ferret's stock to watch

MINER BUYS NICKEL PRODUCER FOLLOWING ASX LISTING

Sydney - Monday - January 31: (RWE)
***********************************


OVERVIEW
********

Another company called Independence Group NL has emerged from
from WMC's Kambalda region of WA where Australia's nickel sulphides were
first mined commercially.
And yet in the 1960's few prospectors could identify the pale
grey slate like metal as nickel sulphides.
It was two North Kalgurli prospectors who gave WMC the clue to
exploit the discovery with the Kambalda nickel mine located not that far
from Kalgoorlie.
Independence gained its operating start with the purchase of the
Long Nickel Mine from WMC Resources in 2002.
This was part of the company's strategy on listing to acquire a
cash producing asset.
Since then the operation has been generating significant cash
flows at a low cost of production and by June 2004 nickel reserves were
48,300 tonnes of nickel metal.
This supports a mine life to at least 2009.
Cash generated from the mine is being used to grow the company
and to reward shareholders through payment of sustainable dividends.
A little over a week ago Independence released its December
quarterly report which encouraged some moderate market support.
The company produced record results:
* Peak production (61,753t at 4.61 per cent for 2,847 nickel
tonnes)
* Record low operating costs (AU$2.65 per payable pound of
nickel)
* 762 tonnes nickel mined outside or in excess of ore reserves
* Record $11.5 million consolidated pre-tax profit (unaudited)
* Half-year after tax EPS of 14.5 cents per share (unaudited)
Nickel production was 11 per cent above budget – up 53 per cent
from previous quarter while operating costs touched a record low of
AU$2.65/lb (payable Ni) – 30 per cent below the previous quarter.
Managing director Mr Christopher Bonwick says production is on
track for target of 220,000 t @ 4.0% Ni (8,900 Ni t) per annum.
Meanwhile the Long South exploration decline began and advanced
160 metres - 762 Ni tonnes mined outside or in excess of June 2004 ore
reserves.
The operator reported continued excellent Long ore reserve
drilling results including 12.4m @ 10.1% Ni and 4.4m @ 11.7% Ni (true
widths)
On the gold front, Goldsworthy JV - RC drilling confirmed
widespread gold mineralised shear zones which are at present untested.
The company develops only those projects with ore bodies that
demonstrate significant economic potential.
Projects not meeting the company's stringent criteria, or those
beyond the company's present financial capabilities will either be joint
ventured or relinquished.


SHARE PRICE MOVEMENTS
*********************

Shares of Independence sold 1c lower at $1.14 on Friday. Rolling
year high has been $1.41 and low 85c. Dividend is 5c a share to yield
4.39 per cent. Based on existing information, the board believes that
this level of dividend is sustainable for the current life of the mine.
The board will monitor dividend levels to ensure that other investment
opportunities are able to be pursued which may generate increased returns
to shareholders.

Directors point out that the Independence Group is focused on
continually creating shareholder wealth and the discovery of a large,
high-grade gold or nickel deposits in Australia.
The company has developed a set of principles in order to reduce
this risk and improve the chances of success.
It targets ore deposit types amenable to rapid evaluation and
project turnover and that have the potential to be brought into
production within a short time-frame.
The commodity focus is based on the wealth of experience and
technical expertise within the Group and the country focus is also based
on careful consideration of endowment, political risk and operational
logistics based primarily on in-house experience.
The Independence Group board is committed to ensuring that the
exploration effort is well-funded to ensure that multiple projects can be
simultaneously assessed.

BACKGROUND
**********

Independence was incorporated in May 2000 for the purpose of
discovering world-class ore bodies in Australia.
It was listed on the Australian Stock Exchange on January
17,2002.
A general industry trend to downsize exploration teams directly
enabled the company to procure the services of a highly experienced and
qualified team of geo-scientists.
The company has identified and acquired an interest, or right to
earn an interest, in numerous prospective projects.
In September 2002 the company acquired the Long Nickel Mine, and
became a nickel producer in October 2002.
During the December quarter the company acquired 19.9 per cent of
the ordinary shares of Matrix Metals Limited (MRX) at a cost of $11.8
million.
IGO is pleased to have made its first step towards achieving its
corporate strategy of becoming a diversified mining company.
MRX is an ASX listed company with considerable strategic tenement
holdings in the highly endowed Mt Isa/Cloncurry copper
province.
On January 12, 2005 MRX released the results of an initial
bankable feasibility study into the White Range copper project, which
forecasts annual production of 15,000 tonnes of 99.9% copper cathode.
Based on current resources and copper prices, this equates to
gross revenue of approximately AU$62 million per annum.
MRX expects White Range to have a mine life of at least 6 years
and is capable of being in production within 12 months.
However, the initial feasibility study results released by MRX
indicate that further work is required to improve the economics of the
project.
ENDS