All amounts are expressed in US dollars, unless otherwise indicated. IAMGOLD Corporation ("IAMGOLD" or "the Company") TSX:IMG)(NYSE:IAG)(BOTSWANA:IAMGOLD) today reported its unaudited consolidated financial and operating results for the first quarter ended March 31, 2011. Net earnings were $162.3 million ($0.41 per share), an increase of $102.1 million compared to the first quarter of 2010, and operating cash flow was $205.8 million ($0.55 per share(1)), representing an increase of 177% from the first quarter of 2010. "Our strong first quarter results reflect our focused strategy to maximize the value of mines that we own and operate," said Steve Letwin, IAMGOLD's President and CEO. "Attributable gold production was up 41% year-over-year driven chiefly by the inclusion of Essakane along with higher recoveries at Rosebel. We continue to benefit from higher gold prices and are implementing various initiatives to reduce our cash costs." Mr. Letwin further commented: "On our strategic agenda, we have also taken the first two steps to enhance shareholder value. The sale of our minority interests in Ghana for $667 million, as announced in April, is aligned with our overarching financial objective to invest in assets where we can maximize return on capital. The second step is to execute our recently announced plan to realize the value of Niobec and examine opportunities to monetize the value of the asset." FIRST QUARTER 2011 HIGHLIGHTS Revenues of $432.5 million were up 80% from $240.1 million in the first quarter of 2010. The attributable gold production of 290,000 ounces was up 41% from 206,000 ounces in the first quarter of 2010 mainly due to the commencement of production at Essakane in the third quarter of 2010. Record net earnings of $162.3 million ($0.41 per share) increased by 170% from $60.2 million ($0.15 per share) in the first quarter of 2010. Strong adjusted net earnings(2) of $144.9 million ($0.36 per share(2)) increased by 163% from $55.0 million ($0.14 per share) in the first quarter of 2010. Strong operating cash flow of $205.8 million ($0.55 per share(1)) increased by 177% compared to $74.3 million ($0.20 per share) in the first quarter of 2010. Financial position strengthened with cash, cash equivalents and gold bullion (at market) of $621.4 million and availability under the credit facility of $350.0 million at March 31, 2011. Proceeds of $48.8 million received on the sale of the La Arena project resulting in a pre-tax gain of $10.5 million. In addition, as part of the option and earn-in agreement in June 2009, IAMGOLD received 8 million shares and 1.5 million warrants of Rio Alto Mining Limited for a total value of $1.4 million at inception. These shares and warrants had a market value of $21.2 million as at the end of March 2011. Raised gross proceeds of $43.3 million through a private placement of flow-through shares, with 1.7 million shares issued at a price of C$25.48 per share. On April 15th, IAMGOLD announced the agreement to sell its 18.9% interest in the Tarkwa and Damang gold mines in Ghana, West Africa to Gold Fields Limited for $667 million in cash. The deal is expected to close no later than July 31, 2011. On May 4, 2011, IAMGOLD announced the result of an independent technical report confirming the potential to increase measured and indicated resources at its niobium mine by 691% to 1.93 billion kilograms of contained niobium pentoxide with an after-tax net asset value in the range of $1.6 billion to $2.0 billion. IAMGOLD commenced reporting its unaudited consolidated financial statements for the first quarter of 2011 in accordance with International Financial Reporting Standards ("IFRS") with comparative information for 2010 restated under IFRS. On March 7, 2011, IAMGOLD signed a Memorandum of Understanding ("MOU") with the China National Gold Group Corporation ("China Gold"). This MOU confirms the mutual intention of IAMGOLD and China Gold to cooperate in the pursuit and development of mineral deposits in the regions of IAMGOLD's focus. For full report, click here.

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