ICI: Step-Out Drilling Shows Significant Mineralization

HAYTHAM HODALY, Salman Partners Inc. (12/02/2009)
"Inter-Citic Minerals reported that it has intersected significant mineralization, approximately 7.5 kilometers northwest of the Dachang Main Zone (DMZ). The regional step-out drilling to date represents roughly 12% of the 25,000 meter regional program, with the results expected to aid in better evaluating the regional geology of the property. Hole CJV-861, with reported intersections of 9.50 meters @ 2.38 g/t Au and 3 meters @ 10.05 g/t Au, appears to have similar gold mineralization to that found in the DMZ. Two drills are now situated west of the aforementioned hole near the perimeter of the property and Inter-Citic has indicated plans to announce further drilling results in subsequent weeks.

The in-fill drilling program at the DMZ is expected to be completed prior to January 2010, allowing for the preparation of the GRR report, which is a Chinese pre-requisite prior to obtaining permits. In addition, the company has shifted its focus in recent weeks to the outer regions of the Dachang property as the infill drilling program in the DMZ comes to a close for the 2009 calendar year.

The drilling mentioned above continues to highlight why we believe the land package held by Inter-Citic is very prospective and shows the potential for other gold discoveries on the Dachang property to exist. We maintain our SPECULATIVE BUY recommendation and 12-month target price of Cdn$1.65 per share on Inter-Citic Minerals and note that the latest drilling will likely be noted by its peers as they pursue growth through acquisition of early yet prospective properties with existing gold resources."

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