Company Overview

August 2011
Capital Structure
Market Capitalisation approx $130 million → Undervalued against peers

• ASX Code: IDO Volume / Share Price

4,500,000 $0.80

• 229.8m shares on issue 4,000,000 $0.70

• 30.5m unlisted options 3,500,000
$0.60
• Up to 35m performance shares 3,000,000
$0.50
(converting 1 for 1)
2,500,000
• USD $4m convertible note from $0.40
2,000,000
Anglo Pacific Group Plc $0.30
1,500,000
• Major Shareholders:
$0.20
1,000,000
Anglo Pacific Group 28.9m 12.6%
Rockcheck Steel Co 41.1m 17.9% 500,000 $0.10
Deutsche Bank AG 14.0m 6.1%
84.0m 36.6% 0 $0.00

Top 40 Holders 206.3m 89.8%

Volume Price
Current Projects

Iron Project - Jogjakarta

• 605 Million Tonnes of Iron Sands
• Contract of Works to process
iron sands throughout Indonesia
• Environmental and socialisation
approval received to proceed with
BFS

Mangkok Thermal Coal

- South Kalimantan South Kalimantan Coal
• Production commenced Jakarta
INDONESIA
• High quality thermal coal,
approx 6,000 to 7,000 kcal/kg Iron  Sands
Board of Directors

• Martin Hacon (Managing Director/CEO) – former Vice President New

Zealand Steel, responsible for the iron sands business, by-product and steel
manufacturing businesses.

• Chris Catlow (Non-Executive Chairman) – former Director - Business

Development, and founding CFO of Fortescue Metals Group (ASX:FMG).

• Derek Fisher (Non-Executive) – MD/CEO of Moly Mines (ASX:MOL)

• Paul Kopejtka (Non-Executive) – Non-Executive Director of Murchison

Metals (ASX: MMX)

• Darryl Harris (Non-Executive) – MD of Beacon Minerals (ASX:BCN) and

Outotec Business Development Manager with significant knowledge of
ferrous technologies.
A New Generation Minerals Producer

Targeting a Unique Market

Niche
TO BE:
• The Domestic Raw Material
Supplier of Choice to the
Growing Indonesian Steel
and Metals Industry
• A Raw Material Supplier Of
Choice to the Asian Metals
Industry
Indonesia Overview
Gross Domestic Product US$ billion
600
• Democracy with population of
240 million+ 500

• Reformed financial institutions 400

• The worlds 3rd fastest growing 300

economy in 2009 200

• Credit upgrade by Fitch, S&P and

100
Moody in the last year
0
• Resource rich (iron, coal, oil…) 1980 1985 1990 1995 2000 2005 2010
% GDP Growth
• One of the top performing 7.00%

economies through the GFC 6.00%

5.00%
• Close to the major markets and
4.00%
growing economies of the world
3.00%
• Government to invest >US$200 2.00%
billion in new infrastructure projects
1.00%

0.00%
2007 2008 2009 2010
Indonesian Steel Industry: Overview

• Next major market for steel • Currently the lowest consumption

products – China, India, of steel per capita in the world
Indonesia…..
• August 2010 POSCO announce Steel Consumption per Capita (kg)
JV with Krakatau Steel to build a 1400
new 6mt steelworks 1200
1200
• 2009 steel imports represented 1044
1000 936
5.6% of gross imports. (The #1
imported item by value) 800

• The steel industry utilises 100% 600

491
419 405
imported raw materials 400 345

187 179 176

• Current capacity 5mt, forecast 200 123 93
48 29
domestic demand 2013 of >10mt 0
Pig Iron Market and Opportunity

Market Overview Indo Mines Opportunity

• Pig iron a direct substitute for • To be lowest cost pig iron producer in
scrap metal the world.
• Blast furnace and electric arc • Option to produce iron concentrate to
furnace operations require scrap provide early cash flows.
as feed
• Reduced availability of scrap, as
developing countries still in
construction phase
• Increasing correlation between pig
iron price and iron ore price
Iron Sand: What is it?

• Iron Sand is Titano-magnetite,

an abundant ore produced by
volcanic activity
• It contains up to 60% Iron combined
with up to 9% Titania (TiO2)
• High TiO2 is undesirable in blast
furnace feed
BUT
• Ideal feed material for new Direct
Reduced Iron (DRI) technologies
• Vanadium content is a potentially
valuable by-product
• Mining is simple, low cost and
environmentally friendly
Iron Sands Potential - Java
Jakarta 100km

Potential

Krakatau/POSCO

Jogjakarta

JAVA
Iron Sands

20km

Additional Resource Potential JOGJAKARTA

22km ‐ 605Mt Iron Sand Mining Concession

Additional Resource Potential
Infrastructure in Place

Jogjakarta

2km
Mining Lease Boundary

273
0–6 14.2%
million
metres Fe
tonnes
• 929 holes, 14,000 samples. 605
0 – 20 10.8%
• No overburden or internal waste. million
metres Fe
tonnes
JORC Resource

• 605 million tonnes, grade 10.8% Fe

• Includes 273 million tonnes near surface sand, grade 14.2% Fe
Surface Sand Unit
(above an average 6m depth)
JORC Resource Tonnes Grade
(at a cut off of 9% Fe) (Million) (% Fe)
Measured 115.6 13.9%
Indicated 134.9 14.5%
Inferred 22.5 14.0%
273.0 14.2%

• The balance of 332 million tonnes is magnetite bearing gravel grading 7.9%
Fe. Initial testing indicates that a commercial grade concentrate can be
produced
Project Update
Development Timeline

First 
BFS Complete First Pig Iron
Concentrate

2010 2012 2014

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2011 2013

Environmental Start 
Approval Construction

• Environmental and Socialisation approval received to enable completion of

Feasibility Study
• Strategic investment by Rockcheck Steel Co Ltd, one of the largest privately
owned iron and steel producers in China
• Outotec appointed to complete process evaluation and design work for pig iron
production
• Iron concentrate converted to pig iron using DRI technology plus smelting
• Project owned through a Joint Venture company (PMA), Indo Mines 70%,
local partner 30%
Upside Potential

• Processing of 330 million tonnes of gravel not included in

the scoping study

• Increase production to >2 million tonnes per annum of Iron

products

• Contract of Work permits processing of Iron Sands

anywhere in Indonesia – potential for >10 Million
tonnes of iron / pig iron / steel per annum

• Alternate reduction and smelting technology is being

investigated to reduce capital and operating costs

• Increasing Steel Consumption in Indonesia from low base

Indonesian Coal - Why?
• Coal quality and market proximity
gives it a competitive edge
• Indonesian coal production is
booming
• Synergies with Iron Project – off-take
for processing and power supply
• Country risk is diminishing - Now over
257 general mining & support projects
registered; & 93 PT companies with
project approvals
Mangkok Project Summary
Location
• The deposit is located close to key
infrastructure:
• Port load out within 30 kms
• Major haul roads established
and operating
• Mining on same coal seams
on adjacent blocks

Coal Features
• 3 to 4 metre thick seams
outcropping at surface, average
6,000 to 7,000 kcal/kg high quality
thermal coal

Coal Production
• Over 5,000 metres drilled and
10,000 coal samples evaluated
• Revised Mine Plan complete and
production ongoing
Disclaimer
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.

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.

The information in this report that relates to Exploration Results and Mineral Resources of the Jogjakarta Iron Project is based on information compiled
by Mr Philip Welten, who is a member Australian Institute of Mining and Metallurgy. Mr Welten is a consultant 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.
Contact Details

Head Office
Level 1
15 Rheola Street
West Perth WA 6005
Australia

Telephone: +61 8 9322 1825 Jakarta Office

Fax: +61 8 9322 1826 Plaza Bapindo,
Menara Mandiri, 16th Floor
Jl. Jend. Sudirman Kav 54-55
Email: admin@indomines.com.au Jakarta 12920
Website: www.indomines.com.au Indonesia
Notes