Indico Announces Completion of Phase 3 Drilling of Supergene Zone at Ocana

Additional Positive Results Suggest Significant Upside Potential to the East

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 29, 2014) - Indico Resources Ltd. ("Indico" or the "Company") (TSX VENTURE:IDI) is pleased to announce the successful completion of the Phase 3 Drill Programme on the supergene zone. Total copper assay results for 13 additional drill holes, including soluble copper assays for nine holes, are also reported here. All thirty-three holes were completed as planned and totalled 2975 metres. Two of the strongest intersections from this programme occur at the eastern end of the main ridge: hole OCA13-28 with 36.2m of 0.68% total copper, and hole OCA13-27 with 92.9m of 0.34% copper, including 31.5m of 0.69% copper. The latter intercept is at the edge of the drilling and open to the east under the area where the four deep hypogene holes are still planned. Assays results are pending for holes 30 to 33, drilled on the north slope of the ridge.

President and CEO, Bob Baxter stated: "These results demonstrate that there is significant potential for the soluble copper system to increase in volume and lateral extent. The significance of this being that the eastern flank of this ridge has similarities to our southern flank of mineralization, but with a thicker enrichment layer than expected."

Mining Plus Pty Ltd. is currently conducting a NI 43-101 compliant maiden resource estimate for Ocaña, which and is expected to be completed over the next few weeks.

The Ocaña Property consists of 22 concessions covering 110 km2 and is located on the northwest extension of the Southern Peru Porphyry Copper Belt, a trend defined in part by the Toquepala, Quellaveco, Cuajone, and Cerro Verde Mines to the southeast. Most recent exploration of the belt has resulted in discovery of the Zafranal copper-porphyry deposit, located approximately 75 km to the southeast of the Ocaña Property.

Total copper and sequential leach (soluble) copper results for ten additional holes are tabulated below (Table 1). Soluble copper and acid consumption tests from these and previous results indicate the supergene mineralization should be amenable to low-cost, SX/EW heap-leach processing. Figure 1 shows the layout/density of the planned holes and assay highlights from current and previous drilling. Additional maps and cross sections, as well as previous drill results, are available at http://www.indicoresources.com/s/Ocana.asp. Four additional longer holes (400 metres each) are planned to test the eastern limits of the extensive hypogene mineralization.

The Phase 3 drill programme has successfully defined a horizontal layer of near surface, supergene mineralization up to 90 metres thick (Figure 1). It is 1,000 metres long and 600 metres wide, bounded to the north by the property boundary, to the southwest by a gravel-filled valley, and open to the east. If the deep holes targeting the eastern hypogene extents are successful, additional short infill holes are planned that may significantly extend the supergene mineralization to the east. The results from hole OCA13-27 suggest that this area has good potential for increasing both tonnage and grade of the supergene mineralization.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/948835-F1.pdf.

Diamond Drilling and Sampling Procedures

The diamond drilling was completed using HQ core size. Core recovery was estimated to be greater than 95% for any given hole. Whole core was split in half with a manual core splitter for intervals of brittle copper oxides, and the remainder with a diamond saw. One half is collected for sample preparation and analysis, and the other half retained for future reference. Samples were collected on a 2.0m (leached, mixed and enriched zones) and 3.0m (hypogene zone) sample intervals. Indico on-site personnel rigorously mark, collect, and track samples which are then security sealed and shipped to Acme, Lima, Peru for preparation. Pulps are then forwarded to Acme's analytical lab in Santiago, Chile.

Analytical accuracy and precision are monitored by the analysis of reagent blanks, certified reference material, and duplicate (coarse rejects and quarter core) samples. Indico inserts blind certified reference material at regular intervals (1 in 20) into the sample sequence by field personnel in order to independently assess analytical accuracy of both regular assays and acid-soluble copper analysis. In addition, representative blind duplicate samples are routinely forwarded to Acme for additional quality control (1 in 20 coarse rejects, and 1 in 40 quarter core). Multi-elements were assayed using Acme's M300 package, which includes 4-acid digestion and ICP-ES finish; samples with greater than 0.5% copper are further assayed using an atomic absorption (AAS) finish (MA402). Lower detection limits are as follows: Cu greater than 0.001%, Mo greater than 0.001%, Ag greater than 0.5g/t. Sequential copper leach tests are done by method LHSEQ (3-acid digestion with AAS finish), and acid consumption by method (GC850). Gold is assayed by fire assay (FA430), in which fusion of a 30-gram aliquot is followed by AA finish; with a lower detection limit of 0.005 g/t. Acme has an 9001:2008 and 17025 International Standard Organization rating.

Qualified Person

John Drobe, P.Geo., Indico's Chief Operating Officer and a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information that forms the basis for this news release. Mr. Drobe is not independent of the Company, as he is an officer.

On behalf of Indico Resources Ltd.

Robert Baxter, President and Chief Executive Officer

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

Cautionary Statement Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of the British Columbia Securities Act and the Alberta Securities Act. Generally, the words "expect", "intend", "estimate", "will" and similar expressions identify forward-looking information. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, or that of our industry, to differ materially from those expressed or implied in any of our forward looking information. Statements in this press release regarding Indico's business or proposed business, which are not historical facts, are forward-looking information that involve risks and uncertainties, such as estimates and statements that describe Indico's future plans, objectives or goals, including words to the effect that Indico or management expects a stated condition or result to occur. Since forward-looking statements address events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties. The foregoing commentary is based on the beliefs, expectations and opinions of management on the date the statements are made. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.