IGO LIMITED — Capital/Financing Update 2010

Nov 3, 2010

==> picture [315 x 92] intentionally omitted <==

4 November 2010

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

NO. OF PAGES : (4)

RE: ACCELERATED NON-RENOUNCEABLE ENTITLEMENT OFFER

Please find attached a letter sent to Independence Group NL optionholders today.

==> picture [79 x 32] intentionally omitted <==

CHRISTOPHER BONWICK Managing Director

==> picture [416 x 20] intentionally omitted <==

4 November 2010

==> picture [32 x 92] intentionally omitted <==

==> picture [15 x 92] intentionally omitted <==

==> picture [55 x 46] intentionally omitted <==

==> picture [55 x 46] intentionally omitted <==

==> picture [55 x 46] intentionally omitted <==

==> picture [54 x 46] intentionally omitted <==

==> picture [55 x 46] intentionally omitted <==

==> picture [55 x 47] intentionally omitted <==

==> picture [55 x 47] intentionally omitted <==

==> picture [55 x 47] intentionally omitted <==

==> picture [54 x 47] intentionally omitted <==

==> picture [55 x 47] intentionally omitted <==

Dear O ptionholder

Participation in accelerated non-renounceable entitlement offer

Overview

Indep e ndence Gr o up NL ( Independence ) wishes to advise tha t it intends to proceed with an accele r ated non-re n ounceable e ntitlement o ffer of one ordinary sh a re in Indep e ndence ( New Share ) for ev e ry 15 ordin a ry shares ( Share ) at an offer price o f $6.65 per New Share ( Entitlement Offer ) to rais e a maximu m of $50,568,169.40 bef o re costs.

In con j unction wit h the Entitle m ent Offer, I ndependen c e also anno u nced a pla c ement to in s titutional invest o rs of 17,10 9 ,530 New S h ares ( Placement ).

The E n titlement O f fer will co m prise:

• 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 ).

Furthe r informatio n in relation to the Entitl e ment Offer has been di s closed to th e ASX.

The E ntitlement O ffer is be i ng made w ithout pro s pectus or p roduct dis c losure doc u ment in accordance with s e ction 708 A A of the C o rporations Act 2001 ( C th) as mo d ified by A S IC Class Order 0 8/35.

The E n titlement O f fer is fully u nderwritten by Bell Pot t er Securitie s Limited ( Underwriter ) .

In rela t ion to the Retail Entitle m ent Offer, o nly shareholders who:

1. are registe r ed as a holder of Shares in Independence as at 5.00 pm (Pert h time) on T u esday, 9 November 2010 (Reco r d Date);

2. have a reg i stered address in Austra l ia or New Z ealand;

3. are not in t h e United S t ates;

4. were not i n vited to p a rticipate (ot h er than as nominee) u n der the Ins t itutional E n titlement Offer, an d were not treated as i neligible i n stitutional i nvestors u n der the In s titutional Entitleme n t Offer; and

5. are eligibl e under all a p plicable sec u rities laws t o receive a n offer unde r the Retail Entitleme n t Offer,

will b e eligible to p articipate ( Eligible Shareholders ).

==> picture [14 x 20] intentionally omitted <==

==> picture [55 x 20] intentionally omitted <==

==> picture [55 x 20] intentionally omitted <==

==> picture [54 x 20] intentionally omitted <==

==> picture [55 x 20] intentionally omitted <==

==> picture [55 x 20] intentionally omitted <==

==> picture [55 x 20] intentionally omitted <==

==> picture [54 x 20] intentionally omitted <==

==> picture [27 x 20] intentionally omitted <==

2

==> picture [33 x 54] intentionally omitted <==

==> picture [55 x 54] intentionally omitted <==

==> picture [55 x 54] intentionally omitted <==

==> picture [43 x 54] intentionally omitted <==

There i s no inhere n t right in y o ur options t o participat e in the Reta i l Entitleme n t Offer. Th e purpose of this letter is to g ive you notice prior to t he Record D ate in whi c h you may e xercise yo u r options should you wish to participate i n the Retail Entitlement Offer.

Accor d ingly, if yo u wish to p a rticipate in the Retail E ntitlement O ffer (to the extent of a n y Shares which would be i s sued upon e xercise of y our options ) you must e xercise yo u r options i n time for Shares to be allott e d to you b e fore the Re c ord Date. T o ensure t h at the Shar e s to be issu e d to you upon e xercise of y o ur options a re allotted a nd issued b e fore the Re c ord Date, y o ur notice o f exercise of option ( Notice of Exercise ) together wi t h your cheq u e for the re l evant appli c ation mone y must be receiv e d by Indep e ndence by no later than 5 .00 pm (Pe r th time) on M onday, 8 N ovember 2 0 10. Any Shares to be issue d in relation to a Notice of Exercise received af t er this date cannot be assured of being a llotted and i ssued befor e the Record Date.

If you do not wis h to particip a te in the Re t ail Entitle m ent Offer (i n respect of your option s ) you do not ne e d to take any action.

Befor e deciding w h ether to ex e rcise all or a ny of your options, yo u should con s ider the ter m s of the Entitle m ent Offer c arefully an d consult wit h your professional advi s or if necess a ry.

Key Dates

The N e w Shares will be offere d via the En t itlement Of f er without disclosure to E ligible Shareholders under P art 6D.2 of the Corpor a tions Act 2 0 01 (Cth) ( Corporations Act ) as mo d ified by C O 08/35 in accordance with the following t imetable:

Indepe ndence obtai n Trading H alt on ASX	4Novemb er 2010
Annou ncement ofE ntitlement O fferandlod gement ofA ppendix3B	4Novemb er 2010
Notice to Optionho lders	4Novemb er 2010
Institut ional Entitle ment Offera ndPlaceme nt opens and closes	4-5 Novemb er 2010
Result market of Instituti viaASX onal Entitle ment Offer and Place ment annou nced to	8 Novemb er 2010
Record Date	9 Novemb er 2010
Lodgem ent of Offe r Booklet	11 Novemb er 2010
Despat chofOfferB ooklet and Entitlement andAccepta nceForms	12Novemb er 2010
RetailE ntitlement Offeropens	12Novemb er 2010
RetailE ntitlement Offercloses at 5.00 pm( Perthtime)	26 Novemb er 2010
Notific ationofshor tfall	1 Decemb er 2010
Allotm ent ofNew Shares & de spatchof hol ding statem ents	6Decemb er 2010
Norma ltrading ofN ew Shares to commenc e on ASX	7Decemb er 2010

The ti m etable outl i ned above i s indicative o nly and su b ject to chan g e. The Dir e ctors, in co n junction with t h e Underwri t er, reserve t he right to v ary these d a tes, includi n g the Closi n g Date of t he Retail Entitle m ent Offer, without pri o r notice but subject to t h e Corporations Act 20 0 1 (Cth) and the ASX Listin g Rules. T h e Directors also reserv e the right n ot to proce e d with the whole or p a rt of the Entitle m ent Offer a t any time p rior to allot m ent.

In that event, the r e levant appl i cation mon e y (being th e amount paid for New S hares applied for in a duly c o mpleted Entitlement an d Acceptanc e Form) wil l be returned without int e rest.

3

==> picture [33 x 54] intentionally omitted <==

==> picture [55 x 54] intentionally omitted <==

==> picture [55 x 54] intentionally omitted <==

==> picture [43 x 54] intentionally omitted <==

Further Details

Full d e tails of the E ntitlement Offer are c o ntained in I n dependenc e 's announce m ent lodge d with the ASX t o day, whic h is availabl e at their w e bsite: www . asx.com.au. The anno u ncement ca n also be found o n Independence's webs i te: www.ig o .com.au.

If you have any q u estions, pl e ase contact Security Tr a nsfer Registrars on +6 1 8 9315 23 3 3 at any time f r om 9.00 am to 5.00 pm P erth time fr o m Monday to Friday.

Yours sincerely

==> picture [31 x 40] intentionally omitted <==

==> picture [55 x 40] intentionally omitted <==

==> picture [15 x 40] intentionally omitted <==

Christ o pher Bonw i ck Mana g ing Directo r