Demerger of Aforo Resources Ltd and Exploration Update

Indo Gold Limited
News Release
Demerger of Aforo Resources Ltd and
Exploration Update
th
Monday 20 February 2012
Indo Gold Ltd (IGL) is pleased to announce the demerger of Aforo Resources Ltd (ARL) and the in-specie
distribution of shares to IGL shareholders. Post the demerger, there are approximately 43.7M shares on
issue in Aforo, with IGL retaining a 19.9% interest. This has been accomplished by way of a dividend to IGL
shareholders plus retention of shares by IGL in lieu of funds expended up to 31st December. IGL continues
to fund ARL by way of loan funds from 1st January 2012.
This is the first of a series of planned demergers and represents a significant return to investors and
ongoing exposure to a high quality portfolio of West African gold targets. It has been the culmination of
about 2 years work, focussed largely during the last 12 months and expenditure of around $1.2M. A
comparison with Australian peer companies operating in West Africa suggests a conservative valuation of
between $5M and $10M for the current portfolio, a multiple of 4-8 times the money spent.
Negotiations are currently underway aimed at providing shareholders with a liquidity event within the next
6 months. Options being considered include vending ARL to an existing competitor company for cash
and/or shares and a reverse take-over of a number of Australian and Canadian listed shell companies.
The portfolio consist of four main projects within three West African countries – Ghana, Liberia and Ivory
Coast – designed to spread the country risks associated with these countries. Start of exploration has
previously been announced in Ghana and Liberia and a joint venture is currently in the process of being
signed in Ivory Coast.
Sinoe Project (Liberia) – Aforo 100%
This project is shaping up as the flagship for Aforo. It is located in an exploration “hot-spot” adjacent to
high profile competitor projects including:

Dugbe F gold deposit (Hummingbird) – recently announced upgrade to 1.8Moz deposit, trending
toward ARL tenure

Tuzon prospect (Hummingbird) – recently announced drill intercepts of up to 125m @ 2.4g/t Au,
trending toward ARL tenure

Bukon Jedeh prospect (Equator) – 5-10km soil anomaly with trenching up to 66m @ g/t Au and
hundreds of artisanal gold miners
Stream sediment sampling is currently underway by ARL. First results confirm an anomaly along trend
from Hummingbird’s Dugbe F deposit and reports from the field have reported visible gold in pan
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concentrates from streams draining along trend from Tuzon and associated with an itabirite (iron
formation) ridge.
Excitingly, a plus 6km strike of low hills in the east of the tenement has been reported by the field crews as
having artisanal workings and visible gold in pan concentrates from all streams draining them. This is along
the trend of the USGS mapped Dugbe Shear Zone, the main structure in the district.
Aforo’s Chief Geologist – Africa is planning on visiting this area in February and assay results from the
samples collected are expected in late February.
Lofa (Liberia) – Aforo 100%
This project is located in the northwest of Liberia and is associated with the same regional scale structures
that are interpreted as being the main structural control for Aureus’s 1.5Moz New Liberty gold deposit.
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The area has not had any previous gold exploration but several groupings of artisanal gold workings are
noted on USGS and BRGM geological maps.
A regional stream sediment sampling program is currently being undertaken by Aforo and results to date
have highlighted two main areas of interest:

An open ended, plus 10km hilly area with streams draining it on all sides returning 16-64ppb Au in
BLEG assays. This is associated with a structure mapped by the USGS and with artisanal workings
within and along strike of the anomaly. A field visit by Aforo geologists noted mafic/ultramafic and
sedimentary rocks, similar to the host rocks for the New Liberty deposit.

An area of laterite/canga that occurs as an apron around a major ridge of iron-ore (currently being
offered for tender by the Liberian government). Streams draining this area have returned greater
than 64ppb Au in BLEG assays and potential for both laterite hosted gold mineralisation as well as
primary mineralisation beneath the laterite can be seen.
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Enchi (Ghana) – Aforo Option to Purchase 100%
This project is located along splays off a major structure that separates volcanic and volcaniclastic rocks
from dominantly sedimentary rocks and that hosts two plus 5Moz gold deposits to the northeast (Bibiani
and Chirano).
Work by Aforo has consisted of stream sediment sampling and follow-up broad spaced ridge and spur soul
sampling. The stream sediment sampling returned extraordinarily high gold values, with 22 samples
returning over 1000ppb Au and 4 samples over 3000ppb Au in the minus 80# fraction, defining ten
separate areas of gold anomalism.
The limited soil sampling follow-up has identified several areas of anomalism including a 3km x 1km zone
with up to 233ppb Au. As the soil profile is quite complex, an orientation auger sampling is currently in
progress designed to find the best medium for proposed detailed grid based follow-up soil sampling.
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Odienne (Ivory Coast) – Aforo Earning 85%
This project was originally identified as an area of interest in November 2010 but due to a series of
conflicts relating to the sitting president refusing to step down when a new president was elected, the area
was not visited until late 2011. A heads of agreement was signed with a local Ivorian company prior to that
visit and, following a successful due diligence program, a full JV agreement is in the process of being
executed.
The Odienne licence is a 1000km² Permis de Recherche (equivalent to an exploration licence) that has been
granted and given approval to begin exploration, but is awaiting formal approval by decree from the
Council of Ministers. In country legal advice is that this is a formality.
The area consists of a Birimian greenstone belt (host for most deposits in West Africa) thrust over the
Archaean craton. The tenement contains numerous artisanal gold workings, both alluvial and hard rock,
and over a hundred artisanal miners are still active in the area. Previous exploration appears to be
restricted to limited drilling by the state mining company, Sodemi, during the 1980s and soil/trench
sampling and limited drilling by Randgold in JV with Sodemi during the 1990s.
Details of the early drilling are still being sourced but it appears to have been mainly focussed on base
metals. Old drill logs with no co-ordinates (possibly not within the JV area) show high sulphide contents
with pentlandite and chalcopyrite and, if these are found to be from within the JV area, suggest very good
potential for nickel, copper and platinum group elements. This concept is supported by several coincident
nickel and copper soil geochemical anomalies within the JV area.
The soil and trench sampling highlighted numerous gold anomalies, many of high magnitude (plus 500ppb
Au) and often associated with the artisanal workings. However, the soil profile can be seen to be very
complicated and barren alluvium and laterite cap rock have been noted. Hence the limited previous
trenching and drilling is unlikely to have effectively tested much of the area. Even so, some significant
mineralisation has been identified including trench results of 40m @ 0.22g/t Au and drill intercepts of 2.5m
@ 43g/t Au.
Data compilation and assessment is currently in progress and field work will commence as soon as the full
JV has been executed.
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Commenting on this exciting phase in the development of the Company, IGL’s Executive Chairman, Mr
Michael Higgins, said “We are delighted to have secured this excellent portfolio of projects within a
relatively limited and time frame and with a limited budget. We are experiencing a high degree of interest
from listed companies and aim to achieve a liquidity event for shareholders within a six month time frame.
Sinoe is shaping up as a flagship project in a current exploration hot spot and we are hopeful we can add
value very quickly there.”
Indo Gold Limited is a public, unlisted Australian company established in 2004 with the principal objective to explore for gold and other mineral
resources in India. Its most recent private equity financings were completed in July 2007 through predominantly specialist mineral resource
investment funds and banks based in North America, Australia, Middle East, UK and Europe. Permitting problems in India to do with the
Company's primary gold discovery at Bhukia (70% holding in JV company) have been experienced since November 2007. Resolution of the Bhukia
permitting issues remains the Company's primary objective and various attempts to resolve these are ongoing. Commencing early 2010, business
development activities were initiated in earnest outside of India to provide the Company and its shareholders with options. As a result of these
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activities, new businesses have been established in South Korea (Mo and other metals), West Africa (Au) and Germany (Sn and other metals). The
present strategy will involve separating these businesses from the parent company when conditions are suitable.
For further information please contact:
Mike Higgins
Executive Chairman
mhiggins@indogold.com.au
Ph: +61-7-3217 5100
Fax: +61-7-3217 5211
Chris Rashleigh
Executive Director
crashleigh@indogold.com.au
www.indogold.com.au
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