ITH: TSX / THM: NYSE-A

Chairman: Daniel Carriere

President and CEO: Don Ewigleben

Vice President, Alaska: Tom Irwin

Alaska General Manager: Karl Hanneman

With the goal of advancing the world-class Money Knob deposit to production by 2018, International Tower Hill Mines Ltd. is crunching the numbers on the feasibility of building a mine at Livengood.

With an all-in resource of 20.6 million ounces of gold, the Money Knob deposit at Livengood ranks as the 14th largest undeveloped deposit of gold on the planet, according to a research report published by Natural Resource Holdings in July.

A preliminary economic assessment completed in 2011 determined a 91,000-metric-ton-per-day mill at Livengood would churn out 12.9 million ounces of gold over 23 years.

As part of Tower Hill's current feasibility-level work, the company is studying different scenarios seeking the appropriate balance of capital expenditures and operating costs.

Tower Hill President and CEO Don Ewigleben said the 560,000-ounce-per-year operation anticipated in the PEA is at the low end of various scenarios being contemplated.

While the scope of the operation at Livengood appears to be growing, Ewigleben said the goal is not to build the biggest mine; instead, return on investment is driving the size of the operation that will ultimately be built.

The feasibility study is due to be ready for internal review by Tower Hill management and peer review early in 2013 and made public by mid-year, marking the official launch of permitting.

At a 0.22 g/t gold cut-off grade, currently seen as an economic cut-off for Livengood, the Money Knob deposit contains a measured and indicated resource of 933 million metric tons averaging 0.55 grams per metric ton gold (16.5 million ounces), plus an inferred resource of 257 million metric tons averaging 0.50 g/t gold (4.1 million ounces).

Focused on developing this world-class gold deposit, Tower Hill is spending minimal time and money on exploring the upside potential of the 56-square-mile (145 square kilometers) Livengood land package.

"When you have 15-plus-million-ounces, you have a shareholder base that says 'get on with it' and that's what we are doing in our feasibility study work," said Ewigleben.

Tower Hill plans to spend US$1 million to US$2 million per year on reconnaissance drilling on four exploration targets surrounding Money Knob - Southwest, Scraper Ridge, Gertrude Basin and Moose Gulch.

Much of the drilling completed at Money Knob has bottomed out in gold mineralization, leaving the floor of the proposed pit as a fifth exploration target.

Though Tower Hill is putting little effort into seeking more gold, its geotechnical and condemnation drilling continues to find the precious metal well beyond the confines of the current resource - including one hole that cut 3.8 meters grading 6.9 g/t gold some 1,600 meters northeast of the deposit.

MK-12-281, drilled nearly 3,000 meters southwest of Money Knob, cut 2.76 meters averaging 2.75 grams per metric ton gold; MK-12-285, drilled about 1,500 meters east of the deposit, cut 2.01 meters averaging 3.47 g/t gold; MK-12-288, drilled some 1,500 meters west of Money Knob, cut 3.05 meters averaging 2.48 g/t gold; and MK-12-290, drilled about 1,600 meters northeast of the deposit, cut 3.81 meters averaging 6.91 g/t gold.

Tower Hill said the locations of these new gold intercepts do not impact the conceptual plan for developing the mining-related infrastructure contemplated in the feasibility work, the current focus of the company.

Cash and short-term deposits: C$29.88 million (June 30, 2012) (Closed C$24.6 million financing on Aug. 3, 2012)

Working capital: C$22.34 million (June 30, 2012)

Market capitalization: C$261.5million (Oct. 1, 2012)

9635 Maroon Circle, Suite 350

Englewood, CO 80112

Tel: 720-881-7646 • Fax: 720-881-7645

http://www.ithmines.com