IRON BEAR RESOURCES LTD — Interim / Quarterly Report 2004

Oct 26, 2004

INTERNATIONAL GOLDFIELDS LIMITED

International Goldfields Limited ABN 71-095-047-920 Ground Floar 18 Oxford Close Leederville Penth Western Australia 6007 Telephone +618 9388 0744 Facsimile +618 9382 1411 PO Box 144 West Penth Western Australia 6877 www.internationalgoidfields.com

REPORT FOR THE QUARTER ENDING 30th SEPTEMBER 2004 COMPANY HIGHLIGHTS

MOUNT IDA – WESTERN AUSTRALIA

At the Baldock Gold Mine underground development advanced significantly, key on-site mine achievements for the period include:

• Access to the old Timoni 6 Level (1270 RL) is now completed and mine dewatering continues, currently in excess of 210m vertical depth. Shaft refurbishment is now well below the operations level.
• Commencement of an access crosscut development drive targeting the Baldock ore body continued to advance.
• Mine feasibility scoping study at Meteor/Baldock commenced.
• Continuation of Reverse Circulation (RC) drilling confirms strike and depth extensions to the Meteor and Baldock ore shoots.
• IGL have upgraded the mineral resource inventory at the Mt Ida Project. The combined Mineral Resource Estimate for Meteor, Baldock & Whinnen now exceeds 100,000 ounces of gold.

EVANSTON – WESTERN AUSTRALIA

Progress within the Evanston Project continued including:

• Several heritage surveys involving all Native Title claimants have been No areas of cultural significance were identified in our completed. exploration areas, thus rendering these areas available for immediate onaround exploration, which includes:
• Follow-up of encouraging geochemical alteration halos which lie in close proximity to the regional Evanston Shear structure. The alteration zones are associated with intrusive porphyry bodies that host known gold mineralisation.
• Geophysical gravity survey aimed at targeting the porphyry intrusives. $\bullet$

• Broad spaced RAB exploration drilling at Firetail, Golden Orb and Mt $\bullet$ King prospects.

• The completion of Native Title matters, fast tracks the grant of key Exploration Licences in the northern portion of the project area.

• Preliminary mining optimisation studies at Marda Central were completed.

ROMANIA

• Licence renewal of the Sacu Exploration concession to 31^st May 2007. The licence is the largest concession granted to any overseas Company in Romania.
• All approvals to drill have been obtained from Government, Local Authorities and Landowners. A drilling contract has been entered into and RC drilling to follow-up significant magnetic and geochemical anomalies will commence in October.

CANADA (NFX Gold Inc)

• The substantial regional database has been compiled and streamlined into a useable format.
• . Six prospects have been selected for diamond drilling, targeting potential shallow open-cut mineralisation and near surface ore shoot extensions.
• Ground exploration commenced and returned encouraging rock chip and channel sampling results.

CORPORATE

• Following the resignation of Mr Kent Hunter, a new Non-Executive Director, Mr Timothy Turner has been appointed to the position of Company Secretary.
• Tony Sage, IGL's Chairman, accepted a position on the Board of NFX Gold Inc (Canada) as Non-Executive Chairman.
• IGL increased their shareholding in NFX Gold Inc to 15.2%.
• Cash at call and liquid assets as of September 30th amount to approximately A\$6 Million.

QUARTERLY REPORT FOR THE PERIOD ENDING 30th SEPTEMBER 2004

MOUNT IDA PROJECT - WESTERN AUSTRALIA

During the reporting period work continued to focus on:

• Continuation of development at the Baldock underground mining operation,
• Exploration RC drilling of Baldock & Meteor ore shoots advanced, and
• Combined Mineral Resource Estimates at Meteor, Baldock & Whinnen now exceeds 100,000 ounces of gold.

1. Mining Operations

Mining operations at Mt Ida continued during the quarter (Figure 1), key activities included:

• Dewatering of the Timoni shaft to below the 7 Level, in excess of 210 vertical metres, was achieved. Existing dam storage for run-of-mine water remains substantial.
• The Timoni shaft has been refurbished to within 15m of the 7 Level. Vent doors on the 4 & 5 Level and a working party magazine on 3 Level have been established.
• Development and access to the 6 Level is established. The plat has been stabilised with rock-bolts/mesh and fitted with rails and points to establish an extraction point for level development mullock. Development of the access crosscut drive to the Baldock Lode commenced. The drive is scheduled to intersect the Baldock ore zone in late November, and extraction of an ore test parcel will commence in December 2004.
• Mine feasibility studies incorporating the Meteor and Whinnen resources into the current Baldock Mining Plan have commenced. Initial indications are positive.

Category	Tonnes	Grade $(g/t)$	Contained Ounces
I Proved	63.800	21.1	43.300
Probable	3.800	22.3	2.700
Total	67,600	21.2	46.000

Table 1. Baldock Lode Ore Reserve 6.00g/t Au Cut-Off:

2. Resource Summary & Exploration - Mine Area

During the reporting period IGL announced an upgrade to the Mineral Resource estimate for its Mt Ida Project. The JORC compliant estimate of 100,000 oz of gold is contained within the Meteor, Whinnen and Baldock Lode systems (Figure 2). The Lodes are positioned within close proximity to each other and extend some 100m to 300m below the surface over a combined strike length of 600m.

The system remains open at depth and the regional shear structure, which hosts the gold mineralisation, also remains open both north and south along strike.

lLode	Category	Tonnes	Grade $(q/t)$	Ounces
Baldock	Measured	54.500	32.8	57,500
Baldock	Indicated	5.800	33.8	6.300
Meteor & Whinnen	linferred	68,300	16.5	36,200
	Total	128,600	24.2	100,000*

Table 2. Global Mineral Resource at 6.00g/t Au Cut-Off:

* Includes the reserve figures quoted in Table 1.

Resource modelling and ore resources have been estimated resulting in a global JORC compliant Mineral Resource at Mt Ida of over 100,000 oz of gold, with an average ore grade of 24.2g/t.

Step out drilling of the down plunge/dip extensions to the Meteor and Baldock Lodes has the potential to further upgrade the mineral resource estimate.

2.1 Meteor Lode

Recent deep Reverse Circulation (RC) drilling at the Meteor Lode confirmed both strike and depth extensions of the high-grade mineralisation to a depth beyond 350 vertical metres. The Meteor Lode remains open down plunge.

In-fill drilling in an area outside the current inferred resource has confirmed additional gold mineralisation. The best results include the following with further details presented in Table 3:

TIC265	1m @ 6.15g/t Au from 315m
TIC260.	1m @ 9.50g/t Au from 210m
TIC264	1m @ 39.0g/t Au from 228m

IGL is evaluating the new results, and a scoping study to include the Meteor resource into the Baldock Mining Plan has commenced.

2.2 Baldock Lode

At the Baldock Lode deep drilling to depths of approximately 100m immediately below the current mine design has continued to intersect the major fault structure, the host system for the gold bearing quartz lode. The following encouraging results were returned:

TIC261	2m @ 13.0g/t Au from 405m
TIC262	$2m \omega$ 1.1g/t Au from 414m

Further exploration drilling is necessary to fully test the vertical plunge extensions of the lode. These results together with drill hole TIC 231, which returned 1m @ 18.3g/t Au from 395m (drilled April 2004), supports a plunge extent of at least 130m.

Future drilling of this zone will be conducted via diamond drilling from underground access cuddies on the 1270mL development crosscut drive.

2.3 Baldock South Lode

At the Baldock South Lode a single drill hole TIC 263 steepened dramatically while drilling and intersected the fault system well below the intended target depth. The subsequent intersection, 100m below TID 014 which returned 1.45m @ 51.2g/t Au, confirmed 3m of well-developed quartz lode material between 401 and 404m. The intersection confirms the continuation of the host structure at depth.

3. Exploration - Regional

Exploration drill programmes concentrated on defining additional mineralisation in the immediate mine area.

3.1 Mt Ida East

Structural mapping of the eastern limb of the Kurrajong Antiform identified a number of similar structural corridors to that observed at Mt Ida (Figure 3). Potential to identify gold mineralisation similar in structure and style to that at Timoni is viewed as high.

3.2 Regional Targets

Regional target generation studies aimed at re-evaluating previous exploration techniques and results within the Mt Ida greenstone belt were conducted. The findings out lined several zones of significant gold anomalism that have only been subject to shallow drilling and limited modern exploration techniques.

A comprehensive soil sampling survey has been designed to cover the southern most tenements of the Mt Ida project area which has historically returned anomalous gold, nickel and copper results from a folded ultramafic sequence.

EVANSTON PROJECT - WESTERN AUSTRALIA

An internal scoping study, incorporating resource estimates and Whittle optimisation studies of the known gold resources at Marda Central, King Brown and Golden Orb, was completed (Figure 4). The study concluded that the mining of the resources is cash positive. However, the viability of the project is inherently determined by the capital cost of a stand alone gold processing facility, the associated costs of which now require further investigation.

Fieldwork focussed on the completion and finalisation of Aboriginal Heritage Surveys. No sensitive areas of cultural significance, which may have adversely impacted upon our field activities, were identified.

A number of Exploration tenements will now be granted and our exploration activities, which have been on-hold pending Native Title matters, can now commence. Initial exploration will include:

• A broad spaced exploration RAB drilling programme at Firetail, Golden Orb and Mt King.
• A detailed geophysical gravity survey over the Evanston Shear Structure, the most prospective structural corridor in the district, where porphyry hosted gold mineralisation and encouraging alteration halos are associated with sub-parallel structures related to the Evanston Shear.

SACU PROJECT - ROMANIA

The Romanian Sacu exploration concession situated approximately 30km southwest of the highly prospective 'Golden Quadrilateral' region in Romania has been renewed by the National Agency for Mineral Resources of Romania until May 31^st 2007. The concession area covers approximately 250 km² and represents one of the largest mineral concessions granted to any company currently operating in Romania.

The Golden Quadrilateral represents one of the more highly mineralised provinces in the Carpathian Mountain Arc and is proximal to several emerging precious metal and porphyry copper deposits. The IGL tenement area is characterised by a complex and well-preserved tectonic and magmatic history that is readily comparable with major prospective arc-related terranes.

A structural interpretation of the regional aeromagnetic (Figure 5) and ground magnetic data at the Gladna prospect (Figure 6) was completed and at Gladna identified, for first pass evaluation, three broad features, namely:

• A highly magnetic zone,
• A de-magnetised zone, and
• A NE/SW structural corridor which separates the two zones.

All approvals to drill have been obtained from Government, Local Authorities and Landowners. A drilling contract has been entered into, and the RC drilling programme consisting of 1,600m will commence in October.

LARDER LAKE - CANADA (NFX Gold Inc)

NFX maintains an interest in a number of mining claims and licenses of occupation, in the heart of the Larder Lake gold mining district in Ontario, Canada. The project area is positioned some 7km west of the world famous Kerr Addison Gold Mine which historically produced 11 million ounces of gold (Figure 7).

The Larder Lake properties are comprised of five semi-contiguous separate properties, namely the Swansea, Fernland, Cheminis, Bear Lake and Barber Larder.

Exploration for the reporting period commenced with a review and compilation of NFX's substantial geological database. The review highlighted the fact that all previous mining was by underground methods which failed to extract or consider the top mineralised 50m of the lode system that could be amenable to open cut methods.

Six areas, Cheminis Zones A and C, Cheminis West, Bear Lake, Fernland and Fernland East, were quickly identified for immediate follow-up surface sampling and near surface

Best near surface intersections from historic diamond drilling at diamond drilling. Cheminis returned:

A Zone of 5.2m @ 4.5g/t from 15m depth and 7.3m @ 5.1g/t from 46m depth, and

C Zone of 14.3m $@$ 4.5g/t from 53m depth and 9.4m $@$ 5.4g/t from 52m depth.

Note that intersection widths are horizontal widths and depths are vertical from surface.

Recent rock chip sampling at Bear Lake and Fernland East returned high grade gold results including 15g/t Au with up to 1% Cu and 27g/t Au respectively from selected grab samples.

A diamond drilling programme commencing in October will target all six prospects. The programme has been designed to test near surface gold mineralisation.

CORPORATE

NFX Gold Inc Board Appointment & increased Capital Exposure

On the September 17^th 2004 Mr Tony Sage (Chairman) accepted the position of Non-Executive Chairman of NFX Gold Inc.

During the period IGL acquired an additional 2,666,667 shares to take its total share holding in NFX to 4,946,200 fully paid shares, representing 15.2% of the total issued capital.

European Exchange Listing

IGL welcome to the Company's register Institutional investors in Europe who now hold approximately 30% of the issued capital in IGL, with Germany's largest gold house, Commerzbank, holding 8.9% and Pershing LLT holding 6.1%.

In an effort to support the European investor base and also to encourage and expose new investors to the company IGL listed on the two German exchanges, Berlin and Frankfurt.

New Company Board Appointments

IGL is pleased to announce a recent addition to the Company Board. Mr Timothy Turner has joined IGL with the dual responsibilities of Director and Company Secretary.

Mr Turner is a partner with accountants Hewitt Turner & Gelevitas who specialise in offshore and domestic business structuring, corporate and trust tax planning and the issuing of audit options. He has in excess of 20 years experience in new ventures, capital raising and general business consultancy.

Mr Turner replaces Mr Kent Hunter who resigned as Company Secretary.

Financial Position

The Company holds in excess of A\$6,000,000 in cash, and shares in listed Australian and Overseas Companies.

Funds will be utilised for ongoing exploration and mining/development at the Mt Ida Project, and also fund exploration expenditure at Evanston and in Romanian.

IGL is also seeking further mining and exploration opportunities throughout Australia and Overseas.

SUMMARY

The Company continues its solid growth strategy through:

• Continued exploration success.
• Projected cash flows through development and operation of high margin gold projects, and
• Alliances with key long-term quality investors, both in Europe and Australia.

The Company owns three large highly prospective projects in well mineralised belts in Western Australia and Romania as well as significant interests in several gold explorers and producers both in Australia and overseas. The company maintains a proven track record of exploration success and mining expertise with the ability to locate, evaluate and develop high-grade narrow mineralised gold systems.

Websites, www.internationalgoldfields.com and www.internationalgoldfields.de in English and German text respectively, are maintained providing all current information relating to the Company. Furthermore, should you wish to be placed on the electronic mailing list for all announcements please contact head office cher@internationalgoldfields.com.

Tony Sage Executive Chairman

Information in this report pertaining to mineral resources and exploration results was compiled by Mr. RW Annett who is a Member of the Aus.I.M.M with not less than 5 years experience in the relevant fields, and who consents to the report appearing in the form and context in which it appears.

Rule 5.3

Hole	Northing	Easting	From	To	Interval		Au	LODE/REMARKS
						m@	g/t
TIC259	110,200	10,050	252	256				W2, NSV
TIC260	110.250	10.090	207	208		m @	7.01	W2
			210	211		$m$ $\omega$	9.50	W 2
TIC261	109,964	10.060	405	407	2	m @	13.0	W2
TIC262	109,920	10,055	414	416	2	m @	1.10	W 2
TIC263	109,781	10.005	401	404				W 2 , N SV
TIC264	110,251	10,068	228	231	3	m @	14.6	W 2
				Inc		m @	39.0	W 2
TIC265	110,172	10,004	315	316		m @	6.15	W 2
TIC266	109,781	9.959						Abandoned Hole
TIC267	110,230	10,013						Abandoned Hole
TIC268	110.149	9.986	359	362				W 2 , NSV

Table 3. Summary of Mt Ida RC Drilling results:

NB

1. All drill holes were drilled towards an azimuth of grid east (090) at a declination of 60 degrees.

2. Down hole intersections approximate to 75% of the true width.

3. Samples were analysed at either Leonora Laverton Assay laboratories or Genalysis Assay Laboratories using Fire Assay with an AAS finish.

4. A cut off grade of 1.0g/t has been applied to the intersections.

5. No Significant Value (NSV).

Schematic Image of existing workings and development to access the Baldock Resource (looking south-east October 2004)

EVANSTON PROJECT

Marda Central, King Brown and Golden Orb Prospects

AEROMAGNETIC IMAGE GLADNA PROSPECT - REGIONAL

GROUND MAGNETIC IMAGE GLADNA PROSPECT - DETAIL

Figure 6

1 km

Figure 7