IGC Resources Inc.

IGC Resources Inc.

December 01, 2006 11:38 ET

IGC Resources Announces Receipt of CDN$1,080,000 From Warrant Exercise and Grant of Stock Options to CEO

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 1, 2006) - IGC Resources Inc. ("IGC" or the "Company") (TSX VENTURE:IGC)(FWB:I6G)(WKN# A0H GX4)(PINK SHEETS:IGCGF) (www.igcresources.com) announced today that the share purchase warrants issued to Commercial Holdings Pty Ltd in connection with the acquisition by the Company of the Blackburn Gold Project and the Fraser Range iron oxide copper-gold and uranium style prospect in Western Australia have been exercised, for proceeds of $1,080,000. The share purchase warrants were exercisable until December 29, 2006 at $0.36 per Common Share.

The Company also announced today that stock options were granted to David Holden, Chief Executive Officer and a director, under the Company's Stock Option Plan, to purchase up to 400,000 common shares in the capital stock of the Company at $0.35 per share exercisable until December 1, 2011, with a four-month hold period and subject to vesting requirements.

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. The Company trades on the TSX Venture Exchange under the symbol "IGC" (IGC.V for yahoo.com quotes) and Frankfurt symbol "I6G".

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.

17.5M shares outstanding; Last trade: C$0.32

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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