Indico Issues Initial 1 Million Shares for Argentine Oil and Gas Interests

Indico Resources Ltd. (the "Company") (TSX VENTURE:IDI) announces that it has
issued the initial tranche of 1 million shares to the vendor South American
Hedge Fund LLC of its 18% carried interest in an Argentine joint venture
exploring form oil and gas in Salta Province. The issuance is consequent upon
the TSX Venture Exchange accepting for filing, documentation of an assignment
agreement dated March 6, 2007, amended November 1, 2007 and amended March 31,
2008 (the "Agreement") among Indico Resources Ltd. (the "Company") and
Oxipetrol-Petroleros De Occident S.A. ("Oxi") and South American Hedge Fund LLC
("SHF") by which the Company will acquire an 18% carried interest (the
"Interest") in the joint venture between Oxi and JHP International Petroleum
Engineering, Ltd, ("JHP"), (collectively the "JV") for the purpose of exploring
and developing hydrocarbons in two oil and gas concessions known as the "Jollin
Concession" and the "Tonono Concession", (the "Areas") located in the province
of Salta in Northern Argentina.


In consideration for the Interest, the Company will issue up to 7,000,000 common
shares payable to SHF as follows: 1,000,000 common shares (issued), 6,000,000
common shares at the earlier of: (i) All 6,000,000 common shares in the event of
a commercial well being completed and within 60 days of notification by Oxi of
commercial well completion, or (ii) 2,000,000 shares for each $7,000,000 of oil
and gas exploration expenditure incurred on the Areas to a maximum of 6,000,000
shares. For more information, please refer to the Company's news release dated
November 8, 2007 and the Technical Report dated October 15, 2007 prepared by
Sproule International Limited which will be available on Sedar.


The Company also announces that effective July 18, 2008 the Company has
terminated its 2006 Metla property Option Agreement by making a payment of
$45,000 to the Owners.


The Company further announces that, pursuant to its 2006 Incentive Stock Option
Plan, it has granted incentive stock options to certain directors, officers,
employees and consultants allowing them to purchase up to an aggregate of
500,000 common shares in the capital stock of the Company. The options are
exercisable at a price of CAD 0.66 for a period of two years ending July 28,
2010.


For further details on the Indico, readers are referred to the Canadian
regulatory filing on SEDAR at www.sedar.com.


ON BEHALF OF THE BOARD OF DIRECTORS INDICO RESOURCES LTD.

Michael Kinley, Director and CFO