IAMGOLD declares rare earth inferred resource of 467 million tonnes at a grade of 1.65% TREO

TORONTO, Feb. 2, 2012 /PRNewswire via COMTEX/ — All amounts are expressed in US dollars, unless otherwise indicated.

TSX: IMG NYSE: IAG

IAMGOLD Corporation (“IAMGOLD” or the “Company”) today announced that it has declared an inferred resource of 466.8 million tonnes at a grade of 1.65% Total Rare Earth Oxides (“TREO”) as a result of its 2011 exploration drilling program conducted on the rare earth elements (“REE”) zone adjacent to its Niobec niobium mine near Saguenay, Quebec, Canada.

Steve Letwin, President and CEO of IAMGOLD, stated, “I am so proud of our team of employees who have unlocked this valuable deposit of highly prized metals.They have successfully defined the scope and size of a resource that we only guessed at a year ago and is completely unvalued by investors. In terms of developing this resource and bringing it to market, we plan to take the same funding approach as with our self-funded Niobec business. We will explore alternative strategies for developing this resource, such as joint venture partnerships and strategic alliances, which will not impact our gold business.

“While the scoping study will define the exact significance to the REE market, this deposit has the potential to place IAMGOLD among a select group of global REE suppliers to a market where applications for these metals are constantly evolving and expanding.Rare earths are integral to a wide range of fast growing industries and are difficult to substitute. China`s actions to restrict exports to protect supply for its domestic industry has led to a shortage of a number of REEs that are critical to some of the fastest growing markets, including the clean energy sector. Demand for REEs is growing at 9-15% a year, and according to a report by Ernst & Young -Technology Minerals – The rare earths race is on (April 2011), the market value is expected to double in size to a range of $4 billion to $6 billion by 2015.”

IAMGOLD`s known rare earth element zone (“REE zone”) was last explored in 1985 and is known to host significant rare earth element mineralization. As reported in the Company’s 2011 second quarter report, a supplemental exploration program of $2.5 million was approved to drill test the projected extensions of known niobium resources at Niobec, and to explore the REE zone. The REE zone was evaluated with a total of 13,798 metres of diamond drilling in 29 holes including an underground drill hole from the Niobec mine (coordinates and results are attached in Tables 1 and 2).

IAMGOLD’s rare earth resource is located one kilometre north of its Niobec mine in the mining friendly jurisdiction of Quebec. “The location of this resource is very conducive to bringing these REEs to market in a timely and cost effective manner,” continued Mr. Letwin.”In addition to its close proximity to our existing mine infrastructure at Niobec, the location provides access to a large skilled population, an established and very competitively priced hydro power source, and excellent shipping and distribution options given the existing road and rail infrastructure and close proximity to deep water ports with ocean access.These factors, together with the Company’s strong balance sheet, development expertise and excellent community relations provide distinct speed-to-market advantage.”

The St Honoré carbonatite complex, which contains the niobium mine and the REE Zone, is a 25 km2 alkaline intrusive complex comprising a carbonatite core that is surrounded by nepheline syenite, feldspathoid syenite and other mafic intrusive phases. The carbonatite core is characterized by a series of concentric lenses of calcitite and dolomitite (cones sheets and ring dykes) that progress inwards from calcitite through dolomitite to ferrocarbonatite. The brecciated core of ferrocarbonatite has an oval shape elongated towards the northeast, and hosts the REE mineralization mainly in the form of REE fluorocarbonates (principally bastnaesite) and monazite. The mineralization occurs within breccia cement and is associated with hematite, chlorite, ferroan dolomite, minor thorite, ilmenorutile and pyrite.

The 2011 drill program conducted by the Company on the REE zone aimed to establish the three dimensional “footprint” of mineralization, provide a preliminary REE grade estimate and provide samples for preliminary metallurgical test work. The campaign was completed on a grid spacing of 100 by 200 metres to programmed drill depths of about 450 metres. Four holes exceeded 700 metres in total length, and to a maximum length of 750 metres. The deeper holes demonstrate that the brecciated and mineralized facies of the REE zone persists uninterrupted at depth, although the resource model is reported only to a depth of 375 metres. Further exploration and infill drilling is expected to extend the resource model well below the current depth parameters, and to the south and southwest. The Company initiated a 2,750 metre follow-up drill campaign in January to further define the lateral extent of the resource and establish the overall limits of REE mineralization with greater certainty. A second phase of drilling is also planned for resource definition and to explore at depth.

Based on these new drilling results, a resource estimate was prepared by Pierre Jean Lafleur, Eng., an independent Qualified Person and principal consultant of P.J. Lafleur Géo-Conseil Inc (“PJLGC”) of Ste-Thérèse, Québec. The REE resource corresponds to an enriched zone of Light REEs (“LREE”) which is characteristic of this annular carbonatite type. LREEs comprise 98% of the weight of the Total REEs (“TREE”), with the remaining 2% Heavy REEs (“HREE”) that could potentially add significant economic value. As indicated in the tables below, the REE zone contains total Inferred Resources of 466.8 Million Tonnes at a grade of 1.65% Total Rare Earth Oxides (“TREO”), including 0.031% Heavy Rare Earth Oxides (“HREO”), to a depth of approximately 375 metres (the surface lies at a reference elevation of 10,000m).

        REE Mineral Resources by Grade Groups                   Light REO                     Main Heavy REO
        Grade Groups        Tonnage        % TREO     ppm HREO  Ce2O3 La2O3 Nd2O3 Pr2O3 Sm2O3 Gd2O3 Eu2O3 Dy2O3 Tb2O3
        % TREO              Million Tonnes                      ppm   ppm   ppm   ppm   ppm   ppm   ppm   ppm   ppm
        > 2.50           13.2           2.93       550       14020 7173  5384  1538  603   284   124.0 81.3  22.2
        2.00 to 2.50        80.0           2.16       407       10359 5300  3978  1137  445   210   91.6  60.1  16.4
        1.75 to 2.00        123.8          1.87       352       8961  4585  3441  983   385   182   79.3  52.0  14.2
        1.50 to 1.75        98.0           1.64       308       7845  4014  3013  861   337   159   69.4  45.5  12.4
        1.00 to 1.50        99.2           1.26       236       6020  3080  2312  661   259   122   53.3  34.9  9.5
        0.5 to 1.00         52.6           0.81       153       3890  1990  1494  427   167   79    34.4  22.6  6.2
        Total/Average Grade 466.8          1.65       311       7913  4048  3039  868   340   161   70.0  45.9  12.5
                            Niobec TREO Signature     1.88%     47.9% 24.5% 18.4% 5.26% 2.06% 0.97% 0.42% 0.28% 0.076%
        REO Mineral Resources by Depth                     Light REO                     Main Heavy REO
        DEPTH SLICES        Tonnage        % TREO  ppm     Ce2O3 La2O3 Nd2O3 Pr2O3 Sm2O3 Gd2O3 Eu2O3 Dy2O3 Tb2O3
                                                   HREO
        m                   Million Tonnes                 ppm   ppm   ppm   ppm   ppm   ppm   ppm   ppm   ppm
        Surface at 9975     5.4            1.90    357     9102  4657  3495  999   391   185   80.5  52.8  14.4
        9950 (+/-25m)       60.5           1.77    332     8467  4332  3251  929   364   172   74.9  49.1  13.4
        9900 (+/-25m)       72.7           1.65    310     7895  4040  3032  866   339   160   69.8  45.8  12.5
        9850 (+/-25m)       72.0           1.61    302     7704  3941  2958  845   331   156   68.1  44.7  12.2
        9800 (+/-25m)       70.2           1.61    303     7709  3944  2960  846   331   156   68.2  44.7  12.2
        9750 (+/-25m)       66.7           1.63    307     7816  3999  3001  858   336   159   69.1  45.3  12.4
        9700 (+/-25m)       61.8           1.64    308     7854  4018  3016  862   338   159   69.5  45.5  12.5
        9650 (+/-25m)       57.4           1.66    311     7928  4056  3044  870   341   161   70.1  46.0  12.6
        Total/Average Grade 466.8          1.65    311     7913  4048  3039  868   340   161   70.0  45.9  12.5

* TREO is for Total Rare Earth Oxides which include La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, and Lu2O3.

** HREO is for Heavy Rare Earth Oxides which include in this table the 4 most important HREE elements, namely Eu2O3, Gd2O3, Tb2O3 and Dy2O3.

NOTES:

Results are presented in situ, unconfined and undiluted.

The average bulk density used is 2.85 g/cm³ and was calculated fromspecific gravity measurements taken from core samples.

Resource modeling used 6,731 samples from the 2011 drill program with 54 elements assayed (with re-assays for high grade samples). 564 samples from 1985 historical surface drilling program were also incorporated although 21 elements were assayed in the earlier programs instead of 54. A further 422 samples were incorporated from historicsurface drill holes that were assayed only for La2O3;TREO values were recalculated from the elemental ratios established by the 2011 program.

5m composites were utilized throughout.

Variography indicates total cumulative grade variance is about 22% at very short range (1m to 2 m), 55% within 20m, and 100% up to 200m.

The estimated mineral resources have been modeled using a 10-metre cubic block model and grades were estimated using Ordinary Kriging. All the blocks were estimated using a minimum of 4 and a maximum of 25 (5m) composites. The Inverse Distance Square interpolation method was used only for comparison with Kriging.

The estimated resource is enclosed within the core breccias of the carbonatite complex. The near surface “footprint” of mineralization has been confirmed in three directions in 2011. Drilling planned in early 2012 should confirm the known outline to the south. Given the narrow range (approximately 1% to 2%) of grade values in the block model and the wide drill hole spacing, it is difficult to outline low and high grade zones inside the REE resource at this time. Whereas sporadic higher grade REE values are encountered near surface and to a depth of 100 metres, mineralization in the resource model shows low variability below that depth. Four drill holes extending well below the resource model and to a maximum depth of 750 metres show comparable grades to other intercepts in the resource model. Based on all of the preceding information, the Mineral Resources have been classified as Inferred.

All assay results are reported in Total Rare Earth Element Oxides (“TREO”). Main rare earths found are LREEs: Cerium (Ce), Lanthanum (La),Neodymium (Nd), Praseodymium (Pr) and Samarium (Sm), and HREEs: Gadolinium (Gd), Europium (Eu), Dysprosium (Dy) and Terbium (Tb). Tables showing the most recent drill assay results supporting this mineral resource estimate are attached to this news release.

Preliminary metallurgical test work results of a REO bulk concentrate shows recoveries between 58% and 70%. Optimization test work continues and preliminary leach tests as well as extraction leach tests are ongoing. A final recovery of 53.5% of the REE is for the moment assumed.

Background information on the REE industry can be found by clicking on the following link:

http://www.iamgold.com/Theme/IAmGold/files/REE101.pdf

Technical Information and Qualified Person/Quality Control Notes The drilling results contained in this news release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), JORC and/or SAMREC. The “Qualified Person” responsible for the supervision of the preparation and review of this information is Marie-France Bugnon, P. Geo.,General Manager Exploration. Marie-France is considered a “Qualified Person” for the purposes of National Instrument 43-101 with respect to the technical information being reported on.

The “Qualified Person” responsible for the estimation of the Mineral Resources is Pierre Jean Lafleur, Eng., principal consultant of P.J. Lafleur Géo-Conseil Inc (“PJLGC”) of Ste-Thérèse, Québec is an independent person considered a “Qualified Person” for the purposes of National Instrument 43-101 with respect to the technical information being reported on.

The technical information has been included herein with the consent and prior review of the above noted Qualified Person. The Qualified person has verified the data disclosed, and data underlying the information or opinions contained herein.Core assays are performed on core sawed or split in half. The samples were assayed by using sodium peroxide fusion and Inductively Coupled Plasma Mass Spectrometry (ICP-MS) for lanthanides over upper limit, and re-assayed by sodium peroxide fusion and a combination of Inductively Coupled Plasma Optical Emission Spectrometry (ICP-OES) and ICP-MS for 55 elements. Assays were carried out at SGS Canada Inc. of Lakefield, Ontario and Actlabs Ltd of Ancaster, Ontario. Certified reference material, duplicate and blanks were inserted in the sample sequence for quality control.

Cautionary Note to U.S. Investors The United States Securities and Exchange Commission limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. IAMGOLD uses certain terms in this presentation, such as “measured,” “indicated,” or “inferred,” which may not be consistent with the reserve definitions established by the SEC.U.S. investors are urged to consider closely the disclosure in the IAMGOLD Annual Reports on Forms 40-F.You can review and obtain copies of these filings from the SEC’s website at http://www.sec.gov/edgar.shtml or by contacting the Investor Relations department.

Forward Looking Statement This news release contains forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding expected, estimated or planned gold and niobium production, cash costs, margin expansion, capital expenditures and exploration expenditures and statements regarding the estimation of mineral resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are generally identifiable by 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. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company’s ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to meet expected, estimated or planned gold and niobium production, cash costs, margin expansion, capital expenditures and exploration expenditures and failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company’s expectations, changes in world gold markets and other risks disclosed in IAMGOLD’s most recent Form 40-F/Annual Information Form on file with the United States Securities and Exchange Commission and Canadian provincial securities regulatory authorities. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.

About IAMGOLD

IAMGOLD ( www.iamgold.com ) is a leading mid-tier gold mining company producing approximately one million ounces annually from five gold mines (including current joint ventures) on threecontinents.IAMGOLD is uniquely positioned with a strong financial position and extensive management and operational expertise. To grow from this strong base, IAMGOLD has a pipeline of development and exploration projects and continues to assess accretive acquisition opportunities. IAMGOLD’s growth plans are strategically focused in West Africa, select countries in South America and regions of Canada.IAMGOLD also operates Niobec, a niobium mine in the Canadian province of Quebec.

Please note: This entire news release may be accessed via fax, e-mail, IAMGOLD’s website at www.iamgold.com and through CNW Group’s website at www.newswire.ca . All material information on IAMGOLD can be found at www.sedar.com or at www.sec.gov .

Si vous désirez obtenir la version française de ce communiqué, veuillez consulter le http://www.iamgold.com/French/Home/default.aspx

Table 1: Location of the drill holes completed from July to end of October 2011 on the REE Zone of the Niobec property, Quebec

        Surface Holes              UTM Coordinates        Azimuth  Dip      Total Depth
                                   (Nad 83)               (°) (°) (m)
        Hole ID                    Longitude  Latitude
                                   (E)        (N)
        2011-REE-005               341008.158 5378704.162 006      -50      445.2
        2011-REE-006               341115.491 5378873.085 031      -52      452
        2011-REE-007               340912.02  5378647.039 031      -50      450
        2011-REE-008               341107.928 5379048.264 031      -50      335
        2011-REE-009               340839.254 5378812.496 031      -50      449
        2011-REE-010               340755.292 5378866.153 031      -50      449
        2011-REE-011               340671.331 5378919.81  031      -50      450
        2011-REE-012               340646.978 5378698.249 031      -50      449
        2011-REE-013               340731.92  5378643.573 031      -50      449
        2011-REE-014               340815.882 5378589.916 031      -50      446
        2011-REE-015               340563.017 5378751.907 031      -50      449
        2011-REE-016               340586.369 5378973.487 031      -50      449
        2011-REE-017               340502.427 5379028.144 031      -50      446
        2011-REE-018               340395.093 5378859.221 031      -50      452
        2011-REE-019B              340479.055 5378805.564 031      -50      450
        2011-REE-020               340946.568 5378980.419 031      -50      503
        2011-REE-021               340862.626 5379035.076 031      -50      500
        2011-REE-022               340455.683 5378582.983 031      -50      450
        2011-REE-023               340778.665 5379088.733 031      -50      450
        2011-REE-024               340694.703 5379142.391 031      -50      410
        2011-REE-025               340800.239 5378659.235 031      -75      704
        2011-REE-026               341086.068 5378953.677 211      -50      749
        2011-REE-027               341018.495 5379027.016 211      -50      750
        2011-REE-028               340585.093 5378857.492 031      -50      750
        Underground Hole           UTM Coordinates        Azimuth  Dip      Total Depth
                                   (Nad 83)               (°) (°) (m)
        Hole ID                    Long (E)   Lat (N)
        S-3607                     340346.25  5378110.428 031      +5       898.25
        (UG hole from Niobec Mine)

Table 2: Significant mineralized intercepts obtained from July to October 2011 drill program on the REE Zone at Niobec

                                                     Light REO                     Main Heavy REO
                      From  To    Length TREO  HREO  Ce2O3 La2O3 Nd2O3 Pr2O3 Sm2O3 Dy2O3 Eu2O3 Gd2O3 Tb2O3 Nb2O5 Mo
        Hole #        (m)   (m)   (m)    %     %     ppm   ppm   ppm   ppm   ppm   ppm   ppm   ppm   ppm   ppm   ppm
        2011-REE-005  22.5  445.2 422.7  1.243 0.022 5935  3307  1978  614   212   45    51    112   12    1553  58
        2011-REE-006  44.0  452.0 408.0  1.141 0.018 5449  3008  1863  575   201   34    44    88    9     1279  68
                      Incl.
                      44.0  302.0 258.0  1.384 0.019 6677  3805  2155  683   221   34    49    96    10    1084  100
                      302.0 452.0 150.0  0.721 0.015 3336  1638  1362  390   167   35    36    74    8     1613  15
        2011-REE-007  5.2   450   444.8  1.780 0.029 8405  4530  3166  889   354   32    82    164   16    1452  184
        2011-REE-008  44    335   291    0.956 0.016 4570  2447  1610  497   182   28    40    83    8     1567  51
                      Incl.
                      44    264.5 220.5  1.076 0.017 5159  2804  1761  557   196   31    43    91    9     1625  53
                      264.5 335   70.5   0.581 0.011 2728  1329  1138  312   138   17    31    59    5     1386  49
        2011-REE-009  21.5  449   427.5  2.084 0.033 9987  4933  3868  1140  424   48    90    176   15    1181  219
        2011-REE-010  38    449   411    2.144 0.032 10137 5314  3934  1166  416   46    84    173   16    1483  243
        2011-REE-011  48    450   402    2.342 0.030 11390 5716  4183  1259  425   46    83    158   14    1288  236
        2011-REE-012  11    449   438    1.810 0.036 8447  4320  3375  987   422   61    93    185   18    1236  163
        2011-REE-013  11    449   438    1.884 0.032 8936  4587  3367  1008  398   55    83    166   15    1657  186
        2011-REE-014  17.0  446   429    1.783 0.026 8409  4637  3076  905   356   37    73    138   12    1277  147
        2011-REE-015  44    449   405    2.009 0.035 9504  4746  3732  1079  427   71    53    202   20    1115  213
        2011-REE-016  51.5  449   397.5  2.403 0.030 11686 5809  4397  1275  452   43    88    159   14    1460  168
        2011-REE-017  29    446   417    0.965 0.018 4469  1849  2096  549   252   54    105   11    7     2105  87
                      Incl.
                      29    177.5 148.5  1.601 0.025 3179  3508  915   402   37    82    149   12    4     1419  114
                      177.5 446   268.5  0.613 0.014 1113  1315  347   169   53    38    80    10    9     2484  72
        2011-REE-018  69.5  452   382.5  1.902 0.030 9159  4055  3899  1093  412   38    85    162   13    730   197
        2011-REE-019B 67.5  450   382.5  2.032 0.034 9841  4800  3771  1057  398   46    83    195   14    588   227
        2011-REE-020  24.5  503   478.5  1.542 0.027 7323  3878  2731  792   315   37    68    153   10    932   124
                      Incl.
                      24.5  282.5 258    2.148 0.033 10324 5445  3748  1113  409   39    85    191   12    1016  138
                      282.5 503   220.5  0.863 0.021 3945  2115  1596  430   212   34    50    113   8     863   111
        2011-REE-021  30.5  500   469.5  1.553 0.025 7486  3706  2856  803   312   35    63    140   9     963   162
                      Incl.
                      30.5  170   139.5  2.424 0.036 11797 5752  4403  1267  468   50    92    207   14    931   195
                      170   500   330    1.185 0.020 5664  2841  2202  607   246   29    51    112   7     977   148
        2011-REE-022  52.5  450   397.5  1.723 0.040 8145  4199  3069  878   356   63    82    238   19    1405  112
        2011-REE-023  36    450   414    2.091 0.031 9811  5444  3755  1087  381   39    75    180   12    1000  114
        2011-REE-024  30.5  410   379.5  1.117 0.020 5301  2685  2059  596   239   27    50    115   8     1320  143
                      Incl.
                      30.5  312.5 282    1.213 0.022 5756  2872  2266  654   268   31    56    127   9     1482  169
                      312.5 410   97.5   0.837 0.013 3986  2144  1459  428   155   18    32    78    5     855   70
        2011-REE-025  2.5   704   701.5  2.240 0.035 10776 5766  3834  1122  407   46    84    206   13    974   175
        2011-REE-026  21.5  749   727.5  2.084 0.035 10040 5115  3724  1028  430   45    88    200   13    856   174
        2011-REE-027  29    752   723    1.942 0.037 9292  4480  3702  990   439   49    92    217   16    1017  183
        2011-REE-028  36.5  755   718.5  1.952 0.038 9361  4462  3753  1007  414   51    89    222   17    826   218
        S-3607        492.9 556.9 64     0.752 0.016 3455  1580  1524  428   186   36    39    76    8     2376  98
        UG hole       556.9 898.2 341.4  1.897 0.023 9267  4653  3319  1033  333   35    64    122   11    1113  131

* TREO is for Total Rare Earth Oxides which include La2O3, Ce2O3, Pr2O3, Nd2O3,Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3 and Lu2O3.

** HREO is for Heavy Rare Earth Oxides which include in this table the 4 most important HREE elements, namely Eu2O3, Gd2O3, Tb2O3 and Dy2O3.

Notes:

Intersections represent down-hole intervals; many drill holes start and finish in the REE Zone.

All holes are diamond drill holes representing NQ core size.

Assays were performed on core sawed or split in half. The samples were assayed by using sodium peroxide fusion and Inductively Coupled Plasma Mass Spectrometry (ICP-MS) for lanthanides over upper limit, and re-assayed by sodium peroxide fusion and a combination of Inductively Coupled Plasma Optical Emission Spectrometry (ICP-OES) and ICP-MS for 55 elements. Assays were carried out at SGS Canada Inc. of Lakefield, Ontario and Actlabs Ltd of Ancaster, Ontario. Certified reference material, duplicate and blanks were inserted in the sample sequence for quality control.

SOURCE IAMGOLD Corporation

Copyright (C) 2012 PR Newswire. All rights reserved

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