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									INDEPENDENCE GROUP NL

   Sydney Mining Club Presentation

               April 2005


The Past, The Present, & The Future
                                        THE PAST

 Approximately 300,000 years ago mankind
  commenced exploration for rocks with specific
  characteristics to make tools.

 Mining was the 1st embryonic
  science?

 Evolution of this science has
  continued throughout history
  and still continues.
                                 MINING HISTORY

 Gold mining commenced approx. 8,000 years ago.

 Copper was smelted at least
  6,200 years ago.

 Early exploration involved
  finding alluvial deposits or
  outcropping ore bodies in
  stream head waters.
                                MINING HISTORY

 In Roman times mineral deposits were mined to
  depths of up to 200m using slaves, fire and
  dewatering techniques.

 Gold at this time was
  valued at ~US$2,000/oz.

 The decline of the Roman
  Empire coincided with the
  diminishing mining
  reserves and the ability to
  pay the Legionnaires.          Roman dewatering wheel
                                  Rio Tinto Mine, Spain
                    EXPLORATION HISTORY

 The exploration techniques developed by the
  ancients were the mainstay of exploration up to the
  industrial era.

 Significant advances in
  exploration & exploration
  technology has occurred
  over the last 5 decades.

 Technological advances
  still continue.
          WORLD GOLD SECTOR –
PAST CONSOLIDATION .. WHAT NEXT?
WORLD BASE METAL SECTOR –
   FUTURE CONSOLIDATION?
     ASX 300 GOLD & BASE METAL
MINING COMPANIES – SHARE PRICE
                              EXECUTIVE SUMMARY
 Low cost nickel producer - Dec Qtr A$2.65/lb payable Ni.

 Expanded production profile to 9,000t Ni pa.

 Strong cash reserves and cash generation potential – Dec 2004
  $23.8M cash + receivables net creditors.

 Paying fully franked dividends - 5c Dec 04, 3c Apr 05.

 Exploring for gold, nickel and copper in Australia.

 Strategy to increase shareholder returns by becoming a highly
  profitable diversified mining house.

 P/E 5.1
     INDEPENDENCE CORPORATE GOALS
To increase shareholder wealth by becoming a
highly profitable, mid-cap, multi commodity Australian
mining company
 Focus on share price and dividend increases.
  (as opposed to market capitalisation).

 Growth through exploration and acquisition.

 Under promise, over deliver.

 Maintain a conservative balance sheet.
                           SHARE STRUCTURE
     ASX Code - Shares      IGO    A$1.32 (01.04.05)

IGO average turnover (last 6 months) = 485,000 shares/day


           Ordinary shares          107.0M
           Contributing shares        3.1M
           Unlisted options           7.4M
           TOTAL                    117.5M


        Undiluted market capitalisation = $142M

                  ASX 300 Company
              TOP TEN SHAREHOLDERS

Ordinary Shares as at 11.03.05
 Equity Trustees               6.5M       6.1%
 ANZ Nominees                  4.1M       3.9%
 Forbar Custodians             3.5M       3.3%
 Virtual Genius                3.4M       3.2%
 National Nominees             3.1M       2.9%
 Queensland Investments        2.9M       2.8%
 Westpac Custodian Nominees    2.6M       2.4%
 Yarandi Investments           2.3M       2.1%
 JP Morgan Nominees            2.1M       2.0%
 RBC Global Services           1.8M       1.7%
                              32.3M      30.4%

     5 British institutions on IGO register
                                  IGO PROFITABILITY
                                          2003/4         2004/5
                                                         1st half
Mine Revenue                              A$66.7M        A$44.9M

Mine cash flow (pre tax)*                 A$29.4M        A$22.2M

Group profit (after tax)                  A$17.3M        A$12.5M

Earnings per share                          A24c           A15 c
(undiluted)

Earnings per share                          A18c           A12 c
(diluted)

Dividends (fully franked)                    A5c            A3c
*   Excludes capital, depreciation, amortisation and exploration
                         IGO CASH

               31 Dec 04

Cash:          A$12.4M

Receivables:   A$19.7M

Creditors:     (A$8.3M)

Total:         A$23.8M

Debt:           A$8.9M
         LONG NICKEL MINE (100% IGO)
TARGET:
 New nickel discovery to raise production from
  9,000t Ni pa to 15,000t Ni pa in bottom 3rd of nickel
  production cash costs
                        LONG NICKEL MINE
                      GEOLOGICAL SETTING
WMC Production 1979-1999:
5.43M t
3.7% Ni
203,184 Ni t
IGO Production 2002-Dec04:
370,167 t
3.9 % Ni
14,557 Ni t
2004/2005 Reserves:
1.185M t
4.1 % Ni
48,300 Ni t
           LONG PRODUCTION HISTORY
 Long purchase price A$15M.

 2002 – Dec 04 pre-tax free cash = $60.2M
                       LONG MINE PERSONNEL

 Owner operator with
  108 salaried employees.

 Very experienced team.

 Turnover extremely low.

 Gain share bonus.

 Skilled personnel
  waiting list.

 Only 2 LTI’s since
  commencement.
                2003/4 & 2004/5 PRODUCTION

                                          IGO Ni t
                Tonnes     % Ni    Ni t
                                           Share
 2003/2004      168,991    4.1    6,843    4,063
2005 1st half   114,012    4.1    4,705    2,798


Nickel mined outside or in excess of reserves:

 Dec 04 Qtr = 27% Ni t.

 Project to date = 32% Ni t.
        DEC O4 Qtr PRODUCTION STATS
                       Tonnes      % Ni        Ni t

 Long                   33,923      2.6        895
 Gibb South              4,674      6.6         307
 Victor South           23,156      5.6       1,285
 TOTAL                  61,753      4.6       2,487

                                       A$/lb Payable Ni
Payable sales revenue (incl. hedging):       6.96
Cash mining / development costs:             1.59
Milling & other cash costs:                  1.06
TOTAL                                        2.65
Deprec. / amort. / rehab:                    0.74
 2004/2005 PRODUCTION BUDGET
Budget: 222,000 t @ 4.0% Ni (8,900t Ni)




 2004/5 Cash costs to date A$3.10/lb
           (payable nickel metal)
LONG - 5 YR MINING SCHEDULE
LONG EXPLORATION TARGETS
                   IGO AUSTRALIAN REGIONAL
                              EXPLORATION
STRATEGY: Targeting new, high profit mines by -
 Exploring under cover and in lightly or unexplored
  terrains.
 Using empirical, conceptual targeting & new innovative
  exploration technology.
 Turning ground over quickly and efficiently.

REGIONAL BUDGET: 2004/2005 - A $4M

SIGNIFICANT PROJECTS: 7 Nickel
                      9 Gold
                      1 Copper
                      1 Mineral Sands
        INNOVATIONS – GEOPHYSICAL
SEEING DEEPER IN SALINE CONDITIONS
                       LOW TEMP
                   SQUID TEM SENSOR
 MAG TEM SENSOR     Anglo American JV
         INNOVATIONS - GEOCHEMISTRY
          USING CHROMITES TO FIND NiS
 Chromites are a common mineral in many rock types.
 Diamond explorers collect and analyse chromites to
  identify those sourced from diamond bearing intrusives.
 Independence can use this data to recognise chromites
  that occur in massive nickel sulphide.




        Nickel sulphide face           Chromite grains
     NICKEL GEOCHEM & TEM ANOMALY
    TARGET: Low cost nickel mining camp
                           Anomalous values and TEM conductor
Nickel geochemical image            over magnetics
      NICKEL GEOCHEM & TEM ANOMALY
     TARGET: Low cost nickel mining camp
                           Aeromagnetic image &
Nickel geochemical image       TEM anomaly
NICKEL SULPHIDE GOSSAN

          Nickel sulphide gossan




          Primary nickel sulphide
   TROPICANA GOLD JV
TARGET: new gold camps
TROPICANA CROSS-SECTION 14320mN
           FRANCIS FURNESS OPTION
TARGET: +1,000oz PVM @ +15g/t Au (UG)
            MERTONDALE OPTION
TARGET: +250,000oz @ +4g/t Au (OC)
           DALWALLINU PROJECT (100% IGO)
                   TARGET: New gold camp
      Gold                Arsenic             Bismuth
Geochemistry Image   Geochemistry Image   Geochemistry Image
 MT ISDELL Cu-Zn-Au (100% IGO)
TARGET: New Cu-Zn mining camp
        MT ISDELL Cu-Zn-Au (100% IGO)
 Zinc Geochemistry Image    Lead Geochemistry Image




Copper Geochemistry Image   Gold Geochemistry Image
  MINERAL SANDS PROJECT (100% IGO)
TARGET: High-grade zircon mineral sands
MINERAL SANDS PROJECT (100% IGO)
              IGO INVESTMENT CRITERIA

Acquisition / Merger Investment Tenets:

 Production cash costs in the lowest 3rd of world-
  wide costs.

 Long-term mine-life.

 Appropriate capital cost and cash generation
  timing.

 Significant exploration upside.
                   MATRIX METALS LIMITED
 Independence Group is
  now the largest
  shareholder (18.9%).        Copper oxides


 Potential low-cost SX/EW
  Australian copper metal
  producer (99.99% Cu).

 Copper oxide resources:
  21Mt @ 1.1% Cu
  (230,000t Cu).

 Resource - predominantly
  low acid consumer.
                       MATRIX METALS LIMITED
                                - A SNAPSHOT
Listed on the Australian Stock Exchange ASX code – MRX.

 Ordinary shares             575.4M
  Unlisted Options             12.0M

 MRX cash as at 31.12.04     A$16.8M

 Tax losses                  A$24.0M

 Market Cap as at 01.04.05   A$50.6M (undiluted)
  (quoted at 8.8c)

 Matrix Enterprise value     A$28.4M (undiluted)
           MT CUTHBERT SX/EW PLANT

 Proven dump leach SX/EW in-house expertise.
MATRIX METALS PROJECT
LOCATIONS & RESOURCES
         Stage 1
          White Range Project
          15,000 t Cu over +6 yrs.


         Stage 2
          Mt Watson Project
          15,000 t Cu over +6 yrs.
                                 COPPER OXIDE
                            EXPLORATION UPSIDE
 Numerous untested CuO
  prospects within
  economic trucking
  distance to White Range
  and Mt Watson.

 Numerous other CuO
  prospects.

 Exploration focused on
  testing old workings.

 Regional exploration in its
  infancy.
                        PRIMARY COPPER SULPHIDE
                                      POTENTIAL
                    Potential for economic primary copper
Copper sulphides     sulphide ore bodies beneath surface oxide
                     deposits eg.

                     Mt Watson:
                     MWRCD 130: 38m @ 2.18% Cu
                     (including 20m @ 3.03% Cu)

                     Mt McCabe:
                     MRXRD 001: 28m @ 2.93% Cu
                     (including 4m @ 7.4% Cu)
                 IGO CURRENT STATUS


LONG MINE      EXPLORATION      MATRIX ?
 A$40M pa       A$4M budget    A$20M pa ?


  Exploring      Targeting       Under
   for new          Ni        due diligence
 high-grade         Au
 Ni deposits        Cu
 A$2M expl.         Zn
A$4M decline        Mn
                   M.S.
        LONG-TERM GROWTH STRATEGY

     Targeting +A$100M profit per annum

                LONG MINE
EXPLORATION                     ACQUISITON 1
                9,000t Ni pa


                LONG MINE
EXPLORATION         NEW
                DISCOVERY       ACQUISITON 2
   MINE 1
                15,000t Ni pa


EXPLORATION
                 MATRIX ?       ACQUISITON 3
   MINE 2
 ASX 300 GOLD & BASE METAL
MINING COMPANIES – MKT CAP
ASX 300 GOLD & BASE METAL
    MINING COMPANIES – PE
ASX 300 GOLD & BASE METAL MINING
    COMPANIES – EARNINGS/SHARE
ASX 300 GOLD & BASE METAL MINING
    COMPANIES – SHARE PRICE/EPS
                                           SUMMARY
 +5 year mine life with low cash costs.

 Strong cash position.

 Significant cash flow available for growth and fully
  franked dividends.

 Exposure to exploration upside at Long and on regional
  nickel and gold plays.

 A$6M exploration budget plus Long South decline.

 Acquisitions must be value accretive.

								
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