IGC Resources Inc.

IGC Resources Inc.

January 24, 2008 09:00 ET

IGC Resources Inc.: Substantial Thermal Coal Deposits in Tanzania

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 24, 2008) - IGC Resources Inc. ("IGC" or the "Company") (TSX VENTURE:IGC)(PINK SHEETS:IGCGF)(FRANKFURT:I6G)(WKN:A0HGX4) advises that its associated company, Atomic Resources Limited ((ASX:ATQ), an Australian listed company in which IGC holds 28.55%), has completed a technical geological review on the coalfields that are currently the subject of a developing joint venture between Atomic's African subsidiary, Pacific Corporation East Africa Limited, and the National Development Corporation of Tanzania. The quoted release below was prepared in accordance with Australian regulations and listing standards for mineral exploration companies.

Atomic's news release of January 9, 2008 reported:

"... as a result of independent technical due diligence on the
Tanzania coalfield, the subject of a joint venture between National
Development Corporation ("NDC") a government corporation and the
company (Atomic), a potential resource target of between 100 million
and 120 million tonnes of thermal coal has so far been identified(i).
In accordance with section 18 of the JORC code the company wishes to
state that the potential quantity and quality however is conceptual in
nature, there has been insufficient verification of previous
exploration to define a mineral resource and that it is uncertain if
further exploration will result in the determination of a mineral
resource. The potential resource target is based upon the historical
estimates which although in existence and available in the public
domain will require verification to meet with the JORC requirements
and to comply fully with listing rule 5.6.

The technical report has identified that abundant historical data
including pre-JORC resources are available on both coalfields, and
that the well documented drilling information of over 11,000 metres
coupled with detailed geological mapping is of sufficient quantity and
quality as to allow the company (Atomic) to move quickly towards
developing new resource estimates in line with the JORC guidelines."

"It is very exciting to come across such an advanced energy project so
early in our company's life." Executive Director Mr. David Holden
said, "The report has given us the confidence we need to proceed to
the next stage of the joint venture with the NDC and has also
identified that the historical resources present require a minimum of
verification drilling to enable the first modern resource calculations
to be started. Drilling on the project is planned to commence early in

"Exploration on our uranium projects both in Tanzania and in Australia
will continue at the same time," he said."

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

(i) Note: The Atomic Resources Limited release complies with section 18 of the Australian Code for Reporting of Mineral Resources and Ore Reserves ("JORC code") and guidelines in stating a resource potential target based upon the geological information provided. There are no resources or reserves currently available for the project areas that satisfy the JORC Code or the Canadian National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101") for reporting resources and reserves.

About IGC Resources Inc.

IGC's principal focus is the exploration and development of the Blackburn Gold Project and Fraser Range copper/gold/rare earth elements project in Western Australia. The Company is also exploring for uranium and coal in Western Australia and Tanzania through a 28.55% interest in Atomic Resources Limited. (ASX:ATQ), an Australian listed company.

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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