Intrepid Minerals Merges With NuStar Mining Corporation.

TORONTO -- Intrepid Minerals Corporation (TSX:IAU):

--Exploration & Development Company Funded Through Internal Cash Flow from Production

--145,000 Ounces Gold and 1,000,000 Ounces Silver Production Projected for 2007-2008

--Pipeline of Early-Stage and Advanced Exploration Projects within the Pacific Rim

Intrepid Minerals Corporation (TSX:IAU) (Intrepid) and NuStar Mining Corporation Limited (NuStar) - listed on the Australian Stock Exchange (ASX:NMC), have signed a Pre-Merger Agreement providing for the merger of the two companies. This merger will unite the established Western Australian gold production with Latin American gold/silver exploration and development. The combined entity will be named Intrepid Mines Limited.

The combination of an Australian top ten gold producer and the emerging producer status of Intrepid will create a new intermediate producer with total cash costs below its peer group with:

--projected production of 80,000 ounces of gold in 2006, increasing to 145,000 ounces of gold and 1,000,000 ounces of silver in 2007/2008

--anticipated total cash cost of production less than US$200 per ounce (after silver credits)

--an advanced and growing stable of exploration projects in Latin America and the Pacific Rim of Fire

--862,600 ounces of gold equivalent in Indicated Resources and 104,400 ounces of gold equivalent in Inferred Resources.

The new company will be focused on the growth and development of its gold and silver business and realizing value from its existing precious metal exploration assets. NuStar commenced gold production in June 2005 at its high grade underground Paulsens mine in Western Australia and expects to produce an average of 80,000 oz per year for the next five years based on current reserves to a depth of 300 metres. The deposit has also demonstrated mineral potential below 300 metres and is complemented by a substantial exploration potential within its regional tenement portfolio.

Intrepid Mines Limited expects to rapidly advance the feasibility study of the Kamila open pit gold-silver project at Casposo in Argentina. Kamila is anticipated to begin production in 2007 at an projected average rate of approximately 65,000 oz per year of gold and 1,000,000 oz per year of silver for approximately 5 years based on the potentially mineable portion of the resource. As with the Paulsens mine, the Casposo project has excellent potential for resource expansion in the immediate vicinity of the defined resources.

Commenting on the planned merger, Intrepid's President and Chief Executive Officer, Laurence Curtis, said, "The combination of these two companies creates an international exploration and development company with a portfolio of attractive precious metal assets, underpinned by current and growing production. The new Intrepid brings together the project development and production expertise of NuStar and the exploration strength of Intrepid".

"Shareholders of both companies benefit" said Mr. Colin Jackson, Chairman of NuStar Mining, "NuStar shareholders benefit from the defined growth profile of the Casposo gold-silver project, exploration success in El Salvador, a declining production cost profile, reduced technical risk and exposure to the larger North American investment community" Mr. Jackson, continued "whilst Intrepid shareholders benefit from elevation to gold producer status and consequent increased ability to develop and fund Casposo".

Intrepid Chairman Elizabeth Kirkwood said, "The management of the new Intrepid Mines Limited comprises experienced mine operators and talented explorers and the combination of personnel from both companies makes for a first class management team".

Senior Management of the new Intrepid Mines Limited will be as follows:

Laurence Curtis, President and Chief Executive Officer

Brett Lambert, Executive Director and Chief Operating Officer

Derek Humphry, Chief Financial Officer

William McGuinty, Vice-President, Exploration

NuStar Chairman, Colin Jackson will chair the new eight-member Board of Directors, comprised initially of four board members from Intrepid Minerals and four board members from NuStar Mining. Intrepid Chairman, Beth Kirkwood and Director Bruce Winfield will continue their valuable association as advisors to the company.

The new Intrepid Mines Limited will apply to be listed on the Toronto Stock Exchange and will apply for a name change and retain its listing on the ASX Limited.

Reserves and resources of Intrepid Mines Limited are set out in the tables attached and are estimated in accordance with the Australian JORC Code for NuStar and National Instrument 43-101 of the Canadian Securities Administrators for Intrepid. Laurence Curtis, Designated Qualified Person for Intrepid, confirms that the definitions used in this release are in accordance with the Canadian Institute of Mining Definition Standards on Mineral Resources and Mineral Reserves.

Terms of Transaction:

Under the terms of the Pre-Merger Agreement, it is proposed that NuStar ordinary shares will consolidate on a 12:1 basis and shares of Intrepid Minerals Corporation will be exchanged for one (post-consolidation) share of the new Intrepid Mines Limited. On completion of the merger, NuStar and Intrepid shareholders will own 62.6% and 37.4% of Intrepid Mines Limited, respectively and at closing, Intrepid Mines Limited will have 131,921,688 million issued and outstanding shares, based on the number of NuStar and Intrepid shares outstanding on December 09, 2005.

The Boards of Directors of each of NuStar and Intrepid have approved the merger in accordance with the pre-merger agreement. The Pre-Merger Agreement will be available under the filings of Intrepid on www.sedar.com. Pursuant to the Pre-Merger Agreement, each company has agreed not to solicit third party interest in alternative transactions. Each company has also agreed to pay a commercial termination fee to the other if it terminates the Pre-Merger Agreement to accept a superior proposal. The merger is subject to confirmatory due diligence, the negotiation of a definitive merger agreement and regulatory and shareholder approvals. Intrepid and NuStar have both substantially completed their technical due diligence investigations, utilizing both their own technical staff and independent consultants. Both companies are completing confirmatory financial and legal due diligence.

The merger will be effected by way of a Plan of Arrangement under the share exchange provisions of applicable Canadian law and in accordance with the provisions of the Pre-Merger Agreement and a merger agreement to be settled by the parties by the end of January 2006. The parties anticipate that, subject to the receipt of all required regulatory and shareholder approvals, the merger will be completed by the end of March 2006.

Paradigm Capital Inc. Toronto, is acting as exclusive financial adviser and agent for the transaction.

About NuStar Mining Corporation Limited

NuStar is the 100 percent owner and operator of the Paulsens high-grade 250,000 tonne per annum underground gold mine, located in the Ashburton Region of Western Australia. Gold production began in June 2005 with a forecast average annual production rate of 80,000 ounces per annum over a five-year mine life to a vertical depth of 300 metres. The Paulsens ore body has been intersected at 470 metres vertical.

The ordinary shares of NuStar are traded on the Australian Stock Exchange under the symbol "NMC".

About Intrepid Minerals Corporation

Intrepid is a TSX-listed company engaged in the acquisition, exploration and development of mineral prospects. The Company, either directly or through joint venture partnership, holds interests in several gold-silver and silver-base metal properties in Argentina, El Salvador, and Canada. Intrepid has 49,344,552 shares outstanding.

The common shares of Intrepid are traded on the Toronto Stock Exchange under the symbol "IAU".

Forward-looking Statement

This press release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the company's ability to control or predict, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. In this news release, predictions about the transaction being approved and finalized are forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Mineral resources which are not mineral reserves do not have demonstrated economic viability.

Resource Summary for Paulsens Mine

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     30 June 2005 Mineral Resource Estimate at a 4.0 g/t Cut-off
---------------------------------------------------------------------
                     Indicated         Inferred        Total
---------------------------------------------------------------------
                  Tonnage   Grade   Tonnage  Grade   Tonnage   Grade
                       (t)   (g/t)       (t)  (g/t)       (t)   (g/t)
---------------------------------------------------------------------
Upper Zone        750,000    10.6   114,400    8.1   864,400    10.3
---------------------------------------------------------------------
Lower Zone        407,200    15.5    57,000    8.9   464,200    14.7
---------------------------------------------------------------------
Other               1,000     5.9    45,500   10.2    46,000    10.1
---------------------------------------------------------------------
Total Resource  1,158,200    12.3   216,400    8.7 1,374,600    11.8
---------------------------------------------------------------------
Total Ounces           458,600            60,900
------------------------------------------------------------


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               30 June 2005 Ore Reserve Estimate
---------------------------------------------------------------------
                   Probable        Proven             Total
---------------------------------------------------------------------
                                                           Contained
                Tonnage Grade Tonnage Grade   Tonnage Grade     Gold
                     (t) (g/t)     (t) (g/t)       (t) (g/t)     (oz)
---------------------------------------------------------------------
Upper Zone      700,700   9.6       -     -   700,700   9.6  215,900
---------------------------------------------------------------------
Lower Zone      432,800  12.7       -     -   432,800  12.7  177,200
---------------------------------------------------------------------
Stockpiles            -     -  27,500   7.9    27,500   7.9    6,900
---------------------------------------------------------------------
Total Reserve 1,133,500  10.7  27,500   7.9 1,161,000  10.7  400,000
---------------------------------------------------------------------

Resource and reserve estimates referred to in this press release comply with recommendations in the Australasian Code for Reporting of Mineral Resources and Ore Reserves prepared in 1999 by the Joint Ore Reserves Committee (JORC)

The pre-mining resource estimate was prepared by Mr. Paul Payne, a Principal Consultant with Resource Evaluations Pty Ltd., a Competent Person as defined by the Code. The revised resource estimate has been prepared under the direction of Mr. Payne. The resource estimates have been included in this press release with this consent.

The mining reserve estimate was prepared by Mr. Tom Michalak and Mr. Brook Ekers under the direction of Mr. Brett Lambert, a Competent Person as defined by the Code. Mr. Michalak, Mr. Ekers and Mr. Lambert are full-time employees of Nustar and have consented to the release of these estimates in this press release.

Resource Summary for Kamila (US $400 gold, US $6.50 silver)

                        Table 1 - Global Resource(2)
            ---------------------------------------------------------
               Tonnes              Gold                   Contained
                                  Equi- Contained  Contained   Gold
                                 valent      Gold     Silver  Equiv.
                          Grade      (1)                          (1)
                      -----------
                      Gold Silver
                       g/t    g/t   g/t        oz         oz      oz
---------------------------------------------------------------------
Indicated
 1.4 g/t Au
 Eq Cut off 1,879,000 5.04    127  6.69   304,500  7,665,800 404,000
---------------------------------------------------------------------
Inferred
 1.4 g/t Au
 Eq Cut off   439,000 1.90     91  3.08   26,800   1,287,000  43,500
---------------------------------------------------------------------



     Table 2 - Kamila Potentially Mineable Portion of Resource(2)

            ---------------------------------------------------------
               Tonnes              Gold                   Contained
                                  Equi- Contained  Contained   Gold
                                 valent      Gold     Silver  Equiv.
                          Grade      (1)                          (1)
                      -----------
                      Gold Silver
                       g/t    g/t   g/t        oz         oz      oz
---------------------------------------------------------------------
Indicated
 1.4 g/t Au
 Eq Cut off 1,534,000 5.75    127  7.40   283,700  6,237,100 364,700
---------------------------------------------------------------------
Inferred
 1.4 g/t Au
 Eq Cut off   145,000 2.40     87  3.54    11,200    404,900  16,500
---------------------------------------------------------------------

(1) One ounce of recoverable gold is equivalent to 77 ounces
    recoverable silver based on recoveries of 94% for gold and 74%
    for silver at a gold price of US$400 per ounce and silver price
    of US$6.50 per ounce.
(2) Mineral resources which are not mineral reserves do not have
    demonstrated economic viability. The estimate of mineral
    resources may be materially affected by environmental,
    permitting, legal, title, taxation, sociopolitical, marketing,
    or other relevant issues.
(3) Current viability of the resource is established using a 1.4 g/t
    gold equivalent cut off grade based on stated recoveries and
    densities, processing and G&A costs of US$13.80 and US$2.92
    respectively.

This updated mineral resource estimate and optimized pit model has been completed by Intrepid Minerals independent Qualified Person, Eugene Puritch, P.Eng. of P & E Mining Consultants Inc.

The Kamila mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum  (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council November, 2004.