Interim Financial Accounts

MINERA IRL LIMITED

Interim Financial Accounts

For the First Quarter ended 31 March 2013 

To view the announcement in full please follow the link below:

http://www.rns-pdf.londonstockexchange.com/rns/6340E_-2013-5-14.pdf

HIGHLIGHTS

Financial

·; Gold sales 5,660 ounces (Q1 2012: 6,515 ounces). Average realized gold price $1,631 per ounce (Q1 2012: $1,699 per ounce)

·; Revenue $9.2 million (Q1 2012: $11.1 million)

·; Gross profit $2.5 million (Q1 2012: $5.4 million)

·; EBITDA $1.9 million (Q1 2012: $4.4 million)

·; Profit before tax $0.2 million (Q1 2012: $3.1 million)

·; Cash balance of $6.5 million at the end of the quarter (Q4 2012: $6.2 million)

Operational

·; Gold production from the Corihuarmi Gold Mine met management expectations at 5,848 ounces (Q1 2012: 6,747 ounces). Production declined due to anticipated lower grade ore

·; Corihuarmi site cash operating cost increased to $726 per ounce (Q1 2012: $502 per ounce) due to anticipated lower gold production

·; Advanced the exploration tunnel at Ollachea to 1,234 metres, completed in January 2013 ahead of schedule and below budget

·; Exploration of the eastern strike extent of the Minapampa Zone by diamond drilling commenced and all three completed holes intersected potential ore grade gold mineralization

Other

·; Completed a successful equity raise for gross proceeds of approximately C$15.5 million by issuing 21,775,000 ordinary shares at C$0.71 per share (equivalent to £0.45 based on exchange rate at pricing)

Chairman's Statement

The operational financial performance for the three months to 31 March 2013 was in line with expectations as was gold production from our Corihuarmi Gold Mine in Peru. The Ollachea exploration drive was completed under budget and ahead of schedule. Exploration of the eastern strike of the Ollachea orebody by underground diamond drilling was highly encouraging with excellent results obtained from each of the three completed holes. Permitting of Ollachea for development progressed on schedule for approval in the second half of 2013. Generative exploration continued on the Company's large tenement holding in Patagonia, Argentina.

Revenue of $9.2 million represents an average gold spot sales price of $1,631 per ounce. Gross profit was $2.5 million and EBITDA was $1.9 million. The Company recorded a profit before tax of $0.2 million and a loss after tax of $1.1 million. Early in the quarter, an equity raise of C$15.5 million was successfully completed. The Company's cash balance at the end of the quarter totalled $6.5 million. Cost cutting and optimization programs have been implemented with the available cash being focused on permitting the Ollachea project.

Gold production at Corihuarmi of 5,848 ounces was slightly above the Company's budget. Nevertheless, this was 13% below production in the first quarter of 2012 which is related to the anticipated falling grade which averaged 0.47g/t gold compared to 0.61g/t gold in the corresponding period of 2012. Mining continued to largely focus on the Susan outcrop and the broken scree material. Site cash operating costs averaged $726 per ounce, 8% below the Company's budgeted site costs.

With the Ollachea definitive Feasibility Study ("FS") completed and the Environmental Impact Assessment ("EIA") lodged with the government in late 2012, the Company is now focusing on the permitting process. Excellent progress was made during the quarter with the EIA approval on track for receipt in the second half of 2013. Archaeological clearance of the plant site was nearing completion at quarter end.

The exploration drive at Ollachea was completed to 1,234 metres at the end of January. This production size tunnel will serve to transport ore from the future mine to the plant site. Mining of the tunnel was highly successful with ground conditions proving better than expected in the slate rock type which hosts the orebody. This allowed for more rapid advance rates and efficient ground support using conventional methods. Additionally, there was much less water seepage than predicted by the hydrology modelling which will make mining operations much easier and also reduce both capital and operating costs compared to projections in the FS. The drive was completed approximately $1 million under budget and one month ahead of schedule.

A modest 1,200 metre diamond drilling program was carried out from underground to probe the open ended eastern strike extension of the Minapampa Zone. This area was too steep to allow drilling from surface. Three drill holes were completed with step outs to 320 metres beyond the eastern most drilling from surface. The underground vantage also allowed the deepest drilling into the system thus far carried out. Results from all three holes were highly encouraging and confirmed the continuation of one wide, well developed gold bearing lens. Hole number DDH13-T01 intersected 20 metres grading 4.48g/t gold, DDH13-T03 obtained 11 metres of 5.47g/t gold and DDH13-T04 intersected 9 metres grading 5.45g/t gold. All three of these intersections were at higher grade than the Indicated Resource for the Minapampa Zone which averaged 4.0g/t gold (10.6 million tonnes containing 1.4 million ounces gold). These early step-out results auger well for a potentially significant increase in the Ollachea resource base with further drilling. This zone could further enhance the mine plan as outlined in the FS, not only due to the width of the gold bearing lens, but also because it is would be closer to the plant and adjacent to the recently completed drive.

In Argentina, negotiations are well advanced to finance the development of Don Nicolas from Argentina-based sources of capital. Don Nicolas is fully permitted and available for immediate development once project financing is in place.

The Patagonia exploration program is currently directed toward generative work. The program during the quarter was been focused on 3 new epithermal vein systems. At the Goleta Prospect, only 6 kilometres north of the planned plant site at Martinetas, reverse circulation exploration drilling carried out in 1997 was encouraging with the best hole intersecting 6 metres grading 27.7g/t gold. Recent work by Minera IRL obtained up to 5.3g/t gold from diamond saw sampling of the outcrop and up to 24.9g/t gold from rock chip sampling. Goleta represents a potential future source of ore close to the Don Nicolas plant.

The Cecilia Vein, which can be followed on surface for a strike length of over 3 kilometres, is located 20 kilometres south of Martinetas. This system has never been drilled. Diamond saw sampling has been highly encouraging with assays as high as 13.7g/t gold.

The Paula Andrea vein system, also not yet drilled, is less than 4 kilometres south of the Sulfuro Vein, a major contributor of high grade ore to the Don Nicolas Project. Diamond saw channel sampling of the Paula Andrea outcropping vein has been highly encouraging with samples of up to 54.4g/t gold. Both the Cecilia and Paula Andrea systems represent high quality drill targets when funding is available. The recent generative exploration on our large, 2,600 square kilometre tenement holding in Patagonia continues to demonstrate the highly prospective nature of the Deseado Massif volcanic complex.

Like many other gold mining companies, Minera IRL's share price continues to suffer due to the persistent market downturn. This is in spite of excellent progress on all fronts and a growing resource base. The general weakness in the gold equity markets was dealt another blow with the substantial gold price decline in mid-April from $1,565 to an intra-day low of $1,322 per ounce. Whilst there has been much commentary in the press, there is little consensus as to the root cause. At the time of writing, the gold price has recovered approximately $150 per ounce and appears to be receiving increasing support.

I believe that the fundamentals remain favourable for a strong gold price going forward. Factors working in favour of a higher gold price include the continuing weakness in world economies and currencies, reducing mine production and higher operating costs, retail buying support in the Far East, particularly China and India, and continued Central Bank buying. In my view, the current gold price is a good gold price particularly in light of the projected low cost of production projected for both Ollachea and Don Nicolas. At both projects, the project economics demonstrated in the respective feasibility studies are robust using a base case gold price well below that currently prevailing.

Our team continues to do an outstanding job and I thank them for their efforts. I also wish to particularly thank our loyal shareholders for their continuing support and patience during these difficult times. Management remains dedicated to unlocking the very substantial shareholder value contained in our high quality next generation of gold mines and excellent exploration portfolio.

Courtney Chamberlain

Executive Chairman

Minera IRL Limited 14 May 2013

NOTICE TO READER

The accompanying unaudited interim consolidated financial statements have been prepared by and are the responsibility of the management.

The Company's independent auditor has not performed a review of these financial statements in accordance with the standards established by the Canadian Institute of Chartered Accountants for a review of interim financial statements by an entity's auditor.

To view the announcement in full please follow the link below:

http://www.rns-pdf.londonstockexchange.com/rns/6340E_-2013-5-14.pdf