Minera IRL Announces Second Quarter Financial Results

LONDON, UNITED KINGDOM--(Marketwire - Aug. 16, 2010) - Minera IRL Limited ("Minera IRL" or the "Company"), (TSX:IRL)(AIM:MIRL)(BVLAC:MIRL) the Latin American focused gold mining, development and exploration company, is pleased to announce its unaudited interim results for the 3-month period ended June 30, 2010 and its interim results for the six months ended June 30, 2010. All amounts are reported in US dollars.

Highlights for the quarter ended June 30, 2010 included:

* Gold production above budget at 8,098 ounces (15,169 ounces for 6 months to June 30, 2010)
* Sales revenue of US$10.0 million (US$18.3 million for 6 months to June 30, 2010)
* Average sales price US$1,201 per ounce in the second quarter
* Corihuarmi cash operating cost of US$365 per ounce (US$396 for the 6 months to June 30, 2010)
* EBITDA of US$3.9 million (Q2 2009 US$1.7 million)
* Profit before tax of US$3.0 million (Q2 2009 US$557,000)
* Profit after tax of US$1.6 million (Q2 2009 US$234,000)
* Cash balance of US$6.6 million at June 30, 2010 (June 30, 2009: US$ 5.1 million)
* Rapid advancement on Ollachea Project Pre-Feasibility Study
* Don Nicolas Feasibility Study progressing well
* Extensive airborne geophysical survey carried out over Patagonia exploration projects
* Acquisition of new exploration project, Killincho, in southern Peru
* $20 million debt facility put in place with Macquarie Bank

"Financial performance for the three months to June 30, 2010 was above expectations. Driven by above budget gold production at our Corihuarmi Gold Mine and a continuing strong gold price." stated Courtney Chamberlain Minera IRL Limited Executive Chairman. "The Pre-Feasibility Study at the Minapampa Zone, Ollachea Project in Peru and Feasibility Study on the Don Nicolas Project in Argentina are progressing well with two drill rigs carrying out in-fill drilling on each project. On the exploration front, we have completed a large airborne geophysical survey in Patagonia to better define and prioritize exploration targets including the new zone in Escondido. In Peru, early stage exploration commenced on the new Killincho Project."

This announcement is available from the Company's web site, www.minera-irl.com.

Minera IRL Limited is the AIM traded and TSX and BVL listed holding company of precious metals mining and exploration companies focused in Latin America. Minera IRL is led by an experienced senior management team with extensive industry experience, particularly in operating in South America. The Group operates the Corihuarmi Gold Mine and the emerging Ollachea Gold Project in Peru as well as the Don Nicolas Project in Argentina.

This press release was reviewed by Donald McIver, VP Exploration of the Company, MSc Exploration and Economic Geology, a Fellow of the Australian Institute of Mining and Metallurgy (AUSIMM), who is the designated Qualified Person for the purposes of National Instrument 43-101 and has approved the technical information in this press release.

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law or regulation, Minera IRL Limited does not intend to update any forward-looking statements to conform these statements to actual results.

Chairman's Statement

A high level of activity continued within the Minera IRL Group during the June quarter of 2010. Excellent results were achieved from our Corihuarmi Gold Mine, good progress has been made on the Pre-Feasibility Study on the Ollachea Project and the Feasibility Study on the Don Nicolas Project and there have been encouraging results from exploration in Peru and Argentina.

The financial performance for the three months to 30 June 2010 was above expectations and an improvement on both the comparative second quarter of 2009 and the first quarter of 2010. Gold sales were a solid US$10.0 million on the back of a continuing strong gold price, with spot sales averaging US$1,201 per ounce. Gross profit was US$5.3 million and EBITDA US$3.9 million. Profit before tax was US$3.0 million and profit after tax was US$1.6 million. Each of these financial figures is significantly better than both the corresponding period in 2009 and the first quarter of 2010. The cash balance at the end of the quarter was US$6.6 million.

Our Corihuarmi Gold Mine continues to perform very well with gold production of 8,098 ounces, approximately 10% above budget, bringing production for the first six months to 15,169 ounces. Mining activities were largely concentrated on the Susan outcrop. Cash operating costs averaged US$365 per ounce for the quarter thus reducing the average cash operating costs for the first six months to US$396 per ounce.

At the Ollachea Project in southern Peru, the Pre-Feasibility Study has made excellent progress and remains on schedule for completion during the first half of 2011. Infill drilling in the core Minapampa Zone with 2 rigs continued throughout the period with 32 of the 40 holes completed to date. This drilling is required to raise the resource confidence level to Measured and Indicated categories compliant with NI43-101 standards. Progress was also made on other aspects of the Pre-Feasibility Study including planning for an exploration tunnel into the deposit, metallurgical test-work, geotechnical evaluations and information gathering for the environmental baseline report. Drilling will revert to the new Concurayoc discovery, approximately 500 meters west of the Minapampa Zone, when the infill program is completed.

In Patagonia, good progress has been made on the Don Nicolas Feasibility Study, due for completion in 2011. Two drill rigs completed the infill and stepout drilling in late July on the Sulfuro Vein, one of the two principal deposits at Don Nicolas. This is to be followed by infill drilling on the Martinetas deposit. Other aspects of the Study, such as more metallurgical testing, geotechnical studies and a hydrology program are in progress.

Exploration continued at a number of projects. In the large tenement package in the Deseado Massif in Patagonia, a 4,500 line kilometer helicopter-borne magnetic and radiometric survey has been undertaken to fine tune existing exploration targets and locate new ones. Highly encouraging rock chip analysis and geophysical anomalies have identified drill targets on the 700 meter long outcropping breccia zone at Escondido, contiguous to Mariana Resources Las Calandrias discovery. Scout drilling commenced at the end of July. Good progress was also made in better understanding the undrilled 1.3 kilometer vein at Pan de Azucar with further confirmatory elevated gold outcrop samples obtained. In addition, a 300 meter long, gold anomalous, breccia envelope has been identified around the southern portion of the vein.

Results of a 12 hole, 4,856 meter reverse circulation drilling program were announced in July 2010 for the Bethania porphyry gold project, which is situated approximately 10 kilometers from Corihuarmi. Extensive intersections of low grade gold, copper and molybdenum mineralization were identified in six of the holes which provide substantial encouragement to continue exploring this large alteration zone. A new exploration project in southern Peru, known as Killincho, was acquired, and exploration commenced within a known gold producing area.

The planned drilling was completed at the La Falda Project in Chile and targeted geophysical IP anomalies and auriferous banded quartz veins considered to be associated with a gold porphyry system. Encouraging gold mineralization was encountered deeper in a number of holes which may link to a substantial, largely untested magnetic anomaly. However, further testing is beyond the current funding capacity of Minera IRL. As a result, the agreement with Catalina Resources was extended to 30 September 2010 to allow time to seek another party for the next phase of exploration.

Following the successful listing of Minera IRL on the Canadian TSX in April 2010, the Company sought to issue a tranche of equity to generate liquidity in the Canadian markets and to bolster working capital. However, deteriorating market conditions resulted in the suspension of this process in favour of a US$20 million debt facility provided by Macquarie Bank. These funds are to be used to advance rapidly the Ollachea and Don Nicolas projects toward development.

In closing, I would like to extend my appreciation to our outstanding team and to our loyal shareholders. Together, I believe we continue to build toward a bright and prosperous future.

Courtney Chamberlain
Executive Chairman
Minera IRL Limited

The Directors of Minera IRL are listed in the Group's Annual report for the year ended 31 December 2009.

By order of the Board

C Chamberlain, Executive Chairman

The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release.

For more information, please contact
Minera IRL Limited
Trish Kent
Vice President, Corporate Relations
+511 4181230
or
Arbuthnot Securities (Nominated Adviser & Broker, London)
Hugh Field/Richard Johnson
+ 44 (0)20 7012 2000
or

The Equicom Group Inc. (Investor Relations, Canada)
James Kitchen
Account Executive
+1 416 815 0700 (ext 267)
or
Bankside Consultants (Financial PR, London)
Simon Rothschild
+ 44 (0)20 7367 8888
or
Bankside Consultants (Financial PR, London)
Louise Mason
+ 44 (0)20 7367 8888