Axactor SE

Quarterly Report • Nov 19, 2010

IGE RESOURCES AB (PUBL) Org. Reg. No 556227-8043

IGE Resources AB (formerly International Gold Exploration IGE AB) ("IGE" or the "Company") announces results for the third quarter 2010, ended September 30, 2010.

Summary third quarter

• The exploration target for the Rönnbäcken Nickel Project has been increased to 600-650 million tonnes. After the end of the quarter, an updated resource estimate for the project increased the resource base by 185 million tonnes (inferred resources category).
• IGE continued to build diamond revenue. A total of 13,600 carats of rough diamonds were sold in the quarter, including 6,000 carats from the exploration phase at IGE's partly owned Luxinge, Angola mine. Prices achieved for diamond both from the Cassanguidi and Luxinge mines were in line with expectations.
• IGE raised a net amount of NOK 90 million (SEK 104 million) in the third quarter by use of the Company's standby equity facility and through a private placement.
• For the third quarter of 2010 IGE reports a net loss of SEK -101.0 million or SEK -0.09 per share, compared to a loss of SEK -19.4 million or SEK -0.04 per share in the third quarter of 2009. The result is burdened by (non cash affecting) exchange losses amounting to SEK -24.3 million and non recurring costs of SEK -36.4 million related to write downs of non core assets.

Financial Summary

(TSEK, except per share data)	Q3 2010	Nine months, ended Sept 30, 2010	Q3 2009	Nine months ended Sept 30, 2009	Twelve months ended Dec 31, 2009
Revenue from sales	10,389	16,680	-	-	-
Other income	-	-	15,174	15,174	15,169
Operating result	-98,645	-122,723	-19,759	-55,641	-66,859
Net result	-101,000	-132,145	-19,427	-56,888	-65,782
Investments	7,206	500,922	-	16,696	35,463
Cash at the end of the period	97,631	97,631	9,343	9,343	40,807
Interest bearing loans at the end of the period	20,195	20,195	34,732	34,732	12,065
Result per share before and after dilution	-0.09	-0.11	-0.04	-0.12	-0.12

Other important events and events after the reporting period:

• IGE announced that the resource estimate for the Rönnbäcken Nickel Project in northern Sweden has been increased by additional 185 million tonnes of Inferred mineral resources. The resource estimate update is based on the summer 2010 exploration drilling programme, which included the Sundsberget deposit. The increased resource base suggests that IGE is moving closer to achieving the Rönnbäcken exploration target of 600-650 million tonnes at a grade of 0.10% to 0.15% nickel in sulphide.
• IGE has during the 6 months period, April to October, sold more than 24 000 Cts of diamonds from its operations in Angola.

Operations

Diamonds

A total of 13,654 Carats of rough diamonds were sold in the third quarter. Of this volume 6,045 Carats originated from the exploration phase at the Luxinge mine. By the end of the third quarter, IGE had sold a total of 19,822 Carats in 2010. Prices at all auctions were in line with expectations.

Cassanguidi mine, Angola

July and August were record breaking months for Cassanguidi in terms of carats recovered. During the month of July an average of 98.7 Carats per day were recovered, in August this improved to 115 Carats per day. Monthly production ended at 3,081 Carats in July and 3,576 Carats recovered in August.

September performance was hit by technical problems, in addition to reduced output resulting from the reconfiguring of the plant and installation of new equipment as part of the preparations for increased production at the mine. September production ended at 2,489 Carats.

New equipment was brought into the mine, in addition to a shipment of critical spares for the processing plant and earthmoving machinery.

The reconfiguration of the Cassanguidi mine includes consolidating the original plant located close to the Cassanguidi river, and mine infrastructure and the newer plant located approximately 5 km to the north. The rationale for this is to optimise the management required to operate the two plants and increase general redundancy of the operation.

The Cassanguidi investment budget has been significantly increased in order to secure the necessary equipment and spare parts, enabling the mine to pursue a production programme targeting 9,000 Carats per month in the second half of 2011. Equipment and spare parts are now brought in as quickly as practically possible. Management attention is also on attracting and retaining experienced and reliable crew.

	July	August	September
Overburden Stripped (m3 )	m3 67,795	82,631m3	78,574m3
Ore Mined (m3 )	m3 13,373	13,100 m3	15,901m3
Ore Processed (m3 )	m3 13,769	14,517m3	18,485m3
Carats recovered (Cts)	3,081.3 Cts	3,576.25Cts	2,489.04Cts
Grade (Cts/100m3 )	Cts/100m3 22.38	24.64Cts/100m3	13.47Cts/100m3
Diamonds sold (Cts)	2,938.34 Cts	4,670.90Cts	2,302.06Cts
Sale Value (\$/Ct)	\$161.36/Ct	\$179.00/Ct	\$166.00/Ct
Sale Value (\$)	\$439,170	\$836,091	\$382,141
Revenue (post royalty)	\$390,861	\$744,121	\$340,105

Production Statistics:

Luxinge mine, Angola

The mine was officially inaugurated at the end of July and the new Company owning and operating the mine established. IGE holds a 31% interest and management control in this Company but is entitled to 100% of the cash flow from the project until IGE's total investment in the project is repaid. The first parcel of sample diamonds was sold in August.

Trial mining operations were carried out in the third quarter in search of higher grade areas, with the current grade being disappointingly low. These efforts have so far proven unsuccessful, further questioning the project economics of the Luxinge operation. Trial mining has also demonstrated the logistical and operational inefficiencies of the Luxinge project, furthermore the company structure is suboptimal.

2 IGE is therefore considering closing down the Luxinge operation and has initiated discussion with its partners to

this end.

Production Statistics:

	July	August	September
Overburden Stripped (m3 )	4,684m3	3,363.9m3	8,530m3
Ore Mined (m3 )	4,354m3	3,343m3	3,360m3
Ore Processed (m3 )	6,033m3	3,032m3	3,417m3
Carats recovered (Cts)	1,035.06	423.26	632.81
Grade (Cts/100m3 )	17.16	13.96	18.52
Diamonds sold (Cts)	-	6,045.80 Cts	-
Sale Value (\$/Ct)	-	\$80/Ct	-
Sale Value (\$)	-	\$483,664	-
Revenue (post royalty)	-	\$406,278	-

One sale of diamonds from the Luxinge project has been executed so far. The diamonds produced subsequent to the sale of September is stored and will be sold at the next opportunity to sell granted to IGE.

Bakerville project, South Africa

The approval process for the Bakerville license is moving forward and an award is expected by January 2011.

The plant design has been refined to provide the required throughputs with the ranges of material present on the project. Water and power supplies are being worked on to attain an optimal solution, an effort is also being made to minimise the power and water requirement. Sonic drilling is being done to delineate the deeper pothole gravels. This will inform the mining plan at the start up. Finalisation of the processing plant and mining fleet are underway.

The recent global currency turbulence have negatively impacted this project through the appreciation of the Rand against the US Dollar. This will increase the Bakerville Capex by approximately 16% and have the inverse effect on the revenues. A revision of this projects costing and viability under the current conditions is being undertaken.

Other diamond projects

A drilling program was undertaken on the Harts River project in South Africa primarily to ensure compliance with DMR's licensing requirements.

No significant developments have been reported from the Longatshimo and Tshikapa projects in the Democratic Republoc of Congo.

IGE Diamond going forward

IGE Diamond will in the near term focus on fast-tracking production at the Cassanguidi mine. The investment budget for this mine for the next few months has been doubled to USD 4 million. This should enable the mine to expand from its current monthly output of 3,000 Carats to a production of 9,000 Carats per month by the third quarter 2011.

The Luxinge operation will most likely be sold or closed down, reflecting the fact that the diamond grade found at Luxinge and the operational structure do not support sustainable operations.

The development of the Bakerville project continues according to plans, with an award expected in the next couple of months. Bakerville will be ready to come on stream in the second quarter 2011, pending a favourable market for high grade diamonds and the Rand/USD currency situation.

Other diamond projects in the portfolio take priority after successfully building revenue at Cassanguidi and preparing Bakerville for production.

Nickel

Following highly encouraging drilling results, the exploration target for the Rönnbäcken nickel project in Sweden was raised to 600-650 million tonnes in September. Exploration activity continued in three priority target areas and results further underpin IGE's drive for increased project value.

Ore mineralogy work commenced to complement resource estimation work and mineral processing lab work commenced on concentrate quality improvement and potential by-product production.

The Geological Survey of Sweden has classified the Rönnbäcken nickel deposits "an Area of National Interest for Mineral Extraction". Dialogue with local stakeholders continued also in the third quarter.

Hatch Corporate Finance was retained to execute a process to secure additional financing of the nickel project. IGE is looking to secure a strategic investor in the project, primarily to finance and accelerate the Pre-Feasibility Study, estimated to cost USD 15 million. Hatch's mandate is to prepare and execute a private placement in a subsidiary of IGE Resources, Nickel Mountain AB, which owns the assets of the Rönnbäcken Nickel Project, in exchange for a minority interest. Hatch Corporate Finance is an independent corporate finance advisory firm focused on the metals and mining sectors.

After the end of the third quarter an update of the Mineral Resource Estimate of the Rönnbäcken Nickel Project was carried out by Mitchell River Group (MRG). The Mineral Resource Estimate includes a new component from the Sundsberget deposit that has been the focus of exploration drilling during the summer field season. The total Project Mineral Resource now includes a total of:

• Measured and Indicated Mineral Resources of 257.1 million tonnes (Mt) with an average total nickel content of 0.180% of which 0.110% is nickel in sulphide (Ni-AC);
• Inferred Mineral Resources of 269.2 Mt with an average total nickel content of 0.176% of which 0.104% is nickel in sulphide (Ni-AC).

The updated resource estimate represents a significant increase to the previous estimate prepared in April 2010. The new resource validates the exploration target of 600 to 650 million tonnes at a grade of 0.10 to 0.15% nickel in sulphides announced by IGE Resources in September.

The Mineral Resource update undertaken by MRG utilized all available and valid data as of the start of October, 2010. In line with the methodology used by SRK in the announcement dated 22nd April 2010, a nickel price of USD9.00/lb was assumed in a whittle open pit optimisation exercise to limit the material reported to that which MRG considers has reasonable prospects for eventual economic extraction and applied a cut-off grade of 0.05% Ni-AC representing the calculated marginal cut-off grade for the deposits.. The Mineral Resource Statement was classified in accordance with the Guidelines of National Instrument 43-101, and accompanying documents 43- 101.F1 and 43-101.CP.

The updated Mineral Resource shown in Table 1, adds Inferred Resources of 185.7 million tonnes (Mt) with an average total nickel content of 0.176% of which 0.104% is nickel in sulphide (Ni-AC) found in a new potential open pit mining area at Sundsberget. This significant additional tonnage validates the exploration target of 600 to 650 million tonnes at a grade of 0.10 to 0.15% nickel in sulphides.

Table 1: Mineral Resource Statement

DEPOSIT	CLASSIFICATION	TONNE S (Mt)	Ni-Total %	Ni-AC %	Ni-Total kt	Ni-AC kt	Strip Ratio
Vinberget	Measured	28.2	0.188	0.132	53	37
	Indicated	22.4	0.183	0.134	41	30
	Meas. + Ind.	50.6	0.186	0.133	94	67	0.33:1
	Inferred	6.6	0.183	0.138	12	9
Rönnbäcksnäset	Indicated	206.6	0.178	0.104	368	215
	Meas. + Ind.	206.6	0.178	0.104	368	215	0.79:1
	Inferred	76.9	0.176	0.100	135	77
Sundsberget	Inferred	185.7	0.176	0.104	327	193	0.78:1
TOTAL	Measured	28.2	0.188	0.132	53	37
	Indicated	228.9	0.179	0.107	409	244
	Meas. + Ind.	257.1	0.180	0.110	462	282	0.74:1
	Inferred	269.2	0.176	0.104	473	279

Work has begun towards preparing an application for an exploitation concession for the Sundberget deposit. An Exploitation Concession is granted if there is a probability for an economic exploitation of the deposit and if the site is considered appropriate from an environmental point of view. The latter requirement calls for an Environmental Impact Assessment to be included in the application. The Exploitation Concession grants the right to carry out mineral exploitation for a 25 year period.

A small scale ore mineralogy program was initiated at GTK to understand ore variability around the resource in order to improve geological resource interpretations and form a basis for the PFS metallurgical variability program.

A modest lab program has been initiated at Outotec to identifiy parameters to improve Ni/Mg selectivity in the product concentrate. These will be subject to optimisation in the future PFS metallurgical program. This program also includes follow up tests to determine the preliminary feasibility of producing a by-product magnetite concentrate.

IGE Nordic has signed a Letter of Understanding with Agnico-Eagle Sweden AB which will allow Agnico-Eagle to earn an interest in IGE Nordic AB's 50% interest in the Solvik property by way of a staged earn-in process. Subject to a number of conditions, Agnico-Eagle can earn up to 80% of IGE Nordic AB's interest (equivalent to a 40% interest in the Solvik property) by funding further exploration work and completing a feasibility study of the property. In the event that a feasibility study is completed, IGE Nordic has the option to participate in project funding commensurate with its remaining 10% interest in the property, or convert its remaining interests to a 1.25% Net Smelter Return.

THIRD QUARTER REPORT, 2010

The Administration of IGE Resources AB (publ) hereby submit the interim report for the period January 1st to September 30th 2010, with comparable figures from the corresponding period of the previous year and the most recent annual report.

Business description

The Company's activities consist of exploration for mineral deposits and mining. The Company operates in Scandinavia and Africa.

Revenue from sales

Revenue from sales is related to sales of rough diamonds recovered from IGE projects. The sales during the period amounted to SEK 10.4 million (0). The number of carats sold during the period amounts to about 13,654 (0).

Investments during the period

Net investments during the third quarter amounts to SEK 7.2 million (16.7). The investments during the period are mainly related to the advancement of the Rönnbäcken nickel project and investments related to the ramping up of the Cassanguidi diamond mine in Angola.

Financial position

Cash flow during the period was MSEK 57.0 million (-29.9). Cash and cash equivalents at period end amounted to SEK 97.6 million (9.3). Shareholders Equity amounted to SEK 755.2 million (230.1) at the end of the reporting period, resulting in an equity ratio of 75.5 percent (82.2).

The long-term liabilities of the Group are related to a loan given by Svenska Handelsbanken AB for the purchase of equipment for the production site in Luxinge from Volvo. The remaining amount to be paid is SEK 8.3 million. The loan is guaranteed by the Swedish Credit Exports Guarantee Board (EKN) and has a duration of 3 years. The loan was raised in June 2008.

In addition SEK 6.7 million is related to a loan given to Efidium Ltd, which was included in the purchase of the activities of Pangea Diamondfields. The loan has been fully repaid after the expiration of the interim period.

Parent Company

The Parent Company's business activity is to manage the Group's operations.

Result before tax amounted during third quarter 2010 to SEK -5.8 million (-6.1) and cash and cash equivalents amounted to SEK 87.1 million (4.4). Investments in the Parent Company during the reporting period amounted to SEK 15 million (36.3).

Pledged assets and contingent liabilities

Pledged assets are MSEK 0.1 (0.2) and contingent liabilities are MSEK 0 (0).

IGE's share

The IGE share is listed on the Oslo Stock Exchange (OB Match). The ticker symbol of the share is IGE.

Upcoming reports:

Q4 and Year End report 2010: 18 February 2011

This Interim report has not been subject to review by the Company's auditors.

THIRD QUARTER REPORT, 2010

Stockholm November 18th, 2010

Tomas Fellbom Chief Executive Officer IGE Resources AB (publ)

Income statement – Group

(TSEK)	Note	Q3 2010	Q3 2009	Jan-Sept 2010	Jan-Sept 2009	2009
Revenue from sales	6	10,389	-	16,680	-	-
Other income	5,7		15,174		15,174	15,169
Other external expenses		-57,095	-30,377	-61,238	-49,579	-51,918
Personnel expenses		-11,164	-4,341	-28,056	-16,811	-23,110
Other operating expenses	8	-	-	-4,923	-1,074	-1,069
Depreciations and write downs	3	-40,775	-215	-45,186	-3,351	-5,931
Operating result		-98,645	-19,759	-122,723	-55,641	-66,859
Financial revenue	4	1,549	1,903	3,096	4,318	6,136
Financial expenses	4	-4,071	-1,571	-12,820	-5,565	-5,059
Total financial items		-2,522	332	-9,724	-1,247	1,077
Result before tax		-101,167	-19,427	-132,447	-56,888	-65,782
Income tax	9	167	0	302	0	0
Result for the period		-101,000	-19,427	-132,145	-56,888	-65,782
Result per share before and after dilution		-0.09	-0.04	-0.11	-0.12	-0.12

Group – Statement of comprehensive income Summary

TSEK	Q3 2010	Q3 2009	Jan-Sept 2010	Jan-Sept 2009	2009
Result for the period	-101,000	-19,427	-132,145	-56,888	-65,782
Other comprehensive income
Exchange differences during the year	855	6,840	-3,490	8,530	6,798
Total other comprehensive income	-100,145	-12,587	-135,635	-48,358	-58,984
Total comprehensive income for the year	-100,145	-12,587	-135,635	-48,358	-58,984
Attributable to:
Equity holders of the Parent Company	-100,145	-12,587	-135,635	-48,358	-58,984

Balance sheet – Group

(TSEK)	Note	30/09/2010	30/09/2009	31/12/2009
ASSETS
Fixed assets
Intangible fixed assets
Mineral interests		659,918	139,894	154,257
Tangible fixed assets
Plant and machinery		78,369	46,924	47,700
Mine and other development assets		117,475	-	-
Long-term financial assets
Shares in associated companies		821	25,424	25,593
Long-term receivables		34,321	39,490	40,370
Total fixed assets		890,904	251,732	267,920
Current Assets
Inventory		382	-	-
Accounts receivable		63	159	262
Other receivables		22,860	14,283	17,249
Prepaid expenses and accrued income		1,428	2,450	1,038
Cash and cash equivalents		97,631	9,343	40,807
Total current assets		122,364	26,235	59,356
TOTAL ASSETS		1,013,268	277,967	327,276
EQUITY	10
Equity attributable to equity holders of the parent company
Share capital		90,281	24,592	39,785
Other paid in capital		985,193	379,514	451,041
Reserves		-2,645	2,576	845
Retained earnings and result for the period		-317,651	-176,613	-185,506
Total equity		755,178	230,069	306,165
Liabilities
Deferred tax liabilities	11	214,957	-	-
Other provisions	11	1,884	-	-
Long term liabilities
Convertible loan	13	5,000	-	-
Interest bearing long term liabilities	12	15,159	14,626	11,974
Other long term liabilities		36	106	91
Total long term liabilities		20,195	14,732	12,065
Current liabilities
Interest bearing short term liabilities		-	20,000	-
Accounts payable		4,248	2,654	2,297
Other liabilities		2,013	4,237	2,386
Accrued expenses and prepaid income		14,793	6,275	4,363
Total current liabilities		21,054	33,166	9,046
TOTAL EQUITY AND LIABILITIES		1,013,268	277,967	327,276

Changes in Equity – Group

(TSEK)	Equity related to the shareholders of the parent company
2009	Share capital	Other paid in capital	Exchange differences	Retained earnings and profit for the year	Total
Balance at 1 January 2009	20,908	348,278	-5,954	-119,507	243,725
Net result for the period				-56,888	-56,888
Other comprehensive income:
Exchange differences			8,530		8,530
Transactions with shareholders:
Acquisition of minority interest in subsidiary				-218	-218
Costs referable to fundraising		-721			-721
Issued call options		120			120
New share issue	3,684	31,837			35,521
Closing balance at 30 Sept 2009	24,592	379,514	2,576	-176,613	230,069
Net result for the period October to December				-8,893	-8,893
Other comprehensive income:
Exchange differences			-1,731		-1,731
Transactions with shareholders:
Costs referable to fundraising		-5,984			-5,984
New share issue	15,193	77,511			92,704
Closing balance at 31 December 2009	39,785	451,041	845	-185,506	306,165
Net result for the period				-132,145	-132,145
Other comprehensive income:
Exchange differences			-3,490		-3,490
Transactions with shareholders:
Costs referable to fundraising		-6,605			-6,605
New share issue	50,496	540,757			591,253
Closing balance at 30 September 2010	90,281	985,193	-2,645	-317,651	755,178

Existing reserves refer to exchange differences due to operations in foreign currency. The accumulated exchange difference amounted to SEK -3,490 (8,530) thousands.

Total number of shares amounts to 1,805,618,810 as per September 30th 2010.

Cash flow statement – Group

(TSEK)	Jan-Sept 2010	Jan-Sept 2009	2009
Cash flow from operations
Result after financial items	-132,145	-56,888	-65,782
Adjustments for items not included in cash flow*	68,794	15,824	11,644
Income tax paid	-	-	-
Total cash flow from operations before change in
working capital	-63,351	-41,064	-54,138
Change in working capital
Increase/decrease in inventories	1,773	-	-
Increase/decrease receivables	-2,228	2,134	689
Increase/decrease in short term liabilities	5,941	-4,277	-8,098
Total cash flow from operations	-57,865	-43,207	-61,547
Cash flow used for investments
Cash holdings in acquired associated company	1,922	7,829	-
Sale of associated company	-	-	7,829
Acquisition of intangible assets	-38,456	-42,041	-56,227
Sale of intangible assets	6,054	2,000	2,000
Acquisition of tangible assets	-3,191	-242	-223
Sale of tangible assets	-	226	226
Acquisition of shares in associated companies	-51	-	-
Total cash flow used for investments	-33,723	-32,228	-46,396
Financial activities New share issue	159,050	28,959	115,681
Raised credits	5,000	20,000	91
Amortization of debt	-15,497	-3,455	-6,387
Total cash flow from financial activities	148,554	48,959	109,385
Change in cash and bank	56,966	-29,933	1,443
Cash and bank at 1 January	40,807	39,639	39,639
Currency exchange difference	-142	-363	-275
Cash and bank at the end of reporting period	97,631	9,343	40,807
*Adjustments for items not included in cash flow
Depreciations and write downs on intangible assets	12,776	2,223	4,123
Depreciations and write downs of tangible assets	7,910	1,128	1,480
Exchange loss	11,651	25,784	19,134
Reversal of deferred tax liabilities	3,205	-	-217
Change of equity due to issue in kind	-	243	-
Capital loss	4,923	-13,843	-13,843
Write-down of long term financial asset	3,507	-58	-
Change in value of shares in associated companies	24,824	347	507
Discounted value of other provisions	-	-	461
Total	68,794	15,824	11,644

Paid interest amount to 1,591 (1,943) TSEK and received interest amount to 6 (64) TSEK.

Income statement – Parent company

(TSEK)	Note	Q3 2010	Q3 2009	Jan-Sept 2010	Jan-Sept 2009	2009
Revenue	5,7	-	10,646	-	10,646	10,646
Other external expenses		-2,164	-3,561	-6,643	-7,780	-15,182
Personnel expenses		-2,088	-1,296	-5,066	-5,239	-8,250
Depreciations		-17	-33	-49	-2,557	-110
Operating result		-4,269	5,756	-11,758	-4,930	-12,896
Financial revenue	4	670	308	1,918	184	1,159
Financial expenses	4	-2,189	-	-2,259	-7,573	-11,825
Total financial items		-1,519	308	-341	-7,389	-10,666
Result before tax		-5,788	6,064	-12,099	-12,319	-23,562
Income tax		0	0	0	0	62
Result for the period		-5,788	6,064	-12,099	-12,319	-23,500

Balance Sheet – Parent company

(TSEK)	Note	30/09/2010	30/09/2009	31/12/2009
ASSETS
Tangible fixed assets
Plant and machinery		64	132	112
Long-term financial assets
Shares in subsidiaries		100,635	85,635	85,635
Receivables from subsidiaries		750,383	234,355	276,497
Total fixed assets		851,082	320,122	362,244
Current Assets
Accounts receivable		-	-	14
Other receivables		11,608	11,108	11,353
Prepaid expenses and accrued income		282	271	248
Cash and cash equivalents		87,093	4,355	1,207
Total current assets		98,983	15,734	12,822
TOTAL ASSETS		950,065	335,856	375,066
SHAREHOLDERS EQUITY	10
Restricted equity
Share capital		90,281	24,592	39,785
Statutory reserve		111,345	111,345	111,345
Total restricted equity		201,626	135,937	151,130
Non restricted equity
Share premium reserve		849,983	244,130	315,830
Retained earnings and profit for the period		-131,146	-107,867	-119,047
Total non restricted equity		718,837	136,263	196,783
Total shareholders equity		920,463	272,200	347,913
Long term liabilities
Convertible loan	13	5,000	-	-
Interest bearing long term liabilities	12	8,414	14,626	11,974
Liabilites to subsidiaries		9,573	23,454	9,678
Total long term liabilities		22,987	38,080	21,652
Current liabilities
Interest bearing short term liabilities	12	-	20,000	0
Accounts payable		469	1,721	2,063
Other liabilities		89	311	640
Accrued expenses and prepaid income		6,057	3,544	2,798
Total current liabilities		6,615	25,576	5,501
TOTAL SHAREHOLDERS EQUITY AND LIABILITIES		950,065	335,856	375,066

Changes in Equity – Parent Company

(TSEK)		Restricted Equity	Non restricted Equity
2009	Share capital	Statutory reserve	Share premium reserves	Retained earnings and result for the year	Total Equity
Balance as at 1 January 2009	20,908	111,345	212,891	-95,547	249,597
Result for the year				-12,320	-12,320
Transactions with shareholders:
Costs referable to fundraising			-718		-718
Payment of call options			120		120
New share issue	3,684		31,837		35,521
Closing balance at September 30 2009	24,592	111,345	244,130	-107,867	272,200
Net result for the period October to December				-11,180	-11,180
Transactions with shareholders:
New share issue	15,193		71,700		86,893
Closing balance at December 31 2009	39,785	111,345	315,830	-119,047	347,913
Balance as at 1 January 2010	39,785	111,345	315,830	-119,047	347,913
Result for the year				-12,099	-12,099
Transactions with shareholders:
Costs referable to fundraising			-6,604		-6,604
New share issue	50,496		540,757		591,253
Closing balance at September 30 2010	90,281	111,345	849,983	-131,146	920,463

Key ratios and shares data

		30/09/2010	30/09/2009	2009	2008	2007
Number of outstanding shares at beginning of reporting period	Number	795,709,953	418,161,828	418,161,828	341,000,000	341,000,000
New share issue	Number	1,009,908,857	73,679,336	377,548,125	77,161,828	-
Number of outstanding shares at the end of reporting period	Number	1,805,618,810	491,841,164	795,709,953	418,161,828	341,000,000
Average number of shares	Number	1,180,062,786	464,837,826	538,509,297	364,988,889	341,000,000
Operating result	TSEK	-122,723	-55,641	-66,859	-49,800	-66,023
Result after tax	TSEK	-132,145	-56,888	-65,782	-56,787	-62,529
Operating result per share	SEK	-0.10	-0.12	-0.12	-0.14	-0.19
Result after financial items per share	SEK	-0.11	-0.12	-0.12	-0.16	-0.18
Result per share after tax	SEK	-0.11	-0.12	-0.12	-0.16	-0.18
Shareholders equity per share before dilution	SEK	0.42	0.47	0.00	0.67	0.72
Dividend	TSEK	-	-	-	-	-
Price per share at the end of reporting period	SEK	0.23	0.34858	0.58	0.65	2.34

In calculating income and cash flow per share the average number of shares has been used, whereas in calculating shareholders' equity the number of outstanding shares has been used.

IGE possesses none of its own shares at the end of the reporting period.

Further information regarding key ratio definitions can be obtained from the annual report for the financial year 2009.

Total number of shares amounts to 1,805,618,810 as per September 30th 2010.

NOTES TO THE FINANCIAL REPORTS

1. Accounting principles

This interim report has been prepared according to Annual Accounts Act and IAS 34 Interim Reporting. The interim report has also been prepared in accordance with the rules in the Swedish Financial Accounting Standard RFR2. During 2010, the same accounting principles have been applied in this report as in the annual report prepared for the financial year 2009 with the following exceptions (see below) referring to new or revised standards, interpretations and changes adopted by the European Union (EU) which are applied from 1 January, 2010. Only the new or revised standards which have had an impact on the Group are described below. The Interim report does not contain all the information and disclosures available in the annual report and the interim report should be read together with the annual report for 2009.

New or revised standards

IFRS 3R, Business Combinations and IAS 27R, Consolidated and Separate Financial Statements adopted by the EU on 3 June 2009). IFRS 3R introduces a number of changes in the reporting of business combinations that will affect the level of reported goodwill, the reported result in the period in which the combination takes place as well as future reported results. IAS 27R requires changes in shareholdings in a subsidiary whereby the majority shareholder does not lose its control to be recognised in equity. This means that such transactions no longer give rise to goodwill or result in any gains or losses. In addition, IAS 27R changes the reporting of losses arising in subsidiaries and measurement when control of a subsidiary is lost. IGE intends to apply this standard as of 1 January 2010. The revisions to IFRS 3R and IAS 27R will affect the reporting of future acquisitions and divestitures as well as transactions with minority shareholders.

Other standards and interpretations of existing standards that have come in to effect as from January 1st 2010 are appraised not to have any impact on the account of IGE.

2. Risks and Uncertainties

The operations of IGE involve certain significant risks, including but not limited to credit risk, foreign exchange risk, and political risk. For a complete discussion of the aforementioned risks, refer to the Company's 2009 annual report, available on the IGE website, www.ige.se. The management of IGE does not consider that any additional risk has become current since the expiration of the previous year of operation.

3. Depreciations and write downs

IGE has decided to write down a part of its non core assets as a result of that they are considered difficult to give a correct value and that they will not be subject to additional funding by IGE. The main part of the write down is referable to mineral interests in Kenya and IGE Nordic's shares in the associated company Norrsken Energy Ventures.

4. Financial items

Financial revenue	Group
(TSEK)	30/09/2010	30/09/2009	31/12/2009
Income from interest	6	65	80
Exchange rate gains	3,090	4,253	6,056
Total financial revenue	3,096	4,318	6,136

Financial expenses

(TSEK)	30/09/2010	30/09/2009	31/12/2009
Loss from sale of shares in associated company	-4,680	-	-
Loss from shares in associated companies	-324	-733	-
Loss from interest	-1,591	-1,943	-1,932
Loss on sale of machinery and equipment	-	-174	-
Discounting of future claims to its present value	-3,507	-	-59
Exchange rate losses	-2,718	-2,715	-3,068
Total financial expenses	-12,820	-5,565	-5,059

The adjustments as result of revaluation of all short term investments are accounted for in gross amounts.

5. Segment reporting

	Jan-Sept 2010
(TSEK)	Gold	Diamonds	Nickel	Other	Total
Revenue from sales	-	16,680	-	-	16,680
Depreciation of concessions	-11,913	-863	-	-24,500	-37,276
Depreciation according to plan	-205	-7,435	-223	-47	-7,910
Operating result	-13,776	-40,298	-8,328	-60,321	-122,723
Result before tax	-13,696	-44,102	-13,102	-61,547	-132,447
Fixed assets	3,315	816,096	61,688	9,805	890,904
Current assets	1,673	16,878	4,831	98,982	122,364
Long term liabilities	36	15,159	5,000	-	20,195
Short term liabilities	93	10,122	4,224	6,615	21,054
Investments (gross amounts)	44	486,075	14,803	-	500,922
	Jan-Sept 2009
(TSEK)	Gold	Diamonds	Nickel	Other	Total
Other income	15,174	-	-	-	15,174
Depreciation of concessions	-	-	-2,223	-	-2,223
Depreciation according to plan	-229	-	-809	-90	-1,128
Operating result	10,575	-12,223	-12,152	-41,841	-55,641
Result before tax	9,848	-11,446	-11,330	-43,960	-56,888
Fixed assets	15,040	161,769	74,791	132	251,732
Current assets	2,563	4,823	3,114	15,735	26,235
Long term liabilities	106	14,626	-	-	14,732
Current liabilities	136	4,717	2,736	25,577	33,166

6. Revenue from sales

Revenue from sales is related to sales of rough diamonds recovered from IGE projects.

7. Other income

Other income constitutes of currency gains related to inter company balances. SEK 15,2 million during 2009 is related to a sale of IGE's 50% ownership of Kilimapesa Gold in Kenya.

8. Other operating expenses

Other operating expenses are referable to a capital loss from sales of an exploration permit in IGE Nordic.

9. Tax

The positive amount reported is a reversal of a provision related to deferred tax liabilities.

10. Share warrants – incentive programs

For information about currently outstanding share warrants and call options the Company refers to the latest annual report of the Group (2009).

11. Provisions

It is inherent in the recognition of an asset that its carrying amount will be recovered in the form of economic benefits that flow to the entity in future periods. When the carrying amount of the asset exceeds its tax base, the amount of taxable economic benefits will exceed the amount that will be allowed as a deduction for tax purposes. This difference is a temporary difference and the obligation to pay the resulting income taxes in future periods is a deferred tax liability. As the entity recovers the carrying amount of the asset, the taxable temporary difference will reverse and the entity will have taxable profit. This makes it probable that economic benefits will flow from the entity in the form of tax payments.

The deferred tax liabilities are calculated as the local tax rate of each project times the surplus value referable to each acquired project.

Other Provisions are related to an estimated cost of mine site reclamation.

12. Interest bearing long-term liabilities

Interest bearing long-term liabilities refer to a loan given by Svenska Handelsbanken AB for the purchase of equipment from Volvo to the production site in Luxinge, Angola. The loan is guaranteed by the Swedish Credit Exports Guarantee Board (EKN) and has a duration of 3 years. The loan was raised in June 2008.

In addition Efidium Ltd has a loan of SEK 6.7 million to Pangea Exploration (Pty) Ltd, a South African registered company, that agreed to provide a loan facility to the Company for the purposes of funding the running costs and any required capital expenditure of the group. The loan to Pangea Exploration (Pty) Ltd has been fully repaid after the expiration of the interim period.

13. Convertible loan to Norrlandsfonden

In June 2010, IGE issued a convertible loan that provided the Company with an amount of totally MSEK 5 to Norrlandsfonden. The convertible loan was issued based on the following conditions:

• The maturity date of the convertible loan was set to August 31, 2018.
• The loan runs with a an annual interest rate of STIBOR 90 (Stockholm Interbank Offering Rate) plus an interest surcharge of 4% to be paid quarterly.
• In case of conversion, the conversion rate per share will be SEK 0.70.
• IGE has got the right to repay the loan in cash in advance at any time during the duration of the loan. IGE will then be forced to pay a compensation for the lost interest to Norrlandsfonden of 15% (on an annual basis) on the loan amount during the period that it has been utilised by IGE.

17 If fully converted the convertible loan will result in that an additional 7,142,857 shares will be issued (a dilution

of about 0.4%).

14. Related party transactions

Mace Consulting has invoiced IGE SEK 112 thousand during the third quarter for services related to management assistance and market communication. Mace Consulting is a related party on behalf of its Managing Director, Magne Aaby who is a member of the board in IGE.

The creditor of the long term liability of SEK 6.7 million is Pangea Exploration (Pty) Ltd. Pangea Exploration (Pty) Ltd is owned by a trust of which Robert Still is a trustee and a potential beneficiary and Anton Esterhuizen. Robert Still and Anton Esterhuizen are directors of the Lender and IGE Resources. The borrowing entity is a member of the IGE Group. As a consequence, this loan is considered to be between related parties, and is thus deemed a related party transaction. The loan has been fully repaid after the expiration of the interim period.

SEK 400 thousand was paid to John Afseth during the second quarter of 2010 for work carried out in relation the financing of the Group. John Afseth is the Chairman of IGE Resources AB.