IGC Resources Inc.

IGC Resources Inc.

January 30, 2006 11:58 ET

IGC Resources Announces Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 30, 2006) - www.igcresources.com -- IGC Resources Inc. ("IGC") (TSX VENTURE:IGC)(FWB:I6G)is pleased to announce today a non-brokered private placement of up to 720,000 units (the "Units") at $0.70 per Unit has been negotiated. Each Unit will consist of one common share in the capital stock of IGC and a one-half of one share purchase warrant. One whole warrant will permit the holder to purchase one additional common share of IGC for two years following closing at a price of $1.00. The private placement is subject to acceptance by the TSX Venture Exchange (the "Exchange"). The proceeds from the private placement will be used for general working capital.

IGC's principal business activities are the exploration, development and mining of gold, copper and uranium prospects within Western Australia, however, IGC continues to investigate other mineral resource prospects globally for potential acquisition.

On behalf of the Board,

Clive Hartz, President & CEO

13.5M shares outstanding; Last trade: C$0.70

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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