International Minerals Reports Financial Results for First Quarter of Net Income of US$1.2 million; Net Equity Earnings of US$5.0 million from Pallancata Silver Mine

http://www.businesswire.com/news/home/20091116006847/en

SCOTTSDALE, Ariz.--(Business Wire)--
International Minerals Corporation (TSX: IMZ) (SIX: IMZ) ("IMZ," the "Company")
reports results for the fiscal first quarter ending September 30, 2009 (the
"current quarter") of $1.2 million in consolidated net income ($0.01/share),
including net equity earnings of $5.0 million for the 40%-owned Pallancata Mine.

All amounts in this news release are reported in US dollars.

Highlights

During the fiscal first quarter ended September 30, 2009, the Company
accomplished the following:

* Completed the quarter with cash and equivalents of approximately$42.6 million,
aggregate working capital of approximately $41.1 million and total assets of
approximately $162.4 million.
* Received its first cash dividend payment of approximately $1.2 million on
August 13, 2009, from its 40% interest in the Pallancata Mine. An additional
dividend payment of approximately $6.0 million, representing the Company`s 40%
share, has been approved for payment by the joint venture and the Company
expects to receive the dividend in late November 2009.
* Reported record total production (100% basis) of approximately 2.5 million
ounces of silver and 9,622 ounces of gold from the Pallancata Mine, an increase
of ~33% compared to 1.9 million ounces of silver and 7,170 ounces of gold in the
prior quarter ended June 30, 2009. The Company`s 40% share of production was
approximately 1.0 million ounces of silver and 3,849 ounces of gold.

The increase in ounces produced results from the 2009 mine capacity expansion
program that has progressively, since 2008, increased average daily tonnage
throughput from 1,000 tonnes per day ("tpd") to 3,000 tpd.

* Reported direct onsite costs at the Pallancata Mine of $2.72 per ounce ("/oz")
silver (after gold by-product credit) and total cash costs (as defined by the
Gold Institute) of $5.30/oz silver (after gold by-product credit).

These costs are an improvement of 27% and 15% in direct site costs and total
cash costs respectively from $3.73/oz and $6.20/oz reported for the prior
quarter ended June 30, 2009.

* Accepted for inclusion in the SIX Swiss Exchange`s (the stock exchange in
Zurich,"SIX") prestigious Swiss Performance Index (the "SPI") on August 24,
2009. The Company is currently the only precious metal mining company listed on
the SIX and the first ever gold company to be included in the SPI. In addition,
the Company is one of only 11 foreign companies listed on the SPI.
* Announced the signing of a binding letter agreement for the Company to
acquire, in an all-share transaction, all of the issued and outstanding shares
of Ventura Gold Corp. ("Ventura", symbol "VGO", TSX Venture Exchange) by way of
a statutory plan of arrangement. Consideration to be paid to Ventura
shareholders comprises approximately 13.7 million shares of the Company. Upon
completion of the Ventura transaction the Company will add to its existing
resource assets Ventura`s current 51% interest in the Inmaculada gold-silver
project in Peru (49% Hochschild), which can be increased to a 70% participating
interest by the delivery of a feasibility study by mid-year 2012. See the
Company`s September 23, 2009 news release for additional details.

Subsequent to the end of the quarter, announced that the Company had entered
into an arrangement agreement whereby the Company will acquire, in a cash and
share transaction, all of the issued and outstanding shares of Metallic Ventures
Gold, Inc. ("Metallic") by way of a statutory plan of arrangement. Consideration
to be paid to Metallic shareholders will consist of $24 million in cash and 8.5
million common shares of the Company. Upon completion of the Metallic
acquisition, the Company will add to its existing assets: a 3% net smelter
return royalty (approximately $3 million-$4 million per year) from Barrick`s
Ruby Hill gold mine in Nevada; a 100% interest in the Converse gold project
which lies in the Battle Mountain/Cortez mineralized trend of Nevada; and a 100%
interest in the Goldfield gold project in central Nevada near the historic gold
mining town of Goldfield. See the Company`s November 2, 2009 news release for
additional details of the Metallic transaction, which is expected to close in
the first calendar quarter of 2010.

Additional Financial Information

Consolidated net income for the current quarter was $1.2 million ($0.01 basic
and diluted per share) compared to a net income of $3.7 million ($0.04 per
share) for the equivalent period in 2008.

The current period net income was due principally to the net equity gain in the
Pallancata Mine joint venture of $5.0 million (2008 - a gain of $3.8 million)
offset by $3.8 million in expenses and other items, comprised primarily of the
following: a) a foreign exchange loss of $1.6 million (2008 - a gain of $1.2
million); b) increased stock-based compensation expense of $0.8 million (2008 -
$0.1 million); and c) a drop in interest income to $0.1 million (2008- $0.4
million). The foreign exchange loss relates to the current weakness of the US
dollar. Stock-based compensation expense for the current period related to
options granted in February 2009. Continued lower interest rates which reflect
the current economic environment and lower bank balances produced the decrease
in interest income. Equity income was greater in the current period as the mine
was operating at higher production rates than in the comparative period of 2008.

The Company reports its interest in Pallancata on an equity accounting basis.

Company Outlook

During the balance of calendar year 2009 and fiscal year 2010 (ending June 30),
the Company's exploration and development efforts are expected to focus
primarily on:

* Continuing production at the 3,000 tpd mining rate, which was achieved ahead
of schedule in June 2009, at the Pallancata silver-gold mine in Peru, working
with our 60% joint venture partner, Hochschild. Pallancata is expected to
continue to produce significant operating cash flow from operations. The Company
received approximately $1.2 million as an initial cash dividend from the
Pallancata joint venture in August 2009. An additional dividend payment of
approximately $6.0 million, representing the Company`s 40% share, has been
approved for payment by the joint venture and is expected to be received in late
November, 2009.
* Producing approximately 8 million ounces of silver and 30,000 ounces of gold
from Pallancata for calendar 2009 (the Company`s estimate on a 100% basis).
* Producing approximately 10 million ounces of silver and 35,000 ounces of gold
in calendar 2010 from Pallancata (the Company`s estimate on a 100% basis). The
Company expects to receive additional cash dividends from Pallancata in 2010,
commencing in February or March, in an amount to be determined based on the
year-end cash flow position of the joint venture.
* Increasing mineral resources and reserves to extend the existing mine life at
Pallancata (approximately 4 years based on current reserves).
* Completing the acquisition ofVentura in January 2010 (see "Acquisitions"
section) and aggressively drilling at the 51%-owned (49% Hochschild) Inmaculada
project in Peru towards completion of a feasibility study by mid-2012 to earn a
70% interest in the project.
* Completing the acquisition of Metallic in the calendar first quarter of 2010
(see "Acquisitions" section). Quarterly royalty payments (of approximately $1.0
million at current metal prices) are anticipated to be received from Barrick`s
Ruby Hill Mine in Nevada following closing of the acquisition.

Upon completion of the Metallic acquisition: a) immediately advancing the
Goldfield gold project into the feasibility study stage with a goal of potential
production within the next four to five years; and b) immediately commencing
further drilling on the Converse gold-silver project.

* Continuing to monitor and cooperate with political developments in Ecuador in
order to protect the Company`s long-term interests in the 100%-owned Rio Blanco
gold-silver project and the Gaby gold project (approximately 60% interest in
estimated contained resource ounces). With the passing of the mining regulations
by the government on November 4, 2009, and subject to clarification of certain
provisions of the new Mining Law, the Company intends to look to obtaining
environmental permits, production permits and consider construction financing
and other activities required to advance the projects towards commercial
production either on a stand-alone basis or with strategic partners.
* Continuing to seek additional strategic joint venture alliances, such as that
with Hochschild at Pallancata and Pacapausa, in order to advance projects with
reduced further cash outlays by the Company.

Cautionary Statement:

The Gold Institute calculation of Direct Site Costs and Total Cash Costs are
non-Canadian GAAP financial measures, which IMZ management believes are useful
in measuring operational performance. Some of the statements contained in this
release are "forward-looking statements" within the meaning of Canadian
securities law requirements. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause our actual
results, performance or achievements to differ materially from the anticipated
results, performance or achievements expressed or implied by such
forward-looking statements. Forward-looking statements in this release include
statements regarding pending corporate acquisitions, capital expansion costs and
completion, drilling and development programs on the Company`s projects, timing
of commencement of construction and production, obtaining of required
environmental and production permits, and timing and amounts of future cash
flows from operations. Factors that could cause actual results to differ
materially from anticipated results include risks and uncertainties such as:
risks relating to pending corporate acquisitions; project capital and production
costs; risks relating to obtaining mining and environmentalpermits; mining and
development risks; financing risks; risk of commodity price fluctuations;
political and regulatory risks; risks related to the new mining law in Ecuador,
and other risks and uncertainties detailed in the Company`s Renewal Annual
Information Form for the year ended June 30, 2009, which is available at
www.sedar.com under the Company`s name. The Company disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.

INTERNATIONAL MINERALS CORPORATION

INTERIM CONSOLIDATED BALANCE SHEETS

(Expressed in United States dollars)

(Unaudited - Prepared by Management)

9/30/2009 6/30/2009

ASSETS

Current
Cash and equivalents $ 42,606,294 $ 43,775,995
Receivables 389,502 423,983
Due from related parties 545,546 377,328
Prepaid expenses and deposits 26,767 18,921
Securities held-for-trading 235,425 135,816

43,803,534 44,732,043
Long Term
Due from related party 75,000 75,000
Property and equipment 523,463 582,878
Investment 31,500 31,500
Investment in joint venture 36,317,126 32,396,735
Resource properties 81,530,984 80,097,809
Environmental bond 75,349 68,352

$ 162,356,956 $ 157,984,317

LIABILITIES AND SHAREHOLDERS' EQUITY

Current
Accounts payable $ 251,095 $ 376,940
Accrued severance and payroll costs 1,767,510 2,274,448
Accrued interest payable on convertible debentures 675,198 158,593

2,693,803 2,809,981

Long term
Convertible debentures 34,222,351 31,756,199

36,916,154 34,566,180

Shareholders' equity
Capital stock 125,678,141 125,678,141
Contributed surplus 6,119,539 5,326,188
Equity component of convertible debentures 4,945,008 4,945,008
Deficit (11,301,886) (12,531,200)

125,440,802 123,418,137

$ 162,356,956 $ 157,984,317

INTERNATIONAL MINERALS CORPORATION

INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT

(Expressed in United States dollars)

(Unaudited - Prepared by Management)

3-Month Period 3-Month Period

9/30/2009
9/30/2008

EXPENSES
Amortization $ 42,899 $ 32,198
General exploration 76,761 38,981
Interest and financing costs 870,015 882,928
Investor relations 77,001 52,417
Office and general 70,124 48,584
Professional fees 85,263 177,189
Salaries and benefits 204,600 238,365
Salary charge-outs (38,140) (40,760)
Stock-based compensation 793,351 118,923
Transfer agent and listing fees 32,164 38,516
Travel 17,204 36,149

(2,231,242) (1,623,490)

OTHER ITEMS
Foreign exchange gain (loss) (1,616,606) 1,217,181
Unrealized gain (loss) on securities held-for-trading 99,609 (76,378)
Management fee income 120,368 138,216
Interest income 111,877 366,742
Write-off of resource properties (237,856) (111,542)

(1,522,608) 1,534,219

INCOME FROM JOINT VENTURE
Equity income from joint venture 5,246,800 313,904
Equity gain (loss) on capital contributions in joint venture - 3,505,280
Joint venture monitoring costs (164,348) -
Amortization of non-reimbursable costs (99,288) -

4,983,164 3,819,184

Net income for the year 1,229,314 3,729,913

Deficit, beginning of year (12,531,200) (21,202,185)

Deficit, end of year $ (11,301,886) $ (17,472,272)

Earnings per common share - basic and fully diluted $ 0.01 $ 0.04

Weighted average number of common shares outstanding 92,982,001 96,030,001

INTERNATIONAL MINERALS CORPORATION

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW

(Expressed in United States dollars)

(Unaudited - Prepared by Management)

3-Month Period 3-Month Period

Ended
Ended

9/30/2009
9/30/2008

CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) for the year $ 1,229,314 $ 3,729,913
Add non-cash items:
Amortization 42,899 32,198
Stock-based compensation 793,351 118,923
Unrealized foreign exchange (gain) loss 2,086,062 (950,259)
Unrealized loss (gain) on securities held-for-trading (99,609) 76,378
Write-off of resource properties 237,856 111,542
Interest and financing costs 911,705 882,928
Equity income from joint venture (5,246,800) (313,904)
Equity gain on capital contributions in joint venture 580,800 (3,505,280)
Amortization of non-reimbursable costs 99,288 -

Changes in non-cash working capital items:
Increase in receivables 34,481 (100,646)
Decrease (increase) in prepaid expense and deposits (7,846) 8,253
Decrease in accounts payable and accrued liabilities 66,980 684,091
Due from related parties (168,218) 1,125

Net cash (used in) provided by operating activities (20,537) 775,262

CASH FLOWS FROM FINANCING ACTIVITIES
Due from related party - -
Proceeds from the issuance of capital stock - -
Share buyback - -

Net cash (used in) provided by financing activities - -

CASH FLOWS FROM INVESTING ACTIVITIES
Short-term investments - (1,390)
Resource property expenditures (2,368,226) (3,308,112)
Investments in joint venture (1,129) (293,676)
Purchase of property and equipment (1,062) (357,911)
Environmental bond (6,997) (13,533)
Dividends received from joint venture 1,228,250 -

Net cash (used in) provided by investing activities (1,149,164) (3,974,622)

Change in cash and equivalents for the year (1,169,701) (3,199,360)
Cash and equivalents, beginning of year 43,775,995 60,447,985

Cash and equivalents, end of year $ 42,606,294 $ 57,248,625

International Minerals Corporation
In North America
Wendy Yang, 303-357-4863
Vice President of Investor Relations
or
In Europe
Oliver Holzer, +41 (0) 44 854 11 39
Marketing Consultant
IR@intlminerals.com
http://www.intlminerals.com

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