 8 9443 2859
Mobile:	0417 947 059	Mobile: .	0414 477 710
E-mail:	ipalermo(a)gladiator resources.com.au	E-mail:	[email protected]