IMZ Reports Strong Pallancata Mine Operating Results; Initial US$1.2 million Cash Dividend Received

Scottsdale, Arizona, August 24, 2009 � International Minerals Corporation (TSX and SIX: �IMZ�) reports that the Pallancata silver-gold mine in southern Peru more than doubled silver production in the calendar second quarter (�Q2 2009�) to 1.9 million ounces (753,200 silver ounces attributable to IMZ) compared to the second quarter of 2008.  

The Pallancata Mine is jointly owned by IMZ (40% interest) and Hochschild Mining plc (�Hochschild�, 60% interest and operatorship). All dollar numbers are in US Dollars.

Highlights for Q2 2009 at the Pallancata Mine include:

• Silver production increased from first calendar quarter 2009 (�Q1 2009�) by 45% to approximately 1.9 million ounces;
• Record quarterly production of 753,200 silver ounces attributable to IMZ;
• IMZ�s total cash costs per ounce of silver (net of gold credit) lowered by 6% to $6.20 from Q1 2009;
• Payment of an initial cash dividend of approximately $3.1 million (of which IMZ received approximately  $1.2 million for its 40% interest);

Steve Kay, President and CEO of IMZ, said, �Pallancata continues to show strong numbers, both at the production level and on a revenue/cost basis. Receiving a first-time cash dividend of approximately $1.2 million achieves another significant milestone for IMZ at Pallancata and we are confident that it is the first of many to come in the future.�

Cash Flow

Using $12 per ounce silver, IMZ�s share of cash flow from operations at Pallancata for calendar year 2009 is expected to be between $14 million and $15 million, based on the current IMZ production estimate of approximately 7.0 million ounces of silver and 25,000 ounces of gold for calendar year 2009 (on a 100% basis) and costs, but before capital expenditure requirements (see below). IMZ estimates that each additional one dollar increase in the silver price would add approximately $3 million to IMZ�s share of cash flow from operations.

IMZ�s 40% share of the projected capital expenditures in calendar year 2009 of approximately $32 million, (primarily for mine expansion from 2,000 tonnes per day (�tpd�) to 3,000 tpd in calendar 2009) is expected to be fully funded by the operational cash flow discussed above.

IMZ uses an equity accounting basis to record its interest in the Pallancata Mine.

Production

Table 1 below shows that Pallancata�s Q2 2009 production compared to Q1 2009 increased by 45% to approximately 1.9 million ounces (100% basis) due to the ramp-up in mining operations during 2009.

Recently, the Pallancata Mine achieved the targeted 50% increase in production to 3,000 tpd. Since the closing of the Hochschild wholly-owned Selene Mine in Q2 2009, Pallancata ore now accounts for 100% of the 3,000 tpd design capacity throughput at the Selene processing plant, where the Pallancata ore is toll processed to produce a precious metal float concentrate.

 For Q2 2009, direct site costs were $3.73 per ounce of silver and total cash costs were $6.20 per ounce of silver, both after gold by-product credit. These costs are lower by 10% and 6% respectively compared to Q1 2009, due primarily to the higher average grade of silver and higher gold price during Q2 2009.

(For Tables 1 and 2, and associated Notes, please refer to the news release on the IMZ website using this link: http://www.intlminerals.com/newsreleases.php)

 The technical information reported in this news release was reviewed by IMZ�s Qualified Person, Technical Manager Nick Appleyard.

 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 Wendy Yang at (1) 303-357-4863
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 IMZ management believes are useful in measuring operational performance, and also any forward-oriented financial information provided may not be appropriate in relation to Canadian GAAP reporting. Please refer to the Company�s financial statements and notes. 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 estimates of production, total cash costs, mine life, resources, cash flow, capital costs and dividends. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks in attaining ramped-up production and processing rates, risks of cost escalation, risks of estimating mineral resources and reserves, variances between mineral reserves and actual mineral production and other risks and uncertainties detailed in the Company�s Renewal Annual Information Form for the year ended June 30, 2008, 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.