Updated mineral resource estimate:

http://www.iamgold.com/English/News/News-Releases/News-Release-Details/2012/IAMGOLD-reports-274-increase-in-Indicated-Resource-at-Ct-Gold-with-updated-mineral-resource-estimate1131312/default.aspx

TORONTO, Oct. 4, 2012 /CNW/ - IAMGOLD Corporation ("IAMGOLD" or the "Company") announced today an updated resource estimate in accordance with National Instrument 43-101 for its recently acquired Côté Gold Project, located halfway between Timmins and Sudbury in northern Ontario. The mineral resource estimate incorporates assay results from an additional 79 holes (44,856 metres) since the February 24, 2012 estimate announced by Trelawney Mining and Exploration Inc. ("Trelawney").

The new Côté Gold resource estimate consists of an Indicated Resource of 131 million tonnes averaging 0.84 grams of gold per tonne for 3.56 million ounces and an Inferred Resource of 165 million tonnes averaging 0.88 grams of gold per tonne for 4.66 million ounces. The updated resource estimate, based on a cut-off grade of 0.30 grams of gold per tonne, represents a 274% increase in Indicated Resources from the previous estimate as reported by Trelawney, also based on a cut-off grade of 0.30 grams of gold per tonne. The updated Côté Gold resource estimate benefited from both infill drilling that substantially upgraded the quality of the estimate through conversion of Inferred Resources to Indicated Resources as well as step-out drilling to expand the overall resource base compared to the prior resource

PRB IS WAY UNDERVALUED.