IGC Resources Inc.

IGC Resources Inc.

June 02, 2009 16:35 ET

IGC Reports Start of Bankable Feasibility Study at Atomic Resources Inc.'s Ngaka Coal Project, Tanzania

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 2, 2009) - IGC Resources Inc. ("IGC" or the "Company") (TSX VENTURE:IGC)(PINK SHEETS:IGCGF)(FRANKFURT:I6G)(WKN:A0HGX4) has been advised by Atomic Resources Limited (ASX:ATQ) ("Atomic"), an Australian-listed company in which IGC holds a 28.55% interest, that:

Tancoal Energy (a special purpose Joint Vehicle between the Tanzanian Government (30%) and Atomics' Tanzanian subsidiary, Pacific Corporation East Africa ("PCEA") (70%)), have formally commenced a Bankable Feasibility Study ("BFS") for its Ngaka thermal coalfields in southern Tanzania, which is focusing on three strategic components;

- Mining of thermal coal for export and power generation on site;

- Development and project financing of a coal gasification plant and a 400 Mega Watt (Mw) power station utilizing clean coal technology;

- Development of a private public partnership with TANESCO (the Tanzanian Government's electrical authority) for the construction of power transmission lines to connect the project to the Tanzanian power grid.

Atomic plans to commence mining at Ngaka within 12 months of completing the BFS and anticipates initial coal production rate of 1 million tonnes per annum (Mtpa). During the 3 year construction phase for the IGCC plant production will ramp up to 2Mtpa. Project finance discussions have commenced with international investors and financial institutions in Europe, America and Australia.

The generating capacity of a 400Mw power station in Tanzania will increase total electricity supply within the country by approximately 40%. The Tanzanian National Development Corporation considers this project to be critical to national development.

Follow this link to read Atomic's full news release


Note: The information in this release was taken from the Atomic Resources Limited news release of May 21, 2009, which release complies with section 18 of the Australian Code for Reporting of Mineral Resources and Ore Reserves ("JORC code") and guidelines in stating a resource potential target based upon the geological information provided. Technical information in this announcement was reviewed by Mr. Dave Holden, President and CEO, who is a member of The Australian Institute of Mining and Metallurgy and a "Qualified Person" as defined under NI 43-101.

About IGC Resources Inc.: IGC's principal business activities are the exploration and development of its gold and copper projects while continuing to investigate other mineral resource prospects for potential acquisition globally.

Statements in this release may constitute forward-looking statements which involve known and unknown inherent risks and uncertainties that are detailed in IGC's periodic filings with Canadian securities regulators. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Actual events or results could differ materially from IGC's expectations and projections.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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