For a full explanation of results, the unaudited interim Consolidated Financial Statements, Management Discussion and Analysis, and mine statistics, please see the Company's website www.iamgold.com. All amounts are expressed in US dollars, unless otherwise indicated.

IAMGOLD Corporation ("IAMGOLD" or "the Company") today reported financial and operating results for the second quarter ending June 30, 2009, with net earnings of $44.1 million or $0.12 per share.

"IAMGOLD's operating team continues to deliver solid results, with gold production of 249,000 ounces at lower cash costs of $437 per ounce during the quarter. We were pleased with the record production from our flagship Rosebel mine, putting us solidly in control of the production growth we're achieving. The project development team has made excellent progress at our Essakane project which is ahead of schedule and is now expected to reach production within twelve months, adding another 340,000 ounces of gold during the first twelve months of operation to our production profile.

Key results achieved in the second quarter included, increased 2009 production guidance at decreased average cash costs; a plant expansion at our niobium mine that significantly increases the mine's long-term cash flow and mine life plus significant investment initiatives consistent with our long-term growth strategy," stated Joseph Conway, President & CEO.

Q2 2009 HIGHLIGHTS

- Revenues of $225.3 million

- Net earnings of $44.1 million ($0.12 per share) including an impairment charge of $9.3 million ($0.03 per share)

- Operating cash flow of $38.9 million ($0.11 per share)

- Gold production of 249,000 ounces and average cash cost(1) of $437 per ounce

- Record production at Rosebel of 104,000 attributable ounces at a cash cost of $367 per ounce

- Niobec maintains a solid operating margin(1) of $19 per kilogram

- A continued strong financial position with $479.1 million in available funds

- A 53% reduction in the frequency of lost time accidents and modified duty injuries

Second quarter gold sales of 252,000 ounces at an average realized gold price of $898 per ounce, resulted in net earnings of $44.1 million ($0.12 per share), compared to $33.2 million ($0.11 per share) for the prior year period. This result includes (net of taxes) a foreign exchange gain of $15.2 million due mainly to the strengthening Canadian dollar partially offset by an impairment charge of $9.3 million related to the acquisition costs of exploration properties in Tanzania.

Cash flow from second quarter operating activities was $38.9 million ($0.11 per share), down from $44.8 million ($0.15 per share) in the second quarter of 2008. Improvements in cash mining costs were more than offset by increased spending on exploration, and additional resources to support acquisition, development, and process improvement activities.

Gold production for the second quarter of 2009 was 249,000 ounces at an average cash cost of $437 per ounce. This compares to production of 255,000 ounces at an average cash cost of $472 per ounce in the second quarter of 2008. The Company has effectively replaced the ounces lost by the closure of the Sleeping Giant mine at the end of 2008. Removing Sleeping Giant from the comparable period would have increased revenues by $23 million or 11%. The relative increase in production at lower cash costs per ounce in the second quarter of 2009 is primarily a result of productivity improvements at Rosebel combined with royalty expense savings.

With six months of solid operating results and exceptional productivity improvements at Rosebel, the Company raised its 2009 production guidance by 30,000 to 40,000 ounces to 910,000 to 920,000 ounces at lower cash costs of between $460 and $470 per ounce (from 880,000 ounces at between $470 and $480 per ounce).

The Company's objective to maintain high standards in health and safety continued, with a reduction of 53% in the frequency of lost time accidents and modified duty injuries, as compared to the first half of 2008.

(1) Cash cost per ounce and Unit operating margin per kilogram of niobium for the Niobec mine are non-GAAP measures. Please refer to the Supplemental Information attached to the MD&A for reconciliation to GAAP measure.

2009 Expenditures Fully Funded - Balance Sheet Remains Strong

The Company's cash, cash equivalents and gold bullion (at market value) position remains very strong with $394.8 million in available capital, at June 30, 2009. In addition, the availability under the credit facility at June 30, 2009 was $84.3 million, for a total of $479.1 million of available funds.

Financing activities during the quarter included an equity financing, where the Company issued 1,379,310 flow-through common shares at C$14.50 per share to raise $17.5 million specifically relating to the Westwood project; as well as filing on July 29, 2009 a final base shelf prospectus allowing the Company the financial flexibility to execute on its aggressive growth strategy.

Capital expenditures in the quarter were $144.1 million, with the majority relating to construction of the Essakane and Westwood development projects and mining fleet improvements at Rosebel.

In 2009, full year capital expenditures are now projected at $448.4 million, up slightly from the previous estimate of $439.5 million. The change is mainly due to the earlier purchase of the Rosebel mining equipment.

With $479.1 million in available funds, the Company is well funded for the development and exploration of its pipeline of gold projects.

Rosebel Mine - Record Production and Cash Costs

At the Rosebel mine in Suriname, the recent mill expansion came into full effect during the second quarter as the mill operated at above its nameplate capacity of 11 million tonnes per annum achieving record mill throughput 44% higher than the prior year period and 18% higher than the first quarter of 2009. This resulted in record production of 109,000 ounces (on a 100% basis) in the quarter, an increase of 38% over the prior year period.

In addition, the new and enhanced mining fleet, revised pit design and increased operating efficiencies combined to achieve significantly increased mine production.

The higher gold production at Rosebel combined with royalty expense savings were key contributors to the 24% decrease in average cash cost to $367 per ounce versus the same period in 2008.

Doyon Division Mines - Mine Life Extended and Cost Controls Continue

At the Doyon division mines in Quebec, production remained at similar levels to the prior year period, despite the mines approaching their end of life, with lower cash costs due to the strengthened US dollar (relative to the Canadian dollar) and lower royalty expenses. The royalty expense decreased by $75 per ounce, primarily as a result of the acquisition of the participation royalty in 2008 that eliminated the royalty obligation on production from the Doyon mine and the Westwood project.

Due to better than expected results the Doyon life of mine has been extended into the fourth quarter of 2009, from the originally planned May 2009. The Mouska mine is now expected to operate into at least the second quarter of 2010.

Niobec Niobium Mine - Extended Mine Life and Increased Long-Term Cash Flows

At the Niobec niobium mine in Quebec, margins remain strong. Niobium production for the second quarter was 0.9 million kilograms, compared to 1.0 million kilograms in the second quarter of 2008. The decrease in niobium production was a result of lower tonnage hoisted and processed and lower grades and recoveries, due to a higher silica content in the stopes being mined. Stope sequencing has been modified to include higher grade stopes for the second half of 2009.

The second quarter operating margin of $19 per kilogram of niobium increased by 27% compared to $15 per kilogram in the prior year period. This was primarily a result of an increase in the niobium price.

In June 2009, the Company approved a mill expansion and paste backfill plant addition for Niobec. The mill expansion will increase mill throughput by 24%. Construction of the mill expansion began in June 2009 and is estimated to be completed during the third quarter of 2010. The paste backfill initiative will enable near complete extraction of the ore body at lower levels of the mine by using mill tailings mixed with binding material significantly reducing the need for natural ore pillars. The paste backfill plant approval has allowed an increase in proven and probable reserves by 36% and inferred resources by 72% (as previously announced on February 23, 2009). Construction of the paste backfill plant and associated underground infrastructure began in June 2009 and is estimated to be completed during the second quarter of 2010.