IAMGOLD Confirms Option Agreement on La Arena and Equity Position in Mexican Silver Mines Ltd.

TORONTO, ONTARIO, Jun 29 (MARKET WIRE) --
IAMGOLD Corporation ("IAMGOLD" or "the Company") (TSX: IMG)(NYSE:
IAG)(BOTSWANA: IAMGOLD) today announced it has acquired 8,024,511 common
shares and 1,500,000 warrants of Mexican Silver Mines Ltd. ("Mexican
Silver"), having had the same number of common shares and warrants of Rio
Alto Mining Limited ("Rio Alto") immediately prior to the amalgamation
with Mexican Silver announced on June 29, 2009.

IAMGOLD now owns approximately 10.62% of the common shares of Mexican
Silver issued and outstanding and, if it were to exercise its warrants to
purchase common shares, would own approximately 12.36% of the common
shares of Mexican Silver issued and outstanding (on a partially diluted
basis).

The acquisition of the common shares and warrants of Mexican Silver by
IAMGOLD were a result of an option and earn-in agreement entered into
with Rio Alto with respect to IAMGOLD's La Arena copper/gold project in
Peru. The terms of the option and earn-in agreement provide Rio Alto with
an option to purchase all of the shares of La Arena S.A. held by IAMGOLD
for cash payments of US$47.55 million and the right to earn up to 38.7%
of the shares of La Arena S.A. by incurring expenditures of up to US$30
million on the La Arena project.

IAMGOLD does not have any present intention to acquire ownership of, or
control over, additional securities of Mexican Silver. It is the
intention of IAMGOLD to evaluate its investment in Mexican Silver on a
continuing basis and such holdings may be increased or decreased in the
future.

Forward Looking Statement

This press release contains forward-looking statements. 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
generally identifiable by use of the words "may", "will", "should",
"continue", "expect", "anticipate", "estimate", "believe", "intend",
"plan" or "project" or the negative of these words or other variations on
these words or comparable terminology. Forward-looking statements are
subject to a number of risks and uncertainties, many of which are beyond
the Company's ability to control or predict, 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, without limitation, 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.

Please note:

This entire press release may be accessed via fax, e-mail, IAMGOLD's
website at www.iamgold.com and through Marketwire's website at
www.marketwire.com. All material information on IAMGOLD can be found at
www.sedar.com or at www.sec.gov/edgar.shtml, or www.iamgold.com.

For further information:

IAMGOLD has filed an early warning report on Mexican Silver Mines Ltd.'s
SEDAR profile at www.sedar.com or contact Tamara Brown at (416) 360 4743.

Si vous desirez obtenir la version francaise de ce communique, veuillez
consulter le http://www.iamgold.com/fr/accueil.html.

Contacts:
IAMGOLD Corporation
Joseph F. Conway
President & CEO
(416) 360-4712 or Toll-free: 1 888 IMG-9999

IAMGOLD Corporation
Tamara Brown
Director, Investor Relations
(416) 360-4743 or Toll-free: 1 888 IMG-9999

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