Intrepid Mines Sustainability Report 2012 Indonesian

Q: Who is Quantum?
A: Quantum calls itself a private equity and capital venture firm that is based in Hong Kong.

Q: What is their history with the company?
A: From what we understand they started buying shares in the company in the second half of 2012.

Q: Have they spoken directly to Intrepid about their concerns?
A: They have not sought to discuss their concerns directly with the Company.

Q: Will the Company be seeking direct talks with Quantum?
A: The Company has an open door policy to all shareholders and we will continue to act in the best interest of all shareholders in ensuring that the Company has a direct ongoing interest in Tujuh Bukit.

Q: What is the Company doing in response to the claims made by Quantum?
A: We have written to all shareholders and we will be making a point by point response to all of Quantum’s claims in due course. We will keep all shareholders informed of any developments and urge all shareholders to continue to monitor our web site for updates.

Q: What does the Company think about Quantum’s 5 point plan?
A: We will be responding to the plan in detail in due course. We have made preliminary comments about the plan in a statement to the ASX on 23 April 2012, and a copy of that statement is available on our website.

Q: What should I do in response to Quantum?
A: At this stage YOU DO NOT NEED TO DO ANYTHING. You will be receiving further information from the Company in due course that will be asking you to REJECT ALL OF THE RESOLUTIONS FROM QUANTUM.

Q: When will the shareholder’s meeting be held?
A: No date has yet been set for the meeting but the Company will provide you with information about that meeting in due course.

Q: Can you give me an update on the Tujuh Bukit project?
A: The Company is continuing to take action on a range of fronts, including pressing our legal claims to an 80 per cent economic interest in the project through the proper authorities in Indonesia as the cornerstone of our efforts to preserve and enhance shareholder value. Intrepid recently instituted action in the State Administrative Tribunal in Surabaya, seeking that the transfer of the Project licences from PT IMN to a third party, PT Bumi SuksesIndo (BSI), be set aside on the basis of legal irregularity. This process has allowed the Company access to background documentation evidencing the transfer and related activities.

Q: How long will it take to get an outcome to these proceedings?
A: This has been a lengthy process but the Board believes that this is best course of action for the Company. The Company has undertaken a comprehensive review of its position and has obtained legal and financial advice from external experts, including several major law firms and Macquarie Capital.

Q: Has Intrepid tried to negotiate a settlement with the Indonesian interests claiming ownership of Tujuh Bukit?
A: We have made several attempts to start a meaningful dialogue with those interests but to date those parties have been reluctant to engage with the Company. We remain hopeful that that situation will change.

Q: Does the Company have the support of its major shareholders?
A: The Company has spoken with a number of major institutional shareholders and we can confirm that those shareholders continue to support your Board and management.

Q: How do I get further information about the situation?
A: We have established a shareholder information hotline 1300 086 381 or 03 9415 4024 and will be sending any updates directly to all shareholders.

Rejecting Quantum’s Claims

The Board of Directors will be asking shareholders to reject all of the resolutions that have been proposed by Quantum Pacific Capital, the company fronting the group of shareholders that have requested the meeting.

The Board of Directors will also be asking you to continue to support the current Board and management.

Your Directors will be providing you with further information about that proposed meeting, as well as a detailed rebuttal of claims that Quantum has made against the Company, in the coming days.

In the meantime there is no need for you do anything in response to any correspondence that you receive from Quantum.

Your Board and management continues to enjoy the support of its major institutional shareholders, and management is continuing to work on a plan to deliver value to shareholders.

To read a series of frequently asked questions about the current situation please refer to the link (Questions and Answers) on the home page under Rejecting Quantum’s Claims.

All of the public statements that the Company has made about the Tujuh Bukit project are also available on our home page.

We have also established a hotline on 1300 086 381 or 03 9415 4024.

Questions and Answers

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