IGC Resources Inc.

IGC Resources Inc.

December 04, 2006 10:00 ET

IGC Amends Terms of Option to Purchase Plant at Blackburn Gold Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 4, 2006) - IGC Resources Inc. ("IGC" or the "Company") (TSX VENTURE:IGC)(PINK SHEETS:IGCGF) (FWB:I6G)(WKN# A0H GX4) (www.igcresources.com) announced today that it has negotiated and signed an extension to the term of the December 8, 2004 option agreement with Great Southern Resources Pty Ltd ("GSR") to purchase the plant, equipment and related infrastructure at the Company's Blackburn Gold Project in Western Australia from an expiry date of the option of December 8, 2006 to December 8, 2008 in return for issuance to GSR of a transferable warrant to purchase up to 2,000,000 common shares exercisable at $0.35 per share, or such other price that may be acceptable the TSX Venture Exchange ("TSXV"), for two years from the date of issuance of the warrant. The issuance of the warrant is subject to receipt of the approval of the TSXV. Clive Hartz and David Holden, directors of the Company, are also directors of GSR.

IGC Resources Inc.'s principal business activities are the exploration, development and mining of gold, copper and uranium prospects within Western Australia, while continuing to investigate other mineral resource prospects for potential acquisition globally. The Company trades on the TSX Venture Exchange under the symbol "IGC" (IGC.V for yahoo.com quotes) and Frankfurt symbol "I6G".

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.

17.5M shares outstanding; Last trade: C$0.32

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

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