IMZ Reports Record Quarterly Production from Pallancata Silver Mine, Peru and Planned 50% Production Ramp-Up in 2009

Scottsdale, Arizona, February 17, 2009 � International Minerals Corporation (TSX and SWX: �IMZ�) reports that quarterly silver production (100% basis) at the Pallancata Mine in southern Peru increased 118% from the prior quarter to a record 1.96 million ounces in the calendar fourth quarter ended December 31, 2008 (�Q4 2008�). IMZ realized equity income from the Pallancata joint venture of approximately $637,000 in Q4 2008 and $951,000 for the six month period ended December 31, 2008.

In addition, Pallancata Mine production successfully ramped up to 2,000 tonnes per day (�tpd�) in Q4 2008 from a mine start-up rate of 500 tpd in September 2007. All amounts in this news release are in US dollars.

Direct, on-site costs for Q4 2008 were $4.48 per ounce of silver produced (net of gold by-product credit) compared to $3.15 per ounce in the prior quarter, the increase due primarily to lower average grade of material processed and a lower gold by-product price during the quarter. Total cash costs (as defined by the Gold Institute) were $6.80 per ounce of silver produced (net of gold by-product credit) compared to $5.77 per ounce in the prior quarter (to view Production Tables, please refer to full PDF at http://www.intlminerals.com/newsreleases.php). The Pallancata Mine is jointly owned by IMZ (40%) and Hochschild Mining plc (�Hochschild�, 60% owner and the mine operator).

Stephen Kay, Chief Executive Officer and President of IMZ, said, �The Pallancata Mine is now one of the world�s top ten primary silver mines. In 2009, the mine will expand again from 2,000 tpd to a planned 3,000 tpd by calendar year-end to produce approximately 7 million ounces of silver and 25,000 ounces of gold in 2009. IMZ�s 40% attributable share would be approximately 3 million silver ounces and 10,000 gold ounces at projected total cash costs of around $6.50 per ounce silver, net of gold by-product credit. This compares to full year 2008 production of 4.2 million silver ounces and 16,162 gold ounces (some 1.7 million silver ounces and 6,500 gold ounces attributable to IMZ.)  Pallancata continues to demonstrate upside potential in both profitability and growth.�

IMZ�s share of the cost of the planned 2009 capital expansion program, primarily for new underground development of the Central Zone and a paste back-fill plant, is projected at approximately $13 million and is expected to be funded by IMZ�s share of mine cash flow. At the planned 3,000 tpd mining rate, scheduled to be achieved before year-end 2009, Pallancata ore will take up 100% of the 3,000 tpd design throughput at Hochschild�s Selene processing plant, where the Pallancata ore is toll processed.

At the Pallancata joint venture level, IMZ�s share of cash flow from operations for 2009 is expected to equate to $12 million-$13 million based on current production estimates and costs using an average $10 per ounce silver price and a $750 per ounce gold price. Depending on capital cost requirements, production ramp-up and precious metal prices affecting the Pallancata joint venture, the Company is not expecting significant cash dividends in calendar year 2009. IMZ uses an equity accounting basis to record its interest in the Pallancata Mine.

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. 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 timing and scale of production ramp up and processing increases, estimated expansion capital costs, inventory estimate and precious metal prices. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of production and processing rates; risks of cost overruns and completion delays; risks of capital cost increases; 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.