Intrepid Reports Results for Fourth Quarter and Full Year 2008

“While the fourth quarter presented a number of challenges for the Company, as well as for the broader economy, Intrepid was still able to deliver solid results,” said Bob Jornayvaz, Intrepid’s CEO. “However we were not immune to the market uncertainty which began in the fourth quarter as indicated by our substantially lower sales volumes when compared to the same quarter in prior years. We are diligently watching the potash market and taking the appropriate steps, including mine shutdowns, deferral of certain discretionary capital expenditures and reduced operation levels, to manage production, to maximize margin, and to effectively invest our capital. Through this unprecedented period, we remain focused on margins and believe that maintaining our strong balance sheet and our potash-only strategy will allow us to perform for our stockholders.”

The depth and breadth of the economic crisis, which began to impact Intrepid as well as other fertilizer producers in the fourth quarter of 2008 in the form of reduced sales volumes, has continued into the first quarter of 2009. From the Company’s perspective there are a number of factors, such as overall lower commodity prices, volatile input pricing, buyer hesitation to purchase fertilizer, and significant uncertainty due to the economy, all of which are causing farmers to delay their fertilization decisions. In the face of this market uncertainty, we are approaching 2009 thoughtfully and are focused on maintaining the strength of our balance sheet which allows us to retain a strong marketing position as it relates to the price of potash. We intend to accomplish this by managing production volumes and cash and by adjusting our capital programs appropriately throughout the year. Although we believe that long-term potash fundamentals are solid, we expect the near-term market conditions to remain erratic and unpredictable. The potash market will guide business decisions in 2009, specifically those related to production and capital allocation.

Our net realized prices for Potash and Trio(R) are displayed below:

Operating income for the fourth quarter of 2008 was $39.5 million compared to pro forma operating income of $5.7 million in the fourth quarter 2007. Cash flows from operating activities were $22.2 million for the fourth quarter of 2008, which compares to $7.8 million for the fourth quarter of 2007.

During the fourth quarter of 2008, Intrepid produced 201,000 short tons of potash and sold 94,000 short tons of potash. This compares to 217,000 tons produced and 215,000 tons sold in the fourth quarter of 2007. Production declined in the fourth quarter 2008 relative to the prior year fourth quarter due primarily to lower production at the West Mine and East Mine which was primarily related to annual maintenance turnarounds, elective downtime for electrical upgrades and other maintenance work. These declines were partially offset by higher production at our Moab Mine. In addition, lower production at our Wendover and East facilities were due in part to the Company’s decision to reduce some production in the fourth quarter in response to the broader market conditions.

The 94,000 short tons of potash sold in the fourth quarter was at an average FOB net sales price of $762 per short ton as compared to an average FOB net sales price of $224 per short ton during the fourth quarter of 2007.

Our sales of red granular product into the agricultural market remain slow and are currently lagging historical seasonal sales levels, causing a corresponding rise in inventories. The Company has also seen an increase in inventory levels of our white standard product at our facilities as the oil and natural gas drilling rig count has continued to decrease. Due to this decrease in industrial demand, we have made an effort to re-process some of the white standard product through compaction so that we can sell it into the agriculture market when demand returns.

Our potash “cash” cost of goods sold, which is our total cost of goods sold excluding depreciation, depletion and amortization, royalties, and by-product credits, increased to $267 per short ton in the fourth quarter of 2008 from $162 per short ton in the fourth quarter of 2007. The cost per ton amount is higher than previous quarters predominantly as a result of the scheduled maintenance turnaround work performed in the fourth quarter in Carlsbad, whereby costs were expended without generating product tons, therefore the costs per ton increased. It is important to understand that because production rates slowed into the end of the year, product currently being held in inventory has a higher related per ton cost than our average for 2008. The Company expects it could take several quarters for this relatively higher cost inventory to work through the system.

During the fourth quarter, Intrepid produced 34,000 short tons of langbeinite. We market our langbeinite under the registered name of Trio(R). Our langbeinite production was 33 percent lower than the 51,000 short tons produced during the fourth quarter of 2007. The decrease in langbeinite production was largely driven by decreased ore throughput, changes in our operating rate resulting primarily from increased maintenance work in the quarter, and the Company’s decision to reduce production activities.

Intrepid sold 17,000 short tons of Trio(R) in the fourth quarter 2008 at an average FOB or net sales price of $323 per short ton as compared to 27,000 tons at an average FOB price of $137 per short ton in the prior year’s fourth quarter.

Operating income on a pro forma basis for the full year of 2008 was $197.5 million, compared to $27.9 million for the full year 2007. Cash flows from operating activities were $158.0 million for the full year 2008, compared to $39.0 million for the full year 2007.

Pro forma EBITDA increased to $215.1 million for 2008, compared to $40.4 million for the full year 2007. Pro forma adjusted net income for the full year 2008 increased to $121.6 million, compared to $15.5 million for the full year 2007.

For the pro forma full year 2008, Intrepid produced 836,000 short tons of potash and sold 724,000 short tons of potash. This compares to 877,000 tons produced and 893,000 tons sold in 2007. Average net sales price for potash for the pro forma full year increased to $486 per short ton ($536 per metric tonne) compared to $194 per short ton ($214 per metric tonne) for the full year 2007. For the full year 2008, our potash “cash” cost of goods sold increased on a pro forma basis to $170 per short ton compared to $128 per short ton for the full year 2007. Gross margins for the pro forma full year 2008 for potash increased to $297 per short ton or 61 percent compared to 29 percent in the full year 2007.

For the pro forma full year 2008, we produced 197,000 short tons of langbeinite compared to 177,000 short tons in 2007, an 11 percent increase. For the pro forma full year 2008 Intrepid sold 207,000 short tons of Trio(R) at an average FOB or net sales price of $192 per short ton ($212 per metric tonne) as compared to 158,000 tons at an average FOB or net sales price of $119 per short ton ($131 per metric tonne) in the prior year. Gross margins for Trio(R) increased to $79 per short ton or 41 percent in 2008, up from 15 percent in 2007.

During 2008, Intrepid invested $94.0 million related to the 2008 capital program. Intrepid believes it is important to continue to invest in capital projects that add sustainability and improve the overall long-term efficiency of our operations. The Company expects to invest approximately $100-$140 million towards capital projects in 2009. In order to provide flexibility, the Company has built a matrix of capital projects which can be adjusted, both in terms of scope and investment, throughout the year based on the condition of the potash market. In 2009, we anticipate investing approximately $45-65 million on sustainability and improvement projects with the remaining $55-$75 million focused on investments in opportunity projects. A few of our planned 2009 capital investment projects include:

As previously announced, the BLM notified the Company in January that it would require an Environmental Impact Statement (“EIS”) to evaluate the environmental impacts of the proposed HB Solar Solution Mine. As a consequence, final permitting and approval of the HB Solar Solution Mine will be delayed and capital expenditures for it deferred while the EIS is completed. Based on our discussions with the BLM, we presently anticipate that it will take approximately 18-24 months to complete the EIS process. During 2009, we anticipate investing approximately $10 million towards the HB project. We continue to prepare for construction of the HB Solar Solution Mine and intend to begin constructionupon receipt of mine plan approval. The HB Mine is expected to ramp up production approximately one year after the start of construction and to be at full capacity after approximately two years.

Certain statements in this press release, and other written or oral statements made by or on behalf of us, are “forward-looking statements” within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management’s expectations, beliefs, plans, estimates or projections relating to the future, including statements regarding guidance, are forward-looking statements within the meaning of these laws. Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that our expectations will be realized. These forward-looking statements are subject to a number of known and unknown risks and uncertainties, many of which are beyond our control that could cause actual results to differ materially and adversely from such statements. These risks and uncertainties include: changes in the price of potash or langbeinite; operational difficulties at our facilities; changes in demand and/or supply for potash or langbeinite; changes in our reserve estimates; our ability to achieve the initiatives of our business strategy, including but not limited to the development of the HB Mine as a solution mine; changes in the prices of our raw materials, including but not limited to the price of natural gas; fluctuations in the costs of transporting our products to customers; changes in labor costs and availability of labor with mining expertise; the impact of federal, state or local government regulations, including but not limited to environmental and mining regulations; competition in the fertilizer industry; declines in U.S. or world agricultural production; declines in oil and gas drilling; changes in economic conditions; adverse weather events at our facilities; our ability to comply with covenants inherent in our current and future debt obligations to avoid defaulting under those agreements; continued disruption in credit markets; governmental policy changes that may adversely affect our business and the risk factors detailed in our filings with the Securities and Exchange Commission. Please refer to those filings for more information on these risk factors. These forward-looking statements speak only as of the date of this press release, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as the result of future events, new information or otherwise.

94

COGS – exclusive of items shown separately below

Depreciation, depletion and amortization

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COGS – exclusive of items shown separately below

Depreciation, depletion and amortization

COGS – exclusive of items shown separately below

Depreciation, depletion and amortization

COGS – exclusive of items shown separately below

Depreciation, depletion and amortization

Common stock of Intrepid Potash, Inc., $0.001 par value; 100,000,000 shares authorized and 74,843,124 outstanding at December 31, 2008, and 1,000 shares authorized and outstanding at December 31, 2007

(2,176

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Payments to Intrepid Mining LLC for exchange of assets and liabilities and formation distribution

2,352

Adjusted net income should not be considered in isolation or as a substitute for net income, income from operations, cash provided by operating activities or other income, profitability, cash flow, or liquidity measures prepared under GAAP. Since adjusted net income excludes some, but not all, items that affect net income and may vary among companies, the adjusted net income amounts presented may not be comparable to similarly titled measures of other companies.

Earnings before income taxes, interest, depreciation and amortization (“EBITDA”) is computed as net income or pro forma net income adjusted for the add back of income tax expense, interest expense, depreciation, depletion, amortization, asset retirement obligation liability accretion, and impairment. This non-GAAP measure is presented since management believes that it provides useful additional information to investors for analysis of Intrepid’s ability to internally generate funds for capital investment. In addition, EBITDA is widely used by professional research analysts and others in the valuation, comparison, and investment recommendations of companies in the potash mining industry, and many investors use the published research of industry research analysts in making investment decisions. EBITDA should not be considered in isolation or as a substitute for net income, income from operations, net cash provided by operating activities or other income, profitability, cash flow, or liquidity measures prepared under GAAP. Since EBITDA excludes some, but not all items that affect net income and net cash provided by operating activities and may vary among companies, the EBITDA amounts presented may not be comparable to similarly titled measures of other companies.

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