February 4, 2008 Imperial Increases Working Capital Facility to $30 Million VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 4, 2008) - Imperial Metals Corporation (TSX:III) reports that affiliates of Fairholme Capital Management, LLC ("Fairholme") have agreed to participate in the working capital facility announced January 28, 2008, increasing the amount available to Imperial under the facility from $25 million to $30 million. Fairholme currently holds approximately 19.9% of Imperial's issued and outstanding common shares. Fairholme will be granted one warrant for each $25 advanced under the facility such that warrants to purchase up to 200,000 common shares of Imperial at $10 per share, exercisable until July 31, 2009 could be granted to Fairholme. An arrangement fee of $37,500 is payable to Fairholme. A maximum of 1,200,000 warrants to purchase up to 1,200,000 common shares of Imperial at $10 per share could be granted in the aggregate to all participants in the working capital facility if the full $30 million facility was drawn. This transaction is subject to approval by regulatory authorities.

CONTACT INFORMATION: Imperial Metals Corporation Brian Kynoch President (604) 669-8959 Fax: (604) 687-4030 or Imperial Metals Corporation Andre Deepwell Chief Financial Officer (604) 488-2666 or Imperial Metals Corporation Sabine Goetz Investor Relations (604) 488-2657 Email: info@imperialmetals.com Website: www.imperialmetals.com INDUSTRY: Manufacturing and Production - Mining and Metals