Quimsacocha, Ecuador

IAMGOLD released its pre-feasibility study in July 2008 for the Quimsacocha project that showed encouraging results. Production is expected to average 202,000 ounces of gold per year at an average cash cost (before royalties and profit sharing) of $272 per ounce over a projected mine life of 7.5 years, with an estimated payback of 3 years.

Work continues on the final feasibility study, including full environmental and social impact assessments. The Company is ready to resume exploration drilling on new targets at Quimsacocha following the approval of the new Mining Law when drilling permits become available.

A constitutional referendum held on September 28, 2008, resulted in a clear mandate for the constitutional reforms proposed by President Correa, including a mining policy that supports responsible mining. The government of Ecuador has stated its intention to complete the new Mining Law before the end of 2008 and the Company is working proactively with the key ministries of Mines, Environment, and Taxation to develop an equitable fiscal and regulatory framework for responsible mining in Ecuador. If the finalization of the Mining Law and receipt of permits occur in 2008, a final feasibility study will be targeted for the second half of 2009. Construction of the Quimsacocha project is targeted to commence in 2010, with commercial production in the second half of 2011.