IGO LIMITED — Capital/Financing Update 2007

Oct 17, 2007

==> picture [515 x 97] intentionally omitted <==

ASX Release 18 October 2007

ASX Code: STB

Share Price: 16.5 cents Market Cap: $7M Shares on issue: 44.12M Cash at Bank: $1.4M ASX listed shares: +$2.2M Top 20 shareholders: 57%

Contact Details 133-135 Edward St Perth WA 6000 PO Box 8355 Perth BC WA 6849 Telephone +61 8 9227 1144 Facsimile + 61 8 9328 8302 www.southbouldermines.com.au

Duketon Nickel JV – The Bulge Prospect

• Third phase drilling has been completed at the C2 TEM conductor at The Bulge Prospect

• Results anticipated in coming month

• First phase drilling of the C2 TEM conductor returned:

  • 35m @ 0.71% Ni, 310ppb Pt+Pd from 40m

• Second phase drilling of the C2 TEM conductor returned:

  • 32m @ 0.52% Ni from 148m

  • 4m @ 2.25g/t Pt+Pd, 0.71% Ni and 2520ppm Cu from 80m

South Boulder Mines Ltd (South Boulder) (ASX:STB) is pleased to announce that it’s Joint Venture partner Independence Group NL (Independence) (ASX:IGO) has completed a 101 hole, 6,544m aircore drilling programme at The Bulge Nickel Sulphide Prospect within the Duketon Project.

Results will be released to the market as soon as they are available, which is expected to be in approximately 3 to 4 weeks time.

Third phase drilling at The Bulge was designed to test the depth and strike extensions of the nickel sulphide mineralisation intersected during second phase drilling and to search for new areas of nickel sulphide mineralisation in the host ultramafic.

Drilling was planned on a 400m x 100m grid although holes were closed up at the contact positions to a 50m spacing where required, to ensure intersections of both the footwall and hanging wall positions of the ultramafic unit.

Drilling was carried out on seven east - west lines, with holes drilled at -60º toward the west. In addition one line was completed in a north-south orientation, with holes drilled at -60º toward the south.

==> picture [514 x 24] intentionally omitted <==

==> picture [515 x 97] intentionally omitted <==

==> picture [397 x 361] intentionally omitted <==

Figure 1 - Grey crosses over The Bulge ultramafic show the location of Phase III drilling; Yellow hatching shows the known location of disseminated sulphides.

All holes will be analysed for a suite of elements including gold to which South Boulder has 100% of the rights.

Phase I Drilling

First phase drilling at The Bulge was completed in October 2006.

One reverse circulation hole was drilled to target the C2 TEM conductor.

TBRC001 intersected two zones of disseminated nickel sulphide mineralisation:

• 35m @ 0.71% Ni from 40m; and,

• 7m @ 0.45% Ni from 114m (at the basal contact position)

==> picture [514 x 24] intentionally omitted <==

==> picture [515 x 97] intentionally omitted <==

Phase II Drilling

Second phase drilling of the C2 TEM conductor at The Bulge was completed in February 2007.

Six reverse circulation holes were drilled to test the depth and strike extensions of the nickel sulphide mineralisation discovered in the first phase of drilling.

Two holes were drilled east of TBRC001 to test for nickel sulphide mineralisation in fresh ultramafic down dip of TBRC001, and four further holes were drilled on two sections approximately 200m along strike to the north and south of TBRC001.

TBRC010 was drilled east of TBRC001 to test the down dip extension of the nickel sulphide mineralisation in TBRC001 and intersected:

• 4m @ 0.62% Ni, 1000ppm Cu and 280ppb Pt+Pd from 112m; and,

• 32m @ 0.52% Ni from 148m.

TBRC012 was drilled along strike, 200m to the north of TBRC001 and intersected:

• 4m @ 2.25g/t Pt+Pd, 0.71% Ni and 2520ppm Cu from 80m (within a broader zone of 16m @ 0.78g/t Pt+Pd, 0.44% Ni and 1267ppm Cu).

==> picture [433 x 35] intentionally omitted <==

==> picture [433 x 35] intentionally omitted <==

==> picture [433 x 35] intentionally omitted <==

==> picture [433 x 35] intentionally omitted <==

==> picture [433 x 35] intentionally omitted <==

==> picture [433 x 35] intentionally omitted <==

==> picture [433 x 35] intentionally omitted <==

==> picture [433 x 35] intentionally omitted <==

==> picture [433 x 35] intentionally omitted <==

Figure 2 – Location of, and results from, Phase I and II drilling at The Bulge Prospect.

==> picture [514 x 24] intentionally omitted <==

==> picture [515 x 97] intentionally omitted <==

==> picture [489 x 68] intentionally omitted <==

==> picture [489 x 68] intentionally omitted <==

==> picture [489 x 68] intentionally omitted <==

==> picture [489 x 69] intentionally omitted <==

==> picture [489 x 68] intentionally omitted <==

==> picture [489 x 68] intentionally omitted <==

==> picture [489 x 69] intentionally omitted <==

==> picture [489 x 68] intentionally omitted <==

==> picture [489 x 68] intentionally omitted <==

Figure 2 – Cross section of Phase I and II drilling at The Bulge Prospect; Red shows broad zones of disseminated nickel sulphide mineralisation.

==> picture [514 x 24] intentionally omitted <==

==> picture [515 x 97] intentionally omitted <==

About South Boulder Mines Ltd

South Boulder is focused on exploration for gold, nickel and base metal deposits within the Duketon Project north of Laverton in Western Australia. South Boulder’s 100% owned Duketon Project covers approximately 2000km² of the Duketon Greenstone Belt.

South Boulder has a two-pronged attack on the gold potential of the Duketon Project, seeking both large scale stand alone operations as well as looking closely at smaller, higher-grade opportunities. As part of its push to find further resources, South Boulder is targeting prospects that would not have met the size criteria of the previous explorers.

In April 2004 South Boulder signed a farm-out joint venture agreement with Independence who can earn a 70% interest of the nickel rights on tenements held by South Boulder within the Duketon Project by the completion of a Bankable Feasibility Study within five years.

Nickel sulphide potential within the Duketon Project is highlighted by the recent Collurabbie discovery by Falcon Minerals Ltd and BHP Billiton Ltd to the north, and by the recently revived Windarra nickel mine to the south held by Poseidon Nickel Ltd.

More information: Media enquiries: Liam Cornelius Sarah Allchurch Managing Director Allchurch Communications South Boulder Mines Ltd + 61 8 9381 6625 + 61 8 9227 1144 0412 346 412 0411 156 745

The information in this report that relates to exploration results is based on information compiled by Liam Cornelius, who is a member of the Australian Institute of Geoscientists. Mr Cornelius is a geologist and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Liam Cornelius consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

==> picture [514 x 24] intentionally omitted <==