IMZ Reports Record Quarterly Production from Pallancata Mine of 2.7 million ounces of Silver

Scottsdale, Arizona, February 23, 2010 � International Minerals Corporation (Toronto and Swiss stock exchanges: �IMZ�) reports that silver production (100% project basis) at the Pallancata Mine for the second fiscal quarter ended December 31, 2009 (Q2 2010) increased 9% from the prior quarter to a record 2.7 million ounces. IMZ�s 40% share of the silver ounces produced is 1.1 million. 

In addition, for the 12-month period ended December 31, 2009, Pallancata Mine production increased by 100% year-over-year to a record of 8.4 million ounces of silver. The mine also produced 32,000 ounces of gold in the same period, which represents an increase of 98% year-over-year. IMZ�s share of the silver and gold ounces produced in the calendar year is 3.4 million and 12,800 ounces, respectively. 

For fiscal Q2 2010, direct on-site costs decreased 37% to $1.72 per ounce of silver produced (net of gold by-product credit) compared to $2.72 per ounce in the prior quarter, the decrease being due primarily to the higher average grade of material processed and a strong gold by-product price during the quarter. Total cash costs (as defined by the Gold Institute) decreased 12% to $4.69 per ounce of silver produced (net of gold by-product credit) compared to $5.30 per ounce in the prior quarter. All currency in this news release reflects US dollars. 

For the 12 month period ended December 31, 2009, direct on-site costs decreased 24% to $2.85 per ounce of silver produced (net of gold by-product credit) compared to $3.76 per ounce in 2008. Total cash costs decreased 12% to $5.50 per ounce of silver produced (net of gold by-product credit) compared to $6.24 per ounce in calendar 2008. 

Stephen Kay, President and CEO of IMZ, said, �The Pallancata Mine continues to be one of the world�s top primary silver mines. The mine expansion to 3,000 tonnes per day (tpd) is now complete and 2010 will be the first year of full production at that level. IMZ anticipates metal production in calendar year 2010 (on a 100% project basis) of 10 million ounces of silver and 33,000 ounces of gold.  Pallancata continues to demonstrate upside potential in both profitability and growth and the annual independent audit of reserves and resources for the 2009 calendar year end will be published in March together with updated annual operating and financial targets.� 

The Pallancata Mine is jointly owned by IMZ (40%) and Hochschild Mining plc (�Hochschild�, 60% owner and the mine operator). 

Table 1: Pallancata Mine Production Highlights (100% Project Basis; in US Dollars)

Table 2: Pallancata Mine Production Highlights (IMZ 40% Share) 

Notes to Tables 1 and 2: 

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 a combination of the smelter metal payability factors and in-process concentrate.
3. 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.)
4. Direct Site Costs per ounce silver comprise direct mining costs, mined ore inventory adjustment, toll processing costs and mine general and administrative costs (net of gold by-product credit).
5. Total Cash Costs, using the Gold Institute�s definition, comprise: mine operating costs, mined ore inventory adjustment, toll processing costs, mine general and administrative costs, Hochschild�s management fee, concentrate transportation and smelting costs, taxes and the government royalty (currently approximately 2% of gross revenue for Pallancata), net of gold by-product credit. 

IMZ�s share of the cost of the planned 2010 capital cost program, largely for underground development and a new tailings dam, is projected at approximately $17 million and is expected to be funded by IMZ�s share of mine cash flow. The new tailings dam will be located closer to the mine and should reduce operating costs associated with using Hochschild�s 100%-owned tailings dam at the Selene processing facility.  The new tailings dam will have sufficient capacity for approximately seven years of production (at 3,000 tpd), assuming the current rate of mine backfill is maintained. 

IMZ uses an equity accounting basis to record its interest in the Pallancata Mine and reported its financial results, including income contribution from Pallancata Mine, for its fiscal second quarter 2010 (which ended December 31, 2009) in a news release dated February 12, 2010. 

The technical information reported in this news release was reviewed by IMZ�s Qualified Person, VP Corporate Development 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:

In North America                                                           In Europe
Terri Kasten, Corporate Affairs Manager                 Oliver Holzer, Marketing Consultant
Tel: +1 480 483 9932                                                   Tel: +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 Total Cash Costs is a non-Canadian GAAP financial measure, which IMZ management believes is 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, production estimates, 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, 2009, 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.