Mr. Steve Letwin reports

IAMGOLD REPORTS Q3/16 NET EARNINGS UP $102 MILLION AND NET OPERATING CASH FLOW UP $117 MILLION OR 1,192%

Iamgold Corp. has released its financial and operating results for the quarter ended Sept. 30, 2016.

"We had strong third-quarter results, with net earnings increasing $102-million and net operating cash flow increasing $117-million from the same period last year," said Steve Letwin, Iamgold president and chief executive officer. "Comparing results to the second quarter, net earnings rose $29-million and net operating cash flow increased by $55-million. Gold production increased by 7 per cent from the second quarter to 210,000 ounces, and all-in sustaining costs were reduced by $68 an ounce to $1,046 an ounce. Essakane's performance was stellar, with production up 17 per cent and all-in sustaining costs at $815 an ounce, and Rosebel's performance optimization initiatives are transforming the operation. Lower operating costs are a major reason for reducing our consolidated cash costs guidance for 2016 to $740 to $770 an ounce." All monetary amounts are expressed in U.S. dollars, unless otherwise indicated.

"The $230-million equity financing enabled us to reduce long-term debt by 23 per cent," continued Mr. Letwin, "and has strengthened our capacity to fund organic growth. Westwood is on track to achieving full production by 2019. Moving forward with the Sadiola sulphide project could see an expanded plant come on-line by early 2019. And at Rosebel, where the growth emphasis has been on securing soft rock, we achieved a significant milestone with the signing of an agreement to acquire Saramacca. Our exploration team is currently drilling known mineralized zones to advance them to a resource stage as soon as possible. Beyond these internally funded priorities, Cote Gold, one of the largest undeveloped deposits in Canada, remains a solid growth opportunity."

Third-quarter 2016 highlights:

• Attributable gold production of 210,000 ounces, up 7 per cent from second quarter 2016 and third quarter 2015;
• All-in sustaining costs1 of $1,046 per ounce sold and total cash costs (1) of $714 per ounce produced;
• Essakane increased gold production by 17 per cent from second quarter 2016 and reduced all-in sustaining costs by 25 per cent to $815/ounces.
• Earnings from operations of $33.8-million, up $27.8-million from second quarter 2016 and up $76.0-million from third quarter 2015.
• Gold margin1 of $612/ounces up $99/ounces from second quarter 2016 and $282/ounces from third quarter 2015.
• Net earnings of $17.0-million ($0.04 per share) compared to a net loss of $12.2-million ($0.03 per share) in second quarter 2016 and a net loss of $85.0-million ($0.22 per share) in third quarter 2015.
• Adjusted net earnings from continuing operations1 were $21.8-million ($0.05 per share1) compared to adjusted net earnings of $5.9-million ($0.01 per share) in second quarter 2016 and an adjusted net loss of $46.9-million ($0.12 per share) in third quarter 2015.
• Net cash from operating activities of $126.6-million, up $55.4-million from second quarter 2016 and up $116.8-million from third quarter 2015.
• Cash, cash equivalents and restricted cash were $750.8-million as at September 30, 2016.
• Revolving credit facility commitments increased to $170-million with additional commitments of $30-million.
• Completion of $230-million (gross proceeds) equity financing enables debt reduction and strengthens financial capacity to fund organic growth.
• Reduced long-term debt by 23 per cent through the purchase of $145.9-million (face value) of our outstanding senior unsecured notes.
• Entered into an acquisition agreement for the Saramacca property in Suriname with the intent of defining a National Instrument 43-101 compliant mineral resource within the next 24 months.
• Additional assay results from the Boto project in Senegal confirm wide intervals of high-grade mineralization in the footwall of the main deposit which was not fully tested in previous drilling programs. Highlights include 22 metres grading 4.04 g/t Au and 32 metres grading 5.19 g/t Au.
• Expect to achieve higher end of 2016 production guidance of 770,000 - 800,000 ouncess.
• Lowered and narrowed 2016 total cash costs1 guidance range from $775 - $815/ounces to $740 - $770/ounces; narrowed all-in sustaining cost1 range from $1,000 - $1,100/ounces to $1,050 - $1,100/ounces.
• Moody's Investor Service updated the outlook for IAMGOLD to "positive" from "negative" and S&P Global Ratings revised its outlook to "positive" from "stable".

                           
                               SUMMARY OF FINANCIAL AND OPERATING RESULTS

                                                         Three months ended Sept. 30,    Nine months ended Sept. 30,
Financial results ($ millions, except where noted)            2016              2015        2016               2015
Continuing operations
Revenues                                                $    282.4        $    207.6   $   734.6         $    678.8
Cost of sales                                           $    230.2        $    227.6   $   651.5         $    688.1
Gross margin (1)                                        $     52.2        $    (20.0)  $    83.1         $     (9.3)
Net earnings (loss) from continuing
operations attributable to equityholders
of Iamgold                                              $     17.0        $    (85.0)  $    57.9         $   (121.2)
Net earnings (loss) from continuing
operations attributable to equityholders
of Iamgold per share ($/share)                          $     0.04        $    (0.22)  $    0.14         $    (0.31)
Adjusted net earnings (loss) from continuing
operations attributable to equityholders
of Iamgold (1)                                          $     21.8        $    (46.9)  $    (1.3)         $  (107.2)
Adjusted net earnings (loss) from continuing
operations attributable to equityholders
per share ($/share) (1)                                 $     0.05        $    (0.12)  $       -         $    (0.28)
Net cash from operating activities                      $    126.6        $      9.8   $   249.2         $     72.7
Net cash from operating activities before
changes in working capital1                             $    112.1        $     34.9   $   226.8         $    139.4
Net earnings from discontinued operations
attributable to equityholders of Iamgold                $        -        $      1.2   $       -               41.8
Net earnings from discontinued operations
attributable to equityholders of Iamgold
($/share)                                               $        -        $     0.01   $       -               0.11
Key operating statistics
Gold sales -- attributable (000s ounces)                       212               186         590                589
Gold production -- attributable (000s ounce)                   210               197         598                607
Average realized gold price (1) ($/ounce)               $    1,326        $    1,121   $   1,263         $    1,180
Total cash costs (1) ($/ounce)                          $      714        $      791   $     738         $      818
Gold margin (1) ($/ounce)                               $      612        $      330   $     525         $      362
All-in sustaining costs (1) ($/ounce)                   $    1,046        $    1,027   $   1,080         $    1,074

(1) This is a non-generally accepted accounting principles measure. Refer to the non-GAAP performance
    measures section of the management discussion and analysis.

Third-quarter 2016 highlights

Financial performance

Revenues from continuing operations for the third quarter 2016 were $282.4-million, up $74.8-million or 36 per cent from the same prior-year period. The increase was due to a higher realized gold price ($43.6-million), and higher sales volume at Westwood ($15.7-million), Essakane ($14.4-million) and Rosebel ($1.0-million).

Cost of sales from continuing operations for the third quarter 2016 was $230.2-million, up 1 per cent from the same prior-year period. The increase was the result of higher royalty expense due to a higher realized gold price ($3.8-million) and higher depreciation expense ($1.0-million), partially offset by lower operating costs ($2.2-million). Operating costs were lower due to higher capitalized stripping and lower fuel prices at Rosebel and Essakane, the devaluation of the Surinamese dollar relative to the U.S. dollar, and lower labour costs at Rosebel following the work force reductions in 2015, partially offset by higher costs at Westwood due to increased production. Westwood continues to focus on underground development related to the production ramp-up.

Depreciation expense for the third quarter 2016 was $69.3-million, up 1 per cent from the same prior year period, primarily due to timing of capital additions and lower reserves at Rosebel.

Income tax expense from continuing operations for the third quarter 2016 was $14.4-million, up $6.4-million from the same prior year period. Taxes were higher due to differences in the level of taxable income in our operating jurisdictions from one period to the next, as well as changes to deferred tax assets and liabilities as a result of fluctuations in foreign exchange.

Net earnings from continuing operations attributable to equityholders for the third quarter 2016 were $17.0-million or four cents per share, up $102.0-million or 26 cents per share from the same prior-year period. The increase was mainly due to higher revenues ($74.8-million), a loss on non-hedge derivatives in the third quarter 2015 ($28.5-million), lower other expenses ($4.5-million) and lower finance costs ($3.2-million), partially offset by higher income tax expense ($6.4-million) and higher cost of sales ($2.6-million).

Adjusted net earnings from continuing operations attributable to equity holders1 for the third quarter 2016 was $21.8-million ($0.05 per share1), up from an adjusted net loss of $46.9-million ($0.12 per share1) for the same prior year period.

Net cash from operating activities for the third quarter 2016 was $126.6-million, up $116.8-million from the same prior year period. The increase was mainly due to higher earnings after non-cash adjustments ($58.0-million), a change in the movement of non-cash working capital ($39.6-million), lower net settlement of derivatives ($14.1-million) and dividends from joint ventures ($11.3-million).

Net cash from operating activities before changes in working capital1 for the third quarter 2016 was $112.1-million, up $77.2-million from the same prior year period.

Financial Position

Cash, cash equivalents and restricted cash were $750.8-million as at September 30, 2016, up $193.7-million from December 31, 2015. The increase was mainly due to cash generated from operating activities ($249.2-million), net proceeds from the equity financing ($220.1-million), proceeds from the sale of gold bullion ($170.3-million), and proceeds from the issuance of flow-through shares ($30.3-million), partially offset by spending on Property, plant and equipment and Exploration and evaluation assets ($221.8-million), repurchase of senior unsecured notes ($141.5-million), repayment of the credit facility ($70.0-million) and interest paid ($41.9-million).

Production and Costs

Attributable gold production, inclusive of joint venture operations, for the third quarter 2016 was 210,000 ounces, up 13,000 ounces from the same prior year period. The increase was due to Westwood (14,000 ounces) and higher grades and throughput at Rosebel (2,000 ounces), partially offset by lower production at Essakane due to lower throughput and recoveries (3,000 ounces.)

Attributable gold sales, inclusive of joint venture operations, of 212,000 ounces for the third quarter of 2016, were higher than production of 210,000 ounces due to the sale of gold contained in carbon fines at Essakane.

Total cash costs1 for the third quarter 2016 were $714 per ounce produced, down 10 per cent from the same prior year period. The decrease was mainly due to higher capitalized stripping, lower realized fuel prices, the devaluation of the Surinamese dollar relative to the U.S. dollar, and lower labour costs at Rosebel following workforce reductions in 2015, partially offset by higher operating costs at the joint ventures. Total cash costs1 in the third quarter 2016 were reduced by $30 an ounce to reflect the normalization of costs and revised ramp-up at Westwood (September 30, 2015 - $76 an ounce), and included a realized derivative gain of $1 an ounce (September 30, 2015 - realized derivative loss of $65 an ounce) and a supplemental labour cost of $13 per ounce at Rosebel to support the employees with the devaluation of the Surinamese dollar relative to the U.S. dollar.

All-in-sustaining costs1 for the third quarter 2016 were $1,046 per ounce sold, up $19 per ounce from the same prior year period. The increase was primarily due to an increase in sustaining capital expenditures, partially offset by higher sales and lower cash costs. All-in sustaining costs1 in the third quarter 2016 were reduced by $30 an ounce to reflect the normalization of costs and revised ramp-up at Westwood (September 30, 2015 - $80 an ounce), and included a realized derivative gain of $1 an ounce (September 30, 2015 - realized derivative loss of $73 an ounce) and a supplemental labour cost of $13 per ounce at Rosebel to support the employees with the devaluation of the Surinamese dollar relative to the U.S. dollar.

Commitment to Zero Harm Continues

Regarding health and safety, the frequency of all types of serious injuries (measured as the DART rate2) for the third quarter 2016 was 0.47, an improvement over our target of 0.62 for 2016 and 0.67 in 2015. Despite our strong health and safety performance in 2016, performance in the third quarter was affected by an accident involving personnel transport buses that occurred in Burkina Faso on August 4, 2016, which resulted in one fatality and serious injuries to four workers.

CONFERENCE CALL

A conference call will be held on Tuesday, November 8, 2016 at 7:30 a.m. (Eastern Standard Time) for a discussion with management regarding IAMGOLD`s third quarter 2016 operating performance and financial results. A webcast of the conference call will 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 dialling: North America toll-free: 1-800-319-6413 or 1-604-638-9010, passcode: 00582#.

Qualified Person Information

The technical information relating to exploration activities disclosed in this news release was prepared under the supervision of, and reviewed and verified by, Craig MacDougall, P.Geo., Senior Vice President, Exploration, IAMGOLD. Mr. MacDougall is a Qualified Person as defined by National Instrument 43-101.

About IAMGOLD

IAMGOLD is a mid-tier mining company with four operating gold mines on three continents. A solid base of strategic assets in North and South America and West Africa is complemented by development and exploration projects and continued assessment of accretive acquisition opportunities.

We seek Safe Harbor.