IGC Resources Inc.
TSX VENTURE : IGC
FRANKFURT : I6G
PINK SHEETS : IGCGF

IGC Resources Inc.

February 27, 2008 17:31 ET

IGC Resources Inc.: Private Placement Negotiated

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 27, 2008) - IGC Resources Inc. ("IGC" or the "Company") (TSX VENTURE:IGC)(PINK SHEETS:IGCGF)(FRANKFURT:I6G)(WKN:A0HGX4) is pleased to announce today a non-brokered private placement of up to 6,000,000 units (the "Units") at $0.20 per Unit (the "Offering"). Each Unit will consist of one fully paid and non-assessable Common Share in the capital stock of the Company (a "Common Share") and one-half of one non-transferable share purchase warrant (a "Warrant"). One whole Warrant will entitle the holder thereof to purchase one additional Common Share of the Company at $0.30 for two years from the closing date.

The Company has agreed to pay finder's fees of 7% on a portion of the gross proceeds of the Offering to certain finders in consideration of their efforts in introducing placees to the Company. The Company also intends to issue finder's warrants equal to 3% of the total number of Units sold through certain finders under the Offering (the "Finder's Warrants"). Each Finder's Warrant entitles the holder to purchase one Common Share of the Company at a price of $0.30 per Common Share, exercisable for two years from the closing date. Any finders who are member firms of the TSX Venture Exchange (the "Exchange"), may negotiate their compensation with the Company. The Company anticipates that Bolder Investment Partners, Ltd. ("Bolder") will be compensated under the Offering for their efforts in introducing placees to the Company and intends to pay Bolder a 7% finder's fee and issue warrants to Bolder equal to 10% of the total number of Units sold to Bolder clients. The warrants proposed to be issued to Bolder will have the same terms as the Finder's Warrants described above. Commercial & General Capital Limited, a company controlled by IGC's President, Clive Hartz, and an insider of the Company, intends to purchase Units under the Offering.

The private placement is subject to acceptance by the Exchange. Proceeds from the private placement will be used for drilling and exploration of the Company's current properties and acquisition of additional properties.

About IGC Resources Inc.: 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. IGC also holds an IOCG exploration project in the southern Fraser Range proterozoic mobile belt and a copper-gold/uranium project at Uaroo, immediately south of the Manyingee uranium deposit near Onslow, Western Australia.

The Company also holds approximately 28% of Australian listed energy explorer, Atomic Resources Limited (ASX:ATQ).

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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