IMZ Reports $15.2 Million in After-Tax Net Income for First Fiscal Quarter Ending September 30, 2011;  Update on Inmaculada Project, Peru

Scottsdale, Arizona, December 14, 2011 � International Minerals Corporation (Toronto and Swiss stock exchanges: �IMZ�, the �Company�) reports excellent financial results for its first fiscal quarter ended September 30, 2011, highlighted by $15.2 million in consolidated net and comprehensive income after tax, including net equity earnings of $14.9 million from the Company�s 40% interest in the Pallancata Mine in Peru.

In December, 2011, the Company was advised that Suyamarca (the owner of the Pallancata Mine) expects to declare a $30 million cash dividend, of which the Company�s share would be $12 million. The receipt of this dividend would bring the cumulative dividend distributions received by IMZ to $97.6 million since the mine was first placed into production in September 2007.   

All amounts in this news release are reported in US dollars. The financial results reported in this news release, including the results for the comparable quarter ended September 30, 2010, are prepared according to International Financial Reporting Standards (�IFRS�) which the Company adopted effective July 1, 2011.

Highlights for the Three-Month Period ended September 30, 2011:

During the three-month period ended September 30, 2011 (the �Current Quarter�), the Company achieved the following significant results: 

• The Company reported after tax net and comprehensive income of $15.2 million or $0.13 per share compared to after tax net and comprehensive income for the three months ended September 30, 2010 (the �Previous Year Quarter�) of $8.6 million or $0.07 per share, or an increase of 78% year-over-year.  

• The Company�s 40% share of the Pallancata Mine realized quarterly net earnings of $14.9 million (after the deduction of the Company's monitoring costs and the amortization of certain non-reimbursable costs), compared to $8.9 million for the Previous Year Quarter or an increase of 66% year-over-year. 

• Cash and equivalents at September 30, 2011 increased to a record $97.9 million from $86.1 million at June 30, 2011, which increase was due to the receipt of $16 million of dividends from Suyamarca (the Pallancata Mine). 

• Cash flow from operating activities for the Current Quarter was $19.8 million compared to $1.5 million for the Previous Year Quarter.    

• Gross royalty revenue from Barrick�s Ruby Hill gold mine was $1.2 million for the Current Quarter compared to gross royalty revenue of $0.8 million for the Previous Year Quarter. 

• The Pallancata Mine (100% project basis) produced approximately 2.3 million ounces of silver and 9,370 ounces of gold in the Current Quarter, compared to 2.5 million ounces of silver and 8,265 ounces of gold in the Previous Year Quarter. 

• The Company�s 40% share of production in the Current Quarter was approximately 0.92 million ounces of silver and 3,748 ounces of gold compared to 1.0 million ounces of silver and 3,306 ounces of gold for the quarter ended September 30, 2010.                                               

• Direct site costs for the Current Quarter at the Pallancata Mine were approximately $1.01 per ounce of silver produced (after gold by-product credits) and total cash costs (as defined by the Gold Institute) were $5.44 per ounce of silver produced (after gold by-product credits). For the Previous Year Quarter direct site costs and total cash costs were $2.53 and $5.77 per ounce of silver produced, respectively. Direct site cash costs and total cash costs were lower in the Current Quarter compared to the Previous Year Quarter due to higher gold by-product credits resulting from a higher gold prices and a 13% increase in gold production. 

• In Nevada, the exploration, in-fill and sterilization drilling, as well as metallurgical test work at Goldfield and Converse are progressing as scheduled. The Plan of Operations baseline data collection work is advancing in preparation for the Environmental Impact Study and permitting of the heap leach operation at the Gemfield and McMahon Ridge properties at Goldfield. The Converse scoping study remains scheduled for completion before December 31, 2011. 

Other Financial Information for the Three-month Period Ended September 30, 2011: 

• Other expenses totaled $1.6 million for the Current Quarter compared to $1.9 million for the Previous Year Quarter. The decrease in costs in the Current Quarter is mostly related to lower interest expense on the convertible debentures, a decrease in professional fees and expenses and also lower salaries and benefits. These cost savings were partially offset by an increase in investor relations expenditures and an increase in office and general expenses. 

• Other items contributed $1.3 million to earnings in the Current Quarter compared to income of $0.9 million for the Previous Year Quarter. A $1.8 million foreign exchange gain benefited earnings in the Current Quarter which was mostly related to a currency translation gain on the Canadian dollar denominated convertible debentures. 

• At September 30, 2011, the Company had working capital of $61.6 million, an improvement of $9.1 million over its working capital position at June 30, 2010 and an increase of $35.9 million compared to the Company�s working capital at September 30, 2010. 

• At September 30, 2011, the total deferred income tax liability was $8.0 million, which primarily relates to the acquisition of Metallic Ventures Gold and is anticipated to be a non-cash item. 

The Company reports its interests in the Pallancata Mine and the Inmaculada property on an equity accountin basis.

Operating Statistics for the Pallancata Mine (100% project basis). 

The table below reports key operating and cost statistics for the Pallancata Mine for the quarters ended September 30, 2011 and 2010 and for the years ended December 31, 2010 and 2009 together with the results from the quarter ended June 30, 2011. 

Notes:

1. The reported head grades for silver and gold are based on the overall metallurgical balance for the process plant.
2. The difference between "produced" metal ounces and 'sold" metal ounces is in-process concentrate. Sold gold and silver has been rounded.
3. Silver and gold ounces sold are now reported as gross ounces.
4. Direct site costs per ounce silver and total cash costs per ounce silver reflect a "mined ore inventory adjustment". IMZ believes that this calculation more accurately matches costs with ounces of production (Also see notes 5 and 6 below).
5. Direct site costs per ounce silver comprise direct mining costs, mined ore inventory adjustment, toll processing costs and. mine general and administrative costs. The cost per ounce is net of by-product credit, with by-product gold revenue offsetting operating costs.
6. Total cash costs, using the Gold Institute definition, comprise: mine operating costs, mined ore inventory adjustment, toll processing costs, mine general and administrative costs, Hochschild management fee, concentrate transportation and smelting costs, local and regional taxes and government royalty (currently approximately 3% of gross revenue for Pallancata). The cost per ounce is net of by-product credit, with by-product gold revenue offsetting operating costs.
7. �m/t� is metric tonne; �g/t� is grams per tonne; and �ozs� is troy ounces. 

Other Updates:

Normal Course Issuer Bid 

On October 17, 2011, the Company commenced a normal course issuer bid (or share repurchase program) to purchase, through the facilities of the Toronto Stock Exchange, a maximum of 3,000,000 of its common shares representing 2.5% of the Company�s 120,409,876 issued and outstanding common shares as at October 7, 2011. Following the end of each quarter, all common shares repurchased will be cancelled. 

To date, the Company has repurchased 864,400 common shares at an average price of Cdn$6.59 per share for a total value of $5,598,861 (Cdn$5,699,451). 

The common share repurchase program is being carried out in compliance with the requirements of the Swiss Stock Exchange (�SIX�). However, common shares will not be repurchased through the facilities of the SIX. 

Inmaculada Project, Peru - Feasibility Study 

At the Inmaculada gold-silver project in Peru (40% the Company, 60% Hochschild), completion of the independent feasibility study is expected by the end of December. The Company and Hochschild anticipate the release of the results of the study in January, 2012, following review and approvals by the respective Boards of Directors. 

Company Outlook 

During the 2012 calendar year, the Company's exploration and development efforts are expected to focus primarily on: 

• At the Pallancata silver mine in Peru: 

-       Working with our joint venture partner Hochschild to maintain production at the 3,000 tpd mining rate  to produce approximately 9.3 million ounces of silver and 36,500 ounces of gold in calendar year 2012 (the Company�s estimate on a 100% project basis). 

-       Increasing mineral resources and reserves to extend the existing mine life (approximately a 4 year mine life based on current reserves). 

• At the Inmaculada gold-silver project in Peru: 

-       Working with Hochschild to continue with the aggressive exploration and development program. 

-       Completing a feasibility study by the end of calendar year 2011 in order to move the project into production as scheduled by the end of 2013. 

• At the Goldfield gold project in Nevada, completing a feasibility study, including commencing an Environmental Impact Study by mid 2012, with the goal of commencing heap leach production in 2015. 

• At the Converse gold project in Nevada, completing a scoping study by the end of calendar 2011 and commencing a final feasibility study in 2012. 

• At the Rio Blanco gold-silver project in Ecuador, commencing construction of a mine, following permit approvals and the negotiation of a production contract in 2012, which will include clarification of certain tax, royalty and foreign investment issues relating to the 2009 Mining Law. 

• Subject to the successful conclusion of a production contract for Rio Blanco, advancing the development of the Gaby gold project with the commencement of a feasibility study. 

• Enhancing cash flow by acquiring a producing asset in a low-risk political and environmental jurisdiction in the Americas. 

• As deemed appropriate, to continue seeking strategic joint venture alliances, such as that with Hochschild at Pallancata and Inmaculada, in order to fast-track projects to production and to reduce future cash outlays by the Company. 

Hochschild Mining plc does not accept any responsibility for the adequacy or inadequacy of the disclosure made in this news release and any such responsibility is hereby disclaimed in all respects. 

For additional information, contact: 

In North America                                                                    In Europe
Paul Durham, VP Corporate Relations                             Oliver Holzer, Marketing Consultant
Tel: +1 480 483 9932                                                           +41 44 853 00 47 

Or email us at: IR@intlminerals.com                              Internet Site: http://www.intlminerals.com   

To view the Company�s complete financial statements and MD&A, please click the following link:
http://www.intlminerals.com/financialreports.php 

Cautionary Statement:

The Gold Institute calculation of Direct Site Costs and Total Cash Costs are non-IFRS financial measures, which Company 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 production expectations, drilling and development programs on the Company�s projects, timing of completion of economic studies and the timing of commencement of construction and production and, obtaining of required environmental and production permits. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to obtaining mining and environmental  permits; 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 Annual Information Form for the year ended June 30, 2011, 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.