IGC Resources Inc.

IGC Resources Inc.

June 27, 2008 09:00 ET

IGC Associate, Atomic Resources, to Begin Drilling Tanzanian Coalfields

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 27, 2008) - IGC Resources Inc. (TSX VENTURE:IGC)(PINK SHEETS:IGCGF)(FRANKFURT:I6G)(WKN:A0HGX4) ("IGC" or the "Company") is pleased to report that Atomic Resources Limited (ASX:ATQ) ("Atomic", an Australian listed company in which IGC holds 28.55%), expects to begin drilling in early July on the Ngaka coal deposit in Southern Tanzania, one of three separate coal deposits joint ventured with the Tanzanian National Development Corporation. The comprehensive diamond drilling program is aimed at confirming a JORC-compliant resource as soon as possible from the potential target of between 90 - 110 million tonnes of thermal coal(1). For further information refer to Atomic's website at www.atomicresources.com.au.

(1) The information in this release was taken from the Atomic Resources Limited release of June 17, 2008, 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. There are no resources or reserves currently available for the project areas that satisfy the JORC Code or the Canadian National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101") for reporting resources and reserves.

About IGC Resources Inc.: IGC's principal business activities are the exploration and development for mining of gold and copper projects in Australia and Africa 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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