IGE update: Concluded cash sale of non core assets and declaration of Longatshimo purchaser in default

2/8/2012 8:06 AM EST

IGE update: Concluded cash sale of non core assets and declaration of
Longatshimo purchaser in default

IGE Resources AB (OSE: IGE) today announced that the Company in line
with its strategy has disposed two of its non core assets in recent
weeks for a total payment of US$400,000. Furthermore, the Company has
terminated the disposal of its Longatshimo River diamond project in the
Democratic Republic of Congo (DRC).

IGE has disposed of two of its interests in recent weeks. The Turkana
gold licence in Kenya and remaining 10% of the Solvik Gold project in
Sweden were sold for a total of US $400,000 in line with the current
strategy of the Group to focus on its core assets and to sell off
non-core assets and also to cut cost and further demand for capital
expenditure.

As earlier communicated, a sale and purchase agreement for the
Longatshimo project to Jindal DRC, a subsidiary of Indian multinational
conglomerate Jindal Steel and Power Limited (JSPL), was signed in August
2011. Jindal DRC has subsequently defaulted on the payment schedule
stipulated in the contract. Following being served with notice of breach
of contract, Jindal DRC has failed to remedy the default situation and
IGE has terminated the purchase agreement.

IGE will now resume and advance its discussions with alternative parties
who have expressed interest in the project area which has undergone an
extensive bulk sampling exercise to verify an indicated and inferred
resource base of over 3.5m carats..

The Longatshimo River project is one of two DRC diamond projects in
IGE's portfolio, both of which are on care and maintenance pending
availability of development capital. IGE's near term focus is on
production at the Bakerville mine in South Africa.

For additional information, please contact:

Thomas Carlsson
CFO and acting CEO, IGE Resources AB
Phone: +46 8 402 28 00 / Mobile: +46 70 552 26 22
E-mail:  

IGE Resources AB (publ) is a Scandinavian asset management and
development company within natural resources. IGE's portfolio currently
consists of several diamond exploration and production assets in
Southern Africa and Nickel Mountain Resources AB (publ) owning
Scandinavia's largest nickel deposit. IGE is headquartered in Stockholm
and its shares are listed on the Oslo Stock Exchange (ticker: IGE).
Please refer to
www.ige.se (https://wpyadmin.ne.cision.com/l/eavxxcwg/www.ige.se/) for
more detailed information.