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IAMGOLD Reports Record First Quarter Net Earnings Operating Cash Flow up 177% Year-Over-Year

05/11/2011

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TORONTO, ONTARIO--(Marketwire - May 11, 2011) -

All amounts are expressed in US dollars, unless otherwise indicated.

IAMGOLD Corporation ("IAMGOLD" or "the Company") TSX:IMG)(NYSE:IAG)(BOTSWANA:IAMGOLD) today reported its unaudited consolidated financial and operating results for the first quarter ended March 31, 2011. Net earnings were $162.3 million ($0.41 per share), an increase of $102.1 million compared to the first quarter of 2010, and operating cash flow was $205.8 million ($0.55 per share(1)), representing an increase of 177% from the first quarter of 2010.

"Our strong first quarter results reflect our focused strategy to maximize the value of mines that we own and operate," said Steve Letwin, IAMGOLD's President and CEO. "Attributable gold production was up 41% year-over-year driven chiefly by the inclusion of Essakane along with higher recoveries at Rosebel. We continue to benefit from higher gold prices and are implementing various initiatives to reduce our cash costs."

Mr. Letwin further commented: "On our strategic agenda, we have also taken the first two steps to enhance shareholder value. The sale of our minority interests in Ghana for $667 million, as announced in April, is aligned with our overarching financial objective to invest in assets where we can maximize return on capital. The second step is to execute our recently announced plan to realize the value of Niobec and examine opportunities to monetize the value of the asset."

FIRST QUARTER 2011 HIGHLIGHTS

--  Revenues of $432.5 million were up 80% from $240.1 million in the first
    quarter of 2010.

--  The attributable gold production of 290,000 ounces was up 41% from
    206,000 ounces in the first quarter of 2010 mainly due to the
    commencement of production at Essakane in the third quarter of 2010.

--  Record net earnings of $162.3 million ($0.41 per share) increased by
    170% from $60.2 million ($0.15 per share) in the first quarter of 2010.

--  Strong adjusted net earnings(2) of $144.9 million ($0.36 per share(2))
    increased by 163% from $55.0 million ($0.14 per share) in the first
    quarter of 2010.

--  Strong operating cash flow of $205.8 million ($0.55 per share(1))
    increased by 177% compared to $74.3 million ($0.20 per share) in the
    first quarter of 2010.

--  Financial position strengthened with cash, cash equivalents and gold
    bullion (at market) of $621.4 million and availability under the credit
    facility of $350.0 million at March 31, 2011.

--  Proceeds of $48.8 million received on the sale of the La Arena project
    resulting in a pre-tax gain of $10.5 million. In addition, as part of
    the option and earn-in agreement in June 2009, IAMGOLD received 8
    million shares and 1.5 million warrants of Rio Alto Mining Limited for a
    total value of $1.4 million at inception. These shares and warrants had
    a market value of $21.2 million as at the end of March 2011.

--  Raised gross proceeds of $43.3 million through a private placement of
    flow-through shares, with 1.7 million shares issued at a price of
    C$25.48 per share.

--  On April 15th, IAMGOLD announced the agreement to sell its 18.9%
    interest in the Tarkwa and Damang gold mines in Ghana, West Africa to
    Gold Fields Limited for $667 million in cash. The deal is expected to
    close no later than July 31, 2011.

--  On May 4, 2011, IAMGOLD announced the result of an independent technical
    report confirming the potential to increase measured and indicated
    resources at its niobium mine by 691% to 1.93 billion kilograms of
    contained niobium pentoxide with an after-tax net asset value in the
    range of $1.6 billion to $2.0 billion.

--  IAMGOLD commenced reporting its unaudited consolidated financial
    statements for the first quarter of 2011 in accordance with
    International Financial Reporting Standards ("IFRS") with comparative
    information for 2010 restated under IFRS.

--  On March 7, 2011, IAMGOLD signed a Memorandum of Understanding ("MOU")
    with the China National Gold Group Corporation ("China Gold"). This MOU
    confirms the mutual intention of IAMGOLD and China Gold to cooperate in
    the pursuit and development of mineral deposits in the regions of
    IAMGOLD's focus.

REVIEW OF FIRST QUARTER 2011 RESULTS

Production and Cash Costs

Gold Operations



--  Attributable gold production of 290,000 ounces at an average cash
    cost(3) of $575 an ounce compared to 206,000 attributable ounces at an
    average cash cost of $524 per ounce in the first quarter of 2010.

Niobium Operation

--  Niobium production of 1.1 million kilograms in the first quarter of
    2011, down from 1.2 million kilograms in the first quarter of 2010.
    Operating margin(4) of $16 per kilogram compared to $19 per kilogram in
    the first quarter of 2010.

Financial Results

Revenues in the first quarter of 2011 reached $432.5 million, an 80% increase from $240.1 million in the first quarter of 2010, primarily due to the addition of production from the Essakane mine and higher gold prices. For IAMGOLD's operations and joint ventures, the number of ounces of gold sold increased by 57% while the average realized gold price rose by 26% compared to the first quarter of 2010.

In the first quarter of 2011, net earnings increased by 170% to $162.3 million ($0.41 per share), compared to $60.2 million ($0.15 per share) in the first quarter of 2010. Adjusted net earnings(2) of $144.9 million ($0.36 per share(2)) increased by 163% compared to $55.0 million ($0.14 per share) in the first quarter of 2010. The impact of higher sales and gold prices was partially offset by increases in mining costs and income and mining taxes.

Operating cash flow in the first quarter of 2011 was $205.8 million ($0.55 per share(1)), an increase of 177% compared to $74.3 million ($0.20 per share(1)) in the first quarter of 2010. The increase is mainly due to increased sales partially offset by higher mining costs and income and mining taxes.

Financial Position

Cash, cash equivalents and gold bullion (at market value) increased to $621.4 million as at March 31, 2011, compared to $411.3 million at the end of 2010. The increase in cash and cash equivalents is mainly due to cash flow from operating activities, the issuance of flow-through shares and the proceeds received from the disposal of the La Arena project, partially offset by capital expenditures in mining assets and exploration and evaluation projects.

In the first quarter of 2011, the Company issued 1.7 million flow-through shares at a price of C$25.48 per share with gross proceeds of $43.3 million to fund prescribed resource expenditures on the Westwood project. On February 9, 2011, IAMGOLD received $48.8 million for the sale of its La Arena project.

As at March 31, 2011, $350.0 million of unused credit remained available under the Company's credit facility. In addition, the Company had $31.2 million available from the $50.0 million revolving facility for the issuance of letters of credit.

On April 15, 2011, IAMGOLD announced that it has reached an agreement to sell its 18.9% interest in the Tarkwa and Damang gold mines in Ghana, West Africa to Gold Fields Limited ("Gold Fields") for $667 million in cash. This transaction is subject to the approval of Gold Fields' shareholders and is expected to close no later than July 31, 2011. The Company expects to record an after-tax gain on this sale of approximately $400 million. Including the funds from the disposition of Tarkwa and Damang, IAMGOLD's projected liquidity position would be over $1.6 billion.

Development and Expansion Projects

Canada - Westwood Project

The Westwood project expenditures in the first quarter of 2011 totaled $27.5 million (before tax credit) with significant infrastructure preparation and construction, including the completion of a number of hoist elements, the fire detection system with the new pump house, final breakthrough of the six-metre diameter ventilation shaft completed and the installation of ground support infrastructure. Shaft sinking reaching 1,157 metres at the end of the first quarter of 2011, with the excavation of a spill pocket and the safety bulkhead, and underground development work including 2,106 metres of lateral and vertical excavation achieved.

Ecuador - Quimsacocha

The Company has obtained the requisite permits and authorization to advance feasibility work. The Company maintains regular contact and dialogue with senior government officials in order to obtain needed clarity on fiscal and other matters, including the analysis of the model mining contracts recently released by the Ecuadorian government.

Mali - Sadiola Sulphide Project

The feasibility study on the Sadiola sulphide initiative was completed in 2010 and progress continues towards a construction decision in 2011.

Suriname - Rosebel Mine

The Company is reviewing steps to expand the capacity at the Rosebel mine.

Burkina Faso - Essakane Feasibility Study to Expand the Mine

A feasibility study to expand the mine is currently in progress and is expected to be completed in the third quarter of 2011. The current mine plan includes processing soft rock for the first three years at a rate of 9.0 million tonnes per year starting in 2011, followed by approximately nine years of processing hard rock. The study is expected to demonstrate that the hard rock capacity of the mine could be expanded to process approximately 10.8 million tonnes per year, compared to the current estimate of 5.4 million tonnes per year. The expectation is for life-of-mine average annual gold production of between 450,000 and 470,000 ounces (on a 100% basis), compared to the current estimate of 315,000 ounces. Assuming a positive outcome of the study, construction could commence in the fourth quarter of 2011.

Exploration

IAMGOLD's exploration efforts remain focused in West Africa, select countries of South America, and the province of Quebec in Canada. With a strategic mandate for organic growth, the Company has numerous projects already underway and continues to pursue additional advanced exploration joint venture or acquisition opportunities that will provide the foundation for future growth.

In the first quarter of 2011, IAMGOLD incurred $18.9 million on exploration projects, a 17% increase from $16.2 million in the first quarter of 2010. The 2011 expenditures included:

--  near-mine exploration and resource development expenditures of $9.8
    million including the initial stages of a planned resource expansion and
    delineation drilling program of more than 95,000 metres at Rosebel in
    Suriname for $2.3 million, a drill delineation program of more than
    72,000 metres at Essakane in Burkina Faso for $1.3 million, and $2.6
    million directed at an exploration and resource delineation drilling
    program of more than 82,000 metres at the Westwood development project
    in Quebec; and

--  greenfield exploration of $9.1 million conducted at 16 projects,
    including two advanced exploration sites, in 8 countries in Africa and
    the Americas as part of IAMGOLD's long-term commitment to reserves
    replenishment and organic growth.

Commitment to Zero Harm Continues

The frequency of all types of serious injuries (measured as DART rate(5)) across IAMGOLD during the first quarter of 2011 decreased marginally to 0.52 compared to 0.63 in the first quarter of 2010.

A fatality occurred at the Rosebel operation on February 4, 2011, involving an employee of a drilling contractor. The single vehicle accident occurred at night when the vehicle rolled over on its side, resulting in a fatal injury to the operator. A full accident investigation was conducted to determine the root causes and contributing factors in the accident. The site management have developed and implemented mitigation strategies based on the investigation results. Both the drilling contractor and IAMGOLD have been providing continued support to the employees and families affected by this tragedy.

Mr. Letwin commented, "This incident only serves to strengthen our commitment to strive for Zero Harm and to increase our attention to preventative safety practices throughout our operations. Operating safely is our most important priority."

Summarized Financial Results

---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                   March 31                     December 31
(in $ millions)                        2011         Change             2010
---------------------------------------------------------------------------
Financial Position                        $                               $
Cash and cash equivalents
 and gold bullion
  - at market value                   621.4             51 %          411.3
  - at cost                           517.9             66 %          311.2
Total assets                        3,631.5              6 %        3,431.1
Equity                              2,941.1              7 %        2,758.1
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                              First quarter                   First quarter
                                     ended                           ended
(in $ millions, except where       March 31                        March 31
 noted)                                2011         Change             2010
---------------------------------------------------------------------------
Results of Operations                     $                               $
Revenues                              432.5             80 %          240.1
Mining costs including
 depreciation, depletion and
 amortization                         230.4             57 %          146.4
---------------------------------------------------------------------------
Earnings from mining
 operations                           202.1            116 %           93.7
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Net earnings                          162.3            170 %           60.2
Basic and diluted net
 earnings attributable to
 equity shareholders per
 share ($/share)                       0.41            173 %           0.15
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Adjusted net earnings(2)              144.9            163 %           55.0
Basic adjusted net earnings
 attributable to equity
 shareholders per share
 ($/share)(2)                          0.36            157 %           0.14
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Cash Flows
Operating cash flow                   205.8            177 %           74.3
Operating cash flow per
 share ($/share)(1)                    0.55            175 %           0.20
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Key Operating Statistics

Gold mines
----------------------------
Gold sales (000 oz)(a)                  325             47 %            221
Average realized gold price
 ($/oz)                               1,396             26 %          1,111

Attributable gold production
 (000 oz)                               290             41 %            206
Cash cost ($/oz)(3)                     575             10 %            524
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Operating results - Niobium
 mine
----------------------------
Niobium sales (millions of
 kg Nb)                                 1.0             (9%)            1.1
Niobium production (millions
 of kg Nb)                              1.1             (8%)            1.2
Operating margin ($/kg
 Nb)(4)                                  16            (16%)             19
---------------------------------------------------------------------------
---------------------------------------------------------------------------

(a) Gold sales include 100% sales of Rosebel, Essakane, Doyon division and
Mupane, 41% of sales from Sadiola, 40% of sales from Yatela, and 18.9% of
sales from Tarkwa and Damang.

2011 Outlook

IAMGOLD revised its guidance for production for 2011 as follows:

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                      2011              2011
                                          Revised Guidance Original Guidance
                                                Issued in  Issued in January
                                                  May 2011              2011
----------------------------------------------------------------------------
Attributable gold production (000 oz)
Mines owned and operated by IAMGOLD
 Rosebel                                           360-380           360-380
 Essakane                                          370-390           370-390
 Mouska                                              25-30             25-30
 Mupane                                              55-60             55-60
----------------------------------------------------------------------------
                                                   810-860           810-860
 Sadiola and Yatela mines                          145-160           145-160
 Tarkwa and Damang mines                                46           145-180
----------------------------------------------------------------------------
Total attributable production                    950-1,050       1,100-1,200
----------------------------------------------------------------------------
Cash cost ($/oz of gold)(3)                        590-620           565-595
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Average gold price ($/oz)                            1,400             1,300
Average crude oil price ($/barrel)                     100                85
Average foreign exchange rate (C$/US$)                1.00              1.00
Average foreign exchange rate
 (US$/EUR)(a)                                         1.40              1.35
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Niobium production
 Niobec (millions of kilograms)                    4.5-5.0           4.5-5.0
 Operating margin ($/kg Nb)(4)                       15-17             15-17
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(a) Applies to the Essakane mine.

The production guidance for 2011 was revised downwards to reflect the proposed sale of the 18.9% interest in the Tarkwa and Damang gold mines in Ghana, West Africa to Gold Fields Limited. There were no other changes to production outlook. The revised guidance includes only three months' production from the Tarkwa and Damang mines in Africa.

Cash Cost per Ounce of Gold

The Company revised its guidance for its cash cost per ounce of gold in 2011 to between $590 and $620 per ounce, $25 per ounce higher than the original cash cost guidance issued in January 2011. This increase primarily reflects the update in production and in the business environment assumptions on royalty rates, royalty costs driven by the price for gold, price of oil, and foreign exchange rates.

Substantial Change in Outlook for Niobec

Throughout the first quarter of 2011, the Company has been executing on its strategic initiative to unlock the value of Niobec. On May 4, 2011, the Company announced the results of an independently prepared NI 43-101 compliant preliminary economic assessment ("PEA") in conjunction with a study conducted by the Company's technical team. The PEA examined the impact of changing the existing underground mine to an alternative bulk mining method. The study compared the economics of the open pit scenario and a block caving scenario. The results indicate potential for a 691% increase in measured and indicated resources at Niobec to 1.93 billion kilograms of contained niobium pentoxide. There is potential for a threefold increase in production to 15 million kilograms per year. Based on higher metal prices and lower operating costs, the operating margin is estimated to increase from $18 per kilogram to $28 per kilogram. The after-tax net asset value is expected to range between $1.6 billion and $2.0 billion. In addition, the Company has identified an underexplored Rare Earth Element (REE) zone at the Niobec site and exploration and metallurgical testwork has been initiated. The work done on the PEA and the study will be advanced in a 2011 pre-feasibility study to confirm the potential upside of Niobec.

Attributable Gold Production and Cash Cost per Ounce

The table below presents the gold production attributable to the Company along with the weighted average cash cost per ounce of production.

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--------------------------------------------------------------------------
(Unaudited)                                                    Total Cash
                                       Gold Production             Cost(3)
--------------------------------------------------------------------------
                                   First quarter ended First quarter ended
                                              March 31            March 31
--------------------------------------------------------------------------
                                        2011      2010      2011      2010
--------------------------------------------------------------------------
IAMGOLD Operator                    (000 oz)  (000 oz)      $/oz      $/oz
Rosebel (95%)                            100        93       544       456
Essakane (90%)                            95         -       428         -
Doyon division (100%)(a)                   -         -         -         -
Mupane (100%)                             11        13     1,379       826
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                                         206       106       534       501
--------------------------------------------------------------------------
Joint Ventures
Sadiola (41%)                             30        30       724       538
Yatela (40%)                               8        27     1,312       462
--------------------------------------------------------------------------
                                          38        57       840       502
--------------------------------------------------------------------------
Tarkwa and Damang (18.9%)                 46        43       542       612
--------------------------------------------------------------------------
Total                                    290       206       575       524
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Cash cost excluding royalties                                506       470
Royalties                                                     69        54
--------------------------------------------------------------------------
Cash cost                                                    575       524
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(a) As a cost savings initiative, the ore mined from Mouska has been
stockpiled and will be batch processed later in 2011.

In the first quarter of 2011, IAMGOLD's attributable gold production increased by 84,000 ounces, or 41%, compared to the first quarter of 2010.

The increase in production was a result of:

--  inclusion of production from Essakane which commenced production in the
    third quarter of 2010, and
--  higher recoveries at Rosebel resulting from the construction of
    additional CIL tanks in 2010,

partially offset by:

--  lower ore availability at Yatela.

The consolidated average cash cost of $575 per ounce during the first quarter of 2011 has increased by $51 per ounce from $524 per ounce in the first quarter of 2010 mainly due to lower grades, higher energy costs, and higher royalties of $15 per ounce. Increases in the gold price resulted in increased price-driven royalty amounts.

Attributable Gold Sales Volume and Realized Gold Price

The following table presents the total ounces of gold sold and the realized gold price per ounce.

--------------------------------------------------------------------------
--------------------------------------------------------------------------

                                            Gold sales Realized gold price
--------------------------------------------------------------------------
                                         First quarter       First quarter
                                                 ended               ended
                                              March 31            March 31
                                        2011      2010      2011      2010
--------------------------------------------------------------------------
                                    (000 oz)  (000 oz)      $/oz      $/oz
Operator (Rosebel, Essakane, Doyon       242       123     1,400     1,111
 division, Mupane)
Joint ventures (Sadiola and               37        55     1,387     1,110
 Yatela)
Tarkwa and Damang                         46        43     1,382     1,112
--------------------------------------------------------------------------
Total(a)                                 325       221     1,396     1,111
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(a) Attributable sales volume for the first quarters of 2011 and 2010 were
309,000 ounces and 216,000 ounces, respectively, after taking into account
95% of Rosebel sales and 90% of the Essakane sales.

Gold sales volumes increased in the first quarter of 2011 compared to the first quarter of 2010, mainly due to higher sales at Rosebel, commencement of commercial production at Essakane and higher production and sales at Tarkwa and Damang. The average spot gold price on the London Bullion Market Association ("LBMA") for the first quarter of 2011 was $1,386 per ounce, versus $1,109 per ounce in the same period in 2010.

Operations Summary

The Company's first quarter of 2011 gold operations are summarized below.

Rosebel Mine, Suriname

Gold production during the first quarter of 2011 was 7% higher compared to the first quarter of 2010, primarily as a result of improved gold recoveries from the installation of additional leach tanks in the early part of the fourth quarter of 2010.

Cash costs per ounce were up in the first quarter of 2011 due to higher fuel and power prices, higher consumables, and higher royalties due to rising gold prices.

Essakane Mine, Burkina Faso

Attributable production during the first quarter of 2011 was 95,000 ounces, compared to 80,000 ounces during the fourth quarter of 2010 mostly due to higher throughput. During the quarter, the mill achieved its target throughput rate and processed 25,000 tonnes per day.

Cash costs excluding royalties were lower compared to the fourth quarter of 2010 despite lower grades, higher energy prices and upward pressure on consumable prices. The positive results are attributable to efficiencies in equipment utilization throughout the operation. During the first quarter of 2011, cash costs after royalties were $428 per ounce compared to $414 per ounce during the fourth quarter of 2010 as a result of higher royalties which result from an increase of 2% in the average royalty rates and higher realized gold prices.

Doyon Division, Canada

As a cost savings initiative, the ore mined from Mouska has been stockpiled and will be batch processed later in 2011.

Mupane mine, Botswana

In the first quarter of 2011, gold production declined by 15% compared to the same quarter in the prior year as a result of lower gold grades.

Cash cost per ounce of gold was higher in the first quarter of 2011 compared to 2010, primarily as a result of higher tonnage mined at a higher strip ratio and the impact of higher diesel fuel prices. In addition, higher royalties resulted from increased gold prices.

Sadiola mine, Mali

The attributable gold production was consistent in the first quarter of 2011 compared to the same period in 2010 as higher throughput and recoveries offset lower gold grades. As expected, gold grades have decreased from mining satellite pits following the completion of mining at the main Sadiola pit.

Cash cost per ounce of gold rose during the first quarter of 2011 compared to the first quarter of 2010, primarily as a result of lower production from lower grades, higher energy costs, higher labour costs from a revised mining contract finalized in the fourth quarter of 2010, and increased royalties from higher realized gold prices.

The Company's attributable portion of capital expenditures during the first quarter of 2011 was $0.9 million, mainly related to the Sadiola sulphide project and capitalized exploration expenditures.

Yatela mine, Mali

Attributable gold production was sharply lower in the first quarter of 2011 compared to the same period in 2010 as a result of lower volumes of ore crushed and significantly lower gold grades. After the completion of mining the bottom of the main pit in early 2010, mine production has shifted to a longer-haul satellite pit, which resulted in lower grades and higher waste stripping.

Cash costs per ounce were significantly higher during the first quarter of 2011 compared to the first quarter of 2010, primarily as a result of lower production mainly attributable to lower gold grades, higher waste stripping, higher energy costs, and higher royalties from higher realized gold prices.

Tarkwa and Damang mines, Ghana

On April 15, 2011, IAMGOLD announced that it had reached an agreement to sell its 18.9% interests in the Tarkwa and Damang gold mines in Ghana, West Africa to Gold Fields Limited ("Gold Fields") for gross proceeds of $667 million. This transaction is subject to the approval of Gold Fields' shareholders and is expected to close no later than July 31, 2011.

The production guidance for 2011 was revised downwards to reflect the proposed sale of the 18.9% interest in the Tarkwa and Damang gold mines. The Company's updated guidance excludes Tarkwa and Damang results from production and cash costs effective April 1, 2011.

Interests in Tarkwa and Damang were accounted for using the equity method and were disclosed in the condensed consolidated interim balance sheet as investments in associates. The carrying value of investments in associates as at March 31, 2011 was $261.5 million.

Niobium Operation

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                         First quarter ended
                                                                    March 31
                                                    2011    change      2010
----------------------------------------------------------------------------
Operating results - Niobium Mine
----------------------------------------------
Niobium production (millions of kg Nb)               1.1      (8%)       1.2
Niobium sales (millions of kg Nb)                    1.0      (9%)       1.1
Operating margin ($/kg Nb)(4)                         16     (16%)        19
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Niobium production during the first quarter of 2011 was 8% lower compared to the first quarter of 2010 primarily as a result of lower Nb2O5 ore grade.

Niobium revenues were $39.6 million in the first quarter of 2011 compared to $40.2 million in the same period in 2010, due a decrease in sales volumes as a result of lower production, partially offset by higher realized niobium prices during the quarter.

The operating margin per kilogram of niobium decreased by $3 per kilogram during the first quarter of 2011 compared to the same period in 2010. As expected, the inclusion of the paste backfill process starting the second quarter of 2010 lowered operating margin per kilogram of niobium. Paste backfill enables near complete extraction of the ore body including areas with lower grades, impacting mining costs and operating margin. In addition, the operating margin per kilogram of niobium was adversely impacted by the stronger Canadian dollar, and higher aluminum prices and volumes compared to 2010.

Adjusted net earnings

Adjusted net earnings and adjusted net earnings attributable to equity shareholders per share are non-GAAP financial measures. Management believes that these measures better reflect the Company's performance for the current period and are a better indication of its expected performance in future periods. Adjusted net earnings and adjusted net earnings attributable to equity shareholders per share are intended to provide additional information, but do not have any standardized meaning prescribed by IFRS, are unlikely to be comparable to similar measures presented by other issuers, and should not be considered in isolation or a substitute for measures of performance prepared in accordance with IFRS. Adjusted net earnings represent net earnings excluding certain impacts, net of tax, such as impairment charge, changes in asset retirement obligations for closed properties, unrealized derivative gain or loss on Mupane gold hedging and warrants held as investments, marketable securities and assets, foreign exchange gain or loss, and executive severance costs, as well as unrealized gain on foreign exchange translation of deferred income and mining tax liabilities. These measures are not necessarily indicative of net earnings or cash flows as determined under IFRS. The following table provides a reconciliation of net earnings to adjusted net earnings as per the unaudited condensed consolidated interim statement of earnings.

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                     First quarter ended First quarter ended
                                                March 31            March 31
                                                    2011                2010
----------------------------------------------------------------------------
(in $ millions, except for number of
 shares and per share amounts)                         $                   $

Net earnings                                       162.3                60.2
----------------------------------------------------------------------------
Executive severance costs                              -                 0.8
Foreign exchange loss                                5.2                 1.7
Unrealized derivative gain on Mupane
 gold hedging and warrants held as
 investments                                       (4.9)               (1.0)
Gain on sales of marketable
 securities                                        (0.2)               (7.0)
Gain on sales of assets (including a
 positive tax impact in Q1-2011)                  (14.9)               (0.1)
Unrealized gain on foreign exchange
 translation of deferred income and
 mining tax liabilities                            (2.6)                 0.4
----------------------------------------------------------------------------
                                                  (17.4)               (5.2)
----------------------------------------------------------------------------
Adjusted net earnings                              144.9                55.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Adjusted net earnings attributable
 to:
  Equity shareholders of the Company               136.0                51.9
  Non-controlling interests                          8.9                 3.1
----------------------------------------------------------------------------
                                                   144.9                55.0
----------------------------------------------------------------------------
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Basic weighted average number of
 common shares outstanding (in
 millions)                                         373.6               369.4
----------------------------------------------------------------------------
Basic and diluted earnings
 attributable to equity shareholders
 of the Company per share ($/share)                 0.41                0.15
Basic adjusted net earnings
 attributable to equity shareholders
 of the Company per share ($/share)                 0.36                0.14
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----------------------------------------------------------------------------

(1) Operating cash flow per share is a non-GAAP measure and is calculated by dividing the consolidated cash flow from operating activities by the weighted average number of common shares outstanding in the period.

(2) Adjusted net earnings and adjusted net earnings attributable to equity shareholders per share are non-GAAP measures. Refer to the Supplemental Information above for reconciliation to GAAP measures.

(3) Cash cost per ounce of gold is a non-GAAP measure. Refer to the Supplemental Information attached to the MD&A for reconciliation to GAAP measures.

(4) Operating margin per kilogram of niobium at the Niobec mine is a non-GAAP measure. Refer to the Supplemental Information attached to the MD&A for reconciliation to GAAP measures.

(5) The DART rate refers to the number of Days Away, Restricted Duty or Job Transfer incidents that occur per 100 employees.

Conference Call

A conference call will be held on May 12, 2011 at 9:00 a.m. (Eastern Daylight Time) for a discussion with management regarding the Company's operating performance and financial results for the first quarter. A webcast of the conference call will be available through the Company's website - www.iamgold.com.

Conference Call Information: North America Toll-Free: 1-866-551-1530 or 1-212-401-6700 passcode: 8309812#

A replay of this conference call will be available from 6:00 p.m. May 12th to June 12th, 2011. Access this replay by dialling: North America toll-free: 1-866-551-4520 or 1-212-401-6750, passcode: 272015#

Cautionary Note to U.S. Investors

The United States Securities and Exchange Commission (the "SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this news release, such as "mineral resources", that the SEC guidelines strictly prohibit the Company from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in the IAMGOLD Annual Report on Form 40-F. A copy of the 2010 Form 40-F is available to shareholders, free of charge, upon written request addressed to 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.

Please note:

This entire news release may be accessed via fax, e-mail, IAMGOLD's website at www.iamgold.com and through Marketwire's website at www.marketwire.com. All material information on IAMGOLD can be found at www.sedar.com or at www.sec.gov.

Si vous desirez obtenir la version francaise de ce communique, veuillez consulter le http://www.iamgold.com/francais/default.asp.

FOR FURTHER INFORMATION PLEASE CONTACT:
        IAMGOLD Corporation
        Bob Tait
        VP Investor Relations
        (416) 360-4743
        Mobile: (647) 403-5520

        IAMGOLD Corporation
        Laura Young
        Director Investor Relations
        (416) 360-4952

        IAMGOLD Corporation
        Toll-free: 1 888 464-9999
        info@iamgold.com

Source: IAMGOLD Corporation