IGC RESOURCES INC.

IGC Resources Inc. has been advised by Atomic Resources Limited, an Australian-listed company in which IGC holds a 28.55% interest, that: Tancoal Energy (a special purpose Joint Vehicle between the Tanzanian Government (30%) and Atomics’ Tanzanian subsidiary, Pacific Corporation East Africa (“PCEA”) (70%)), have formally commenced a Bankable Feasibility Study (“BFS”) for its Ngaka thermal coalfields in southern Tanzania, which is focusing on three strategic components; Mining of thermal coal for export and power generation on site; Development and project financing of a coal gasification plant and a 400 Mega Watt (Mw) power station utilizing clean coal technology; Development of a private public partnership with TANESCO (the Tanzanian Government’s electrical authority) for the construction of power transmission lines to connect the project to the Tanzanian power grid. Atomic plans to commence mining at Ngaka within 12 months of completing the BFS and anticipates initial coal production rate of 1 million tonnes per annum (Mtpa).