Axactor SE

Earnings Release • May 31, 2011

31 May, 2011

IGE takes write-down of diamond project – cash outflow significantly reduced

IGE Resources AB (OSE: IGE) today announced the Company's first quarter 2011 results. IGE's EBITDA came in at SEK -24.3 million, which is at par with last year's first quarter. The Company's result before tax ended at SEK -169.6 million, after a SEK 144.9 million write-down of the Cassanguidi diamond mine in Angola.

IGE had revenues of SEK 4.9 million in the first quarter, while the Company had no revenues in the same period last year. All revenues in the first quarter are attributable to diamond sales from the Cassanguidi mine.

"IGE has decided to put further financing of the Cassanguidi project on hold. Insufficient financing for major equipment replacement has caused persistent operational interruptions, which have had a significant adverse effect on revenue generation from the project. As the outcome of the ongoing discussions with third parties remains uncertain, we have decided on the write-down as a precautionary measure," said IGE's acting CEO Thomas Carlsson.

A full review of IGE's diamond strategy has been initiated. The Company holds licenses totalling more than 12 million carats of diamonds (verified and additional resources combined) across three countries in Sub-Saharan Africa.

An updated preliminary economic assessment of the Rönnbäcken nickel project in Sweden presented in the first quarter suggests significantly increased project value compared to previous assessments and demonstrates that Rönnbäcken is a commercially viable nickel project. IGE is preparing an IPO of the subsidiary holding the Rönnbäcken asset, Nickel Mountain Resources, in June.

IGE Resources is currently in the process of strengthening its financial basis. Cash outflow is being significantly reduced following the closure of the Luxinge, Angola, mine and the investment halt in Cassanguidi as well as the planned IPO of Nickel Mountain Resources. Furthermore, a cost reduction programme is being implemented and the share offering completed on 30 May 2011 has provided additional equity.

For additional information, please contact:

Thomas Carlsson CFO and acting CEO, IGE Resources AB Tel: +46 8 402 28 05 / +46 70 552 26 22 E-mail: thomas.carlsson@ige.se

IGE Resources AB (publ) is a Scandinavian company mainly focusing on diamonds exploration and production in Southern Africa. IGE's portfolio also includes one of Northern Europe's largest nickel deposits and gold exploration projects in Kenya. IGE is headquartered in Stockholm and its shares are listed on the Oslo Stock Exchange (ticker: IGE). Please refer to www.ige.se for more detailed information.