IGC Resources Inc.

IGC Resources Inc.

March 23, 2006 09:00 ET

IGC Resources Closes Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 23, 2006) - IGC Resources Inc. ("IGC") (TSX VENTURE:IGC)(FWB:I6G) is pleased to announce that the non-brokered private placement for gross proceeds of $504,000 announced on January 30, 2006 has closed. The private placement consists of 720,000 units (the "Units") at $0.70 per Unit. Each Unit consists 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 common shares are subject to a four month hold until July 21, 2006. 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 for potential acquisition globally.

On behalf of the Board,

Clive Hartz, President & CEO

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.

13.5M shares outstanding; Last trade: C$0.57

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

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