IDI Indico Resources Ltd

Indico Resources Ltd. (TSX VENTURE:IDI) ("Indico") wishes to provide an update
to its news release dated September 14, 2010 wherein Indico announced that it
has been granted the exclusive option to acquire a 100% indirect interest in the
Ocana Copper Gold Porphyry Project located in South-Central Peru. 


Ocana Project

Indico has now received TSX Venture Exchange (the "Exchange") acceptance to the
Share Purchase Option Agreement (the "Option Agreement") dated September 9,
2010, between Indico's Peruvian subsidiary, Indico Peru S.A.C., and Manilo
Bassino Pinasco and Percy Samaniego Pimentel (the "Vendors"), to acquire a 100%
interest in the Ocana Project. In order to earn a 100% interest, Indico must pay
to the Vendors a total of US$17.75 million cash (US$390,000 payable on closing
and US$310,000 on or before April 20, 2011) and issue an aggregate of 8,500,000
common shares (200,000 shares on or before April 20, 2011), over a period of
five years. 


The Ocana Project consists of 22 concessions covering 110.24 km(2) and is
located on the northwest extension of the Southern Peru Porphyry Copper Belt, a
trend defined in part by the Toquepala, Quellavaca, Cuajone, and Cerro Verde
Mines to the southeast. Recent exploration of the belt has resulted in discovery
of the Zafranal copper porphyry deposit, located approximately 75 km to the
southeast of the Ocana Project.


Indico retained Paul Klipfel, Ph.D., Consulting Economic Geologist, of Reno,
Nevada, to complete the Technical Report on the Ocana Project. This report is
written in compliance with requirements of National Instrument 43-101 and Form
43-101F1 and is in support of documentation filed with the Exchange in support
of Indico's entering into the Option Agreement. Mr. Klipfel is a Qualified
Person for the purpose of Canadian NI 43-101, Standards of Disclosure for
Mineral Projects.


The report provides a detailed summary of the geology, history and exploration
of the Ocana Project. The report is available at www.sedar.com and will be added
to Indico's website at www.indicoresources.com. 


Private Placement 

As a condition to the closing of the Option Agreement, Indico has also completed
its non-brokered private placement totalling $4,000,000. These funds were raised
through the issue by Indico of 10,000,000 units at a price of $0.40 per unit,
each unit consisting of one common share and one-half of one share purchase
warrant. Each whole warrant entitles the holder, on exercise, to purchase one
common share at a price of $0.60 until November 19, 2011, subject to Indico's
right to accelerate the exercise of the warrants if the closing price of the
Indico's shares on the TSX Venture Exchange is equal to or exceeds $1.00 per
share for a period of 20 consecutive trading days between March 20, 2011 and the
date of expiry of the warrants. 


Total commissions of $20,000 and 200,000 units were paid by Indico to agents as
consideration for arranging the private placement, each unit consisting of one
common share and one-half of one share purchase warrant, of which one whole
warrant entitles the agent to purchase one common share of Indico at a price of
$0.60 until November 19, 2011. Indico also issued agent's warrants, which
entitle the agents to purchase up to 250,000 common shares of Indico at a price
of $0.60 until November 19, 2011.


The securities issued pursuant to this offering, and any common shares to be
issued upon the exercise of the warrants and agent's warrants, are subject to a
hold period expiring March 20, 2011. 


A portion of the proceeds of the private placement will be used to fund the
initial option payments due to the Vendors (US$390,000) and to undertake the
proposed work program on the Ocana Project. The balance of the proceeds will be
used for general working capital purposes. 


Planned Work Program

Indico intends to rapidly advance the Ocana Project to the drill stage. The
exploration program will include detailed geological, structural and alteration
mapping in tandem with detailed geochemcial sampling and trenching. 


A ground magnetic survey is current being designed to target observed
northwest-trending magnetite bearing veins and silicified zones. This will help
identify structural fabric and map magnetic intrusions and/or magnetite
alteration. An Induced Polarization (IP) survey is also planned to define zones
of sulphide mineralization. 


A budget of $3.4M is proposed for Phase 1, which will take the project from the
surface exploration phase through to initial drilling.


Appointment of New Board Member 

Effective December 1, 2010 Indico has appointed Susannah Coille Van Alphen to
its board of directors and as a member of its audit committee. Ms. Van Alphen is
currently working with Cardero Resource Group in their corporate development
team. She has industry and investment banking experience through working with a
leading public institution and one of Canada's largest independent investment
dealers. In these roles, Ms. Van Alphen was involved in public and private
equity transactions and negotiating mergers and acquisitions. Ms. Van Alphen
holds a Masters in Business Administration from the Richard Ivey School of
Business at the University of Western Ontario, graduating with distinction. 


Granting of Stock Options

Indico pursuant to its incentive stock option plan, has granted incentive stock
options to certain directors, allowing them to purchase up to a total of 100,000
common shares in the capital stock of Indico. The options are exercisable at a
price of $0.84 per share for a period of two years ending December 2, 2012.


About Indico Resources Ltd.

Indico Resources Ltd. is a Canadian exploration company focussed on the resource
sector in South America. The Ocana Porphyry Project is Indico's primary
exploration project and the main focus of exploration activities.


For further details on Indico, readers are referred to the Canadian regulatory
filing on SEDAR at www.sedar.com.


ON BEHALF OF THE BOARD OF DIRECTORS

INDICO RESOURCES LTD.

Gary Freeman, President & CEO

Cautionary Statement

This press release contains "forward-looking statements" within the meaning of
the United States Private Securities Litigation Reform Act of 1995 and "forward
looking information" within the meaning of the British Columbia Securities Act
and the Alberta Securities Act. Generally, the words "expect", "intend",
"estimate", "will" and similar expressions identify forward-looking information.
By their very nature, forward-looking statements are subject to known and
unknown risks and uncertainties that may cause our actual results, performance
or achievements, or that of our industry, to differ materially from those
expressed or implied in any of our forward looking information. Statements in
this press release regarding Indico's business or proposed business, which are
not historical facts are forward-looking information that involve risks and
uncertainties, such as estimates and statements that describe Indico's future
plans, objectives or goals, including words to the effect that Indico or
management expects a stated condition or result to occur. Since forward-looking
statements address events and conditions, by their very nature, they involve
inherent risks and uncertainties. Actual results in each case could differ
materially from those currently anticipated in such statements. Investors are
cautioned not to place undue reliance on forward-looking statements, which speak
only as of the date they are made. All of the Company's Canadian public
disclosure filings may be accessed via www.sedar.com and readers are urged to
review these materials, including the technical reports filed with respect to
the Company's mineral properties. The foregoing commentary is based on the
beliefs, expectations and opinions of management on the date the statements are
made. The Company disclaims any intention or obligation to update or revise
forward-looking information, whether as a result of new information, future
events or otherwise.

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