IAMGOLD Reports Record Operating Cash Flow in 2007

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

HIGHLIGHTS:

• Total revenues for the fourth quarter were $194.2 million, up 14% over the prior quarter.
• Net earnings for the fourth quarter were $8.5 million or $0.03 per share, which include a non cash charge of $5.9 million or $0.02 per share and the non cash impact from, finalizing in the fourth quarter, purchase accounting related to the Cambior acquisition of $10.8 million or $0.04 per share.
• Adjusted net earnings⁽¹⁾ for 2007 were $57.6 million or $0.20 per share.
• Record quarterly operating cash flow at $56.6 million; a 90% increase over the third quarter of 2007 (excluding contribution from working interests).
• Achieved 965,000 ounces of annual production at an average cash cost⁽²⁾ of $423 per ounce for the year. Attributable gold production was 253,000 ounces for the fourth quarter at an average cash cost⁽²⁾ of $427 per ounce.
• Strong cash and gold bullion position of $242.5 million, valuing gold bullion at market.
• Agreement completed to sell the Sleeping Giant mine on closure.
• Niobec revenues for the fourth quarter of 2007 were $30.1 million and $107.8 million for the year, and operating cash flow was $16.0 million and $48.9 million respectively in 2007.

CONSOLIDATED FINANCIAL RESULTS SUMMARY

⁽¹⁾ Adjusted net earnings and adjusted net earnings per share are non-GAAP measures and represents net earnings (loss) without the impairment charge accounted for in 2007. Please refer to Supplemental Information attached to the MD&A for a reconciliation to GAAP.
⁽²⁾ Cash cost per ounce is a non-GAAP measure. Please refer to Supplemental Information attached to the MD&A for a reconciliation to GAAP.
⁽³⁾ Refer to detailed information in the reserves and resources section of the IAMGOLD website.

"On completing the integration of acquisitions from 2006, we now have a stronger platform to continue to grow the business", said Joseph Conway, President and CEO. "We also enhanced our management team with the addition of key senior personnel with international experience and proven track records in the industry.  I am very pleased with the achievement of meeting production and cost targets at a time when many others in the industry have had less success. While we were disappointed with the loss for the year, we delivered a record operating cash flow and we have made significant progress at our operations and most of our development projects. We will continue to focus on progressing our development and exploration projects, meeting production and cost targets and improving our share price performance."

FINANCIAL RESULTS AND POSITION
Adjusted net earnings for 2007 were $57.6 million or $0.20 per share, compared to adjus ted net earnings of $74.1 million or $0.39 per share for 2006. Including impairment charges, the net loss for the year was $42.1 million or $0.14 per share compared to net earnings of $72.5 million or $0.39 per share for 2006. During 2007 impairment charges of $93.7 million and $5.9 million were recorded related to the Mupane mine and the Doyon division respectively.  The value of our Mupane mine was recognized as a result of the decline in the cash flows expected to be generated over the life of the mine. Adjusted net earnings before impairment charges is a non-GAAP measure.  Please refer to the supplemental information attached to the MD&A for the summarized calculation and reconciliation to GAAP.

Adjusted net earnings for 2007 were below 2006 as a result of cost pressures and the impact of acquisition purchase accounting. In 2007, the Company successfully completed the transition from non-operator to operator and created the necessary infrastructure t o support its multi-national operations. Exploration expenditures increased as a result of the significant opportunities identified within the Company's portfolio.

Adjusted net earnings for the fourth quarter of 2007 were $14.4 million or $0.05 per share, compared to adjusted net earnings of $10.7 million or $0.04 per share in the fourth quarter of 2006.  The Company's depreciation expense increased by $3.5 million or $0.01 per share during the quarter due to the finalization of the Cambior purchase equation. The Company was also required to fair value its tax assets and liabilities which resulted in an $7.3 million or $0.02 per share non-cash future tax expense being recorded during the quarter.

Net earnings for the fourth quarter of 2007 were $8.5 million or $0.03 per share, compared to net earnings of $9.4 million or $0.04 per share in the fourth quarter of 2006.  An impairment charge of $5.9 million or $0.02 per share was recorded in the fourth qu arter of 2007 related to resource development costs at the Doyon division.

Cash flow from operating activities for the fourth quarter of 2007 were $56.6 million compared to cash flows used in operating activities of $4.7 million for the same period in 2006. The increase in the fourth quarter of 2007 is a result of higher revenues following the acquisitions and gold price increases. This was partially offset by higher operating costs of $40.8 million, higher corporate and exploration expenses by $2.8 million and $1.7 million respectively, and a positive change in non-cash working capital of $19.2 million. Niobec revenues for the fourth quarter of 2007 were $30.1 million and $107.8 million for the year. The Niobec contribution to operating cash flow was $16.0 million in the fourth quarter of 2007 and $48.9 million for the year. Cash flow from operating activities for the complete year in 2007 were $117.1 million compared to $75.2 million in 2006.

IAMGOLD's policy has been to hold gold bullion to increase shareholder value through the appreciation of gold.  During 2007, the Company's gold bullion holdings increased by 6,250 ounces to 154,954 ounces.  The year over year appreciation of the value of these ounces price equated to approximately $0.12 per share.  The Company continues to maintain a strong balance sheet. Cash and cash equivalents, short-term deposits and gold bullion position totaled $242.5 million as at December 31, 2007 with gold bullion valued at market compared to $218.3 million at the end of 2006. For accounting purposes, gold bullion is valued at cost in the Company's consolidated balance sheet.

MINING COSTS AND PRODUCTION
The annual production of 965,000 ounces was in line with the August revised guidance of 970,000 ounces for the year but lower than the original guidance of 1,000,000 ounces.  The primary reasons for the slight shortfall were the heavier than normal rai nfall levels in Mali and Ghana lowering recovery and total tonnage processed at the Sadiola mine, and fewer tonnes stacked and processed at Tarkwa, and equipment availability at the Mupane mine. This was partially offset by gains at the Rosebel, Yatela and Sleeping Giant mines.

In 2007, the gold mining industry experienced a challenging year facing cost pressures related to higher labour, fuel and maintenance costs. According to the GFMS's 2007 Gold Survey (a precious metal consultant), worldwide average cash costs have increased 24% over the first nine months of 2007, and reached over $400 per ounce in the third quarter of 2007. 

Consolidated gold production cash costs were $423 per ounce in 2007, compared to $321 per ounce in 2006. This was in line with our mid-year guidance for 2007 of $420 per ounce. The year over year increase was mainly due to higher costs associated with royalties, supplies, fuel and labour used in production. The increase in gold price was favorable in terms of higher revenues reported, but the gold price also increased royalty expenses by $13 per ounce which are included in mining costs.  The weakening of the US dollar compared to Canadian dollar also increased cash costs for Canadian based operations by approximately $7 per ounce.

Production and cash costs for the fourth quarter of 2007 were 253,000 ounces at $427 per ounce compared to 221,000 ounces and $367 per ounce for the fourth quarter in 2006.

COSTS REDUCTION INITIATIVES
The Company has implemented numerous cost reduction initiatives throughout the organization, including the following:

• Mill optimization and expansion programs at Rosebel
• New copper flotation circuit at Doyon
• Renegotiation of the mining contract and installation of a new mill motor and oxygen plant at Mupane
• Installation of a gravity concentrator at Sadiola
• Process improvements to increase metallurgical recovery at Niobec

Unit costs are a primary focus for the Company and other continuous improvement initiatives at all levels are also being implemented.

RECENT EVENTS
On October 9, 2007, an option agreement has been signed with Cadiscor Resources Inc. ("Cadiscor"), granting them the right to purchase the Sleeping Giant mine after the completion of mining and processing for total consideration of up to C$7.0 million.

On January 31, 2008, the Government of France announced that it would not grant the permits necessary to commence construction of the Camp Caiman project.  This was despite the fact that the Company had fulfilled all of the technical, environmental and legal requirements.  On March 13, 2008, IAMGOLD met the President of France. The President agreed to further dialogue regarding the Company's interests in the region and to consider all reasonable alternatives for mining projects which the Company may propose in the future. All existing exploration permits remain in effect.  The Company continues to explore all development opportunities as well as available remedies.

On February 6, 2008, the Company announced an $18.4 million investment to expand the Rosebel mill. This expansion, in conjunction with the mill optimization investment announced in 2007, allows for an increase in the annual life of mine production from approximately 275,000 ounces per year to 300,000 - 305,000 ounces per year and a reduction in direct cash costs of approximately $35 per ounce over the life of mine. This is expected to increase the annual mill throughput from 8.0 million tonnes of ore to 8.9 million tonnes while adding sufficient operational flexibility to increase throughput by a further 15% to 25% should mine site and economic conditions support the use of the excess capacity. The mill expansion eliminates the need for stockpiles, and through the installation of extra leach tanks to increase r esidence time, will boost metallurgical recovery from 94% to 95%. Rosebel management are continuing with the review of a mine fleet expansion to effectively utilize the excess mill capacity. The investment planned in 2008 will improve production and lower cash costs in 2009.

In March 2008, the Company issued 928,962 flow-through shares to finance the Westwood project totaling C$8.5 million which will have to be spent in 2008.

In February 2008, a joint venture interest related to the Nyakafuru project in Tanzania was sold for $6.0 million. In addition, a royalty of $10 per ounce is payable for each additional gold resource ounce discovered above the current resource base, up to a maximum royalty payment of $3.75 million.

OUTLOOK
IAMGOLD's attributable share of gold production in 2008 from the actual operating mines is expected to be 920,000 ounces of gold at a cash cost between $455 and $470 per ounce, including royalties based on a fo recast gold price of $700 per ounce, a $90 per barrel of oil and a Canadian/US dollar exchange rate of 1.05. 

Changes in these assumptions may have a material impact on cash costs, financial position, and overall results of operations. The sensitivity to a $100 per ounce rise in the gold price would increase royalty expenses included in cash costs by approximately $10 per ounce. Fuel is a key cost driver as it is used in production during extraction and processing of ore, and, to generate electric power for some operations.  A $10 per barrel change in oil prices could cause a change in cash costs of approximately $6 per ounce.  The Company operates three gold mines in Canada and therefore a change in the Canadian/US exchange rate by 10% would have an impact on cash costs of approximately $8 per ounce.

In the Company's niobium mine, demand for ferroniobium, a strengthening element used in the manufacturing of specialty steel alloys, continues to increase, supported by growth in China, high demand for pipeline steels, and favourable economic conditions. Demand is expected to remain strong for at least the next two years. Ferroniobium prices have increased to record levels during 2007 and continue to rise.

The Company will continue to focus on increasing reserves and production organically and through acquisitions, as well as focusing on containing and reducing cash costs at existing operations.

Acquisitions opportunities will focus on economic returns, including the ability to decrease the Company's long-term cost structure.  The investment criteria will be to increase production by at least 75,000 to 100,000 ounces per annum, have demonstrated exploration potential, and a geographic fit with the Company's existing profile.

A conference call to review the Corporation's fourth quarter results will take place on Friday, March 28, 2008 at 11:00 a.m. EST. Local call-in number: 416-644-3414 and N.A. toll-free: 1-800-733-7571. This conference call will also be audiocast on our website (www.iamgold.com).

A replay of this conference call will be available from 1:00 p.m. March 28 to April 4, 2008 by dialing local: 416-640-1917, passcode: 2126086# and N.A. toll-free: 1-877-289-8525, passcode: 2126086#. A replay will also be available on IAMGOLD's website.

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 press release, such as "mineral resources" , that the SEC guidelines strictly prohibit us from including in our filings with the SEC. U.S. investors are urged to con sider closely the disclosure in the IAMGOLD Annual Report on Form 40-F. A copy of the 2006 Form 40-F is available to shareholders, free of charge, upon written request addressed to the Investor Relations Department.

Forward Looking Statement
This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of IAMGOLD, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from IAMGOLD's expectations are disclosed under the heading "Risk Factors" and elsewhere in IAMGOLD documents filed from time-to-time with the Toronto Stock Exchange, the United States Securities and Exchange Commission and other regulatory authorities.

To view the Management's Discussion and Analysis, please click the following link: http://media3.marketwire.com/docs/imgmda0328.pdf 

To view the Financial Statements, please click the following link: http://media3.marketwire.com/docs/imgafs0328.pdf 

THIS PRESS RELEASE CONTAINS FINANCIAL STATEMENTS.  CLICK HERE TO VIEW PDF VERSION OF THIS DOCUMENT.

For further information please contact:

IAMGOLD Corporation:
Lisa Doddridge
Director, Investor Relations
Tel: (416) 360-4710
Toll-free: 1 888 IMG-9999

Renmark Financial Communications Inc.
John Boidman: jboidman@renmarkfinancial.com
Henri Perron: hperron@renmarkfinancial.com
T: (514) 939-3989
F: (514) 939-3717
www.renmarkfinancial.com 

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