IAMGOLD Update on Rare Earth Drilling and Assay Results

IAMGOLD Corporation (NYSE: IAG) today announced an update on its exploration of the rare earth elements adjacent to its Niobec niobium mine near Saguenay, Quebec, Canada. The known rare earth element zone located about one kilometre north of the Niobec mine was last explored in 1985, and is known to host significant rare earth element mineralization.

As reported in the Company's 2011 second quarter report, a supplemental exploration program of $2.5 million was approved to drill test the projected extensions of known niobium resources at Niobec, and to explore the REE zone. A 21,000 metre diamond drilling campaign commenced in the second quarter, with 8,500 metres directed to the REE zone.

By the end of August, 2011, more than 7,000 metres of diamond drilling had been completed within the REE zone. The program is designed to establish the three dimensional "footprint" of mineralization which begins very near surface, provide a preliminary grade estimate of the suite of rare earth elements, and conduct preliminary metallurgical test work.

At the onset of the 2011 drill campaign, four holes were drilled within the mineralized zone, and assay results confirmed the historical grade of Total Rare Earth Element Oxides. Main rare earth elements found are Cerium (Ce), Lanthanum (La), Neodymium (Nd), Praseodymium (Pr), Samarium (Sm), Gadolinium (Gd), Europium (Eu), Dysprosium (Dy) and Terbium (Tb). Tables showing the drill and assay results are attached to this news release.

In the last few months, metallurgical testwork has been initiated on drill samples. Preliminary metallurgical testwork results showed recovery of between 58% to 70% in a bulk flotation concentrate. Optimization testwork continues and preliminary leaching tests will begin in the coming weeks. In the meantime, 18 additional holes have been drilled and assay testwork on these samples is ongoing.