IAMGOLD Corporate Update

Market Wire, September, 2008

IAMGOLD Corporation ("IAMGOLD" or "the Company") (TSX: IMG)(NYSE: IAG)(BOTSWANA: IAMGOLD) is pleased to provide an update on recent progress focused on optimizing operational performance, cost reduction initiatives and exploration and project development acceleration.

Project Development

Westwood, Canada

The capital expenditure program for the 3.5 million ounce Westwood project has been advanced from $15.6 million by $22.5 million to $38.1 million for 2008, reflecting the acceleration of the project towards commercial production. The increase in capital expenditure is not due to capital inflation and includes the commencement of shaft development. A raise boring machine is currently active on-site and will complete a 2.4 metre diameter raise to a depth of 865 metres by Q2 2009. Once complete, the sinking of the final 5.5 metre diameter exploration shaft will begin. Major components of the $22.5 million budget advancement include an $11.6 million deposit payment on two new and one used hoist, $4.9 million for site preparation and head frame foundation and $4.4 million for the raise boring contract and ramp development for Warrenmac. Necessary regulatory approvals for the development activities are in place.

With nine drill rigs currently on site, the geologic understanding of the deposit and mineralization continuity has increased substantially. Engineering is proceeding on all fronts including mining, metallurgy, and infrastructure design. The results of a revised scoping study will be released early in the Q4 2008.

Camp Caiman

During February of this year, a moratorium was declared on all mining and exploration activity in French Guiana. The operating permits for IAMGOLD's advanced stage development project Camp Caiman were rejected as part of this proclamation despite the Government's acknowledgement that the project met all technical, legal and environmental requirements established at that time. Government officials have indicated that the moratorium will be lifted and the new mining permits may be granted at the end of 2008 once a regional bio-diversity assessment is complete. As the Camp Caiman project is unique in terms of the French Government's specific rejection, the Company has proposed alternative development plans, which further significantly reduce the amount of disturbances near the site of mineral deposit. In addition the Company has progressed its consultation with key environmental groups and government officials to endeavor to fit the alternative mine development plans within the new mining framework. To date, our discussions have been positive and are creating a solid foundation for good working relationships for future exploration and development activities. The new framework is being developed through consultation with all stakeholders and the Company made its initial submission as requested in July 2008. Based on the feedback of the conditions outlined in the final framework, the Company may elect to proceed with a revised technical and environmental review.

Exploration

Buckreef, Tanzania

The Company has pursued an aggressive exploration campaign at Buckreef during 2008 and is advancing its technical and economic evaluations. In addition to geotechnical work on the known resources and hydrogeology studies on the Buckreef resource, a 2,329 metre diamond-drilling program was carried out to augment structural studies and validate earlier reverse circulation drilling. Additionally, more than 10,000 metres of reverse circulation drilling has been carried out year-to-date, resulting in a 5% increase in the gold resources with the discovery of the Minzwel zone. This increase brought the total Measured and Indicated Resources to 1 million ounces gold at an average grade of 2.0 grams per tonne gold. In an effort to realize the full potential of the Buckreef project, eight early-stage exploration targets located in the eastern and western sectors of the property received first pass reconnaissance aircore drilling totaling 22,953 metres since the start of the 2008 program. Results to date have been varied although some results are pending, including those from a priority target that was only recently available to drilling due to seasonal rains. Follow-up drilling is in progress and additional targets identified from a geophysical gravity survey are expected to yield additional targets.

Boto, Senegal

The Boto Project is a significant new gold mineralized trend in eastern Senegal identified earlier this year by IAMGOLD and has become the focus of exploration work by the Company in West Africa. Work is currently in progress on the Guemedji Trend, a six kilometre long mineralized corridor, and to define drill targets on three distinct zones within that trend: Boto 2, Boto 4, and Boto 6. A 33-line kilometre High Resolution I.P.-Resistivity geophysical survey (HIRIP survey) was 60% complete prior to being temporarily interrupted by the annual rainy season. The survey is scheduled to restart by early October. Preliminary data for sixteen lines completed prior to the stoppage indicate numerous chargeability anomalies that can be correlated with mineralization and hydrothermal alteration. Planned work includes completion of the HIRIP survey, acquisition of high resolution aeromagnetic data and diamond drilling of identified targets. A minimum 5,000 metre diamond drill program is planned and tentatively scheduled to start in November and extend into 2009. Regional geochemical coverage over the 227 square kilometre Boto concession has been completed and incorporates soil sampling and termite mound sampling. The termite mound sampling data clearly shows a series of NNW-trending mineralized trends that highlight the Guemedji, Koulou and Lelou Trends. Thick "duricrust" covers important parts of the project area and serves to mask the geochemical response of the termite mound sampling. The Company is examining the opportunity to advance exploration in these "blind" areas with aircore drilling in conjunction with the planned diamond drilling campaign.