"…we would prefer to have GOLD rather than dollar bills…" IAMGOLD.

"Last week, therefore, IAMGOLD became the FIRST gold producer in the world…which has PUT ITS MONEY WHERE ITS MOUTH IS & established a Gold Money Policy whereby it has converted its discretionary (cash) funds into GOLD BULLION." Minesite.com 1-14-2002

"This fall the board of IAMGOLD started to question its stance on gold… We came to the conclusion, as a board, that we believed in GOLD'S primary role as a store of value and that GOLD IS THE ONLY FORM OF MONEY that is not someone else's paper." IAMGOLD has now converted ALL of its discretionary cash into gold bullion to PROVE to the world that they indeed believe in gold. IAMGOLD is also now paying their shareholder dividends in GOLD.

NEVER HAS A GOLD MINING COMPANY DONE THIS BEFORE.

WHY HAS IAMGOLD NOW DECIDED TO PROVE TO BOTH THE WORLD & TO IAMGOLD SHAREHOLDERS THAT THEY BELIEVE IN GOLD?

IAMGOLD became convinced that gold had become undervalued relative to the US dollar and they made the decision that they would rather have real money, gold, instead of potentially "worthless" paper US dollars. IAMGOLD then converted their corporate cash into gold bullion. At present they have converted close to 9 million US dollars of their corporate treasury into 31,548 ounces of PURE GOLD!

Also, it is important to note that this gold bullion will NOT be lent out as leased gold. IAMGOLD created a special "Allocated Account" which they pay .3% per annum to operate & to store the gold. This type of account insures that NONE of their stored gold can be lent out by the bullion bank in any manner. The only US dollars the company is planning to hold onto are a minimum of one months operating expenses in cash to pay their monthly bills with.

"We hope that our industry peers who also believe that gold is money, will be encouraged to convert cash reserves into gold. We further hope that all gold companies will follow the example of IAMGOLD." Todd Bruce, President & CEO, IAMGOLD. As of 1-18-02 there are NO other gold companies taking up their challenge. Though there has been some lip service by other gold companies of plans to do the same, talk is cheap & only seeing is believing. Will other gold companies have the business savvy to do what IAMGOLD has had the courage to do?

"WHAT IAMGOLD HAS DONE IN ONE FELL SWOOP IS ESTABLISH ITSELF AS THE GOLD PRODUCER TRULY BACKED BY GOLD. Investors should offer it a vote of thanks for giving them the choice between that and the usual run of the mill producers who either convert their gold into paper by hedging before it is produced, or sell it at spot as soon as possible."

"In both cases they (the gold mining companies) demonstrate a lack of confidence in gold and do the price of the metal actual harm. It is time that the remaining independent producers reassessed their policies on gold and it will be interesting to see who takes the lead."

"THINGS MAY NEVER BE QUITE THE SAME AGAIN."

IAMGOLD is effectively laying down the gauntlet as a CHALLENGE to the rest of the gold mining companies around the world to do the same. Do gold companies REALLY believe in the product (gold) that they produce? Does YOUR gold company offer dividends in gold or are they converting their corporate cash into gold bullion? It is time to ask them why, folks! Every holder of gold shares needs to ASAP send out emails to their gold companies DEMANDING them to do as IAMGOLD has done. Get on the horn & demand a response from your gold company & insist that within 30 days you want to hear their official response to IAMGOLD's Gold Money Policy. And tell them if they DON'T convert their cash into gold that you just may be seeking another gold company to invest in that DOES!

Who is this company that calls themselves IAMGOLD? IAMGOLD is listed on the Toronto Exchange (IMG.TO). They own 2 gold mines located in Mali, West Africa. The gold mines, Sadiola & Yatela, are within 25 miles of each other. IAMGOLD has a joint partnership with AngloGold. Both IAMGOLD & AngloGold hold close to a 40% interest each in the gold mines with the Mali government holding the rest. The two gold mines have over a total of 12 million ounces plus of gold resources & reserves.

That's a lot of gold!!!

The Sadiola Hill Gold Deposit has been called "…one of the MAJOR discoveries of this decade & the BEST discovery in Africa." IFC Information Memorandum

Gold has been mined for more than a thousand years in West Africa. Before a water trade route was established ancient caravans traveled through Mali and along the mighty Niger River carrying Far East Trade goods to be exchanged for the gold in West Africa. Beginning in 1996, West Africa became a major world gold play subdued later only by a lower gold price. It is estimated that Mali alone may hold over 400 tons of gold waiting to be developed. Some mining experts estimate that West Africa may contain one-third of the world's remaining unmined gold.

Africa is an amazingly diverse country. In West Africa, the visitor will find a rich history of brilliant civilizations & empires built on trade, fishing peoples who spend most of their lives in small canoes on the Niger River, cattle herders moving across the plains in search of pasture & town dwellers who live I fabulous multi story buildings made of red clay. Mali is the largest country in West Africa and is bordered by seven other African countries. Most of Mali consists of low plains & is interspersed with rocky hills. The highest elevation is 3,789 feet in the Homburi Mountains located in the south east of the country. The northwestern region of Mali extends into the mighty Sahara Desert. In the lower part of Mali travels the vast Niger River.

Mali reached its pinnacle of power & wealth during the 14th century and the great empire of that time controlled the trans-Saharan trade routes supplying gold, ivory & salt to the peoples of the Mediterranean. During this time the great cities of Timbuktu & Djenne were established. These cities became fabled centers of wealth, learning, & culture. The area's predominance as a trading center ended when the Europeans established sea routes to the Near East.

In a speech by President Nelson Mandela to the business community of Mali his hopes were that "the Sadiola project creates trade & employment opportunities. For Mali it should bring not only jobs & exports, but also a transfer of South African mining technology & skills which will permanently increase the capacity of Malians to contribute to the wealth of the nation."

"Our operating (world class) mine, Sadiola, also continues to surpass industry standards, by keeping its treasured status as one of the world's lowest cost gold producing mines. During the past ten years, IAMGOLD has put into place the necessary elements to succeed in whatever market conditions prevail." William Pugliese, Co-Chairman & CEO, IAMGOLD.

"Seldom has the mining industry seen a more successful mine development story in an emerging country, particularly when one considers that the mine not only commenced production ahead of schedule but also was completed under budget," Todd Bruce, President, IAMGOLD. The Sadiola Hill Gold Resource lies within a major, regional structural zone that is believed to offer excellent exploration potential for further gold discoveries.

Gold was the leading performing sector in 2001. As the New Year, 2002, began, the writer of this letter was curious how long it would take gold to again take the lead ahead of all other market sectors. As of 1-17-2002, gold already is at 9.8%. Its closest competitor is UNDER 1%. USATODAY Lipper Fund Index 1-17-2002

What does the New Year, 2002, hold for business? "Corporate balance sheets are in grossly worse shape today than they were in 1929 - 1930," asserts Dr. Richebacher. "(Therefore) cuts in capitol spending have been aggressive as never before." "We've seen NO signs of an economic recovery," Chief Financial Officer Andy Bryant at Intel told Reuters News Service." Bill Bonner The Daily Reckoning 1-17-2002

These are the reasons perhaps why IAMGOLD is so confident now to place their trust in gold. With a deteriorating world economy & an eventual deterioration of the US dollar, it doesn't take a rocket scientist to see the best place to begin placing your capital investments.

Another reason IAMGOLD is quick to trade their US dollars for GOLD BULLION is that the banks required IAMGOLD to hedge a portion of their Sadiola Gold Mine in order to receive financing to build & develop the mine. It is IAMGOLD's strategy to reduce these hedges as quickly as possible. In 2001 most of their hedge book was eliminated & IAMGOLD is anticipating having the remaining small hedge amount totally ELIMINATED by June 2002. All hedging was done ONLY at the mine level & only where the banks mandated it as a requirement to obtain financing. There are NO margin calls on their small remaining hedge book & IAMGOLD is actively working to reduce it completely. The remaining percentage of gold hedged is RELATIVELY SMALL compared to existing total gold reserves. Again, by June 2002 the remaining SMALL hedge amount will BE COMPLETELY GONE.

It is important to remember that there are two different kinds of hedged gold companies. There are those gold companies, though becoming fewer in number, who actively see their gold company more as a financial derivatives institution and work actively to remain as hedged as possible to play the derivatives games that companies such as Enron enjoyed playing. The other type of hedging is that required by the banks that DEMAND a gold company to hedge BEFORE they will loan any money.

The Yatela Gold Mine, IAMGOLD's second producing gold mine, is COMPLETELY UNHEDGED! Yatela's total UNHEDGED gold resources & reserves are close to 3 million ounces. In May 2002 IAMGOLD will be debt free at its Sadiola Mine & debt at its Yatela Mine will only be around 5 million US dollars. Since the Sadiola Mine came into production in 1997 it has paid out over 70 million US dollars in dividends & paid off to the bank 270 million US dollars in loans. IAMGOLD believes in paying off debt as quickly as possible.

At a gold price of just 275 dollars an ounce the Sadiola & Yatela Mines are expected to jointly generate in excess of 20 million US dollars ANNUALLY for at least the next five years to IAMGOLD's bank account. And of course as this money is made it will be maintained as GOLD BULLION. Even if gold stays within its present price range this company will be making a substantial amount of money.

"During the Great Crash of 1929 - 1932, gold shares clearly proved their worth as an insurance policy. More importantly, gold shares have proven themselves to be a useful wealth protecting asset during the prolonged bear market of 1966 - 1982." Graham Birch & Geoff Campbell Gold Fund Managers.

"Earlier this month, John Roque, a charting technician at investment house Arnhold & S. Bleichroeder in New York, called gold the most unloved, despised, laughed at, repulsive & flesh crawling financial instrument known to mankind. THEN HE FORECAST THE METAL WOULD REACH $340 US DOLLARS AN OUNCE THIS YEAR," Thom Calandra CBSMarketWatch 1-14-2002

IAMGOLD considers itself to be highly leveraged to an eventual gold price increase.

IAMGOLD has been recognized since its inception as a strong, well-managed gold company. The Brokers & Analysts covering IAMGOLD are Canaccord Capital, Merrill Lynch, Salman Partners, Nesbitt Burns, Research Capital, Sprott Securities, HSBC Securities, Yorkton Securities, First Marathon Securities, etc… Needless to say, the professional community recognizes IAMGOLD & have consistently rated it as a BUY, STRONG BUY, FOCUS BUY & ACCUMULATE for years. The stock is considered an EXCELLENT long-term investment. It is recommended to approach gold stocks just as any other conventional stock and to always maintain a family of diversified gold stocks in your portfolio. "…never buy just one gold stock, 4 - 6 is a minimum," Gold Stock Analyst.

IAMGOLD has a market cap of approximately 228 million US dollars. Of that total, 43% of shares are held by IAMGOLD management. This is further evidence that the company itself has TREMENDOUS CONFIDENCE in their ability to make money & also, confidence in the eventual upward trend of the stock price.

THE IAMGOLD GOLD MONEY POLICY:

"…gold offers one of the few means of protection against the currently unfolding economic scenario. Worldwide, governments are striving to overcome recessionary conditions by rapidly expanding the supply of credit & money as reflected by cuts in interest rates. In almost all of these cases, these generalist funds see a major devaluation of the US dollar as an inevitable outcome of, or as a US policy response to, these circumstances."

"Just as IAMGOLD believes that paper currencies are best backed by gold, it also believes that gold companies backing their own paper, i.e. their shares, with gold such as IAMGOLD is doing, will create a new PREMIUM BRAND OF GOLD SHARES."

"Reserve currencies are under pressure because of fears of economic recession & of the measures taken by governments & monetary authorities to stimulate demand. Gold is the ONLY form of currency which is ultimately not susceptible to government & central bank controls and thus constitutes the ONLY independent measure and store of value."

"...we firmly believe in gold's primary monetary role as a safe store of value and that gold is the only form of money that is not someone's paper IOU. …IT ONLY STANDS TO REASON THAT WE WOULD PREFER GOLD BULLION TO US DOLLARS."

"If we as an industry don't demonstrate our belief in the monetary nature of gold, why should we expect anyone else to? We firmly believe that our industry can best promote gold by simply using it as money."

"IS IAMGOLD THE ONLY COMPANY THAT HAS A GOLD MONEY POLICY?"

"As far as IAMGOLD is aware, it is the ONLY (gold) company which has elected to hold the bulk of its discretionary cash in gold bullion. IN OTHER WORDS, IAMGOLD IS THE ONLY GOLD COMPANY THAT IS TRULY BACKED BY GOLD."

"GOLD IS MONEY. WE ARE A MINING COMPANY STANDING BEHIND OUR PRODUCT."

UNLESS OTHER GOLD MINING COMPANIES BEGIN TO USE GOLD AS MONEY, AS ONLY IAMGOLD IS NOW DOING, THEN HOW CAN THE GOLD INDUSTRY EXPECT THE REST OF THE WORLD TO LOOK AT GOLD AS MONEY?

IAMGOLD = I * AM * GOLD

"IAMGOLD" is the ONLY gold company that can truthfully & with conviction say this now.

David Vaughn
David4054@charter.net
January 19, 2002