HispanicBusiness

Despite the changes to the shareholding and management of PT IMN having been registered in May 2012, PT IMN representatives continued meeting with the Company's representatives, purportedly to negotiate the terms of the joint venture going forward. Once the Company became aware through its own enquiries, prompted by the slow pace of negotiations with the founding shareholders of PT IMN, of the change in shareholding and management and attempted to confront the issue by meeting with PT IMN's management, Maya and Reza ceased all communication with the Company and failed to respond to e-mails or telephone calls. Although the corporate changes within PT IMN were officially recorded in May 2012, and were almost certainly under negotiation even before that date, PT IMN's management continued making cash calls of the Company and Intrepid funded approximately A$10 million in site and Jakarta office costs between May and July 2012.

Without forewarning, on 19 July 2012, PT IMN suspended exploration activities at Tujuh Bukit without reference to Intrepid and requested several members of local management, including all expatriate employees seconded to PT IMN from Intrepid, to leave site. These actions were in contravention of the agreements in place between Emperor, PT IMN and Maya and Reza.

Also on 19 July, Brad Gordon received a phone call from Mr Willis, substantial shareholder in and then Chief Executive of Sihayo Gold, who admitted knowledge of the plan to remove Intrepid's seconded employees from site and intimated that he would broker a "deal" between the Company and the new shareholders in PT IMN, in return for a share of the Project. Mr Willis resigned as CEO of Sihayo Gold in December 2012, but according to press reports, remains a consultant to that company. Mr Soeryadjaya is a principal founder of Saratoga Capital, whose associated company, Summit Investments, is a 17% shareholder in Sihayo Gold. In recent months, following Intrepid's exclusion from the Project site, personnel associated with Sihayo Gold and its consultants, as well as personnel of Provident Capital Partners, have visited Tujuh Bukit and been undertaking supervisory work at the site. Provident Capital has partnered with Saratoga Capital in a number of investments in Indonesia, including telecommunications infrastructure and palm oil. The founder of Provident Capital is also a director of both Sihayo Gold and Saratoga Capital.

On 31 July 2012, the Company issued 27,680,017 ordinary shares, representing approximately 5% of the Company's expanded issued capital, to prominent Indonesian businessman, Surya Paloh. Additionally, the Company issued to Mr Paloh 51,208,032 unlisted restricted performance rights to ordinary shares, subject to vesting conditions.

Since this time, the Company has been actively working with Mr Paloh, to resolve the dispute over the Tujuh Bukit project. A key focus has been on ensuring that both community and government officials in Banyuwangi and in Jakarta are properly informed of Intrepid's rights under its agreements with PT IMN and the Company's contribution to date to social and economic development in the Banyuwangi area.

The Company is aware of rumours that the Project IUPs have been transferred to a company called PT Bumi Sukses Indo ("BSI") which has several corporate shareholders, whose ultimate holding can be traced back to Mr Soeryadjaya and Provident Capital. The Company was in the process of verifying this information, and on 16 December 2012, Intrepid's Chief Executive, Brad Gordon, received a call from a reporter from the Sydney Morning Herald, advising that the reporter had been contacted by Paul Willis and was in possession of a document indicating the transfer of the Tujuh Bukit IUPs. The document was provided to Mr Gordon - it is written in the Indonesian language and is currently being reviewed but appears to refer to the issue of two IUPs to BSI in July 2012 and to a subsequent change in shareholding in BSI. The Company has informally learnt that, through various layers of corporate structuring, the majority underlying beneficial shareholders in BSI include Provident Capital, Mr Soeryadjaya and Mr Garibaldi Thohir, another influential Indonesian businessman and associate of Mr Soeryadjaya It should be noted that the "Clean and Clear" list issued by the Indonesian Ministry of Energy and Mining still reflects PT IMN as the holder of the Tujuh Bukit IUPs.