IGE cuts costs and moves forward with caution

GE Resources AB (OSE: IGE) today announced the Company's second quarter
2011 results. An EBITDA of SEK -21.5 million and a SEK 23.2 million
write-down, mainly caused by the company's withdrawal from its
Cassanguidi, Angola diamond mine landed IGE's net result at SEK -41.8
million.

IGE's net result in last year's second quarter was SEK -28.4 million.
IGE's sales in the quarter were SEK 0.9 million, attributable to diamond
sales from the Cassanguidi. Sales in last year's second quarter was SEK
6.3 million.

For the first half of 2011, IGE posted a net result of SEK -161.1
million compared to SEK -52.0 million last year. This year's result
included significant write-downs on IGE's Angolan diamond operations,
which the Company now has abandoned.

The withdrawal from Angola and a cost reduction programme has
significantly reduced IGE's operating costs in the first half of 2011
compared to the previous year. IGE now enjoys a reduced cost base and
will in the near term focus on moving forward with its Bakerville, South
Africa diamond project, including further exploring promising structures
in the license and bringing a partner into the project in order to
finance the development of the diamond resource.

At the end of the second quarter, IGE decided to withdraw the planned
IPO of its subsidiary Nickel Mountain Resources due to unfavourable
stock market conditions. As a consequence, the budget for the next step
in the development of the Rönnbäcken nickel resource has been revised.
Activities towards a Prefeasibility Study for the project remain ongoing
alongside efforts to secure alternative financing for the Rönnbäcken
development.

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.