TSX: IMG NYSE: IAG

NEWS RELEASE

IAMGOLD REPORTS THIRD QUARTER 2015 OPERATING RESULTS; LOWERS CASH COSTS AND ALL-IN SUSTAINING COSTS GUIDANCE

All monetary amounts are expressed in U.S. dollars, unless otherwise indicated.

Refer to the Management Discussion and Analysis (MD&A) and Unaudited Condensed Consolidated Interim Financial Statements for the three months ended September 30, 2015 for more information.

Toronto, Ontario, November 3, 2015 - IAMGOLD Corporation ('IAMGOLD' or the 'Company') today reports its financial and operating results for the third quarter ended September 30, 2015.

'We're making excellent progress in further reducing all-in sustaining costs and this has allowed us to lower our cost guidance for 2015,' said Steve Letwin, President and CEO of IAMGOLD. 'Essakane's performance has been exemplary with all-in sustaining costs dropping to $922 an ounce in the quarter,

$227 an ounce lower than a year ago. Against a backdrop of low and uncertain gold prices, Rosebel has taken steps to reduce labour costs to better align with its production profile.

'Essakane achieved record production with a 29% increase from a year ago and up 20% from the second quarter,' continued Mr. Letwin. 'The additional ore from the Falagountou satellite deposit has been a significant contributor. At Rosebel, we are looking at ways to increase throughput, including further improvements to the milling process. Westwood is doing a great job with rehabilitation and underground development and the mine planning process is nearing completion. In January, we expect to communicate positive news about the forward path for Westwood. With IAMGOLD having produced 607,000 ounces year-to-date, we are on track to meet our guidance for 2015. Our balance sheet remains strong and we continue to evaluate investment opportunities that enhance cash flow and deliver attractive rates of return.'

Third Quarter 2015 Overview:

• Attributable gold production of 197,000 oz; with gold sales of 186,000 oz.

• All-in sustaining costs1 of $1,027/oz; lower than $1,076/oz in Q2/15 and $1,115/oz in Q3/14.

• Total cash costs1 of $791/oz; lower than $817/oz in Q2/15 and $851/oz in Q3/14.

• Cash, cash equivalents and gold bullion (at market value) of $783.4 million at Sept. 30, 2015.

• Record production at Essakane - up 29% from Q3/14 - and reduced AISC by $227/oz.

• Significant progress on development and rehabilitation at Westwood following the seismic event in May 2015. Revised life-of-mine plan expected in January 2016.

• Reduced cash costs and all-in sustaining costs guidance for 2015

  • Total cash costs lowered from $850-$900 to $825-$865/oz.

  • All-in sustaining costs lowered from $1,075-$1,175 to $1,050-$1,150/oz.

• Maintaining total production guidance at 780,000 to 815,000 oz.

• Initial delineation drilling program at the Diakha prospect in Mali completed; incorporating results into resource model to support an initial resource estimate by the end of 2015.

• IAMGOLD does not expect to be required under the indenture to offer to purchase any of its senior unsecured notes at par.

Subsequent to Quarter-end:

• October 8, 2015 - Announced that Rosebel has begun the process to reduce its employee base by approximately 10% as part of our continuing focus on cost reduction.

• October 26, 2015 - IAMGOLD filed, in France, a friendly tender offer to purchase the 14% of EURO Ressources S.A. not already owned by the Company, subject to regulatory approval.

• October 30, 2015 - Amended agreement with TomaGold Corporation to earn an immediate 50% interest in the Monster Lake project (refer to 'Exploration' section for more information).

SUMMARY OF FINANCIAL AND OPERATING RESULTS

Three months ended September 30,

Nine months ended September 30,

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1. This is a non-GAAP measure. Refer to the non-GAAP performance measures section of the MD&A.

2. Attributable gold production includes Westwood pre-commercial production for the nine months ended September 30, 2014 of 10,000 ounces.

3. The total cash costs computation does not include Westwood pre-commercial production for the nine months ended September 30, 2014 of 10,000 ounces.

THIRD QUARTER 2015 HIGHLIGHTS

Financial Performance

• Revenues from continuing operations for the third quarter 2015 were $207.6 million, down $79.1 million or 28% from the same prior year period. The decrease was mainly the result of lower sales volume at Westwood ($39.4 million) and Rosebel ($18.9 million) due to lower production, a lower realized gold price ($27.7 million), the closure of Mouska in 2014 ($9.0 million), and lower royalties following the sale of the Diavik royalty asset ($2.0 million), partially offset by higher gold sales at Essakane ($18.4 million).

• Cost of sales from continuing operations for the third quarter 2015 was $227.6 million, down $33.8 million or 13% from the same prior year period. The decrease was the result of lower operating costs ($35.6 million) and lower royalties due to a lower realized gold price ($2.7 million), partially offset by higher depreciation expense ($4.5 million). Lower operating costs in the third quarter 2015 reflect continued progress in improving mining and milling efficiencies and reducing overhead costs.

• Depreciation expense from continuing operations for the third quarter 2015 was $68.3 million, up $4.5 million or 7% from the same prior year period, primarily due to higher production at Essakane.

• Income tax expense from continuing operations for the third quarter 2015 was $8.0 million, down $53.5 million or 87% from the same prior year period. Taxes were significantly higher in the third quarter 2014 due to the agreement to sell Niobec, which triggered a non-cash deferred tax expense ($72.0 million). The decrease was partially offset by an increase in the non-cash deferred tax expense ($10.5 million) as a result of the strengthening U.S. dollar. This reduced the tax base of mining assets in foreign jurisdictions, which lowered the future estimated tax deductions available when translated into

  U.S. dollars.

• Net loss from continuing operations attributable to equity holders for the third quarter 2015 was $85.0 million ($0.22 per share), up $0.5 million from the same prior year period. The increase was mainly due to lower revenues ($79.1 million) and higher non-hedge derivative losses ($22.1 million), partially offset by lower income tax expense ($53.5 million), lower cost of sales ($33.8 million), lower exploration expense ($3.7 million), lower general and administrative expense ($2.9 million), lower net loss from associates and joint ventures ($2.8 million) and higher foreign exchange gains ($2.2 million).

• Net earnings for Niobec were presented separately as net earnings from discontinued operations, net of income taxes in the Consolidated statements of earnings. Comparative periods have been adjusted accordingly. Net earnings from discontinued operations for the third quarter 2015 were $1.2 million after the final working capital adjustment, down $10.8 million from the same prior year period. The decrease was the result of the sale of Niobec in the first quarter 2015.

• Adjusted net loss including discontinued operations attributable to equity holders1 for the third quarter 2015 was $46.9 million ($0.12 per share1), down from adjusted net earnings of $0.2 million for the same prior year period.

• Net cash from operating activities including discontinued operations for the third quarter 2015 was $9.8 million, down $105.5 million from the same prior year period. The decrease was mainly due to lower earnings from operations ($50.4 million), which included the absence of earnings from Niobec following its sale in the first quarter 2015, higher inventory ($28.4 million), net settlement of derivatives ($14.7 million) and higher receivables ($7.8 million).

• Net cash from operating activities before changes in working capital1, including discontinued operations, for the third quarter 2015 was $34.9 million ($0.09 per share1), down $54.0 million ($0.15 per share) from the same prior year period.

  Financial Position

• Cash, cash equivalents and gold bullion (at market value) were $783.4 million as at September 30, 2015 compared with $836.4 million as at June 30, 2015. The decrease was mainly due to spending on property, plant and equipment ($42.1 million), purchase of long-term debt ($7.0 million) and a decrease in the market value of gold bullion ($7.2 million), partially offset by cash generated from operating activities ($6.9 million).

  
  

  Production and Costs

  
  

  
  

• Attributable gold production was 197,000 ounces, inclusive of joint venture operations, in the third quarter 2015 compared to 225,000 ounces in the third quarter 2014. The lower production was mainly due to lower production at Westwood (33,000 ounces), lower grades at Rosebel (13,000 ounces) and Sadiola (4,000 ounces), closure of Mouska (1,000 ounces) and closure of Yatela (1,000 ounces), partially offset by higher production at Essakane (24,000) due to higher throughput and higher grades.

• Attributable gold sales of 186,000 ounces, inclusive of joint venture operations, for the third quarter 2015 was below attributable gold production of 197,000 ounces, due to the timing of sales (7,000 ounces) and a temporary delay in an end-of-quarter shipment at Essakane due to the political circumstances in Burkina Faso (4,000 ounces).

• Total cash costs for the third quarter 2015 were $791 per ounce produced, down $60 an ounce from the third quarter 2014. The decrease was due to the favourable impact on production from higher grades and throughput at Essakane, as well as lower operating costs at Rosebel, Essakane and Sadiola. Partially offsetting these improvements were lower grades at Rosebel and lower production at Westwood. Total cash costs for the third quarter included:

  • Realized hedge and non-hedge derivative losses, which increased total cash costs by $65 per ounce ($nil for Q3/14).

  • Normalization of Westwood's costs by $15.0 million due to the production interruption, which reduced total cash costs by $76 per ounce at the consolidated level.

• All-in sustaining costs were $1,027 per ounce sold in the third quarter 2015, down $88 an ounce from the third quarter 2014. The improvement was due to lower cash costs and lower sustaining capital expenditures. All-in sustaining costs for the third quarter included:

  • Realized hedge and non-hedge derivative losses, which increased all-in sustaining costs by

    $73 per ounce ($nil for Q3/14).

  • Normalization of Westwood's cash costs by $15.0 million due to the production interruption, which reduced all-in sustaining costs by $80 per ounce at the consolidated level.

    
    

    Commitment to Zero Harm Continues

    
    

• Regarding health and safety, the frequency of all types of serious injuries (measured as the DART rate2), for the third quarter 2015 was 0.32 compared to the target of 0.69. The lower DART rate in the third quarter 2015 was largely due to the exceptional health and safety performance at Rosebel.

  
  

  Outlook for 2015

  
  

  
  

  Production and Cost Guidance

• While maintaining our 2015 gold production guidance of 780,000-815,000 attributable ounces, we are increasing Essakane's guidance to 365,000-380,000 and lowering Westwood's to 55,000-65,000 ounces. The increase in Essakane's guidance reflects record performance in the third quarter due to favourable grades and strong throughput with the optimization of the expanded mill. Production guidance for Westwood has been reduced following lower than originally planned production in the third quarter 2015. We decided at Westwood to direct mine resources on development and rehabilitation activities in the third quarter.