Indophil Resources NL : Review of Tampakan Work Plan

ASX Release ASX Code: IRN

12 August 2013

ACN 076 318 173

REVIEW OF TAMPAKAN WORK PLAN

Indophil Resources has received from Sagittarius Mines Inc. (SMI), the operating arm of the Tampakan Copper-Gold Project in the southern Philippines, a revised work plan. The revised plan follows a review of the development plan and schedule for the project. The essence of this new plan is to secure crucial government support on key bottleneck issues prior to proceeding to final evaluation and possible development. SMI's Media Statement is attached.
Commenting on the review and revised work plan, Indophil's CEO, Richard Laufmann, said: "For some time, Indophil has advocated changes in approach as to how the project partners should work with local stakeholders including the National Government of the Philippines. To do this, Glencore Xstrata, as the project manager, has chosen to reset the project and commence with a new outlook.
"Indophil remains in discussions with Glencore Xstrata in respect of specific areas of the revised work plan and related project development plan. In this context, a range of on-the-ground programs designed to advance social-license-to-operate criteria may be separately supported by Indophil, while SMI, Indophil and Indophil's in-country shareholders work with government to redefine and reset the pathway to project approval."
The level of Indophil's additional expenditure on these programs, outside the revised work plan, is being finalised, though it is not expected to exceed US$1-$2M in the full financial year.
Mr Laufmann went on to say: "This is not a shutdown of the Tampakan Project. As SMI says in its Media Statement, this review is timely. This modification of activity at what is a world-class minerals deposit is temporary, and every effort will be made to restore the work program to its original plan."
SMI's project partners are Glencore Xstrata (62.5%) and Indophil (37.5%). SMI acts as the financial and technical assistance contractor to the Philippines Government which owns the Tampakan asset on behalf of the people of the Philippines.

For further information, please contact: Gavan Collery

Manager Corporate Affairs
T [phone]
M [phone]
E [e-mail]

Indophil Resources NL | Level 3, 411 Collins Street | Melbourne VIC 3000 | Australia
T [phone] | F [phone] | W www.indophil.com

PRESS RELEASE

SMI revising approach on Tampakan Project

Manila, 12 August 2013
SMI will be taking a new approach to the Tampakan Copper-Gold Project as part of an effort to place particular focus on a number of the key challenges facing the Project.
SMI Executive Vice-President, Justin Hillier, said that after consideration of a range of options presented by SMI management, shareholders have endorsed a revised approach for the Project, with a renewed focus on enhancing collaboration with National Government partners and other stakeholders, to resolve the challenges facing the Project.
"Over the past few months SMI has carried out a review of the Project including an assessment of progress to date, ongoing and emerging challenges, and the current approach to advancing the Project.
"The outstanding issues and challenges facing the Tampakan Project include the resolution of the South Cotabato open-pit mining ban, the definition of the pathways to project approvals from all levels of government, and the gaining of consent and the resettlement of impacted communities," Mr Hillier said.
"With these challenges as yet unresolved, it has not proved possible to make adequate progress toward our Project goals and, without a fundamental change in approach, progress is unlikely to improve in the foreseeable future. Therefore, it is timely for a change of approach to give the Project every opportunity to progress in a reasonable timeframe," he said.
"Today we have commenced a revised work plan that tightens our focus on resolving these issues. We look forward to working with the National Government through the Mining Industry Coordinating Council to address these challenges.
"This plan will reduce current activity levels and expenditure on the Project, and regrettably this reduced activity and expenditure will result in staff downsizing and a reduction in the utilization of contractors.
"This decision has not been taken lightly; however, we expect it will take some time to resolve these complex matters effectively before the Project can again resume a path toward development.
"We will continue to support our host communities through our committed development programs. "The Tampakan deposit is a world-class resource, and SMI remains committed to working with our key
stakeholders to resolving the current challenges facing the Project, and realizing its full potential."

End

Neither the content of the company's website nor the content of any other website accessible from hyperlinks on the company's website is incorporated into, or forms part of, this announcement

SMI contacts:

John Arnaldo

External Communications and Media Relations Manager

Mobile [phone]

Media Care Hotline [phone]

Email [e-mail]

www.smi.com.ph

2 | Sagittarius Mines, Inc.

Notes to editors

About the Tampakan Project

The Tampakan Copper-Gold Project is located on the southern Philippine island of Mindanao, approximately
40 kilometres north of General Santos City. The Project is situated on the boundaries of four provinces: South Cotabato, Sarangani, Sultan Kudarat and Davao del Sur, and represents one of the largest undeveloped copper and gold deposits in the Southeast Asia-Western Pacific region.
Discovered in 1992, the Tampakan Project is a 2.9 billion metric ton deposit*, containing 15 million tonnes of copper and 18 million ounces of gold at a 0.2% cut-off grade.
The Project is operated by Philippine-based affiliate Sagittarius Mines, Incorporated (SMI), whose 40%
controlling equity is a joint venture among Glencore Xstrata (62.5%) and Indophil Resources NL (37.5%). The
60% non-controlling equity shareholders of SMI are the Tampakan Mining Corporation and Southcot Mining
Corporation (known as the Tampakan Group of Companies).
At an estimated capital cost of US$5.9 billion, development of the Tampakan Project would represent the single largest foreign investment in Philippines' history. To date, more than US$500 million has been invested by the contractors on exploration, studies and community programs in and around the Project area. For more information, visit: www.smi.com.ph.

About Glencore Xstrata

Glencore Xstrata is one of the world's largest global diversified natural resource companies. As a leading integrated producer and marketer of commodities with a well-balanced portfolio of diverse industrial assets, we are strongly positioned to capture value at every stage of the supply chain, from sourcing materials deep underground to delivering products to an international customer base. The Group's industrial and marketing activities are supported by a global network of more than 90 offices located in over 50 countries. Our diversified operations comprise over 150 mining and metallurgical sites, offshore oil production assets, farms and agricultural facilities. We employ approximately 190,000 people, including contractors. For more information, visit: www.glencorexstrata.com.

About Indophil Resources

Indophil Resources NL (ASX:IRN) was formed in 1996 to explore for, develop and produce minerals in the
Philippines and elsewhere in the Australasia region.
In mid-2002, Indophil assumed control of the Columbio FTAA, thereby accepting the mandate, on behalf of the Philippine Government, to explore for minerals in the area near Tampakan, in southern Mindanao.
The Company was later joined by global miner Xstrata (now Glencore Xstrata) in that quest, and the two companies have continued exploration and project development at Tampakan as a contractor to the Philippine Government through the local operating arm known as Sagittarius Mines Inc. (SMI). Glencore Xstrata holds a majority interest in SMI while Indophil holds a strategic 37.5% interest.
Through various shareholdings, Indophil holds strategic alliances in the Philippines with groups or organizations like the Alsons Group, BDO Unibank, San Miguel Corporation and Philex Mining. For more information, visit www.indophil.com.

* www.glencorexstrata.com/investors/reports-and-results/xstrata/2012/mineral-resources-and-ore-reserves/