IGC Resources Inc.

IGC Resources Inc.

November 19, 2007 10:18 ET

IGC Resources' Associate, Atomic Resources Limited (28.5% Owned), Signs Coal Project With Tanzanian Government

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 19, 2007) - IGC Resources Inc. ("IGC" or the "Company") (TSX VENTURE:IGC)(PINK SHEETS:IGCGF)(FRANKFURT:I6G)(WKN:A0HGX4) wishes to inform the market that Atomic Resources Limited (ASX:ATQ) ("Atomic") has, through its Tanzanian registered subsidiary, Pacific Corporation East Africa Limited ("PCEA"), entered into a Memorandum of Understanding ("MOU") with the National Development Corporation ("NDC") of Tanzania, to explore and develop the Mhukuru and Ngaka coal fields in southern Tanzania. ATQ is 28% owned by IGC.

Under the terms of the MOU, Atomic has a 90 day period to complete due diligence on the project concessions and to verify historical technical data. On completion of a successful due diligence, PCEA will enter into a Joint Venture ("JV") agreement with the NDC, with Atomic retaining a 75% interest throughout project development. NDC will be free-carried for 25% through to production. PCEA has agreed that as part of the JV terms not less than $500,000 will be spent on the project areas within the first 24 months.

Atomic's news release of November 15, 2007 reported:

There is no JORC-compliant resource calculation currently available, however there is abundant public literature available on the coalfields of Tanzania confirming the fields have substantial potential tonnage.

The coals are regarded as high calorific with low sulphur and moisture, and high ash content. Geologically, the coal seams lie within the Karoo sediments preserved within depressions in the Precambrian basement. Whilst the coalfields of Tanzania have been well known for over a century, until now they have never been fully developed or systemically explored using modern exploration techniques.

Atomic's Executive Director Dave Holden stated "Given that we are in the Southern Tanzanian region exploring for uranium, this opportunity is a natural progression in the development of potential substantial and significant energy resources. This coal resource will be vital to Tanzania's economic development and for Atomic's growth."

Mr. Holden added, "It's still early days, however this deal is a tremendous opportunity for Atomic to expand its commitment to Tanzania and become a major coal producer in the country, with the potential to generate significant export earnings by selling coal to neighboring countries."

The first priority for Atomic is to compile the existing data, commence drilling and verify previous results and prove up a JORC-complaint resource.

For further information refer to the Atomic Resources' website at www.atomicresources.com.au.

About IGC Resources Inc.: IGC Resources Inc.'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 and a 28.5% ownership in Atomic Resources Limited which holds advanced exploration uranium assets in Western Australia and Tanzania, Africa, and the uranium rights to IGC's Uaroo tenements.

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.

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