IAMGOLD Releases Quimsacocha Pre-Feasibility Study

Market Wire, July, 2008

IAMGOLD Corporation ("IAMGOLD" or "the Company") (TSX: IMG)(NYSE: IAG)(BOTSWANA: IAMGOLD) is pleased to announce results of the Pre-Feasibility Study (the "Study") of its 100% owned Quimsacocha Gold Project located in Ecuador. The Study was compiled by IAMGOLD Project Development Group, with the collaboration of Golder Associates, SNC Lavalin, Lakefield Research, Promas, Water Management Consultants, J. Kaehne Associates and Caminosca.

Joseph Conway, President and CEO of IAMGOLD said, "Results of the Study are highly encouraging and Quimsacocha continues to demonstrate that it is a very solid project for us. We have been working in Ecuador for the past twelve years developing community programs and building positive government relations. We will continue to partner with all stakeholders to create new economic and social benefits for the people of Ecuador within a responsible mining framework."

The Study shows that during the first three years of production, Quimsacocha will produce on average 224,000 ounces of gold per year at an average grade of 7.1 g/t Au and with cash costs averaging $214 per ounce before royalties and profit sharing. The operation would generate, over the first three years, a pre-tax cash flow of $352 million. Over a projected mine life of 7.5 years, the current deposit would produce an average of 202,000 ounces of gold per year at an average cash cost of $272 per ounce (no royalties or profit sharing included), generating a pre-tax operating cash flow of $669 million. The Study shows an Internal Rate of Return, using undiscounted cash flow, of 21.3% (pre-tax and government royalties) and has an estimated payback within 35 months.

Summary highlights of the Study are shown in the table below:

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Diluted Mineral Resource
 (Indicated)                 10.0 Mt @ 6.8 g/t Au for 2,075,000 ounces
3.0 g/t Au cutoff
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Mineral Reserve               8.1 Mt @ 6.5 g/t Au for 1,682,000 ounces
3.0 g/t Au cutoff
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Net Recoverable Gold (oz)  1,514,000                (based on 90% recovery)
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Average Annual Gold
 Production (oz)             202,000               (224,000 - Years 1 to 3)
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Cash Cost per ounce
 before royalties               $272                  ($214 - Years 1 to 3)
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Initial investment (CAPEX)      $337 M
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Sustaining Capital               $26 M
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Operating Cash flow pre-tax     $669 M
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IRR - pre-tax (0% discount)     21.3%
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Payback                     35 months
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Mine Life                   7.5 years
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Capital expenditures up to commercial production, including all expenditures on development studies, are estimated at $337 million. A contingency of $45 million is included.

IAMGOLD released indicated and inferred resources of 3,347,000 and 245,000 ounces of gold respectively on Quimsacocha as part of the 2007 year end update of the reserves and resources. For the purposes of the Pre-Feasibility Study, only indicated resources within a 3.0 g/t Au envelope were considered. A gold price of $750 per ounce was assumed for the financial analysis, and current market prices for all materials were applied. All dollar amounts presented in this press release are expressed in US dollars.

The Study shows that the main Quimsacocha deposit on its own provides strong returns in the current economic environment and that it can be the base for future growth through exploration on our regional targets at Rio Falso, Quimsacocha West and the other surrounding properties. The capital requirement to develop the project has increased substantially, reflecting the increased cost pressures that have been facing all new projects.

Over the next eighteen months, The Company will be working on the Feasibility Study, while pursuing our work on the Environmental Impact Assessment and the Social Impact Assessment.

The Company would begin construction activities early in 2010 and reach commercial production in the second half of 2011.

New Mining Code

During the second quarter, the government of Ecuador has advanced the process of revising the country's Mining Code by conducting an extensive review of the policy recommendations made by the Constitutional assembly and through dialogue with international mining experts. A mining committee consisting of senior officials of the Mining Ministry and representatives of the large mining companies active in Ecuador, including IAMGOLD, has conducted regular and constructive discussions regarding technical, fiscal and environmental aspects of the new Mining Code.