IGO LIMITED — Capital/Financing Update 2010

Nov 3, 2010

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4 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 institutional shareholders today.

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CHRISTOPHER BONWICK Managing Director

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4 November 2010

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Dear S hareholde r

Accelerated non-renounceable entitlement offer – Notification to excluded institutional 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) as modified b y ASIC Class O rder 08/3 5 .

The E n titlement O ffer is ex p ected to ra i se up to A $ 50,568,16 9 .40. The E ntitlemen t Offer is fully u nderwritte n by Bell P otter Secu r ities Limit e d. Furthe r informati o n in relati o n to the Entitl e ment Offe r has been d isclosed to the ASX.

This l etter is to inform yo u that you are not an eligible institutional s hareholde r for the purpo s es of the I nstitutional Entitlem e nt Offer. This letter is not an o ffer to is s ue New Share s to you, n or an invi t ation to a p ply for N e w Shares. You are not requir e d to do anyth i ng in response to this l etter.

Eligibility criteria

The I n stitutional E ntitlemen t Offer is b e ing made t o Independ e nce share h olders wh o :

1. have a r e gistered a ddresses i n Australi a , New Z e aland, the United K ingdom, Germany, Switzerla n d, Hong K o ng, Singa p ore or France;

2. are regist e red as a h o lder of or d inary sha r es in Inde p endence a s at 5.00 p m (Perth time) on 9 Novembe r 2010;

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2

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1. are not in the United States; and

2. are eligi b le under a ll applica b le securit i es laws t o receive a n offer u n der the Institutio n al Entitle m ent Offer.

In acc o rdance wi t h the ASX Listing Ru l es, Indepe n dence has given rega r d to:

• the numbe r of shareholders outside of Australi a , New Zealand, the Unit e d Kingdom, Germany, S witzerland, Hong Kon g , Singapore and France;

• the numbe r and value o f the securi ti es to be off e red to shar e holders out s ide of Austr a lia, New Zeal a nd, the Unit e d Kingdom , Germany, S witzerland, Hong Kong, Singapore a nd France; an d

• the cost of complying w ith the leg a l requireme n ts and requi r ements of r e gulatory authorities in the over s eas jurisdic t ions,

and c o nsiders th a t it would b e unreaso n able to m a ke an offe r to Indepe n dence sha r eholders who h ave a re g istered ad d ress outsi d e Austral i a, New Z e aland, th e United K ingdom, Germ a ny, Switzerland, H o ng Kong, Singapor e or France ( Excluded Shareholders ). Accordingly, the Entitlemen t Offer will not be ma d e to Exclu d ed Shareh o lders.

As y o ur registe r ed addres s is outsi d e Australi a , New Z e aland, the United K ingdom, Germ a ny, Switz e rland, Ho n g Kong, S ingapore a nd France, you will not be el i gible to partic i pate and w ill be an Excluded Sharehold e r for the purposes o f the Ins t itutional Entitl e ment Offe r . Further, as the Inst i tutional E n titlement O ffer is no n -renounce a ble, you will not receive a ny payme n t or value for entitle m ents in r e spect of a n y New Sh a res that woul d have bee n offered to you if y ou were eligible to p articipate in the Ins t itutional Entitl e ment Offe r .

Shoul d you have any quest i ons, pleas e contact y o ur financi a l adviser o r Security Transfer Regis t rars on +6 1 8 9315 23 3 3 at any ti m e from 9. 0 0 am to 5. 0 0 pm Pert h time.

Yours faithfully,

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Christopher Bon w ick Mana g ing Direct o r