IGE puts Cassanguidi diamond project on hold

IGE Resources AB (OSE: IGE) today announced that the Company, following
recent inconclusive negotiations with a third party, has decided to put
further financing of the Cassanguidi diamond mine in Angola on hold.

Insufficient financing for major equipment replacement has caused
persistent operational interruptions, which have had a significant
adverse effect on revenue generation from the Cassanguidi project. IGE
is not prepared to increase its financial exposure in the project and
has actively sought alternatives for the Cassanguidi mine. Such
alternatives include bringing a partner into the project, a full sale or
a termination of the project. The latter alternative would represent
approximately a SEK 140 million impairment loss for IGE Resources and
result in closure of the company's remaining operations in Angola.

IGE's focus within its diamond business is now on optimising cost
structures and establishing a sound financial platform, enabling the
company to progress its other diamond projects with reduced risk.

For additional information, please contact:

Thomas Carlsson

CFO and acting CEO, IGE Resources AB

Tel: +46 8 402 28 05 / +46 70 552 26 22

E-mail: thomas.carlsson@ige.se (thomas.carlsson@ige.se)

IGE Resources AB (publ) is a Scandinavian company mainly focusing on
diamonds exploration and production in Southern Africa. IGE's portfolio
also includes one of Northern Europe's largest nickel deposits and gold
exploration projects in Kenya. IGE is headquartered in Stockholm and its
shares are listed on the Oslo Stock Exchange (ticker: IGE). Please refer
to www.ige.se (http://www.ige.se/) for more detailed information.