IGC Resources Inc.

IGC Resources Inc.

July 09, 2007 13:16 ET

IGC Resources' 28% Owned Uranium Explorer, Atomic Resources Limited, Completes IPO and Lists on The Australian Stock Exchange

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 9, 2007) - IGC Resources Inc. ("IGC") (TSX VENTURE:IGC)(PINK SHEETS:IGCGF)(FRANKFURT:I6G)(WKN:A0HGX4) wishes to announce that Atomic Resources Limited (ASX:ATQ) successfully completed its Initial Public Offering to raise A$7,250,000 at A$0.25 per share and listed on the Australian Stock Exchange on July 4th, 2007. IGC currently holds 16.5 million shares (28.55%) of ATQ which was valued at A$4.2 million at the close of trading on July 6, 2007.

ATQ holds granted concessions within the Bahi and Tunduru regions of Tanzania and in Western Australia.

The majority of uranium exploration in Tanzania has had its basis from the nationwide airborne geophysical survey completed by Uranerz between 1976 and 1979 (Uranerzbergbau 1978). The survey was a systematic one kilometre-spaced airborne survey with radiometrics, EM and magnetics, with emphasis over the Bahi Basin region. Uranerz produced (and interpreted) geophysical data from a series of 1:100,000 map sheets and selected anomalies based upon the uranium counts, uranium/thorium (U/Th) ratios and uranium/potassium (U/K) ratios. Those that displayed exceptionally high uranium counts and U/Th and/or U/K ratios over areas of surficial sedimentation were considered as high order or first order anomalies. One anomaly is located within the Handa concession, at Bahi.

Exploration work by Uranerz on other anomalies of similar magnitude established that the near surface targets could result in significant uranium, with grades of 200ppm detected during the country-wide survey.

The geological setting of the Tunduru Project area is considered by ATQ to be similar to that of the Kayelekera deposit, located some 300 kilometres to the west in Malawi. Kayelekera has a reported Inferred Resource of 9.4 Mt at 0.12% U3O8 for a contained 10,850 tonnes U3O8 (Paladin website).

Indications from nearby companies, including Mantra Resources Limited and Paladin Limited, does suggest that the area is highly prospective. Secondary uranium mineralisation has been identified within both the Mkuju Series and the overlying Mbarangandu Series near the current ATQ concessions. To the south of the ATQ concession areas the regions have been largely prospected and fossicked by artisans for alluvial gold and gemstones. No significant exploration for uranium has so far taken place in the area of the ATQ tenements. Minor minerals sands to the south have been noted with trace Monazite.

ATQ is of the opinion that the concessions could be quickly advanced by means of a detailed radiometric survey and reinterpretation of the existing geological maps and aeromagnetic data.

In Western Australia, ATQ holds projects that contain historical drilling results or have strong geological concept models based upon regional radiometric surveys. Whilst the majority of tenements in its portfolio are currently still in application, ATQ is confident that granting of exploration licences is imminent for a number of the higher priority projects.

IGC received A$200,000 in cash and 16,500,000 common shares of ATQ. Following issuance of the ATQ shares to the Company, IGC now owns 28.55% of the issued and outstanding shares of ATQ. IGC will continue to explore the Uaroo tenement for copper and gold mineralisation and will retain ownership of the tenement. The transaction allows IGC to gain significant exposure to the uranium exploration activity in Australia and Tanzania, while allowing IGC to focus on its core intrusive-related and IOCG (gold and copper) projects in Australia.

About IGC Resources Inc.: IGC's principal business activities are the exploration, development and mining of gold and copper prospects within Australia, while continuing to investigate other mineral resource prospects for potential acquisition globally. IGC also holds an IOCG exploration project in the southern Fraser Range proterozoic mobile belt.

For more information, please visit our website at www.igcresources.com, email us at info@igcresources.com or call us at +1 604-664-7424.

Linda Holmes, Corporate Secretary

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.

Contact Information