Discovery Of Bonanza Mineralization At Escondido 

TORONTO, ON - Minera IRL Limited reported an exploration update at the Escondido Project in Patagonia, Argentina. Assay results have now been received from the final holes in Phase 2 drilling (December 2010) and the initial 20 holes in the Phase 3 exploration/infill drilling carried out in April and May 2011.

"The discovery of high grade gold and silver mineralization at Escondido gives a new perspective to this project." said Courtney Chamberlain, Executive Chairman. "Whilst we have a lot more work to do to establish the significance of these new high grade structures, it does demonstrate the potential for bonanza precious metal grades. We have also received ongoing encouragement in the lower grade, potentially bulk minable areas of previously reported mineralization."

Minera IRL Limited announced a new discovery in September 2010 at the Escondido Project, Santa Cruz Province, Argentina, contiguous to Mariana Resources Las Calandrias Project. A total of 4,133.20 meters from 33 widely spaced diamond drill scout holes were drilled in 2010. Phase 3 drilling has followed up the 2010 program with another 7,410.40 meters in 59 holes. Assay results from 20 of these holes have been received. Holes into the northern breccias zone, where bulk tonnage potential has already been established, continue to show encouragement. In addition, previously unidentified high grade gold intersections provide a new exploration model.

Phase 3 drilling has also extended coverage to the southeast to probe a recently extended resistivity geophysical anomalous zone, which now has an overall strike of 1.7 kilometres. The southeast zone exhibits high silver characteristics compared to the northwest zone which is gold dominant. In addition, Minera IRL continues to advance the Don Nicolas feasibility study and is actively exploring a number of highly promising grass roots precious metal prospects that are also located within the company's 2,700 square kilometre lease holding in Patagonia.