Indochine Mining Limited (ASX:IDC) Completes 2 Million Ounce Gold/Silver Acquisition In Papua New Guinea

Sydney, April 7, 2011 AEST (ABN Newswire) - Indochine Mining Limited (ASX:IDC) has finalised the acquisition of the circa 2 million ounce Mt Kare Gold/Silver Project in Papua New Guinea (PNG). A A$16 million private placement of shares at A$0.30 per share to undertake the Bankable Feasibility Study over the project was oversubscribed and shareholders will be offered a Share Purchase Plan at the same price.

Transaction:

The cost of the acquisition, inclusive of fees, will be approximately A$27 million payable in cash (37%) and Indochine shares (63%). Indochine will assume ownership of Summit Development Limited (Summit), the PNG company that owns the Mt Kare exploration license EL1093. The Summit shareholders, a PNG based family, will become long term Indochine shareholders. The transaction is subject to shareholder approval which will be sought at a general meeting in the coming weeks.

Capital Raising:

Indochine's private placement, in which it offered 53.75 million shares at A$0.30 a share to raise A$16 million (the maximum under the 15% rule), has been significantly oversubscribed. It is expected that 53.75 million Indochine shares will be issued for quotation on 12 April 2011.

A Share Purchase Plan (SPP) will enable existing shareholders to subscribe for up to A$15,000 of Indochine shares at A$0.30 per share, with full details announced soon.

Work Program:

Indochine and Summit will immediately commence a Bankable Feasibility Study.

Milestones will be:

- JORC-code compliant resource statement, in 6 months

- Pre-Feasibility Study in 12 months, and

- Bankable Feasibility Study in 18 months.

The feasibility study will cover metallurgy, environment, ethnography and a social mapping study.

"This is a significant step for Indochine, catapulting it into developer status", said the CEO Stephen Promnitz.

"The combination of Summit's vision in securing the leases, with landowner support, together with Indochine's international financial support, will enable the development of Mt Kare for the benefit of all stakeholders."

"Landowners have been waiting for over 20 years for Mt Kare to be developed, which is why the majority supported Summit to develop the project at two public hearings, and Summit's lease was then approved by government authorities", said Mr Promnitz.

For the complete Indochine announcement including Foreign Resource Statement (NI43-101, non-JORC) Mt Kare, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/630590.pdf

Contact

Stephen Promnitz CEO Tel: +61-2-8246-7007 mailto:info@indochinemining.com http://www.indochinemining.com