IMZ Reports Record $19.1 Million in After Tax Net Income for Second Fiscal Quarter Ending December 31, 2010 

Scottsdale, Arizona, February 14, 2011 � International Minerals Corporation (Toronto and Swiss stock exchanges: �IMZ�, the �Company�) reports record financial results for the second fiscal quarter ending December 31, 2010 (the �current quarter�), highlighted by $19.1 million of consolidated net income after income taxes, including net equity earnings of $16.3 million from the 40%-owned Pallancata Mine in Peru. 

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

Highlights for the Three-Month Period Ended December 31, 2010:

During the current quarter, the Company achieved the following significant results: 

• Cash and equivalents increased by approximately $26.3 million to $51.7 million and working capital increased by approximately $44.9 million to end the current quarter at approximately $70.7 million. 

• A cash dividend distribution of $20.0 million was received from the Company's 40%-owned Pallancata Mine, of which $10 million was re-invested in sustaining and new capital expenditures (property, plant and equipment). This increased the total cash dividend distributions received by the Company in the 2010 calendar year to $36.0 million. Total cash dividend distributions received by the Company since commencement of production at Pallancata in September 2007 is $43.6 million.                                          

• Net income for the current quarter was approximately $18.0 million before provision for income taxes and $19.1 million after taxes. Net Income per share of $0.16 for the current quarter compares to $0.06 per share for the comparable quarter in 2009.
    

• The increase in income between the comparative periods resulted primarily from an increase in the net equity income recognized from the Pallancata Mine of $8.7 million, an increase in net royalty income of $1.0 and the recognition of a $5.6 million gain in the current quarter from the disposition of a partial interest in the Inmaculada project. These increases were partially offset by write-offs totaling $2.3 million for two resource properties in Peru.                                               

• Gross equity income totaling approximately $16.4 million and net equity income of approximately $16.3 million was generated during the current quarter from the 40%-owned Pallancata Mine compared to $8.1 million and $7.6 million for the quarter ended December 31, 2009, due primarily to increased metal production and higher metal prices during the current quarter. 

• The Pallancata Mine (100% project basis) produced approximately 2.76 million ounces of silver and 10,045 ounces of gold in the current quarter, compared to 2.5 million ounces of silver and 8,264 ounces of gold in the prior quarter, which ended September 30, 2010.  The Company�s 40% share of production in this current quarter was approximately 1.1 million ounces of silver and 4,018 ounces of gold. The increase in gold and silver production for the current quarter compared to the previous quarter was due to a 3% increase in mill throughput coupled with increases in the grades of silver and gold processed.                                                

• Direct site costs for the current quarter at the Pallancata Mine were approximately $1.05 per ounce silver (after gold by-product credits) and total cash costs (as defined by the Gold Institute) were $4.89 per ounce silver (after gold by-product credits). For the three-month period ended December 31, 2009, direct site costs and total cash costs were $1.72 and $4.69 per ounce silver, respectively. 
   

• Direct site costs per ounce have decreased from the comparable period in the prior year due primarily to increased silver and gold production and a higher gold-by-product credit resulting from an increase in the price of gold.  

Other Financial Information for the Three-month Period Ended December 31, 2010: 

• Net royalty income in the current quarter was $1.1 million compared to $nil in the comparable quarter 2009 as the Ruby Hill Mine royalty was not acquired until February 2010. 

• Other expenses totaled $2.0 million for the current quarter compared to $1.7 million for the quarter ended December 31, 2009. The increase is largely due to an increase in stock based compensation and an increase in salary expenses, the latter primarily related to the corporate acquisitions completed in 2010. 

• The Company realized a recovery for future income taxes in the amount of $1.1 million which related to an increase in its investment in the Pallancata Mine joint venture and a reduction in its interest in the Inmaculada property. 

• Other notable achievements in the current quarter included completion of a private placement with Hochschild Mining plc (�Hochschild�) of $20.0 million from the issuance of 3,655,746 common shares and the signing of Memorandums of Understanding with China CAMC Engineering Co. Ltd ("CAMCE") related to the financing and construction of a mine at the Rio Blanco property in Ecuador and the future development and financing of the Gaby property, also located in Ecuador.  

The Company reports its interests in the Pallancata Mine and the Inmaculada property on an equity accounting basis, effective for this current quarter. 

Financial Results for the Six-Month Period Ended December 31, 2010: 

• Consolidated net income before provision for income taxes for the six-month period ended December 31, 2010 was $25.2 million and $23.5 million after taxes or net income per share of $0.20. This compares to net income of $6.6 million or $0.07 per share for the comparable period in 2009.  

• The increase in income between the comparative periods resulted primarily from an increase in the net equity income recognized from the Pallancata Mine of $12.6 million, an increase in net royalty income of $1.8 and the recognition of a $5.6 million gain in this current period from the disposition of a partial interest in the Inmaculada project, offset by the write down of mineral property interests of $2.3 million. 

• The Company realized gross equity income from the Pallancata Mine for the current six-month period of $25.7 million compared to $13.3 million for the comparable period in 2009. This increase was a function of increased metal production and higher metal prices. 

• Net royalty income for the current six-month was $1.8 million compared to $nil in the comparable period in 2009, as the Ruby Hill Mine royalty was not acquired until February 2010. 

• Other expenses totaled $4.0 million for the current six-month period compared to $4.0 million for the comparable period in 2009. 

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 and years ended December 31, 2010 and 2009 together with the results from the quarter ended September 30, 2010. 

 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.
3. Silver and gold ounces sold are now reported as gross ounces. IMZ has also restated the previously reported sales, which had been reported as net payable 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 4 and 5 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. 

Company Outlook 

During the 2011 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 continue production at the 3,000 tpd mining rate to produce approximately 10 million ounces of silver and 36,000 ounces of gold in calendar year 2011 (the Company�s estimate on a 100% project basis). The estimate for calendar year 2011 will be updated by Hochschild in March 2011 when the new resources and reserves as of December 31, 2010 are announced. 

-   Increasing mineral resources and reserves to extend the existing mine life (approximately 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 in order to move the project into production by approximately December, 2013, pursuant the recent Joint Venture Agreement entered into with Hochschild.  

• At the Goldfield gold project in Nevada, to complete a feasibility study by the end of calendar year 2011, with the goal of potential production in 2014.  

• At the Converse gold project in Nevada, to complete a scoping study by calendar Q2 2011.

• At the Rio Blanco gold-silver project in Ecuador, to advance discussions with the Ecuadorian government with respect to the negotiation of an exploitation contract, which will include clarification of certain tax and royalty issues related to the 2009 Mining Law. 

• Also subject to clarification of the mining law issues discussed above, to advance the Gaby gold project with the commencement of a feasibility study.                            

• Completion of the agreements with the Chinese company, CAMCE, for the financing and construction of the Rio Blanco and Gaby projects in Ecuador. 

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

• Continuing to seek additional 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. 

To directly access IMZ�s Financial Statements and Management Discussion and Analysis (�MD&A�) for the interim quarter ended December 31, 2010, please click this link. 

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       

Cautionary Statement:

The Gold Institute calculation of Direct Site Costs and Total Cash Costs are non-Canadian GAAP 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 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, 2010, 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.