International Goldfields Limited is pleased to announce additional high grade gold results at the União Prospect and completion of an aerial magnetic and radiometric geophysical survey for the Company’s Ouro Paz Joint Venture located in Brazil in the state of Mato Grosso. Assays reported are for four diamond holes, with the final hole in the 2013 exploration program still pending analyses.

Managing Director Travis Schwertfeger said, “These assay results are an exciting conclusion to this seasons drill program and further extends the high-grade gold mineralisation at shallow depth. These results provide significant support for the shallow pit optimisation calculations which will follow the completion of the maiden resource estimation which is currently being undertaken.” Mr Schwertfeger went on to say “The down-dip drill test with hole LZG015 demonstrates the continuity of significant high grade gold at depth which will potentially sustain an underground mining operation and provides an excellent target for additional resource growth with development of the project.”

The Company is also pleased to advise that Ms Sara Kelly has been appointed as Joint Company Secretary upon the resignation of Ms Robinson effective 2 October 2013. Ms Kelly is a corporate lawyer with over eight years’ specialising in providing corporate advise in relation to mergers and acquisitions, takeovers, capital raisings, due diligence reviews and corporate governance related to ASX and AIM listed companies.

União Prospect – Technical Review

The portion of 2013 diamond drilling completed at the União Prospect totals 2,047.8m drilled in 16 diamond holes. The first five holes of the program completed in March 2013 were an initial drill test on a target with shallow surface workings located over 300m west of a previously drilled zone of mineralisation hosting a small non-JORC compliant foreign resource estimate. LZG001 through LZG005 returned better gold intercepts including 5.7m @ 11.7g/t Au in LZG004 and 4.3m @ 15.9g/t Au in LZG005.

Additional drilling of the União Prospect at the end of the drill campaign confirms and extends the zone of shallow high-grade gold mineralisation surrounding holes LZG004 and LZG005 to over 150m strike extent, with the high-grade shoot returning several intercepts with good economic potential including 3.26m @ 20.67g/t Au on the eastern margin of the high-grade shoot in hole LZG014. The shoot also contains several high-grade gold intercepts released to the ASX on 29 August, including 8.57m @ 12g/t Au in hole LZG009 with up to 50.1g/t Au over 1.8m in the interval, and 3.38m @13.8g/t Au in hole LZG010.

Outside of the high grade shoot, significant shallow gold mineralisation continues to the east. Significant intercepts in quartz vein and quartz-healed breccia zones east of LZG014 include 1.05m @ 7.4g/t Au in hole LZG012 and 4.3m @ 2.6g/t Au in LZG003. These results indicate continuity of mineralisation between the recently drilled high-grade shoot and the high-grade gold shoot that forms the existing non- JORC compliant resource estimate for the project.

The combined exploration work identifies a >500m long zone of drilled mineralisation hosting multiple gold bearing structures that remain open at depth and along strike to the east. The previous drilling is comprised of 52 drill holes totalling 4,619m of drilling, with better gold intercepts including 3m @ 41.1g/t Au in UND001, 4m @ 12.8g/t Au in UND008, and 6m at 7.58g/t Au in UNRC002.

Diamond holes LZG011 and LZG013 are each 20m step-outs to the west from hole LZG008 which intersected 1.76m @ 5.25g/t Au from 76.9m and 3.55m @ 4.68g/t Au from 91.3m drill depth. Hole LZG011, located 20m west of LZG008, returned two zones at <1g/t Au (refer to IGS release to ASX dated 29 August 2013), and LZG013 located 40m west of LZG008 returned one mineralised zone at <1g/t Au (refer to table below) suggesting the mineralisation is pinching to the west.

Diamond hole LZG015 with a best intercept of 0.5m @ 28.8g/t Au from 154.7m is an initial down-dip test of the mineralisation that successfully identified continuation of the high-grade gold mineralisation at depth with sufficient grade to potentially support underground and provides an additional target requiring further work to evaluate.

The final hole in the program, LZG016, is the first drill hole by the JV to test extension of gold mineralisation to the east of the historic drill area at the União Prospect. LZG016 is a 50m step-out to the east of the historic hole diamond hole UND003, which returned several narrow intercepts >1g/t Au including 1m @2.46g/t Au from 22m and 4.89m @ 3.5g/t Au, including 0.32m @ 9.5g/t Au. Drill-hole LZG016 intercepted a zone of quartz veining with favourable sulphide mineralisation and is pending analyses to quantify the gold intercept.

Aerial Geophysical Survey Complete

The Ouro Paz Joint Venture has recently contracted Prospectors Aerolevantamentos e Sistemas Ltda (Prospectors) to complete a low altitude high resolution magnetic and radiometric survey. The fixed wing survey was completed in September over three areas totalling 820km2 of coverage over priority target areas across the Ouro Paz JV with 200m spaced north-south oriented flight lines and 2,000m spaced east-west tie lines.

The data collected is being processed by Prospectors, with various magnetic and radiometric map products derived from the data expected in the coming month.
It is anticipated that the greatly improved resolution in the aero-geophysics collected by the JV is going to significantly help in refining regional geology and structural interpretation over previous work completed with the low resolution government datasets currently available for the project area. It is expected that the more detailed geology products generated will focus exploration efforts on the ground in the next field season, and generate new gold targets when integrated with the extensive geologic database already compiled on the project area.

Planned Work

Updates to the geological modelling for the União Prospect are in progress and final block modelling work pending receipt of final assays. Completion of block modelling work in support of a planned JORC compliant resource estimation report has been changed from Coffey Mining Pty Ltd to consultant in Brazil with sufficient experience in resource modelling to meet JORC requirements. Geologic modelling is complete for the PF Vein zone, Ana South, Pe Quente, and Morro do Carrapato Prospects and block modelling is complete for the PV Vein Zone and Ana South prospects.

In the field, the JV is now focused on detailed geologic mapping of areas with gold - copper - molybdenum anomalism at surface identified in the recently completed Jaca Prospect soil sampling program (refer to IGS release to the ASX dated 29 August). Additional soil survey work has already been initiated to extend the soil program six kilometres to the east on north-south oriented sampling lines with 100m by 400m sample spacing to cover the Sarado Prospect and tie-in surface sample coverage with the previous Peteca Prospect soil sampling program.

Detailed surface mapping is also in progress in a 1.5km gap in drilling between the União and Morro do Carrapato Prospects with surface mapping, ground geophysics and soil sampling along trend suggesting potential for the mineralisation to extend between the two prospects. The combination of recent mapping and drilling highlight significant potential for additional high-grade shoots within the untested 1.5km corridor. The Morro do Carrapato Prospect returned a better intercept of 5.77m @ 16.5g/t Au in hole MOC002 in initial drill testing this year (refer to IGS release to the ASX dated 7 May 2013). The JV is currently completing detailed mapping of the area for planning initial drill tests of the zone for the 2014 field season to assess potential for increases to gold resource.

Tenement Update

The Ouro Paz JV recently rationalised its land position by relinquishing 10 tenements totalling 894km2 assessed to be outside the focus of future exploration (refer to Figure 1 for current project outline of granted mining tenements). The JV also currently has rights to over 500km2 of applications for exploration licence, with the approval process for applications currently held up with proposed changes to the mining law in Brazil.

The Joint Venture has also recently filed applications for renewal on 12 tenements totalling 1,010km2 that have been approved by the DNPM in the state of Mato Grosso, which are currently pending further approval at the federal level. In the event any renewals of exploration licences are denied, Ouro Paz has also lodged positive reports for 8 of the 12 tenements.

Ouro Paz Gold Project JV Summary

The Company holds 93% ownership in the private UK based company Latin Gold Ltd, which is party to the incorporated Joint Venture with Brazil-based Ouro Paz Mineradora S.A. (Ouro Paz), with Latin Gold holding a 35% interest in the Joint Venture. The Ouro Paz joint venture covers an area of 1,493km2, with Ouro Paz holding rights to an additional 500km2 in mineral applications in the highly prospective Juruena Belt of northern Mato Grosso, Brazil.

Multiple prospect areas have been defined within a 20km diameter area hosting epithermal style high-grade gold mineralisation associated with quartz veining that forms the Union Gold Project within the Ouro Paz joint venture’s extensive tenement position.

Each prospect area is host to gold mineralisation at surface with potential for open pit extraction, and higher gold grades provide the potential for underground mining methods to be economically viable. The current exploration program is focused on both quantifying shallow oxide gold mineralisation and identifying new prospects with high-grade gold values to support planned preliminary economic assessment for viability of a centralised milling and/or heap leach facility processing ore from several mineralised zones in close proximity.