IMG.TO · 2018-11-01 12:00:00

FEASIBILITY STUDY FOR CÔTÉ GOLD YIELDS SIGNIFICANTLY IMPROVED PROJECT ECONOMICS 15.2% After-tax Internal Rate of Return Payback 4.4 years Net Present Value $795 million

Economic Studies

NEWS RELEASE

TSX: IMG NYSE: IAG

FEASIBILITY STUDY FOR CÔTÉ GOLD YIELDS SIGNIFICANTLY IMPROVED PROJECT

ECONOMICS

15.2% After-tax Internal Rate of Return

Payback 4.4 years

Net Present Value $795 million

All amounts are in US dollars, unless otherwise indicated.

Toronto, Ontario, November 1, 2018 – IAMGOLD Corporation (“IAMGOLD” or the “Company”) today announced

positive results from a Feasibility Study ("FS") for the IAMGOLD/Sumitomo Metal Mining Co., Ltd. (“Sumitomo”),

Joint Venture Côté Gold Project (the “Project”) in Northern Ontario. The results of the FS illustrate that Côté Gold

is an economically viable, long-life project that is expected to be a low-cost producing mine. The FS establishes

substantial economic and operational improvements relative to the Pre-feasibility Study (“PFS”) results announced

in June 2017. The FS also provides the basis for making a production decision and serves to fully support the

permitting process. The Feasibility Study includes two mine plan scenarios:

 Base Case Mine Plan: The Base Case Mine Plan is aligned with the current permitting process; and

 Extended Mine Plan: The Extended Mine Plan adds two additional years to the Base Case Mine Plan mine

life without expanding the footprint of the project. The Extended Mine Plan is supported by exploitation of the

total Mineral Reserves, and recognizes that permit amendments may be required to raise the height of the

Mine Rock Area and Tailings Management Facility.

PROJECT HIGHLIGHTS (100% BASIS)

PFS (2017)

FS (2018) Change from PFS

Base Case Extended Base Case Extended

After-Tax – NPV @ 5% $703 million $795 million $905 million + $92 million + $202 million

IRR (After-tax) 14.0% 15.2% 15.4% 120 bps 140 bps

Payback Period 4.5 years 4.4 years 4.4 years -0.1 years -0.1 years

Gold Price $1,250 / oz $1,250 / oz $1,250 / oz + $0 / oz + $0 / oz

Reserves and Resources

Compared to the PFS:

o Total Proven and Probable Reserves (“P&P”) increased by 1.4 million ounces to 7.3 million ounces.

 69% of total Reserve ounces are in the Proven category.

 Stripping ratio (waste:ore) of 2.6 to 1 for the Extended Mine Plan.

o Total Measured and Indicated Resources (inclusive of Reserves) increased by 1.9 million ounces to almost

10.0 million ounces.

o Total Inferred Resources increased by 1.2 million to 2.4 million ounces

Base Case Mine Plan – Supports Permit Application

 Mine Life of 16 years with mill throughput of 36,000 tonnes per day

 Life of Mine (LOM) average annual production of 367,000 ounces; average annual production of 428,000

ounces through years 1 to 12

 Average mill feed grade 0.98 g/t Au

 LOM total cash costs of $594/oz and all-in sustaining costs of $694/oz

 After-tax Net Present Value of $795 million (5% discount rate), at a gold price of $1,250/oz

 After-tax Internal Rate of Return of 15.2%, with a payback period of 4.4 years

 Initial capital expenditures of $1,147 million

Extended Mine Plan – Supports Total Mineral Reserves

 Adds 2 years to the Base Case Mine Plan mine life with no expansion of the infrastructure footprint, other than

a larger pit

 Marginally increases LOM total cash costs to $606/oz and all-in sustaining costs to $703/oz

 Increases LOM average annual production to 372,000 ounces; average annual production of 407,000 ounces

through years 1 to 15

 Increases after-tax Net Present Value by an additional $110 million to $905 million (5% discount rate)

 Improves after-tax IRR to 15.4% and while maintaining payback period at 4.4 years

 Initial capital remains unchanged from the Base Case at $1,147 million

Additionally, the Company is in advanced discussions with a syndicate of lenders to double the existing credit

facility from $250 million to $500 million and extend the credit period. These additional funds will provide further

financial flexibility as the Company executes its growth strategy. The facility is expected to close before the end of

2018.

Steve Letwin, President and CEO of IAMGOLD, said “Côté Gold has progressed from an advanced exploration

project to an economically robust development project with nearly 10 million ounces in Measured and Indicated

Mineral Resources. I commend the team for their excellent work enhancing the project’s economics, refining the

development concept previously set out in the PFS, and substantially de-risking the project. When compared to

the PFS, the FS Base Mine Plan NPV increased by 13% to $795 million, and the FS Extended Mine Plan NPV

increased by 29% to $905 million. The Project’s IRR increased by over 100 basis points for both the Base Case

and the Extended Mine plans. We are very pleased with our relationship with Sumitomo, and our r elationship

continues to evolve as we work toward a positive outcome for the development of the Project.

Côté Gold is one of the largest undeveloped gold deposits in attractive mining jurisdictions with surrounding

infrastructure, and it is a solid, low-cost project with a 16 year mine life which is expected to deliver 428,000

ounces on average annually, on a 100% basis, during years one through twelve. The development of Côté in our

portfolio has the potential to be truly transformational for IAMGOLD, as it would balance the Company’s

geographical production profile, extend the Company’s life of mine, and help transform us into a low cost producer.

On the financial side of the equation, the enhanced flexibility gained by doubling our credit facility, combined with

our peer leading balance sheet, provides substantial de-risking for the execution of Côté”

The FS was completed jointly by IAMGOLD/Sumitomo and Wood PLC (formerly Amec Foster Wheeler) with inputs

from technical studies completed by other specialist consultants. The FS represents a comprehensive study of the

technical and economic viability of the selected development option that demonstrates the extraction of the defined

Mineral Reserves is economically mineable, and will allow IAMGOLD and Sumitomo to make a decision on the

development of the project.

A technical report summarizing the FS will be filed on SEDAR within 45 days of the date of this news release. The

public filing of the Feasibility Study triggers the final cash payment to IAMGOLD of $95 million from Sumitomo for

its purchase of a 30% interest in the Project.

FS HIGHLIGHTS (100% Basis)

1 The Base Case supports the current permitting process.

2 The Extended Mine Plan supports the total Mineral Reserves and may require permit amendments. Extended Mine

Plan economic parameters are stand-alone and are not additive to the Base Case.

3. The Company expects to enter into equipment lease arrangements of approximately $134 million.

4. For the purposes of this feasibility study, post operating start-up, all waste mining costs and major equipment

components are included in operating costs as expenses and are not included in sustaining capital.

* US$/C$ exchange rate of $1.30.

MINERAL RESOURCES (100% Basis)

The Mineral Resources used as the basis for the FS study are summarized below.

Mineral Resource Statement – July 26, 2018

Classification Tonnes

(millions)

Grade

(g/t Au)

Contained

Ounces

(000)

IMG Attributable

Contained

Ounces (000)

Measured 171.9 0.96 5,310 3,438

Indicated 183.5 0.79 4,660 3,017

Measured & Indicated 355.4 0.87 9,970 6,455

Inferred 112.8 0.67 2,430 1,573

Notes:

1. CIM Definition Standards were followed for classification of Mineral Resources.

2. Mineral Resources are inclusive of Mineral Reserves.

3. Cut-off grades used to report Mineral Resources of 0.30 g/t Au.

4. Mineralized Resources are reported within optimized constraining pit shells at a design price of $1,500 /oz. Au.

5. Treatment & refining cost (incl. transport & selling): $1.75/oz Au, variable NSR royalty percentages by zone: 0.0%-

1.5%, Processing based costs (incl. process, G&A, sustaining cost, & closure allocation): $8.85/t, average mining

cost (varies by depth): $2.11/t, and re-handling cost $0.87/t.

6. Attributable calculated as 64.75% IAMGOLD, 27.75% Sumitomo, and a 7.5% interest.

Project Economics and Key Parameters

Base

Case1 Extended2

Mining Capacity 62 Mtpa 70 Mtpa

Milling Capacity 13.1 Mtpa 13.1 Mtpa

LOM Average Annual Gold Production 367,000 oz. 372,000 oz.

LOM Average Gold Recovery Rate 91.8% 91.8%

Average production during full production years 428,000 oz.

(years 1 – 12)

407,000 oz.

(years 1 – 15)

Mine Life 16 years 18 years

LOM Average Total Cash Costs $594/oz $606/oz

LOM Average AISC $694/oz $703/oz

Average Mill Feed Grade 0.98 g/t Au 0.97 g/t Au

Average LOM Strip Ratio 2.42:1 2.62:1

Estimated Capital Expenditure

Initial Capital 3 $1,147 million $1,147 million

Sustaining Capital 4 $527 million $589 million

Closure Costs $63 million $63 million

Gold Price Assumption used in financial analysis $1,250/oz $1,250/oz

Pre-tax NPV (5%) $1,242 million $1,404 million

Pre-Tax IRR 18.7% 18.7%

After-tax NPV (5%) $795 million $905 million

After-tax IRR 15.2% 15.4%

Payback Period 4.4 years 4.4 years

MINERAL RESERVES (100% Basis)

The tonnage, grades, and classification of the Total Mineral Reserves captured within the FS Base Case Mine Plan

and Extended Mine Plan are summarized below.

Mineral Reserves – July 26, 2018

Classification Tonnes

(millions)

Grade

(g/t Au)

Contained

Ounces

(000)

IMG

Attributable

Contained

Ounces (000)

Mineral Reserves within Base Case Mine Plan

Proven 145.1 1.02 4,752 3,077

Probable 57.9 0.88 1,639 1,061

Proven & Probable 203.0 0.98 6,391 4,138

Mine Rock within Base Case pit 491.7

Incremental Mineral Reserves within Extended Mine Plan

Proven 8.6 0.95 264 171

Probable 21.4 0.92 629 407

Proven & Probable 30.0 0.93 893 578

Incremental Mine Rock within

Extended Mine Plan designed pit 119.8

Total Mineral Reserves

Proven 153.7 1.02 5,017 3,248

Probable 79.3 0.89 2,268 1,468

Proven & Probable 233.0 0.97 7,284 4,716

Total Mine Rock within Extended pit 611.5

Total Tonnage within Extended Pit 844.5

Notes:

1. CIM Definition Standards were followed for classification of Mineral Reserves.

2. Reserves estimated assuming open pit mining methods.

3. Reserves are based on gold price of $1,200/oz.

4. Cut-off grades varied between 0.33 g/t Au and 0.37 g/t Au depending on alteration profile and pit area.

5. Fixed process gold recovery of 91.8%.

6. Treatment & refining cost (incl. transport & selling): $1.75/oz Au, variable NSR royalty percentages by zone: 0.0%-

1.5%, Processing based costs (incl. process, G&A, sustaining cost, & closure allocation): $8.85/t, average mining

cost (varies by depth): $2.11/t, and re-handling cost $0.87/t.

7. Attributable calculated as 64.75% IAMGOLD, 27.75% Sumitomo, and a 7.5% interest.

8. Numbers presented in this table may not add up to the totals provided due to rounding.

BASE CASE AND EXTENDED MINE PLAN FS ECONOMICS COMPARED WITH 2017 PFS (100% Basis)

PFS (2017)

FS (2018) Change from PFS

Base Case

Mine Plan

Extended Mine

Plan

Base Case Mine

Plan

Extended Mine

Plan

Mining Capacity 60 Mtpa 62 Mtpa 70 Mtpa + 2 Mtpa + 10 Mtpa

Daily Milling Throughput 32,000 t 36,000 t 36,000 t + 4,000 t + 4,000 t

LOM Average Annual Production 320 koz 367 koz 372 koz + 47 koz + 52 koz

Recovered Gold 5.4 Moz 5.9 Moz 6.7 Moz + 0.4 Moz + 1.3 Moz

Average Mill Feed Grade 0.89 g/t 0.98 g/t 0.97 g/t + 0.09 g/t + 0.08 g/t

LOM Average Strip Ratio 2.85: 1 2.42: 1 2.62: 1 -0.51: 1 -0.23: 1

Project Mine life 17 years 16 years 18 years -1 years + 1 years

Initial CAPEX $1,047 million $1,147 million $1,147 million + $100 million + $100 million

Sustaining CAPEX 1 $418 million $527 million $589 million + $109 million + $171 million

LOM Average Total Cash Cost $605/ oz $594/ oz $606/ oz -$11/ oz + $1/ oz

LOM Average AISC $689/ oz $694/ oz $703/ oz + $5/ oz + $14/ oz

After-Tax – NPV @ 5% $703 million $795 million $905 million + $92 million + $202 million

IRR (After-tax) 14.0% 15.2% 15.4% 120 bps 140 bps

Payback Period 4.5 years 4.4 years 4.4 years -0.1 years -0.1 years

Gold Price $1,250/ oz $1,250/ oz $1,250/ oz + $0/ oz + $0/ oz

Notes:

1. Exchange rate and fuel price are same in PFS and FS at 1.3 USD:CAD and $0.89/L respectively

MINING AND PROCESSING

The FS study refined the selected development option of a truck-shovel operation, assuming 220t autonomous

trucks and 34 m3 shovels, and a mineral processing circuit incorporating primary crushing, secondary crushing,

tertiary high pressure grinding roll crushing, ball milling, vertical stirred milling, gravity concentration and cyanide

leaching, followed by gold recovery using carbon-in-pulp, stripping and electrowinning. The crushing-grinding

circuit being utilized is more energy efficient than a standard SAG or a pre-crush circuit and consumes less

crushing and grinding media. A thickened tailings management facility is planned. The mine site would be

basis for the Base Case and Extended Mine Plans in the FS and other qualifications and assumptions are provided

below:

Parameter Base Case

Assumptions

Extended Mine Plan

Assumptions

Maximum Mining Capacity 62 Mtpa 70 Mtpa

Stockpile Capacity 48 Mt 41 Mt

Processing Rate 13.1 Mtpa (36 ktpd) 13.1 Mtpa (36 ktpd)

Metallurgical Recoveries 91.8% 91.8%

For the Base Case Mine Plan, open pit mining includes 46 Mt extracted during the two year pre-production period

followed by 14 years of production mining. Stockpile reclaim extends the milling operation into Year 16. The

amount of reclaimed ore over the life of the operation is 59 Mt. The average mill feed grade scheduled is 0.98 g/t

Au and the LOM stripping ratio is 2.42:1.

For the Extended Mine Plan, open pit mining includes 46 Mt extracted during the two year pre -production period

followed by 16 years of production mining. Stockpile reclaim extends the milling operation into Year 18. The

amount of reclaimed ore over the life of the operation is 59 Mt. The average mill feed grade scheduled is 0.97 g/t

Au and the LOM stripping ratio is 2.62:1.

FUTURE WORK

The FS recommended the completion of various studies to further define site conditions as part of the detailed

design process. This includes additional geotechnical investigations to characterize foundation overburden soil and

till composition at various locations. In addition, we continue to conduct exploration activities on key Au targets

within our more than 500-square-kilometre property surrounding the Côté Gold deposit to advance Au discoveries

that could further maximize our flexibility with respect to future development decisions.

IAMGOLD plans to make an investment decision on Côté Gold early in 2019, based on the feasibility work.

QUALIFIED PERSONS

The 2018 Côté Gold FS was prepared by both Wood and IAMGOLD Qualified Persons (QP’s) (as defined under

National Instrument 43-101). Wood Qualified Persons are independent of IAMGOLD and have reviewed and

approved this news release. The affiliation and areas of responsibility for each Qualified Perso n involved in

preparing the 2018 Côté Gold FS, upon which the technical report will be based, are provided below.

Wood QPs

 B. Wang, Ph.D., P.Eng., Design of surface watercourse realignments, tailings management facility, mine

rock areas and seepage collection ponds

 A. Peralta, P.Eng., Mine design, Mineral Reserves

 P. Baluch, P.Eng., Project infrastructure

 D. Dyck, P.Eng., Environmental studies, permitting and social or community impact

 P. Oshust, P.Geo., Mineral Resources

 D. Small, P.Eng., Economic analysis, capital costs

 P. O’hara, P.Eng., Process design

IAMGOLD QPs

 A. Smith, M.Sc., P.Geo., Exploration, geological setting, and deposit

 M-F. Bugnon, M.Sc., P.Geo., Property description, location, accessibility, climate, infrastructure,

physiography and history

The information in this news release was reviewed and approved by Craig MacDougall, P.Geo., Senior Vice

President, Exploration for IAMGOLD. Mr. MacDougall is a Qualified Person as defined by National Instrument 43 -

101.

SAMPLE PREPARATION and DATA VERIFICATION

IAMGOLD technicians and geologists on site follow a sample preparation protocol to ensure quality control before

sending samples to the assay laboratory. Drill core are typically sampled at one -metre intervals and consist of one-

half of sawn drill core to be sent to the assay laboratory and the other half retained as a core reference. Core is

sawed by technicians following the orientation line drawn by the geologist. The entire length of a drill hole is

sampled, except, diabase dykes that occur within the sequence are not sampled, aside for two one -metre shoulder

samples at the upper and lower contacts. Sample intervals are logged and tagged with a duplicate tag bearing a

unique sample number by IAMGOLD geologists. Sample details, including the borehole number and sample

interval are recorded in a sample book. One sample tag is placed in a plastic sample bag with the sawn core

sample and the second is stapled in the core box beneath the remaining representative half core sample. The

remaining half of the core is stored in racks at the core farm facilities located on site.

For quality assurance/quality control (QA/QC) purposes, IAMGOLD systematically inserts control samples at

regular intervals within sample batches. The control samples consist of a certified reference material (CRM) or a

blank sample and are routinely monitored.

Sample shipments are dispatched to the primary analytical laboratory, which has varied over the project history

and includes: Accurassay Laboratories, AGAT Laboratories Ltd. and ActLabs Ltd. All are accredited to the ISO

17025 by the Standards Council of Canada. Samples were analyzed using a standard fire assay (“FA”) with a 50

gram charge with an Atomic Absorption (“AA”) finish. Samples that assayed above a preset limit using FA -AA

were re-analyzed with the FA-Gravimetric method. Samples containing visible gold or which have returned values

greater than 10.0 g/t are re-analyzed by pulp metallic analysis.

The Primary laboratory also sets aside the pulp from one out of every 10 sample s which is then sent to a second

laboratory for analysis as a check assay. From 2012 to 2018, check assays were variably completed at ActLabs,

ALS Minerals and AGAT Labs. Samples were analyzed using standard the FA with AA finish method. Samples

that assayed above a pre-set limit using fire assay with AA finish were re-analyzed with the FA-Gravimetric

method.

CONFERENCE CALL

A conference call will be held on Friday, November 2, 2018 at 8:00 a.m. (Eastern Daylight Time) for a discussion

with management regarding the results of the feasibility study for the Côté Gold Project. A webcast of the

conference call will also be available through IAMGOLD`s website - www.iamgold.com.

Conference Call Information: North America Toll-Free: 1-800-319-4610 or 1-604-638-5340.

A replay of this conference call will be accessible for one month following the call by dialing: North America toll -

free: 1-800-319-6413 or 1-604-638-9010, passcode: 2698#.

Forward-Looking Information

All Mineral Reserve and Mineral Resources estimates reported by the Company were estimated in accordance

with the Canadian National Instrument 43-101 and the Canadian Institute of Mining, Metallurgy, and Petroleum

Definition Standards for Mineral Resources and Mineral Reserves (May 10, 2014). These standards differ

significantly from the requirements of the U.S. Securities and Exchange Commission. Mineral Resources which are

not Mineral Reserves do not have demonstrated economic viability.

This document contains "forward-looking information" within the meaning of Canadian securities legislation and

"forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of

1995. This information and these statements, referred to herein as "forward-looking statements" are made as of

the date of this document. Forward-looking statements relate to future events or future performance and reflect

current estimates, predictions, expectations or beliefs regarding future events and include, but are not limited to,

statements with respect to:

(i) the estimated amount and grade of Mineral Resources and Mineral Reserves;

(ii) the FS representing a viable development option for the Project;

(iii) estimates of the capital costs of constructing mine facilities and bringing a mine into production, of sustaining

capital and the duration of financing payback periods;

(iv) the estimated amount of future production, both produced and gold recovered; and,

(v) estimates of operating costs and total costs, net cash flow, net present value and economic returns from an

operating mine.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans,

projections, objectives or future events or performance (often, but not always, using words or phrases such as

"expects", "anticipates", "plans", "projects", "estimates", "envisages", "assumes", "intends", "strategy", "goals",

"objectives" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or

"will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not

statements of historical fact and may be forward-looking statements.

All forward-looking statements are based on IAMGOLD's or its consultants' current beliefs as well as various

assumptions made by them and information currently available to them. The most significant assumptions are set

forth above, but generally these assumptions include:

(i) the presence of and continuity of gold at the Côté Gold Project at estimated grades;

(ii) the geotechnical and metallurgical characteristics of rock conforming to sampled results; including the quantities

of water and the quality of the water that must be diverted or treated during mining operations;

(iii) the capacities and durability of various machinery and equipment;

(iv) the availability of personnel, machinery and equipment at estimated prices and within the estimated delivery

times;

(v) the pricing for electricity, bulk commodities and equipment spares;

(vi) currency exchange rates;

(vii) gold sale prices and exchange rate assumed;

(viii) appropriate discount rates applied to the cash flows in the economic analysis;

(ix) tax rates and royalty rates applicable to the proposed mining operation;

(x) the availability of acceptable financing under assumed structure and costs;

(xi) anticipated mining losses and dilution;

(xii) metallurgical performance;

(xiii) reasonable contingency requirements;

(xiv) success in realizing proposed operations;

(xv) receipt of permits and other regulatory approvals on acceptable terms; and

(xvi) the fulfillment of environmental assessment commitments and arrangements with local communit ies.

Although management considers these assumptions to be reasonable based on information currently available to

it, they may prove to be incorrect. Many forward-looking statements are made assuming the correctness of other

forward looking statements, such as statements of net present value and internal rates of return, which are based

on most of the other forward-looking statements and assumptions herein. The cost information is also prepared

using current values, but the time for incurring the costs will be in the future and it is assumed costs will remain

stable over the relevant period.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific,

and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or

that assumptions do not reflect future experience. We caution readers not to place undue reliance on these

forward-looking statements as a number of important factors could cause the actual outcomes to differ materially

from the beliefs, plans, objectives, expectations, anticipations, estimates assumptions and intentions expressed in

such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions a nd

estimates expressed above do not occur as forecast, but specifically include, without limitation: risks relating to

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