IMG IAMGOLD Corporation

IAMGOLD Corporation (TSX: IMG)(NYSE: IAG)(BOTSWANA: IAMGOLD) announced today that it has entered into an underwriting agreement with a syndicate of underwriters led by Canaccord Capital Corporation and TD Securities Inc. and including CIBC World Markets Inc., GMP Securities L.P., Macquarie Capital Markets Canada Ltd., Scotia Capital Inc., UBS Securities Canada Inc., Cormark Securities Inc., National Bank Financial Inc., Paradigm Capital Inc., RBC Capital Markets, Thomas Weisel Partners Canada, Inc., Dundee Securities Corporation, Genuity Capital Markets, Goldman Sachs Canada Inc., and Salman Partners Inc.(collectively, the "Underwriters") to sell 34,300,000 common shares of IAMGOLD at a price of Cdn$8.75 per common share to raise gross proceeds of Cdn$300,125,000 (the "Offering") pursuant to a short form prospectus filed with the regulatory authorities in all of the provinces and territories of Canada, except Quebec, and a registration statement filed with the United States Securities and Exchange Commission under the multi-jurisdictional disclosure system. The Company has granted the Underwriters an over-allotment option to purchase an additional 5,145,000 common shares of IAMGOLD, exercisable at any time, and from time to time, in whole or in part, up to 30 days from the closing of the Offering (the "Over-Allotment Option). If the Over-Allotment Option is exercised in full, the total gross proceeds to IAMGOLD will be Cdn$345,143,750.

The net proceeds from the Offering are expected to be used to fund the construction and development of the Essakane Project (replacing all or substantially all of the previously proposed Essakane project debt facility and related gold hedging requirements) and the balance to fund capital expenditures at IAMGOLD's other properties and for general corporate purposes including future acquisition opportunities.

The Offering is scheduled to close on or about March 26, 2009 and is subject to certain customary conditions and regulatory approvals, including the approval of the Toronto Stock Exchange and the New York Stock Exchange. A copy of the preliminary prospectus may be obtained from Amy Patel at Canaccord Capital Corporation, 161 Bay Street, Suite 3000, Toronto, Ontario, M5J 2S1, 1-800-663-1899 or Paula Kourian at TD Securities Inc., 31 West 52nd Street, 20th Floor, New York, NY 10019-6101, 1-212-827-7316. A copy may also be obtained by visiting SEDAR at http://www.sedar.com/ or the SEC's website at http://www.sec.gov/.

A registration statement relating to the common shares of IAMGOLD has been filed with the United States Securities and Exchange Commission but has not yet become effective. The securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these common shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

ABOUT IAMGOLD

IAMGOLD is a leading mid-tier gold mining company producing almost one million ounces annually from 8 mines on 3 continents. IAMGOLD is focused on growth with a target to reach 1.8 million ounces gold production by 2012. IAMGOLD is uniquely positioned with a strong financial base, together with the management and operations expertise to execute our aggressive growth objectives. IAMGOLD is focused in West Africa, the Guiana Shield of South America and Quebec where it has a pipeline of development and exploration projects, while it continues to assess accretive acquisition opportunities with a strategic fit. IAMGOLD is listed on the Toronto Stock Exchange ("IMG"), the New York Stock Exchange ("IAG") and the Botswana Stock Exchange ("IAMGOLD").

Forward Looking Statement

This press release contains forward-looking statements regarding IAMGOLD and the offering referred to herein, including the expected closing date and anticipated use of proceeds. These statements are based upon the assumptions that the offering will be successfully completed on the terms described above, and that the proceeds of the offering can successfully be used as described above. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding the estimation of mineral resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, risks relating to market conditions, global political uncertainties, investor demand and the timing of the offering, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, changes in world gold markets and other risks disclosed in IAMGOLD's most recent Form 40-F/Annual Information Form on file with the US Securities and Exchange Commission and Canadian provincial securities regulatory authorities. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.

Contacts: IAMGOLD Corporation Joseph F. Conway President & CEO (416) 360-4712 or Toll Free: 1-888-IMG-9999 Email: jconway@iamgold.com IAMGOLD Corporation Elaine Ellingham SVP, Investor Relations & Communications (416) 360-4743 or Toll Free: 1-888-IMG-9999 Email: eellingham@iamgold.com Website: www.iamgold.com