IGC Resources Inc.

IGC Resources Inc.

April 27, 2007 10:37 ET

IGC Resources Proposed to Grant Option on Uaroo Project to Acquire 30% Interest in Australian Uranium Company to be Listed on the ASX

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 27, 2007) - IGC Resources Inc. ("IGC" or the "Company") (TSX VENTURE:IGC)(PINK SHEETS:IGCGF)(FRANKFURT:I6G)(WKN:A0HGX4) is pleased to announced that the Company has agreed in principle to acquire 30% of the outstanding common shares of Atomic Resources Limited ("Atomic"), an Australian company planning a uranium-focused initial public offering (IPO) and listing on the Australian Stock Exchange ("ASX") in exchange for optioning IGC's uranium interests in Australia to Atomic. IGC will grant an option to Atomic to acquire the uranium rights comprising IGC's Uaroo project to Atomic and provide technical and managerial support. Atomic will hold advanced exploration assets within Australia and Tanzania.

The Uaroo project comprises two granted concessions encompassing westward-draining palaeochannels. Historical results by previous explorers demonstrate the presence of uranium within the project area. The channels are dominated by a north-south trending roll front within sandstones and shales, with the project located some 40 kilometres down the roll front from the Manyingee Deposit currently owned by Paladin Resources Limited. Current resources at Mayingee as reported by the Department of Industry and Resources, Western Australia on the MINEDEX website (www.doir.wa.gov.au/minedex2/) is 8.080 million tonnes grading 1.00kg/t indicated and 6.663 million tonnes grading 0.600kg/t inferred of uranium oxide. IGC cautions that the results at Mayingee may not be indicative of the results at Uaroo.

Recent exploration drilling at Uaroo by IGC has intercepted anomalous uranium both within the channels and within surface rock chip samples collected approximately 20 kilometres to the east within an area identified to have a strong radiometric anomaly identified from regional airborne geophysics. Previous explorers Anaconda 1982 and Pechiney 1974 had also reported anomalous uranium in rock samples to the north and south of the IGC anomaly, with Anaconda reporting 131ppm in a surface rock chip sample from that region. As yet no follow up work on the results has been completed.

IGC will continue to explore the tenement for copper and gold mineralisation and will retain ownership of the tenement, offering to Atomic, the rights to any uranium discovered within the tenement.

IGC will enter into an option agreement with Atomic and in consideration of receiving the option, Atomic will, on its exercise of the option, pay IGC AUS$200,000 in cash and issue 16,000,000 common shares of Atomic to IGC at a deemed price of AUS$0.10 per common share. IGC expects the option agreement to be concluded by end of day April 27, 2007 and the option exercised by Atomic within three months.

IGC has also completed a seed capital placement with Atomic by the purchase of 500,000 shares at AUS$0.10 per share. Atomic expects that the IPO in connection with its ASX listing to be completed within the next three months. Following closing of Atomic's IPO, IGC will own approximately 30% of Atomic's then outstanding shares. The current Directors of Atomic, David Holden, Clive Hartz and Alastair Walker are also Directors of IGC. At the time of listing it is anticipated that Management will collectively hold less than 10% of the outstanding common shares of Atomic.

This option of its uranium rights allows IGC to gain significant exposure to the uranium exploration activity in Australia and Tanzania, while allowing IGC to focus on its core intrusive related and IOCG (gold and copper) projects in Australia.

The following is summary of the other projects being acquired by Atomic.


Eraheedy Project - Historical results up to 1.7m @ .87 U3O8 at flag ship prospect, Fyfe Well. Already defined anomaly ready to drill. Additional 6 other concessions covering radiometric anomalies over paleochannels with sporadic anomalous uranium at surface still to be followed up.

Ashburton Project - Laura prospect with previous uranium results and over 250 meters of anomalous mineralization already identified. Vein style mineralization associated with copper and lead in pegmatites and quartz previously identified by COGEMA. Also over 10 km of the Gascoyne Complex/Bangemall Supergroup unconformity yet to be explored.

Tanami Project - Well defined unconformity with strike length known to host mineralization. Anomalous U found in rock chips. Historical drilling also encountered cobalt and nickel as well as uranium. Falconer Hill concessions to the west include drill results from Afmeco of up to 120ppm not yet followed up including additional drilling with gamma logs not yet assayed. Geology indicates paleo-channels on the margins of the Canning Basin.


Handa Project - close to Uranex Limited (ASX listed) area in Bahi Basin. Covers a first (High) order radiometric anomaly from Uranerz survey 1970's considered very prospective. Sandstones formed from deeply weathered "hot" Achaean granites.

Tunduru Project - In close proximity to the Uranex Limited (ASX Listed) southern region covering part of the well mapped Karoo sandstone. Additional licence area under application at Tunduru. Kayelekera uranium deposit (Paladin Resources Limited ASX and TSX-V listed) 11,300t U3O8 in Malawi occurs in similar rocks 300km to the west.

Information in this announcement was compiled by Mr. Dave Holden, a director of IGC, who is a Member of the AusIMM and a "Qualified Person" under Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

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.

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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