Mr. Gary Freeman reports

INDICO APPOINTS NEW DIRECTOR AND CHIEF OPERATING OFFICER; OCANA PHASE 2 DRILL PROGRAMME OUTLINED

Indico Resources Ltd. has appointed Henk van Alphen to the company's board of directors and John Drobe as the company's chief operating officer.

Mr. van Alphen has had a successful career in the mining business for over 25 years. Since 1999 Mr. van Alphen has been a director of Cardero Resource Corp., a mineral exploration company listed on the Toronto Stock Exchange and NYSE Amex, and was instrumental in establishing the Cardero Group of Companies. Mr. van Alphen holds senior management and director positions with several resource exploration and development companies. Having raised over $200-million for mining exploration, his leadership, knowledge and access to capital will be an invaluable asset to the company.

Mr. Drobe is a geologist with 25 years of experience, specializing in porphyry copper-gold, epithermal and skarn deposits throughout Latin America. Mr. Drobe is currently vice-president, exploration, for Dorato Resources Inc., a mineral exploration company listed on the TSX Venture Exchange. Prior to joining Dorato, Mr. Drobe held the position of chief geologist for Corriente Resources Inc., a mineral exploration company previously listed on the Toronto Stock Exchange and NYSE Amex. Mr. Drove was responsible for all aspects of exploration and resource definition at Corriente's Mirador, Panantza and San Carlos porphyry copper deposits.

Mr. van Alphen will be replacing Michael Kinley, who has resigned from the board of directors. The company would like to express its sincere thanks to Mr. Kinley for his years of service on the board.

The company also announces the granting of incentive stock options to certain of its directors, officers and consultants to purchase up to an aggregate of 1.2 million common shares in its capital stock at a price of 21 cents per share, exercisable for a period of two years.

Ocana property update -- phase 2 drilling proposal

Indico is preparing to initiate the phase 2 drill program at the Ocana copper project. This program will total 5,000 metres and target:

1. Higher-grade hypogene mineralization within breccia at depth;
2. Shallow high-grade copper oxide mineralization under the main ridge along the south edge of the alteration anomaly.

The Ocana porphyry project covers 110 square kilometres located on the northwest extension of the southern Peru porphyry copper belt. Ocana is accessible by an 85-kilometre graded dirt road connected to the paved Pan American Highway. The Toquepala, Quellaveco, Cuajone and Cerro Verde mines are on regional trend to the southeast. Recent exploration in the belt has also resulted in discovery of the Zafranal copper-molybdenum-gold porphyry deposit (National Instrument 43-101-compliant measured and indicated resources of 301 million tonnes of 0.47 per cent copper and 0.08 gram per tonne (g/t) gold, and additional inferred resources of 51 million tonnes of 0.32 per cent copper and 0.06 g/t gold) located approximately 75 kilometres to the southeast of the Ocana project. The geology and mineralization at Ocana are similar to that at Zafranal. The information in this release relating to regional geology, mines, deposits and projects was determined from the relevant company websites and public filings.

Five drill holes were completed in phase I, totalling 2,195 metres, and all contained strong hypogene mineralization over significant thicknesses. In addition, two holes located nearest the main east-west ridge (OKA-001 and 002) also intersected significant supergene copper oxide and sulphide at or near surface. Results for all five holes are summarized in the associated table. Notable in the initial phase of drilling was OKA-004, in which consistent hypogene mineralization at 0.25 per cent copper (0.32 per cent copper equivalent) terminated in increasing copper grades, with the last 15 metres averaging 0.42 per cent copper.

Phase 1 drilling indicates the mineralized system has dimensions of at least 840 metres east-west and extends at least 250 metres north-south. Phreatic breccia underlies most of this area and trends west-northwest and is continuous for more than one kilometre over a width of at least 200 metres within the concession and extending for another approximately 200 metres off the property to the north. With these dimensions, the Ocana porphyry could be comparable in size with the 351-million-tonne Zafranal copper-molybdenum (Cu-Mo) porphyry, which is owned by AQM Copper and Teck Corp.

The phase 2 drilling will test the depth and extent of the hypogene mineralization within the breccia, with emphasis on intersecting the source of highly mineralized fragments intersected in OKA-003. It will also target the southern and eastern extents of shallow high-grade supergene mineralization intersected in holes OKA-001 and 002. The large ridge south of these holes may preserve a significant thickness of supergene copper, the northern edge of which was intersected by the phase 1 holes.

          DETAILED DRILL RESULTS -- PHASE 1 DRILL PROGRAM (2011)

              From     To              CuEq     Cu     Mo     Au     Ag
Drill hole     (m)    (m)  Interval  (%)(i)    (%)  (ppm)  (g/t)  (g/t)

OKA-001          2     46        44   0.824  0.734    105  0.032    1.3
                46    192       146   0.308  0.232     97  0.022    1.1
               192    447       255   0.217  0.153     98  0.014    0.6
               447  697.8     250.8   0.126  0.094     44  0.009    0.4
OKA-002          4     24        20   0.776  0.183    742  0.254    3.6
                24     38        14   1.607  1.290    511  0.057    1.9
                38    150       112   0.334  0.209    136  0.057    1.5
               150  406.3     256.3   0.211  0.154     71  0.015    0.9
OKA-003          2    150       148   0.285  0.134     98  0.132    0.6
               150    321       171   0.536  0.322    111  0.187    2.2
including      219    270        51   0.706  0.424    187  0.206    3.8
               321  403.3      82.3   0.219  0.125    145  0.020    0.7
OKA-004         57  356.7     299.7   0.318  0.253     70  0.027    1.1
including      300  356.7      56.7   0.449  0.368     89  0.030    1.5
OKA-005         63     84        21   0.669  0.605     73  0.018    1.4
                84    216       132   0.340  0.270     72  0.023    1.7
               216    276        60   0.210  0.164     42  0.020    1.0

Note
(i) Calculations of copper equivalent represent the total metal value 
for each metal, multiplied by the conversion factor, summed and 
expressed in equivalent copper percentage. These results are 
exploration results only and no allowance is made from recovery 
losses that may occur should mining eventually result. These 
equivalent grades should not be interpreted as actual grades 
since the conversion rations vary with the volatile prices of copper 
and molybdenum and the economic recoveries of Cu and Mo can vary 
significantly in actual extraction and processing. However, it is 
the company's opinion that elements considered here have a 
reasonable potential to be recovered. The three-year, moving average
metal prices used for the purposes of the equivalency calculations 
are copper $3 (U.S.) per pound, gold $1,200 (U.S.) per ounce, 
molybdenum $15 (U.S.) per pound and silver $21 (U.S.) per ounce.

Qualified person

John Drobe, PGeo, a qualified person as defined by National Instrument 43-101, has reviewed and takes responsibility for the scientific and technical information that forms the basis for this news release. Mr. Drobe is not independent of the company as he is an officer and a shareholder.

We seek Safe Harbor.