TSX: IMG NYSE: IAG

NEWS RELEASE

IAMGOLD'S NET OPERATING CASH FLOW

FROM CONTINUING OPERATIONS INCREASES BY 90%

WESTWOOD RAMP-UP ON TRACK, $800 MILLION IN AVAILABLE LIQUIDITY

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

Refer to the Management Discussion and Analysis (MD&A) and Unaudited Consolidated Interim Financial Statements for the three months ended March 31, 2016 for more information.

Toronto, Ontario, May 3, 2016 - IAMGOLD Corporation ("IAMGOLD" or the "Company") today reports its financial and operating results for the quarter ended March 31, 2016.

"We had a strong start to the year," said Steve Letwin, IAMGOLD President and CEO. "Our bottom line improved significantly over the previous year and net operating cash flow from continuing operations rose by 90%. We continued to focus on increasing operating margins and our all-in sustaining costs came in at

$1,084 an ounce. Essakane's throughput increased 9% despite the high proportion of hard rock, Rosebel's all-in sustaining costs fell 8% with the continued success of its productivity improvement initiatives, and we're continuing to make progress on securing other sources of soft rock in and around the Rosebel operation. At Westwood, we achieved our production target and the rate of underground development is on track at approximately 2,100 metres a month. The Westwood team has done outstanding work to increase drilling productivity and we're confident we can maintain the pace to a full ramp-up in 2019.

"To help fund development work at Westwood we raised $30 million through the issuance of flow through shares," continued Mr. Letwin. "And we took advantage of the upturn in the gold price to sell our investment in gold for $170 million, which was a 75% return on investment. At the end of the quarter we

had approximately $660 million in cash. Subsequently in April, Ressources Québec joined our credit facility with a C$50 million commitment. Our strong liquidity provides flexibility to invest in future profitable growth opportunities."

First Quarter 2016 Highlights

• Attributable gold production and attributable gold sales of 191,000 ounces.

• All-in sustaining costs1 of $1,084/oz sold.

• Total cash costs1 of $746/oz produced.

• Net earnings from continuing operations attributable to equity holders of $53.1 million was up $69.6 million from Q1/15, primarily due to the gain on the sale of gold bullion.

• Net cash from operating activities from continuing operations of $51.4 million, up 90% from Q1/15.

• Cash, cash equivalents and restricted cash were $658.1 million at March 31, 2016.

• Sold investment in 135,148 ounces of gold bullion at an average price of $1,260 an ounce for net proceeds of $170.3 million, representing a $72.9 million gain over book value.

• Received $30.3 million in net proceeds through the issuance of flow through shares to fund development work at Westwood in 2016.

• Ramp-up of underground development at Westwood on track.

• Maintaining 2016 production guidance of 770,000 to 800,000 attributable ounces at all-in sustaining costs of $1,000 to $1,100 an ounce.

  Subsequent to Quarter-end

  • In April, we announced that Ressources Québec had joined IAMGOLD's revolving credit facility with a commitment of $38 million (C$50 million). The facility now totals $138 million. We maintain the potential to increase the total facility to $250 million.

SUM M ARY O F FIN AN CI AL AND O PER AT I NG RE SU LT S

Three months ended March 31,

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

F IRST Q U ART ER 2 01 6 HI G HL IG HT S

Financial Performance

• Revenues from continuing operations for the first quarter 2016 were $219.7 million, down $25.0 million or 10% from the same prior year period due to lower sales volume at Rosebel ($15.3 million) and Westwood ($10.6 million) and a lower realized gold price ($5.9 million), partially offset by higher sales volume at Essakane ($6.8 million).

• Cost of sales from continuing operations for the first quarter 2016 was $213.2 million, down $18.5 million or 8% from the same prior year period. The decrease was the result of lower operating costs ($17.3 million), lower depreciation expense ($0.8 million), and lower royalties due to a lower realized gold price ($0.4 million). Operating costs were lower primarily as a result of lower fuel prices, the stronger U.S. dollar relative to the Euro and the Canadian dollar, lower mining at Westwood due to underground development and remedial work related to the revised ramp-up, lower labour costs at Rosebel following the workforce reductions in 2015, the devaluation of the Surinamese dollar relative to the U.S. dollar and productivity improvements.

• Depreciation expense for the first quarter 2016 was $61.5 million, down $0.8 million or 1% from the same prior year period, primarily due to lower amortization of capitalized waste stripping at Essakane and lower carrying values at the Westwood mine, partially offset by lower reserves at Rosebel, and timing of capital additions.

• Income tax expense from continuing operations for the first quarter 2016 was $6.0 million, down $15.8 million or 72% from the same prior year period. Taxes were higher in the first quarter 2015 due to an increase in the tax expense related to the strengthening U.S. dollar. This reduced the value of tax receivables and the tax basis of mining assets in foreign jurisdictions, which lowered the value of future estimated tax deductions available when translated into U.S. dollars.

• Net earnings from continuing operations attributable to equity holders for the first quarter 2016 were

  $53.1 million or $0.13 per share, up $69.6 million or $0.17 per share from the same prior year period. The increase was mainly due to the gain on sale of gold bullion ($72.9 million), lower derivative losses ($18.9 million), lower cost of sales ($18.5 million), lower income tax expense ($15.8 million) and lower exploration expenses ($3.6 million). This was partially offset by the absence of the gain on the sale of the Diavik royalty ($43.5 million) and lower revenues ($25.0 million).

• Adjusted net loss from continuing operations attributable to equity holders1 for the first quarter 2016 was $7.3 million ($0.02 per share1), down from an adjusted net loss of $29.5 million ($0.08 per share1) for the same prior year period.

• Net cash from operating activities from continuing operations1 for the first quarter 2016 was $51.4 million, up $24.3 million or 90% from the same prior year period. The increase was mainly due to a lower movement in non-cash working capital ($26.5 million) and lower net settlement of derivatives ($10.0 million), partially offset by lower earnings after non-cash adjustments ($13.0 million).

• Net cash from operating activities before changes in working capital from continuing operations1 for the first quarter 2016 was $49.8 million ($0.13 per share1), down $2.2 million ($0.01 per share1) or 4%

  from the same prior year period.

  Financial Position

• Cash, cash equivalents and restricted cash were $658.1 million at March 31, 2016, up $110.1 million from December 31, 2015. The increase was mainly due to proceeds from the sale of gold bullion ($170.3 million), cash generated from operating activities ($51.4 million) and proceeds from the issuance of flow-through shares ($30.3 million), partially offset by repayment of the credit facility ($70.0 million), and spending on Property, plant and equipment and Exploration and evaluation assets ($69.6 million).

• In the first quarter 2016, we issued 12.0 million flow through common shares for net proceeds of $30.3 million. The issuance of flow through shares effectively transfers the tax deduction of exploration and project development expenses in Canada to the purchaser of the flow through shares. Flow through shares are designed to provide an incentive for financing qualifying exploration and development ventures in Canada. These transactions allow us to fund previously planned expenditures without reducing our liquidity. The flow-through common shares were primarily issued to fund development expenditures on the Westwood mine in Quebec.

  Production and Costs

• Attributable gold production, inclusive of joint venture operations, for the first quarter 2016 was 191,000 ounces, down 17,000 ounces from the same prior year period. The decrease was due to lower grades at Rosebel (8,000 ounces), lower production at Westwood (7,000 ounces), lower grades at Essakane (1,000 ounces), and lower production from the Joint Ventures (1,000 ounces).

• Attributable gold sales, inclusive of joint venture operations, for the first quarter of 2016 were 191,000 ounces, which was equal to attributable gold production.

• Total cash costs1 for the first quarter 2016 were $746 per ounce produced, down 12% from the same prior year period. The decrease was mainly due to lower fuel prices, the stronger U.S. dollar relative to the Euro and the Canadian dollar, lower labour costs at Rosebel following the workforce reductions in 2015, the devaluation of the Surinamese dollar relative to the U.S. dollar and productivity improvements, partially offset by lower overall production. Total cash costs1 in the first quarter 2016 were reduced by $32 an ounce to reflect the normalization of costs and revised ramp-up at Westwood

  (March 31, 2015 - $nil), and included realized derivative losses of $10 an ounce (March 31, 2015 - $60 an ounce).

• All-in-sustaining costs1 for the first quarter 2016 were $1,084 per ounce sold, down 3% from the same prior year period. The decrease was primarily due to lower cash costs, partially offset by an increase in sustaining capital and lower sales. All-in sustaining costs1 in the first quarter 2016 were reduced by

  $32 an ounce to reflect the normalization of costs and revised ramp-up at Westwood (March 31, 2015

  -$nil), and included realized derivative losses of $10 an ounce (March 31, 2015 - $64 an ounce).

  Commitment to Zero Harm Continues

• Regarding health and safety, the frequency of all types of serious injuries (measured as the DART rate2) for the first quarter 2016 was 0.38, an improvement over our target of 0.62 and 0.67 for 2015. The lower DART rate was largely attributable to the strong health and safety performance achieved at Westwood.

AT T RIBUTABL E G O L D P RO DUCT IO N AND AL L -IN SUSTAI NING AND TOTAL C AS H CO ST S

Gold Production (000s oz)

Total Cash Costs1 ($ per ounce produced)

All-in Sustaining Costs1

($ per ounce sold)

1 This is a non-GAAP measure. Refer to the non-GAAP performance measures section of this MD&A. Consists of Essakane, Rosebel, Westwood and the Joint Ventures on an attributable basis.

O PER AT IO N S AN ALY SI S BY M INE SIT E