IGO LIMITED — Capital/Financing Update 2010

Nov 4, 2010

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5 November 2010

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

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RE: ACCELERATED NON-RENOUNCEABLE ENTITLEMENT OFFER

Please find attached a letter sent to Independence Group NL ineligible retail shareholders today.

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CHRISTOPHER BONWICK Managing Director

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5 November 2010

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Dear S hareholde r

Accelerated non-renounceable entitlement offer – Notification to excluded retail shareholders

On 4 Novembe r 2010, I n dependenc e Group N L ( Independence ) ( ASX Code: IGO) annou n ced that it was conducting a n acceler a ted non-r e nounceabl e entitlem e nt offer ( Entitlement Offer ), to eli g ible share h olders, of o ne ordinar y share in I ndependence ( New Share ) for every 15 ordinar y shares in I ndependen c e at an iss u e price of A $6.65 eac h .

In co n junction w ith the En t itlement O ffer, Inde p endence a l so announ c ed a plac e ment to instit u tional inve s tors of 17, 1 09,530 Ne w Shares ( Placement ).

The E n titlement O ffer will comprise:

• an entitle m ent offer to e ligible inst i tutional sha r eholders ( Institutional Entitlement Offer ); and

• an entitle m ent offer to e ligible reta i l sharehold e rs ( Retail Entitlement Offer ).

The E n titlement O ffer is bei n g made w i thout a prospectus or p roduct dis c losure doc u ment in accor d ance with section 70 8 AA of the Corporati o ns Act 20 0 1 (Cth) (t h e Act ) as m odified by A S IC Class O r der 08/35.

The Entitlement O ffer is ex p ected to r a ise A$50,5 6 8,169.40. The Entitl e ment Offe r is fully under w ritten by Bell Potte r Securitie s Limited. Further information in relatio n to the Entitl e ment Offe r has been d isclosed to the ASX.

This l e tter is to i n form you that you ar e not an El i gible Reta i l Sharehol d er (define d below) for th e purposes of the Ret a il Entitle m ent Offer. This lette r is not an offer to is s ue New Share s to you, n or an invitation to a p ply for N ew Shares. You are not requir e d to do anyth i ng in response to this l etter.

Share h olders wh o are eligib l e to partic i pate in the Retail Ent i tlement O ff er ( Eligible Retail Shareholders ) a r e those per s ons who:

• a) are re g istered as a holder of ordinary s h ares in Independence as at 5.00p m (Perth time), 9 Novemb e r 2010;

• b) have a registered address in A ustralia o r New Zeal a nd;

• c) are not in the Un i ted States;

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• d) did n o t receive a n offer to p articipate ( o ther than a s nominee ) or were otherwise inelig i ble to parti c ipate und e r the Instit u tional Enti t lement Of f er; and

• e) are el i gible und e r all appli c able secu r ities laws to receive an offer u n der the Retail Entitleme n t Offer.

Indep e ndence ha s determin e d, pursua n t to 9A of the Act a n d Listing R ule 7.7.1( a ) of the ASX L isting Ru l es, that it would be unreasona b le to mak e offers to shareholders in all count r ies outsid e Australia and New Zealand i n connectio n with the Retail En t itlement Offer. The secu r ities laws o f many co u ntries req u ire the use of offer d o cuments s p ecific to that c o untry or compliance with local l aws for the Retail E n titlement O ffer to be made in those countries. Having re g ard to the number of retail shar e holders in particular c ountries and t h e cost of c ompliance with local laws to m a ke the Re t ail Entitle m ent Offer in those count r ies, Independence has limited th e countries i n which the Retail E nt itlement O ffer will be made. Accor d ing to our records, y o u do not s a tisfy the el i gibility cri t eria for an Eligible Retail Sharehol d er stated a bove. A c cordingly, in compli a nce with ASX Listing Rule 7.7.1( b ), Indepe n dence wi s hes to ad v ise you t h at it will not be e x tending the Retail Entitl e ment Offe r to you a n d you will not be able to subsc r ibe for Ne w Shares u nder the Retail Entitleme n t Offer. You will not be se n t the doc u ments rel a ting to t h e Retail Entitl e ment Offe r or be able to subscribe for New S hares und e r the Retai l Entitleme n t Offer.

Notw i thstanding the above, Independe n ce and B e ll Potter m ay agree t o extend t h e Retail Entitl e ment Off e r to certa i n instituti o nal share h olders w h o did not participat e in the Instit u tional Enti t lement Of f er or to o t her retail s hareholde r s, subject t o complia n ce with applicable laws.

As th e Retail En t itlement O ffer is non - renouncea b le, you w i ll not rece i ve any pa y ment or value for entitle m ents in respect of an y New Shares that wo u ld have be e n offered t o you if you were eligible to particip a te in the R e tail Entitl e ment Offe r .

If yo u have any questions in relation t o any of t h e above m atters, ple a se contact Security Trans f er Registr a rs on +61 8 9315 23 3 3 from 9. 0 0 am to 5. 0 0 pm (Pe r th time) d u ring the Retail Entitleme n t Offer per i od.

For o t her questions, you sh o uld consul t your brok e r, solicitor, accounta n t, financial adviser, or oth e r professi o nal adviser.

On b e half of th e Board a n d Manage m ent of Independenc e , we regr e t that you are not eligib l e to participate in th e Retail E n titlement O ffer and t hank you for your c o ntinued suppo r t.

Yours faithfully

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Christopher Bon w ick Mana g ing Direct o r