IGC Resources Inc.
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IGC Resources Inc.

February 17, 2009 16:05 ET

IGC Announces JORC-Compliant Coal Resource in Atomic Resources Inc.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 17, 2009) - IGC Resources Inc. (TSX VENTURE:IGC)(PINK SHEETS:IGCGF)(FRANKFURT:I6G)(WKN:A0HGX4) ("IGC" or the "Company") has been advised by Atomic Resources Limited (ASX Code: ATQ "Atomic"), an Australian-listed company in which IGC holds a 28.55% interest, of Atomic's analyses from its drilling campaign carried out on the Ngaka coalfields in southern Tanzania. Atomic's subsidiary, Pacific Corporate East Africa Limited, may acquire up to a 70% interest in the Mhukuru and Ngaka coalfields from its joint venture partner, the Tanzanian National Development Corporation. Atomic announced its drill results on February 9, 2009 and IGC, by virtue of its investment in Atomic, wishes to announce Atomic's coal resource estimate as permitted under National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101"). JORC refers to the Australasian Code for Reporting of Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Mineral Council of Australia.



Table 1 - Coal Resource Estimate
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Category (Tonnes (M))
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Seam Measured Indicated Inferred

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1 16.76 3.42 1.15
2 8.53 1.60 0.78
3 48.16 11.12 15.95
4 29.22 6.58 13.11
5 15.71 2.77 4.15
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Total 118.39 25.49 35.14
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Statistical analysis of coal qualities for each of the 5 seams indicate that the coal is a high ash, low moisture, low sulphur sub bituminous coal. Calorific values are in the range 4,784 to 7,024 Kcal/kg with a resource weighted average of approximately 5,978 Kcal/kg. This is considered suitable for thermal coal, particularly for power generation and may also be considered suitable for industrial use in cement manufacture and fertilizer manufacture; all growing industries within Tanzania in particular and Africa in general.



Table 2 - Coal Quality
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Coal Analysis
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Million
tonnes Inhe- MJoules
(Measu- rent /Kg Kcal/Kg
red & Mois- Vola- Fixed Sul- Den- Calor- Calor-
Indi- ture Ash tiles Carbon phur sity ific ific
Seam cated) (%) (%) (%) (%) (%) (%) Values Value
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1 20.18 2.6 17.1 30.1 50.2 3.59 1.54 27.62 6,597
2 10.13 3 11.4 31.5 54.1 1.43 1.41 29.41 7,024
3 59.28 3.1 19.2 25.4 52.3 1.15 1.6 26.12 6,239
4 35.8 2.8 26.7 28 42.5 1.35 1.63 23.56 5,627
5 18.48 2 38.5 25.1 34.4 0.7 2.21 20.03 4,784
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Total 143.87 2.8(i) 22.8(i) 27.1(i) 47.3(i) 1.5(i) 1.7(i) 25.1(i) 5,978(i)
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(i) Totals shown for analyses are seam weighted averages.
Analyses on an Air Dried Basis by WitBank Coal Laboratories, South
Africa, an SGS credited laboratory.


The following criteria were used to define the resource classification.

- The resource was derived from a total cumulative drilling database comprising 27 holes and approximately 6,958 metres from drilling completed by the Commonwealth Development Corporation in 1955 together with 19 holes for approximately 2,940 metres from HQ3 diamond drilling completed by Atomic in December 2008.

- The 2008 drilling focused on the Mbalawala block, Ngaka coal field with the express intention of verifying and validating the historical drill data. Two historical holes were purposefully twinned for confirmation and have demonstrated a high degree of continuity allowing Atomic to rely on the previous data as well as the current data.

- 340 samples were collected for detailed analysis from the recent drilling. Samples have been analyzed for proximate analysis (including ash, sulphur, fixed carbon, volatiles, relative density and calorific value) coal attribute analyses (i.e. metallurgical characteristics) and a suite of trace elements by ICP techniques. Both clean coal plies and inter burden splits have been analyzed from most of the recent diamond drilling holes.

- While some historical drill data has been used outside the existing concession boundary to aid the modeling process, the latest resource estimate is constrained to the existing concession boundary.

- For the modeling process, surface mapping and each valid drill hole has been used to construct a complex wireframe for the five seams identified. Geological data digitized from outcrop mapping and all drill data has been used to construct a wireframe model with five seams currently identified.

- The classification of the resource estimate into measured, indicated and inferred categories is based upon drill hole sampling distributions, availability and quality of analytical data for the holes and geophysical data for the hole.

- This distribution assumption has been incorporated in a block model of 20 metres by 20 metres by 2 metre block size. Each block has had a quality item attribute assigned based upon the distance from the data point and the confidence assigned to that data point determined by the factors above. The distance attribute was judged as up to 500 metres for measured, 800 metres for indicated and 1,600 metres for inferred. The summation of the confidence items generated for each block and for each seam has resulted in the resource estimation summary in Table 1.

While peripheral areas of the resource are seen to contain coal, the low confidence in data or scarcity of data point in these areas has assigned the coal to Atomic's internal Inventory Coal category and this is not reportable under the JORC code and guidelines. It is anticipated that further work on these marginal areas may see re-classification of the coal into one or more of the JORC resource categories. The quantities of coal currently within the non reportable category are not considered significant at this time relative to the main resource.

The wireframes and block models used in the calculation of the estimate were generated by Ravensgate geological consultants using MEDSystem Mine evaluation software under the direction of Mr. D. Holden, Technical Director for Atomic.

Atomic is now completing a final review of all data including the latest resource estimate and internal scoping study report and expects to be able to proceed to bankable feasibility before the end of the first quarter of 2009.

Mr. D. Holden of IGC has read and approved the contents of this news release. He is a Qualified Person within the meaning of NI 43-101.

Note: The information in this release was taken from the Atomic Resources Limited news release of February 9, 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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