IGC Resources Inc.

IGC Resources Inc.

July 26, 2005 13:36 ET

IGC Resources Commences Exploration for Uranium, Copper and Gold in Fraser Range, Western Australia

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 26, 2005) - IGC Resources Inc. ("IGC") (TSX VENTURE:IGC), www.igcresources.com, is pleased to announce that Exploration Licences for the Fraser Range Project have been granted. Through its 100% owned Australian subsidiary, Goldport Pty Ltd, IGC holds a sub-lease and sub-licence on the Fraser Range tenements (see January 16, 2005 news release). The tenements located in the southeast of Western Australia are prospective for uranium, copper and gold. The total area covered by the tenure is over 800 square kilometres. (See map of the area on our website).

The Company is excited about the potential of the Fraser Range Project as adjacent tenement holders are reporting elevated copper, molybdenum and gold values in regional soil samples. One company in particular, Nickel Australia Limited, has already mobilized a drilling rig to their property to follow up on their highly anomalous results.

Our first phase of exploration in this highly prospective region will comprise regional soil-sampling over targets identified from a previous aeromagnetic interpretation program carried out on the property. The interpretation has already identified major crustal scale, tectonic features and evidence of possible transfer faulting. In addition, the geophysical remote sensing data has identified potential granite intrusions below the present surface cover. Further geophysical data collection will be initiated in conjunction with the planned field activities which will include gravity and close-spaced magnetics.

The Fraser Range Project occurs within a tectonic collision zone (or mobile belt) between Archean greenstone rocks and Proterozoic metasediments/volcanics that were subsequently intruded by high-level, fractionated Proterozoic age 'A-type' granitoids.

The region is considered to most likely host Iron Oxide/Copper/Gold/Uranium-style deposits such as the giant Olympic Dam Mine, which reported (2003 - WMC Resources Ltd., now part of the BHP Billiton Group) resources of 2,300 million tonnes of 1.3% copper, 0.5g/t gold, 0.4% uranium oxide and 2.9g/t silver, hosted within an 'A-type' granitoid.

An aggregate of 1,058,000 common shares of IGC were issued on July 22, 2005 to Commercial & General Capital Limited ("C&G") in consideration of the exercise of a non-transferable share purchase warrant to purchase 800,000 common shares of IGC at a price of $0.15 per share and the conversion of the balance of the principal owing under a convertible note in the amount of $38,700 into 258,000 common shares of IGC at the conversion rate of $0.15 per share. (See August 5, 2003 news release for details of the private placement of the convertible note and share purchase warrant.) Proceeds from the conversion and exercise netted the Company $158,700. Clive Hartz, President, CEO and a director of the Company, and Alastair Walker, a director of the Company, are related parties of C&G. The 1,058,000 common shares will be subject to resale restrictions applicable to a control person.

IGC's principal business activities are the exploration, development and mining of the Blackburn Gold Project, exploration of the Fraser Range Project and, provided that the tenements applied for are granted, exploration of the Uaroo uranium prospect in Western Australia. We continue to investigate other mineral resource prospects for potential acquisition.

On Behalf of the Board of Directors of


Clive R. Hartz, President and CEO

To view the map attached to this release please click on the following link: http://www2.ccnmatthews.com/database/fax/2000/0726igc.jpg

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.

12.5 million shares outstanding

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

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