IMZ Reports Record Quarterly Production of 2.5 Million Ounces Silver at Pallancata Mine; Additional US$6 Million Cash Dividend Expected

International Minerals Corporation (TSX and SIX: �IMZ�) reports that the Pallancata silver mine achieved record production of 2.5 million ounces of silver and 9,622 ounces of gold for the quarter ended September 30, 2009 (�Q3 2009�). The Pallancata Mine is owned 40% by IMZ and 60% by Hochschild Mining.

In addition, IMZ will shortly receive a second cash dividend distribution from the Pallancata joint venture company of approximately $6 million. The receipt by IMZ of an initial cash dividend of $1.2 million was announced in the Company�s August 24, 2009 news release.

All dollar numbers are reported in US Dollars. All quarter references refer to calendar quarters.

Calendar Q3 2009 production from Pallancata reported 179% and 187% respective increases in silver and by-product gold production compared to the quarter ended September 30, 2008 (�Q3 2008�) of 899,000 ounces silver and 3,350 ounces gold.

This record production was realized as the mine reached its steady-state expansion rate of 3,000 tonnes per day (�tpd�) in June 2009, ahead of schedule.

Other highlights for calendar Q3 2009 at the Pallancata Mine include:

•  Silver production (on a 100% basis) increased from calendar second quarter 2009 (�calendar Q2 2009�) by 33% from 1.9 million ounces to  2.5 million ounces;
•  IMZ�s 40% share of Pallancata�s record quarterly production: 753,200 ounces silver and 3,848 ounces gold;
•  IMZ�s total cash costs per ounce of silver (after by-product gold credit) decreased by 15% to $5.30 from calendar Q2 2009 costs of $6.20.

Steve Kay, President and CEO of IMZ, said, �We estimate that the Pallancata Mine will produce more than 8 million ounces of silver and 30,000 ounces of gold by the end of 2009, with 40% attributable to IMZ. For 2010, at a steady-state production level of 3,000 tpd, we estimate that Pallancata will produce approximately 10 million ounces of silver and 35,000 ounces of gold on a 100% basis, with 40% attributable to IMZ�s account. As a result of Pallancata�s continuing excellent performance, we are expecting strong operational cash flow and additional cash dividends in 2010.�

Production Data

Since the closing of Hochschild�s wholly-owned Selene Mine in calendar 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, which is sold to a smelter.

For calendar Q3 2009, direct site costs were $2.72 per ounce of silver and total cash costs were $5.30 per ounce of silver, both after gold by-product credit. These costs are lower by 27% and 15% respectively compared to calendar Q2 2009, due primarily to a 10% higher average grade of silver and higher gold price during calendar Q3 2009.

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

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

Notes to Tables 1 and 2:

1. Head grades for silver and gold are based on the overall metallurgical balance for the process plant.
2. Difference between �produced� metal ounces and �sold� metal ounces is a combination of the smelter metal payability factors and in-process concentrate. Quarterly silver production is shown rounded to hundreds of ounces.
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 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, local and provincial taxes (other than federal income tax) and the government royalty.

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:

In North America
Wendy Yang, Vice President of Investor Relations
Tel: (303) 357-4863

In Europe
Oliver Holzer, Marketing Consultant
+41 (0) 44 854 11 39

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 IMZ management believes are useful in measuring operational performance. 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, 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 maintaining 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 30,2009, 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.