August 18, 2011 – Vancouver, British Columbia. Indigo Exploration Inc. (TSX-V: IXI; FSE:INE) provides exploration updates on its Moule, Lati and Kodyel gold exploration permits in Burkina Faso, West Africa.

Key points are:

• Diamond drilling continues at Moule.
• Eleven holes have been completed on the Vein 3 shear-hosted gold target along a 1,200 metre strike length. Previous reverse circulation drilling at Vein 3 included the discovery hole which returned 29.67 gpt Au over 7 metres (see NR April 11, 2011).
• One of 3 holes has been completed to date, initially testing the coincident soil and geophysical anomalies at Vein 2.
• Airborne geophysics has identified new targets at Moule and Kodyel.
• At Lati, sampling has been completed over the 8 km by 1 km Prospect 1, which includes a 4.5 km by 1 km area of numerous active artisanal sites.

Moule

A diamond drilling program commenced in mid-July at Moule and continues. To date, 11 holes have been completed on Vein 3. The program has tested Vein 3 along 1,200 metres of strike and locally to a depth of 200 metres. One of 3 holes has been completed to initially test the plus 1 kilometer long gold soil anomaly with coincident ground geophysical IP anomalies at Vein 2. Half core is being submitted to ALS Chemex for gold assaying. Results will be released when received.

The preliminary results from a resistivity / IP survey  over the 2,000 metre by 750 metre Vein 3 soil grid and the 2,000 metre by 500 metre Vein 2 soil grid has identified several new drill targets. The current diamond drilling program was modified to test some of these anomalies. The remaining anomalies will be tested during the 15,000 metre fall reverse circulation phase of this drill program. The drill targets consist of a series of chargeability and resistivity highs trending N-S and NNW-SSE, parallel to mineralized quartz veins exposed in subcrop and artisanal workings. These highs suggest parallel occurrences of mineralization may be present.

The radiometric airborne survey completed over the Moule/Loto project has identified a major new anomaly that is 9 kilometres long by 500 to 1500 metre wide and is suggestive of strong hydrothermal alteration. Indigo crews have already commenced a grid soil sampling survey over the full length of the radiometric anomaly to prepare this trend for future drilling.

Lati

Soil sampling covered an area 8 kilometres long by up to 800 metres wide at a line spacing of 200 metres with a sample spacing of 50 metres. A total of 1539 samples were collected. Quartz float sampling was also completed within the grid resulting in a further 861 samples. Results for these sampling surveys are pending.

The artisanal sites at Lati continue to grow in size and remain extremely active. New artisanal sites have been noted in the area between the two previously reported sites. Again, the activity is concentrated in the thin saprolite layer above bedrock, which is encouraging to Indigo’s geological team, as gold appears sourced from the bedrock. The newest site has yet to be surveyed or examined in detail.

A portion of the 15,000 metre fall RC drill program will test the artisanal sites as well as targets generated from the soil and rock sampling surveys.

Kodyel

The Kodyel airborne geophysical survey shows the greenstone belt on the Kodyel permit is structurally deformed and complex over its entire 15 km length. Most importantly, the radiometric survey suggests strong hydrothermal alteration through the centre of the permit, coincident with a large area of anomalous gold in stream sediments. The radiometric survey re-confirms the area as a very high priority target.

Indigo’s President, Tim Henneberry, said: “We’re excited to be following up on our high-grade discovery at Moule with the current diamond drilling phase of the program and hope to add some strike length to the discovery. The large RC phase of the program will start after the rainy season.”

About Indigo Exploration

Indigo Exploration Inc. (TSXV: IXI) is an exploration company focused on exploring for major precious metal deposits in Burkina Faso, one of the West African countries underlain by the highly prospective Early Proterozoic Birimian Greenstone Belt. Unlike the more mature exploration terrains of Ghana and Mali, Burkina Faso is relatively underexplored and offers excellent potential for gold discovery. The Company has 4 projects spanning close to 1,000 sq km in Burkina Faso through the acquisition of Sanu Resources Burkina SARL, a subsidiary of NGEx Resources Inc. The Company made an all-new high-grade gold discovery (7m of 29.67 g/t Au) on its Moule gold project in April 2011 and will be aggressively drilling and exploring its projects.

On Behalf of the Board of Directors,

“R. Tim Henneberry”

R.Tim Henneberry, P.Geo.

President and CEO

For further information, please contact:

Tim Henneberry: (604) 681-3422

Paul Cowley, P.Geo.,  Director of Indigo Exploration Inc., is the Qualified Person as defined in National Instrument 43-101, who has reviewed and approved the technical content of this news release.

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

Forward-Looking Statements

This press release contains forward-looking statements.  All statements, other than statements of historical fact, constitute “forward-looking statements” and include any information that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including the Company’s strategy, exploration results and plans, or future financial or operating performance and other statements that express management’s expectations or estimates of future performance.

Forward-looking statements are generally identifiable by the use of the words “may”, “will”, “should”, “continue”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan” or “project” or the negative of these words or other variations on these words or comparable terminology.  All such forward-looking information and statements are based on certain assumptions and analyses made by the Company’s management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances.  These statements, however, are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed, implied by or projected in the forward-looking information or statements.  Important factors that could cause actual results to differ from these forward-looking statements include but are not limited to: risks related to the exploration and potential development of the Company’s projects, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, as well as those factors discussed in the sections relating to risk factors of the Company set out in the Company’s MD&A filed on SEDAR.

There can be no assurance that any forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader should not place any undue reliance on forward-looking information or statements.  Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events.