IGO LIMITED — Capital/Financing Update 2008

Jun 17, 2008

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ASX Code: STB

Share Price: 34.0 cents

Market Cap: $16M Shares on issue: 51.41M

Cash at Bank: $2.6M ASX/TSX listed shares: +$1.8M

Top 20 shareholders – 48%

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

PHASE IV NICKEL SULPHIDE RC DRILLING UNDERWAY

South Boulder Mines Ltd (ASX: STB) is pleased to announce that the fourth phase of drilling is currently underway at The Bulge nickel sulphide prospect at its Duketon Project, near Laverton in Western Australia.

In early 2004, South Boulder entered a farm-out Joint Venture (JV) Agreement with Independence Group NL (ASX: IGO), whereby Independence can earn a 70% interest in the nickel rights on tenements held by South Boulder in the Duketon Project.

Independence has advised South Boulder that RC drilling of a planned 42 hole program for 6,195 metres has commenced and is expected to be completed in approximately eight weeks.

The drilling program is targeting extensions to broad shallow nickel sulphide intercepts previously discovered by Independence in RAB/Air-core and RC drilling. The mineralisation discovered so far at The Bulge is the disseminated type, which is mined at a number of deposits.

The Duketon Nickel JV covers approximately 100 strike kilometres of ultramafic rich stratigraphy in the Duketon Greenstone Belt. The Belt is situated between the nickel discoveries of Windarra to the south and Collurabbie to the north and is considered highly prospective for Ni-Cu-PGE mineralisation.

Drilling results from earlier programs have provided significant encouragement to conduct follow-up deeper drilling programs, particularly where previous air-core drilling hasn’t been able to penetrate a hard supergene silica cap on ultramafic bedrock.

Some previously released nickel intercepts and the interpreted geology of The Bulge are shown in Figure 1. The planned locations of follow-up drilling are shown in Figure 2. South Boulder anticipates that results will be available for release to the ASX within the next 11 weeks.

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9m@0.51%Ni(78m)
ΦΦ 29m@0.53%Ni(150m)
ΦΦΦ 35m@0.72%Ni(40m)
ΦΦ
8m@0.50%Ni(40m)
11m@0.59%Ni(35m)
E38/1537
2m@0.71%Ni(28m)
20m@0.69%Ni(28m)
Φ
6m@0.52%Ni(38m)
H3m@0.66%HNi(45m)
6m@0.77%Ni(36m)
Φ
Φ
TBRC006TBRC012
TBRC001TBRC010TBRC005
TBRC013TBRC008
TBAC001TBAC002TBAC003TBAC006TBAC004TBAC005
TBAC007TBAC008TBAC010TBAC009TBAC011TBAC013TBAC012
TBAC014TBAC015TBAC016TBAC017TBAC018TBAC019TBAC020 100TBAC021TBAC022TBAC023TBAC024TBAC025TBAC026TBAC027TBAC028TBAC029TBAC030TBAC031TBAC032
TBAC099
TBAC
098
TBAC097
TBAC033TBAC034TBAC035TBAC036TBAC037TBAC038TBAC039TBAC040TBAC041TBAC042TBAC TBAC0 0954396TBAC044TBAC045TBAC046TBAC0101TBAC047TBAC048TBAC049TBAC050TBAC051TBAC052TBAC053TBAC054TBAC055TBAC056TBAC057
RC004 TBAC
TB AC094
TB 093
TBAC
AC092
TB 091
TBAC058TBAC059TBAC060TBAC061TBAC062TBACTBAC063TBAC064090 TBAC065TBAC066TBAC067TBAC068TBAC069TBAC070TBAC071TBAC072TBAC073TBAC074TBAC075TBAC076TBAC077TBAC078TBAC079
TBAC
089
TBAC088
TBAC087
TBAC086
TBAC
085 TBAC080TBAC081TBAC082TBAC083TBAC084
TBAC
RC003
TB
RC002
TB
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Figure 1: E38/1537 The Bulge completed air-core drilling completed in October 2007 with interpreted geology and approximate sulphide mineralisation contours and intercepts (0.4% Ni cut-off)

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Figure 2: E38/1537 The Bulge completed air-core drilling (grey crosses), Planned RC holes (red lines – infill, red dots – geochemical anomalies, blue – silica cap rock, black – test contact zone) over interpreted geology, sulphide mineralisation outline (red hatch), and supergene silica development (white hatch).

About South Boulder Mines Ltd

Listed in 2003, South Boulder Mines (ASX: STB) is primarily focused on gold, nickel and base metal exploration within the Duketon Project. The company has also recently become involved in exploration for potash and phosphate.

In April 2004 South Boulder signed a farm-out joint venture agreement with Independence Group NL 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. New in-house technology developed by Independence and currently in use on the Duketon Nickel JV lends a significant advantage over previous explorers.

More information:

Lorry Hughes Managing Director South Boulder Mines Ltd + 61 (08) 9227 1144

Media enquiries:

Sarah Allchurch Allchurch Communications + 61 (08) 9381 6625 0412 346 412

The information in this report that relates to exploration results is based on information compiled by Lorry Hughes, who is a member of the Australian Institute of Mining and Metallurgy. Mr Hughes 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”. Lorry Hughes consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.