IGC Resources Inc.
TSX VENTURE : IGC
FRANKFURT : I6G
PINK SHEETS : IGCGF

IGC Resources Inc.

August 29, 2007 13:40 ET

IGC Resources Announces Drilling Commences at Blackburn Gold Project, Western Australia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 29, 2007) - IGC Resources Inc. (TSX VENTURE:IGC) (PINK SHEETS:IGCGF) (FRANKFURT:I6G) (WKN:A0HGX4) ("IGC" or the "Company") wishes to announce that a 4,000 metre reverse circulation drilling program has commenced at the Company's Blackburn Gold Project in Western Australia.

The drilling is intended to test targets defined from the recently completed VTEM helicopter borne survey and to explore for depth extensions to the known shallow mineralisation closer to the existing Jinka's pit. The EM survey has significantly expanded the exploration focus for the technical team at IGC and has provided the Company with a number of opportunities for additional new discoveries.

The mineralized shoot at the Jinka's Pit can clearly be seen in the processed geophysical data provided by the VTEM survey, and it is on this interpretation these other targets with similar characteristics have been identified.

In total, 22 targets were identified from the EM survey. With subsequent modeling of the data, four have been identified as advanced drill-ready targets. The Company will also seek to explore for mineralisation below the quartz monzonite sill that currently defines the footwall for the Jinka's Pit mineralisation.



Previous diamond drilling on the Jinka's shoot in late 2005 included results
of:

----------------------------------------------------------------------------
HOLEID FROM To Interval Gold Gold Gold
(metres) (metres) (metres) rpt1 rpt2
(grams (grams (grams
per per per
tonne) tonne) tonne)
----------------------------------------------------------------------------
JDDH01 83 102.5 19.5 3.30
----------------------------------------------------------------------------
including: 83 83.5 0.5 5.88
----------------------------------------------------------------------------
88 88.5 0.5 8.18 10.52
----------------------------------------------------------------------------
90 90.5 0.5 6.36 5.23 2.69
----------------------------------------------------------------------------
91 91.5 0.5 6.1 6.55
----------------------------------------------------------------------------
101 101.5 0.5 9.25 6.85 7.38
----------------------------------------------------------------------------
102 102.5 0.5 4.27
----------------------------------------------------------------------------
JDDH02 96 107.5 11.5 6.52
----------------------------------------------------------------------------
including: 97 97.5 0.5 23.08 11.72 51.89
----------------------------------------------------------------------------
97.5 98 0.5 5.13 3.7 2.46
----------------------------------------------------------------------------
100 101.5 1.5 7.86 4.91 5.09
----------------------------------------------------------------------------
102.5 103 0.5 9.19 3.63 26.75
----------------------------------------------------------------------------
103.5 104 0.5 4.17
----------------------------------------------------------------------------
104 104.5 0.5 4.69
----------------------------------------------------------------------------


Note: Sampling of NQ diameter diamond core was completed on 0.5 metre intervals, oriented and cut half core, by Genalysis Laboratories, an independent Australian- accredited assay lab. Analytical method standard 50 grams lead collection fire assay. Assays reported to 3 significant figures within the "Gold rpt1" and "Gold rpt2" are repeat assays taken to check sample assay variability. "Gold" is the original assay. All holes were drilled on a -60 degree dip. Interval widths are not necessarily true widths and no intervals have been amended to represent true thickness. Previously reported December 2005.

The Blackburn Project hosts gold resources of 212,100 ounces inferred (6,244,600 tonnes at 1.06 grams per tonne ("gpt"); 19,900 ounces indicated (328,900 tonnes at 1.47 gpt gold); and 9,800 ounces measured ounces (51,300 tonnes at 5.92 gpt gold) as detailed in the NI 43-101 compliant Valuation Report prepared by Malcolm Castle, B.Sc.(Hons), MAusIMM, dated May 21, 2004 and filed on SEDAR (www.sedar.com) June 17, 2004. In addition, IGC has an option to acquire the plant and equipment already within the project area. With this in mind the Company is focused on building additional resources within the area over the coming months and is aggressively working towards developing a production profile at the Blackburn Gold Project.

Technical information in this announcement was reviewed by Mr. Dave Holden, CEO, who is a Member of the AusIMM and a "Qualified Person" as defined under Canadian National Instrument 43-101 ("NI 43-101").

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. IGC also holds an IOCG exploration project in the southern Fraser Range proterozoic mobile belt and a copper-gold/uranium project at Uaroo, immediately south of the Manyingee uranium deposit near Onslow, Western Australia. 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.

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