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July 13, 2011 – Vancouver, British Columbia. Indigo Exploration Inc. (TSX-V: IXI; FSE:INE) has commenced Phase II follow up core drilling program at its Moule gold exploration permit in Burkina Faso, West Africa.

Key points are:

  • The program will follow up on the Phase I drill intercepts of 29.67 gpt Au over 7 metres and 10.86 gpt Au over 3 metres at Vein 3.
  • The program will also follow up on recently received soil results to drill test Vein 2 for the first time.

Grid soil sampling at Vein 3 was recently completed over an area 2000 metres long and 500 metres wide, sampled at 25 metre intervals along 50 metre spaced lines. Results from the soil survey define several sub-parallel anomalous gold trends within the broad Vein 3 structure. One of the anomalous trends corresponds to the Phase I drill intercepts of 29.67 gpt Au over 7 metres and 10.86 gpt Au over 3 metres. A number of these anomalous trends will be tested in this phase of the drilling program, with the aim of tracing the Vein 3 structure along strike.

Grid soil sampling at Vein 2 was recently completed over an area 1000 metres long by 450 metres wide, sampled at 25 metre intervals along 50 metre spaced lines. Results from the soil survey define a long northwest trending gold anomaly extending the full length of the grid and ranging from 50 to 240 metres wide. The anomalous trend will be tested in multiple locations throughout its length in this phase of the drilling program, with the aim of tracing the Vein 2 structure along strike. Vein 2 is a parallel zone to Vein 3 and lies 4 kilometres to the northeast.

Assay results have also been received for the Zelingpe 1 trench that tested the lower western slope below the Zelingpe 1 target. A total length of 500 metres was excavated. Assay results were generally below 100 ppb Au, suggesting the source of the gold recovered by the artisanal miners and elevated gold soil geochemistry is the Zelingpe 1 target under the laterite plateau.

Indigo’s President, Tim Henneberry, said: “After completing a large number of ground surveys over the past few months, Indigo is now prepared to commence its fully funded Phase II drilling program.”

Moule Permit

The 249 sq. km Moule gold permit is located in the Boromo greenstone belt, approximately 270 km by road from the capital city of Ouagadougou and 70 km south of the Poura Gold Mine.  Indigo geologists have identified multiple prospective targets for bulk tonnage gold systems, based on the artisanal workings and previous exploration programs of property-wide mapping and sampling of quartz veining and quartz float.  Subsequent efforts focused on the 7 km by 6 km Zelingpe area where a soil grid, detailed mapping and local induced polarization (IP) survey identified multiple linear targets. Three of these targets were drilled earlier in the year: Zelingpe 1, Zelingpe 2 and Vein 3. The present drill program is directed at follow up on Vein 3 and initial drilling on Vein 2.

Indigo is earning a 100% interest, subject to a 1.5% Net Smelter Return (NSR) royalty in the Moule Gold Permit by making cash payments totalling US$410,000 over 3 years. Indigo retains the right to purchase the entire 1.5% NSR for US$1,800,000.

About Burkina Faso

The Moule, Kodyel, Lati and Tordo properties lie in the West African nation of Burkina Faso. Much of West Africa is underlain by the Birimian Greenstone Belt, one of the most prolific gold producing areas in the world. Many of the world’s major gold companies are active in West Africa, several with producing mines, including: IAMGOLD Corporation, AngloGold Ashanti Limited, Randgold Resources Limited, Gold Fields Limited and Newmont Mining Corporation. Burkina Faso is politically and economically stable and relies on farming and mining as its primary sources of revenue. Burkina Faso saw gold production double from 2008 to 2010 and is currently the 5th largest gold producing country in Africa.

On Behalf of the Board of Directors,

“R. Tim Henneberry”

R.Tim Henneberry, P.Geo.

President and CEO

For further information, please contact:

Tim Henneberry: (604) 681-3422

Paul Cowley, P.Geo.,  Director of Indigo Exploration Inc., is the Qualified Person as defined in National Instrument 43-101, who has reviewed and approved the technical content of this news release.

Neither the TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This press release contains forward-looking statements.  All statements, other than statements of historical fact, constitute “forward-looking statements” and include any information that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including the Company’s strategy, exploration results and plans, or future financial or operating performance and other statements that express management’s expectations or estimates of future performance.

Forward-looking statements are generally identifiable by the use of the words “may”, “will”, “should”, “continue”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan” or “project” or the negative of these words or other variations on these words or comparable terminology.  All such forward-looking information and statements are based on certain assumptions and analyses made by the Company’s management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances.  These statements, however, are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed, implied by or projected in the forward-looking information or statements.  Important factors that could cause actual results to differ from these forward-looking statements include but are not limited to: risks related to the exploration and potential development of the Company’s projects, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, as well as those factors discussed in the sections relating to risk factors of the Company set out in the Company’s MD&A filed on SEDAR.

There can be no assurance that any forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader should not place any undue reliance on forward-looking information or statements.  Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events.