Axactor SE — M&A Activity 2010

Feb 22, 2010

IGE and Pangea DiamondFields create strong African diamonds exploration and production company

IGE and Pangea DiamondFields create strong African diamonds exploration

and production company

International Gold Exploration IGE AB (OSLO: IGE) today announced that

the Company has entered into a sales and purchase agreement whereby IGE

acquires all activities of Pangea DiamondFields plc through its

subsidiary Efidium Ltd. Merging the two companies' activities creates a

significant diamond exploration and production company with resources

spread across three Southern African countries.

The consideration will be paid in approximately 495 million new IGE

shares, which at closing Thursday represented a value of NOK 282 million

(USD 48 million).

The combined company will be a significant diamond exploration and

mining company in Africa with nine diamond projects in Angola, South

Africa and the Democratic Republic of Congo. IGE's new diamond portfolio

will combine one project in commercial operation (Angola), a second

project ready for commercialization (Angola) and a third project

expected to reach commercial stage later this year (South Africa).

IGE has defined diamond exploration and production as its core business

area and the Company currently operates four projects in Angola.

Authorization for the sale of diamonds from IGE's lead project Luxinge

is expected from the Angolan authorities in the near future.

Pangea is through Efidium currently engaged in five diamond projects, of

which one project is in commercial operation in Angola, only 50

kilometers from IGE's Luxinge project and with a monthly output of 2,000

carats and poised to grow rapidly. The company has a verified resource

base of 8.4 million carats. Pangea is listed on the AIM market of the

London Stock Exchange.

"Pangea represents extensive diamond exploration and mining experience

and a well established presence in Africa. The merger of the two

companies creates a considerable resource base and a growing cash flow

from diamond mining. Within the next 12 months we expect three diamond

projects to generate revenue" said IGE's CEO Tomas Fellbom.

"IGE and Pangea are an excellent fit. The combined company will have a

well balanced project portfolio, highly experienced exploration and

operational staff and sufficient critical mass to be an important player

in African diamond mining going forward. In particular, combining our

respective operations in Southern Africa creates opportunities to

maximise the efficiency and reach of the merged organisation" said

Pangea's CEO Boris Kamstra.

Pangea's senior management has agreed to remain with the Company and

will head the combined subsidiary IGE Diamonds.

The combined company will have a broad shareholder base including

international institutional investors, Pangea management and a great

number of retail investors. Upon completion of the transaction, Pangea's

current shareholders will hold approximately 38.4% of IGE which will

remain listed on the Oslo Stock Exchange.

Valuation of the two companies is based on a combination of market value

and their respective verified resources, including IGE's resources in

the Rönnbäcken nickel deposit in Sweden. The combined company's broad

project portfolio and enhanced resource base will enable IGE to further

accelerate the development of its activities. In order to increase its

development pace, IGE is contemplating an equity offering in the form of

a rights issue.

IGE will present details of the acquisition and Pangea DiamondFields plc

immediately after the previously scheduled presentation of the fourth

quarter 2009 results:

Monday 22 February at 09:30, Hotel Continental, Oslo.

Pangea's CEO Boris Kamstra will participate together with IGE's CEO

Tomas Fellbom. The event will be video webcasted live at www.ige.se.

For further information please contact:

Tomas Fellbom

CEO, IGE

Telephone +46 733 225 786

E-mail tomas.fellbom@ige.se

Boris Kamstra

CEO, Pangea DiamondFields

Telephone +27 836 806 809

E-mail bkamstra@pangeagroup.co.za

Please also refer to www.ige.se and www.pangeadiamondfields.com