Update on Pan de Azucar Gold Exploration Project

Minera IRL Update on Pan de Azucar Gold Exploration Project, Santa Cruz, Patagonia

London, 20 September 2010: Minera IRL Limited ("Minera IRL" or the "Company"), (TSX:IRL) (AIM:MIRL) (BVL:MIRL) the Latin American focused gold mining, development and exploration company, is pleased to announce an update on the Pan de Azucar Gold Project in Patagonia, Argentina.

"Pan de Azucar represents a high quality gold exploration project." stated Courtney Chamberlain Minera IRL Limited Executive Chairman. "This recently mapped fertile quartz vein structure with bonanza surface gold assays, up to 54 g/t from rock chip sampling, is supported by new high-resolution heliborne magnetic-radiometric data. We now have a compelling target for the first round of drilling which is scheduled to commence in mid-October."

Pan de Azucar represents a low-sulphidation epithermal vein system that outcrops over a strike length of approximately 1.3 kilometers. Surface rock chip sampling has returned numerous elevated gold values of up to 54g/t. The main quartz-lode structure, up to 3 meters wide, is surrounded by a gold-silver anomalous stockwork halo up to 35 meters thick.

Results from a recent heliborne geophysical survey clearly define a strong northeast trending magnetic low anomaly associated with the outcropping vein structure. This signature is consistent with other well-known epithermal vein systems in the region.

Pan de Azucar is one of three known epithermal vein exploration projects, with a total outcrop exceeding 9 kilometers in length, located within Minera IRL's larger Chispas package of leases in Santa Cruz Province, Argentina. The projects are situated within the geologically important Deseado Massif, an emerging world-class epithermal vein province which hosts the Cerro Vanguardia, Cerro Negro and Cerro Moro epithermal vein fields.

Minera IRL Patagonia holds exploration licenses over some 2,700 square kilometers of prospective ground in the Deseado Massif which includes the Company's Don Nicolas Project, currently undergoing a feasibility study, and the recently announced Escondido discovery.

Additional information, including plans, surface assays and the magnetic geophysical map, is available from the Company's web site, www.minera-irl.com.

For more information please contact:

Minera IRL Limited is the AIM traded and TSX and BVL listed holding company of precious metals mining and exploration companies focused in Latin America. Minera IRL is led by an experienced senior management team with extensive industry experience, particularly in operating in South America. The Group operates the Corihuarmi Gold Mine and the emerging Ollachea Gold Project in Peru as well as the Don Nicolas Project in Argentina.

This press release was reviewed by Donald McIver, VP Exploration of the Company, MSc Exploration and Economic Geology, a Fellow of the Australian Institute of Mining and Metallurgy (AUSIMM), who is the designated Qualified Person for the purposes of National Instrument 43-101 and has approved the technical information in this press release.

The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release.

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law or regulation, Minera IRL Limited does not intend to update any forward-looking statements to conform these statements to actual results.

Quality Assurance and Quality Control Procedures Disclosure

The Company has implemented a MIRL quality assurance/quality control (QA/QC) protocol on the Pan de Azucar Project to ensure best industry practice in sampling and analysis of exploration rock-chip and channel samples. The insertion of field duplicates, certified standards and blank samples into the sample stream form part of the MIRL procedure (these act as an independent check on precision and accuracy in the analytical laboratory).

Assay results are reported once rigorous QAQC procedures have been approved.

Independent Audit Programs

As a means of maintaining compliancy with international standards pertaining to the minerals industry resource evaluation procedure, MIRL regularly contracts the services of industry experts to conduct audits of established QAQC procedures.