IDI Indico Resources Ltd

Indico Resources Ltd. ("Indico" or the "Company") (TSX VENTURE:IDI)(OTCQX:IDIFF)
is pleased to announce the extension of the closing date of a binding Memorandum
of Understanding ("MOU") with the Peruvian owners of Cia Minera Maria Reyna S.A.
of Lima, Peru (the "Vendors") wherein Indico will acquire an indirect 51%
interest and further be granted an exclusive option to acquire the remaining
indirect interest in the Maria Reyna Co-Mo porphyry project in southern Peru.
The date for the closing is now set at August 1st 2013. The project consists of
a 3164 hectare group of mining titles located in the Andahuaylas-Yauri Belt of
skarn-porphyry deposits in Cusco Region, Southern Peru, 100km south of Cusco and
within 10km of Hudbay's Constancia Cu-Mo-Ag project (ex-Norsemont sold to Hudbay
in Q2 2011 for $520 million) which is currently under construction (Figure 1). 


The Maria Reyna concession block covers at least three significant skarn +/-
porphyry systems along 10 kilometres of a northeast-trending structure.
Mineralization is related to the regionally significant Andahuaylas batholith
and later subvolcanic intrusions. This igneous suite has intruded extensive
marine sedimentary rocks of the Yura Group, which in the project area are mainly
complexly folded carbonate rocks. Skarn Cu-Mo+/-Au mineralization is common
along the contact zones, and porphyry mineralization occurs within and adjacent
to some of the subvolcanic dacitic intrusions. The same geology is present at
several significant deposits in the Belt, including the Las Bambas
skarn-porphyry cluster (1.7 billion tonnes of 0.60% Cu), Haquira (690 million
tonnes at 0.59% Cu), and the Constancia porphyry deposit (reserves of 450
million tonnes at 0.36% Cu), located only 10 kilometres southeast of Maria
Reyna.


In 2010, following geophysical and geochemical surveys consisting of 433 rock
and 165 soil samples covering a little less than a third of the property, Vale
completed 11 diamond drill holes (5585 metres), targeting skarn and porphyry
mineralization at the Southwest Zone (Figure 2 and 3). The drilling intersected
both high-grade, shallow Cu-Mo skarn and breccia mineralization, and low-grade
disseminated porphyry mineralization beneath. Intercepts greater than 0.2% and
0.3% Cu are summarized below in Table 1 and 2. Highlighted in the tables are
intersections of shallow mineralization with grades greater than 0.4% CuEq,
which will be targeted by future in-fill drilling to generate a near-surface
resource. The Company cautions that it has not had the chance to fully verify
the quality and accuracy of the relevant historic sampling and drilling results
reported in this news release. The historic figures were generated from sources
believed to be reliable, based on limited review of the drill core and outcrops
in the field, but they have not been confirmed by a Qualified Person, as defined
by NI-43-101. 




     Table 1: Vale Drill Intersections at 0.2% CuEq(i) Cut-off.    
                                                                   
-------------------------------------------------------------------
                              Ag      Cu      Mo    CuEq           
Hole_ID     from      to   (ppm)   (ppm)   (ppm)       %   Interval
-------------------------------------------------------------------
DH-001       206     256     1.5    1956     113    0.27         50
-------------------------------------------------------------------
DH-002         0     136     4.1    5251      78    0.61        136
-------------------------------------------------------------------
DH-003       226     256     1.7    2365     122    0.31         30
DH-003       460     480     0.3    1871      62    0.22         20
-------------------------------------------------------------------
DH-004        10     240     3.0    2616     124    0.35        230
DH-004       336     486     1.5    1839     147    0.27        150
DH-004       502     522     0.8    1914      87    0.24         20
-------------------------------------------------------------------
DH-005        10      76     4.8    6277     122    0.74         66
-------------------------------------------------------------------
DH-006         0     114     4.0    3179     112    0.41        114
-------------------------------------------------------------------
DH-007         0     106     2.5    3882     267    0.55        106
DH-007       176     216     1.7    2546     280    0.41         40
DH-007       232     310     1.0    1657     272    0.31         78
-------------------------------------------------------------------
DH-008       256     394     1.4    2764     130    0.36        138
DH-008       432  519.85     1.7    2345     209    0.36      87.85
-------------------------------------------------------------------
DH-009        18      90     1.7    2815     335    0.47         72
DH-009       110     172     0.7    1358     184    0.24         62
DH-009       196     256     0.9    1793     106    0.24         60
-------------------------------------------------------------------
DH-010       262     314     1.7    3036     204    0.42         52
DH-010       344     406     2.1    3429     641    0.68         62
-------------------------------------------------------------------
DH-011        18     178     2.9    4970     998    1.03        160
DH-011       374     406     1.1    1448     175    0.24         32
-------------------------------------------------------------------
Intervals were calculated with maximum of 10m of 0.1% CuEq internal         
dilution, 0.2% CuEq edge grade, minimum length of 15m. For CuEq calculations
the following variables were used: $3.00/lb Cu, $15.00/lb Mo, $21.00/oz Ag; 
no allowances for metallurgical recoveries were made.                       


     Table 2: Vale Drill Intersections at 0.3% CuEq(i) Cut-off.    
                                                                   
-------------------------------------------------------------------
                              Ag      Cu      Mo    CuEq           
Hole_ID     from      to   (ppm)   (ppm)   (ppm)       %   Interval
-------------------------------------------------------------------
DH-001       222     246     1.8    2442     141    0.33         24
-------------------------------------------------------------------
DH-002         0      62     4.5    5789      63    0.66         62
DH-002        74     136     4.3    5510     103    0.65         62
-------------------------------------------------------------------
DH-003       232     254     1.7    2504     130    0.33         22
-------------------------------------------------------------------
DH-004        10      62     7.2    5122      56    0.61         52
DH-004       108     142     1.7    1663     380    0.37         34
DH-004       364     408     2.4    2547     169    0.36         44
-------------------------------------------------------------------
DH-005        10      74     5.0    6455     116    0.75         64
-------------------------------------------------------------------
DH-006         0      24     7.9    5501     265    0.76         24
DH-006        56      78     4.8    5551      93    0.65         22
-------------------------------------------------------------------
DH-007         2     102     2.6    4002     282    0.57        100
DH-007       176     212     2.0    2670     304    0.44         36
DH-007       244     290     1.2    1962     335    0.38         46
-------------------------------------------------------------------
DH-008       270     296     3.1    5162     193    0.64         26
DH-008       322     344     2.0    3435     238    0.48         22
DH-008       438     482     2.0    2632     286    0.43         44
DH-008       504  519.85     2.9    3389     133    0.43      15.85
-------------------------------------------------------------------
DH-009        18      76     2.0    3153     371    0.52         58
-------------------------------------------------------------------
DH-010       262     314     1.7    3036     204    0.42         52
DH-010       344     406     2.1    3429     641    0.68         62
-------------------------------------------------------------------
DH-011        20      82     1.4    2153     328    0.39         62
DH-011        98     178     4.6    8025    1711    1.71         80
-------------------------------------------------------------------
Intervals were calculated with maximum of 10m of 0.1% CuEq internal         
dilution, 0.2% CuEq edge grade, minimum length of 15m. For CuEq calculations
the following variables were used: $3.00/lb Cu, $15.00/lb Mo, $21.00/oz Ag; 
no allowances for metallurgical recoveries were made.                       



The most significant intercept was in DH-011, which intersected 80m of 1.71%
CuEq (0.80% Cu, 1711 ppm Mo), at a 0.3% CuEq cutoff, hosted by hydrothermal
breccia. This interval has an upper Cu-rich and a lower Mo-rich segment, in
which the matrix of the breccia is filled with semi-massive chalcopyrite and
molybdenite, respectively. The mineralization is constrained by adjacent hole
DH-001 to dip northeast, and is open along strike to the northwest and
southeast.


During a core review, where all significant mineralized intervals were inspected
with assays in hand, it was noted that the northeast-directed holes were not
optimally oriented, and most stockwork veins are nearly parallel with the core.
This is in agreement with surface measurement of structures found on Vale
geology maps. Consequently, subsequent infill drilling will be directed mainly
to the southwest, with an expected improvement in continuity of mineralization.


The Northeast Zone, lying one kilometre to the northeast of the Southwest Zone,
was not drilled or mapped by Vale. A greater than 1 kilometre in diameter
Cu-Mo-Au rock and soil anomaly there suggests a significant adjacent mineralized
system. Geophysical evidence suggests the anomaly is underlain by an intrusion.
Informal mine workings along the northwest peripheries of the area indicate
there is skarn mineralization, and future mapping will delineate any related
porphyry mineralization.


Another 4 kilometres to the north lies the North Skarn, an area of extensive
informal workings and relict trenches from a Phelps Dodge's work program in the
90's. Garnet-skarn with abundant copper oxide and carbonate occurs at the
contact of dacite porphyry and marble, with several structurally controlled
zones over an area of about 300 X 500 metres. This area was not covered by
Vale's geophysical and geochemical surveys and mineralization remains to be
outlined.


Terms of the MOU 

The Property is currently owned by Compania Minera Maria Reyna S.A. ("Reyna"). 

Pursuant to the MOU, the Vendors have agreed to sell to Indico 51% of the issued
and outstanding shares of Reyna (the "Purchase Shares") for the sum of US$2M
which sum is now payable no later than August 1st 2013 due to the extension
which was mutually agreed by both parties.


In addition the Vendors have granted to Indico the exclusive option (the
"Option") to acquire all of the remaining issued and outstanding shares of Reyna
by Indico making, at its option, payments of escalating shares and one cash
payment over a 5 year period. The total option price is US$20M and 30M shares of
Indico with the majority ($10M and 20M shares) being payable in year 5. In the
event Indico does not exercise the Option it will transfer back to the Vendors
the Purchase Shares.


Upon exercising the Option, Indico will grant to the Vendors collectively a 1%
NSR Royalty. 


There are no exploration expenditure commitments and no finder's fee are payable
in connection with the Transaction. At Closing the parties will enter into a
shareholder's agreement that will provide for certain matters regarding the
management of Reyna. The Transaction is arm's length.


The schedule of payments is as follows:



----------------------------------------------------------------------------
Date                                                   Shares           Cash
----------------------------------------------------------------------------
On the date Indico receives its first drilling                              
 permit for the Property (the "Drilling Date")      1,000,000               
----------------------------------------------------------------------------
6 months after the Drilling Date                    1,000,000               
----------------------------------------------------------------------------
12 months after the Drilling Date                   2,000,000               
----------------------------------------------------------------------------
18 months after the Drilling Date                   2,000,000               
----------------------------------------------------------------------------
24 months after the Drilling Date                   2,000,000               
----------------------------------------------------------------------------
30 months after the Drilling Date                   2,000,000               
----------------------------------------------------------------------------
36 months after the Drilling Date                   5,000,000               
----------------------------------------------------------------------------
48 months after the Drilling Date                   5,000,000               
----------------------------------------------------------------------------
60 months after the Drilling Date                  10,000,000  US$20,000,000
----------------------------------------------------------------------------



Conditions to Closing

The closing of the Transaction after the extension will be subject to, among
others, the following conditions precedent:




1.  the receipt of all necessary regulatory, corporate and third party
    approvals, including the approval of the TSX-V, and compliance with all
    applicable regulatory requirements and conditions in connection with the
    Transaction; 
2.  other condition precedents customary for a transaction such as the
    Transaction including the completion and execution of a formal share
    purchase and option agreement; and 
3.  the completion by Indico of a private placement prior to August 1st
    2013.



There can be no assurance that the Transaction will be completed as proposed or
at all.


To view Figures 1, 2 and 3, click on the following link:
http://media3.marketwire.com/docs/i228m.pdf


About Indico Resources Ltd.

Indico Resources Ltd. is a resource exploration company focused in the discovery
and exploration of porphyry copper-gold deposits in South America. The Ocana
Porphyry Project is the Company's primary exploration project and is currently
the main focus of exploration activities. In addition, the Company has reviewed
multiple additional porphyry exploration projects and is in negotiation to
acquire interests in additional porphyry exploration projects. Please visit our
website at www.indicoresources.com.


The technical information provided in this news release was reviewed and
approved by Robert. W. Baxter (FAusIMM), a director of the Company and a
qualified person for the purposes of National Instrument 43-101.


On behalf of Indico Resources Ltd.

Robert Baxter, President and Chief Executive Officer

Cautionary Statement Regarding Forward-Looking Statements

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. Specifically, there can be no assurance that the
Transaction will be completed as proposed. 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.



FOR FURTHER INFORMATION PLEASE CONTACT: 
Indico Resources Ltd.
Dean Linden
Corporate Development
+1(604) 638-1429
+1(604) 408-7499 (FAX)
dlinden@indicoresources.com
www.indicoresources.com

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