Investor PresentationJogjakarta Iron Sands Project

Overview of Iron Sands Project

Large & well tested (to JORC Standard) Iron Sands Mineral Resource in Java, Indonesia, equivalent 65 Mt of IronProject NPV of $505M with projected net cash flows of $185M per annum and operating cost of $190 per tonneTargeting sales of concentrate commencing in mid 2008, generating $30M net cash flowsFurther substantial upside in project life, scale and operating costsBankable Feasibility Study for Project due for completion in mid 2008Significant Indonesian demand for end product (currently 100% imported) hence strong Government and Industry support for the project to proceedExcellent Local Infrastructure – power, water, rail, portProven Technology being applied (used by Bluescope in NZ since ‘86)Regional Licence approved, Contract of Works in progressIn partnership (70/30) with strong and well connected local Indonesian GroupExperienced Board and Management with proven project developmentskills in the iron ore sector

2... An exciting opportunity for growth

Location Plan

RAILWAY

PROGO RIVER

Site Plan

Resource Drilling

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Global JORC Resource

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Ocean

Land

• 605 million tonnes of magnetite bearing sediment grading 10.8% Fe, which equates to an equivalent contained iron of 65 million tonnes

• Of the global resource, there is 273 million tonnes of magnetite rich surface sand down to 7 metres grading 14.2% Fe, sufficient for over 30 years of mining

• Global resource based on 929 holes for a total of 14,468 metres of air core drilling

Project Summary

LocationMineralisation occurs on the surface, allowing for low cost resource estimation and mining. The deposits are located close to key infrastructure:

• Railways• Gas reserves• 500,000 kva power line• Transport infrastructure

These factors should see a reduction in the capital costs of a potential development and shorten overall construction time

TechnologyThe deposit is similar to the iron sand deposits that have been mined and processed by Bluescope Steel in New Zealand over the last 30 years - it is anticipated that mining and down stream processing at Jogjakarta will be based on this same simple and proven technology

OwnershipIndo Mines earning 70% of Project, currently owns 30%On completion of the BFS Indo Mines interest will increase to 70%

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Anticipated Process Flow Chart

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Mining

10 Mtpa Iron Sand

Beneficiation1.8Mtpa

MHF / SLRN Reduction

1.4 MtpaIronmaking

1.0 Mtpa

1.2 Mtpa of Coal

262 GwH

Power Generated

The simple and proven technology proposed is similar to that successfully employed at Bluescope Steel’s Iron Sands to Steel operation in New Zealand

3.6 Mtpa

Conc.

Hot Gases

DRIPre-Conc.

14% Fe

30% Fe 60% Fe

Scoping Study Results

Scoping Study completed in April by ProMet Engineers1 Million tonne per annum of pig iron productionNPV of $505M @ $362/tonne ($795M @$435/tonne) Projected annual cash flow of $185M with operating costs of $190/tonne$30M per year cash flow from early sales of concentrate, mid 2008 start upCapital cost of $700MURS reports no high risk Social or Environmental IssuesPig Iron production within 3 years

Upsides being consideredAlternative Hot Metal processing could see costs reduced by $30 per tonneIncrease Concentrator Size to produce sufficient product for both pig iron and concentrate saleDownstream expansion to Specialty Steels from liquid pig iron

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Indonesian Development

Contract of Works (CoW) application now in progressPerformance Bond paidPrinciple Regional Licence granted Letter of support obtained from local regionsNo determined forestry issuesNegotiations are under way

Heads of Agreement with Krakatau Steel has been signed100,000 tpa of pig iron product for 15 yearsIndonesia’s largest steel producer( >2 mtpa)Delivery to commence in 2010

There is strong interest for ferrous product from Indonesia as they currently import 100%, also interest from other regional steel producers

Indo Mines / Jogja Magasa Mining Offices have been established in Jakarta and Jogjakarta

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Indonesian Mining Industry

Mining and Metals expertise with low production cost baseWorld ranked mineral endowment (Coal, Au, Cu, Ni)Supportive government with a strong desire for external capital investmentJogjakarta Regency have been involved in the project since 1972, they are actively involved as our partner in developing this and other projects in the regionStrong relationships between Central Government and Regency of JogjakartaEnglish speakingSignificant Asian Mining Nation

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Capital Structure

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Experienced Board & Management

TechnicalPhil Welten - Managing Director ex Robe River Iron with significant operational, project development and feasibility study experienceDarryl Harris – a metallurgist with strong project development experience and significant knowledge of ferrous technologiesMatthew Rimes – a mining executive ex Robe River Iron with strong ferrous experience

CorporateIan Middlemas – a Chartered Accountant with extensive corporate/project finance backgroundKeith Brooks – has extensive corporate finance experience and contact base in Asia / Indonesia

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Major Milestones

Snowden Report on Resource Grade VariabilityURS Initial Environmental Study ProMet Engineers Scoping StudyContract of Works negotiations in progress with approvals expected prior to the completion of the BFSBFS for Concentrates by Sept 07, design & construction commencing in Oct 07 for commissioning Mid 08Pre-Feasibility Study for Hot Metal by Nov 07Bankable Feasibility Study to be completed mid 2008Strong focus and emphasis on accelerating project development and early cash flow

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Important Information

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This document has been prepared as a summary only, and does not contain all information about the Company’s assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attaching to the Company’s securities. This document should be read in conjunction with any public announcements and reports (including financial reports and disclosure documents) released by Indo Mines Limited. The securities issued by the Company are considered speculative and there is no guarantee that they will make a return on the capital invested, that dividends will be paid on the Shares or that there will be an increase in the value of the Shares in the future.

The information in this report that relates to Exploration Results and Mineral Resources of the Jogjakarta Ironsands Project is based on information compiled by Mr Philip Welten, who is a member Australian Institute of Mining and Metallurgy. Mr Welten is a full-time employee of Indo Mines Limited. Mr Welten has sufficient experience, which is relevant to the style of iron ore mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Welten consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Further details on risk factors associated with the Company’s operations and its securities are contained in the Company’s prospectuses and other relevant announcements to the Australian Stock Exchange.

Some of the statements contained in this release are forward-looking statements. Forward looking statements include but are not limited to, statements concerning estimates of recoverable pig iron, expected product prices, expected costs, statements relating to the continued advancement of the Company’s projects and other statements which are not historical facts. When used in this document, and on other published information of the Company, the words such as “aim”, “could”, “estimate”, “expect”, “intend”, “may”, “potential”, “should” and similar expressions are forward-looking statements.

Although the company believes that its expectations reflected in the forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors could cause actual results to differ from these forward-looking statements include the potential that the Company’s projects may experience technical, geological, metallurgical and mechanical problems, changes in product prices and other risks not anticipated by the Company or disclosed in the Company’s published material.

The Company does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or needs of any recipient of this document. Recipients of this document should carefully consider whether the securities issued by the Company are an appropriate investment for them in light of their personal circumstances, including their financial and taxation position.

Appendix 1Feasibility Study

The Feasibility Project will utilise the technical expertise ofOutokumpu, who were responsible for the design of a significantproportion of the NZ Steel plant, the BFS is due for completion inmid 2008

Technical StudyResource Definition Mining DevelopmentProcessing option TestworkProcess Plant including Beneficiation / Multiple Hearth Furnace / Kiln Reduction and Ti & V slag removalLocal infrastructure / fabrication / constructionEnvironmental

CommercialProject Capital and Operating CostsDevelop financial model and project debt / equity arrangement

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Appendix 1Environmental Study Underway

URS Australia in conjunction with its Jakarta based subsidiary have been engaged to define basic requirements for the environmental study in conjunction with local Jogjakarta companies

Initial findings identified no unmanageable community or environmental issues

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Appendix 1Environmental Study Risk Assessment

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Factor Aspect Preliminary Assessment of Significance

Low Medium High

Sustainability Sustainability

Social Factors Local Communities

Public Health and Safety

Culture and Heritage

Surrounding Land Use

Biophysical Factors Terrestrial Flora and Vegetation

Weeds

Marine and Estuarine Flora

Terrestrial Vertebrate Fauna

Terrestrial Invertebrate Fauna

Biodiversity

Conservation Values

Subterranean Fauna

Marine and Estuarine Fauna

Landform and Soils

Surface Water Quantity

Groundwater Quantity

Pollution Prevention Factors Air – Dust

Air – Greenhouse Gas Emissions

Air – Other Emissions

Noise and Vibration

Light

Liquid and Solid Waste Disposal

Surface Water Quality

Groundwater Quality

Appendix 1 Location Plan

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Appendix 1Kulon Progo Lease Map

Appendix 2Proposed Flowsheet

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Con

cent

rate

Sta

ge

Appendix 3Other Projects

Peru (Terrace Gold)Huancabamba District

• Nangali Gold (30%)• Chinguela Gold (100%)

Cajamarca District• Galeno Cu-Au-Mo-Ag (0.5% NSR)• Hilorico Gold (0.5% NSR)

Wonarah Phosphate (NT)10% Clawback from Minemakers

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