IGC Resources Inc.

IGC Resources Inc.

January 18, 2007 19:48 ET

IGC Resources Announces Negotiation of Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 18, 2007) - IGC Resources Inc. ("IGC" or the "Company") (TSX VENTURE:IGC)(PINK SHEETS:IGCGF)(FWB:I6G)(WKN:A0HGX4) is pleased to announce today that it has entered into an agreement with Bolder Investment Partners, Ltd. (the "Agent") for a brokered private placement of up to 2,000,000 units (the "Units") at $0.35 per Unit (the "Offering"). Each Unit will consist of one fully paid and non-assessable Common Share in the capital stock of the Company (a "Share") and one-half of one non-transferable share purchase warrant (a "Warrant"). One whole Warrant will entitle the holder thereof to purchase one additional Common Share of the Company at $0.45 for two years from the closing date.

The cash commission payable to the Agent is 8% of the gross proceeds of the Offering which the Agent may elect to be paid up to all in Units and is due on the closing date. The Agent is also entitled to receive warrants (the "Agents' Warrants") equal to 10% of the total number of Units sold through the Offering. Each Agent's Warrant entitles the holder to purchase one Common Share of the Company at a price of $0.45 per share, exercisable for two years from the closing date. The private placement is subject to acceptance by the TSX Venture Exchange (the "Exchange"). Proceeds from the private placement will be used for exploration of the Company's current properties and for general working capital.

About IGC Resources Inc.: IGC Resources Inc.'s principal business activities are the exploration, development and mining of gold, copper and uranium prospects within Australia, 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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