Mr. Brian Kerzner reports

INDICO ANNOUNCES PROPOSED PRIVATE PLACEMENT OF UNITS

Indico Resources Ltd. intends to proceed with a non-brokered private placement of up to 952,381 units of the company at a price of 21 cents per unit for gross proceeds of up to $200,000.

Each unit will consist of one common share in the capital of the company and one common share purchase warrant. Each warrant will entitle the holder to purchase one share at an exercise price of 27.5 cents per share for a period of one year from the date of issuance of the warrant.

All securities issued in connection with the private placement are subject to a statutory hold period of four months plus one day from the date of issuance in accordance with applicable securities legislation.

Proceeds from the private placement will be used to settle outstanding accounts payable, including for audit, accounting, legal, regulatory and transfer agent fees, and for general working capital. The company does not expect to pay any finders' fees on the private placement.

Insiders of the company will participate in the private placement. Any such participation will be considered a related party transaction as defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The transaction is expected to be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of any securities issued to such insiders nor the consideration that will be paid by such persons will exceed 25 per cent of the company's market capitalization.

We seek Safe Harbor.