IAMGOLD update on rare earth drilling and assay results

IAMGOLD Corporation (“IAMGOLD” or the “Company”) today announced an update on its exploration of the rare earth elements (“REE”) adjacent to its Niobec niobium mine near Saguenay, Quebec, Canada. The known rare earth element zone (“REE 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 (“TREO”). 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.

Steve Letwin, President and CEO of IAMGOLD, said, “I am very encouraged with these early results. At some point after we test the remaining drill samples, our next task will be to assess if and how the REEs would be mined and processed.”

Technical Information and Qualified Person/Quality Control Notes

The drilling results contained in this news release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), JORC and/or SAMREC. The “Qualified Person” responsible for the supervision of the preparation and review of this information is Marie-France Bugnon, P. Geo., General Manager Exploration. Marie-France is considered a “Qualified Person” for the purposes of National Instrument 43-101 with respect to the technical information being reported on. The technical information has been included herein with the consent and prior review of the above noted Qualified Person. The Qualified person has verified the data disclosed, and data underlying the information or opinions contained herein. Core assays are performed on core sawed or split in half. The samples were assayed by ICP-MS (ICM90A and IMS91B when over range for some elements) at SGS Canada Inc. of Lakefield, Ontario. Certified reference material, duplicate and blanks were inserted in the sample sequence for quality control.

Cautionary Note to U.S. Investors

The United States Securities and Exchange Commission limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. IAMGOLD uses certain terms in this presentation, such as “measured,” “indicated,” or “inferred,” which may not be consistent with the reserve definitions established by the SEC. U.S. investors are urged to consider closely the disclosure in the IAMGOLD Annual Reports on Forms 40-F. You can review and obtain copies of these filings from the SEC’s website at http://www.sec.gov/edgar.shtml or by contacting the Investor Relations department.

Forward Looking Statement

This news release contains forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding the estimation of mineral resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words “may”, “will”, “should”, “continue”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan” or “project” or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company’s ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company’s expectations, changes in world gold markets and other risks disclosed in IAMGOLD’s most recent Form 40-F/Annual Information Form on file with the United States Securities and Exchange Commission and Canadian provincial securities regulatory authorities. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.

About IAMGOLD

IAMGOLD (www.iamgold.com) is a leading mid-tier gold mining company producing approximately one million ounces annually from five gold mines (including current joint ventures) on three continents. IAMGOLD is uniquely positioned with a strong financial position and extensive management and operational expertise. To grow from this strong base, IAMGOLD has a pipeline of development and exploration projects and continues to assess accretive acquisition opportunities. IAMGOLD’s growth plans are strategically focused in West Africa, select countries in South America and regions of Canada. IAMGOLD also operates Niobec, a niobium mine in the Canadian province of Quebec.

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