TORONTO, ONTARIO--(Marketwire - May 14, 2012) -

All Dollar Amounts are in U.S. Dollars ("US$") Unless Otherwise Indicated

Ivernia Inc. ("Ivernia" or the "Company") (News - Market indicators) today reported its first quarter 2012 financial results. The Magellan Mine continued in care and maintenance throughout the first quarter of 2012 and did not ship any concentrate.

The Company recorded net loss after tax of $1.9 million or $0.00 per common share for the first quarter of 2012, compared to a net loss after tax of $4.6 million or $0.01 per common share for the same period last year.

FIRST QUARTER 2012 HIGHLIGHTS

Financial

• Gross loss of $2.0 million for the first quarter of 2012.
• Net loss after tax of $1.9 million for the first quarter of 2012. Net loss after tax for the first quarter of 2012 includes a foreign exchange gain of $2.5 million mainly related to Magellan Metals' functional currency being the A$ while Ivernia's reporting currency is the US$. The gain was as a consequence of the A$ strengthening against the US$ in the first quarter of 2012 with the US$/A$ rate increasing from 1.0250 on December 31, 2011 to 1.0367 on March 31, 2012. Of this foreign exchange gain, approximately $1.6 million is related to unrealized gains on Magellan Metals' intercompany loans denominated in US$ and C$. These intercompany loans are with wholly owned subsidiaries of the Company and are eliminated from the Statement of Financial Position on consolidation.
• As at May 8, 2012, the Company had approximately $5.5 million in cash to fund ongoing care and maintenance activities at the Magellan Mine. The Company will require further financing to fund the ongoing care and maintenance and restart of the Magellan Mine. The amount of funding required will be dependent on the timing and content of final operating conditions to be issued by the Minister as well as prevailing market conditions at that time.
• On March 29, 2012, the Company received a comfort letter from Sentient Executive GP IV, Limited (together with its affiliates, collectively known as "Sentient") confirming its commitment to provide funding to Enirgi Group Corporation ("Enirgi Group"), to allow Enirgi Group, in turn, to provide financing to Ivernia up to an aggregate of $10 million, if, as and when needed, during the period ending March 31, 2013 (the "Enirgi Commitment").
• The Company holds approximately 10,100 tonnes of lead carbonate concentrate inventory with a carrying value of $8.0 million as of March 31, 2012. Magellan Metals will not be in a position to ship the inventory until it has been issued its final operating conditions by the Minister for Environment for Western Australia (the "Minister") and completes all required actions to be able to recommence transportation of lead carbonate concentrate.

Operational

• On October 3, 2011, the Environmental Protection Authority of Western Australia ("EPA") released its report to the Minister entitled Section 46 Report and Recommendation of the Environmental Protection Authority (the "Section 46 Report"). The Section 46 Report included the EPA's draft recommended environmental conditions ("Draft Recommended Conditions") for any future operations at the Magellan Mine and transportation of lead carbonate concentrate from the Magellan Mine. As of the date hereof, the Section 46 Report and the Draft Recommended Conditions remain under consideration by the Minister.
• The Company does not expect to be in a position to make a decision on restarting the Magellan Mine until after the Minister issues the final operating conditions and Magellan Metals completes a review of these final operating conditions and their potential impact on any restart plans.
• Magellan Metals management continued to develop their detailed operational and financial plans for a restart of Magellan operations including recruitment planning, systems and training modules.
• Magellan Metals developed and implemented a new risk management policy (the "RMP") and associated procedures and systems, including a site-wide permit-to-work procedure.
• A compliance register cataloguing Magellan Metals' legal obligations and commitments has been developed and is being used as the basis for the design of a compliance software system.
• Following several months of negotiation, Magellan Metals and Ivernia Australia Exploration Pty Ltd. ("IAEPL") entered into Exploration and Prospecting Deeds of Agreement with the Wiluna and Tarlpa Native Title claimants covering all current and future exploration tenements in the claimant areas.

FINANCIAL AND OPERATING HIGHLIGHTS

The following table is a summary of Ivernia's financial and operating highlights for the three months ended March 31, 2012 and 2011.

OPERATIONS REVIEW - MAGELLAN MINE

The Magellan Mine remained in care and maintenance and there was no production or sales of lead carbonate concentrate in the first quarter of 2012. At the time that the transport operations were stopped in April 2011, there were approximately 10,100 tonnes of lead concentrate on site at an estimated average concentrate grade of 64% lead, containing approximately 6,450 tonnes of lead. This concentrate remains stored in sealed bags and protected from the weather. Prior to the recommencement of any shipping operations, the cleanliness and integrity of all bags will be verified.

Principal activities during the first quarter of 2012 focused on discussions and other exchanges with the Minister, his staff and regulators in relation to progressing the issuance of final operating conditions for Magellan Metals and developing detailed operating and financial plans for a restart of Magellan Mine operations.

On October 3, 2011, the EPA released the Section 46 Report to the Minister detailing the Draft Recommended Conditions. The Draft Recommended Conditions contain recommended changes to the interim implementation conditions issued by the Minister on February 23, 2011, that currently govern the Magellan Mine's operations (the "Interim Implementation Conditions"). In addition, the Draft Recommended Conditions contain recommended conditions that must be satisfied prior to the recommencement of transportation of any lead carbonate concentrate from the Magellan Mine. In the Section 46 Report the EPA stated: "…that the current transport and handling methods are more than sufficient to protect human health and the environment" and that "[t]he transportation of the bulk bags in shipping containers is over and above what is required and is best practice". Further, while the EPA stated that: "…the conditions placed on Magellan are much stricter than would normally be required for the transport and monitoring of this type of product", the Draft Recommended Conditions, in general, recommend preserving and, in some cases, enhancing the already strict auditing, monitoring and reporting requirements currently imposed on Magellan Metals pursuant to the Interim Implementation Conditions. As of the date hereof, the Section 46 Report and the Draft Recommended Conditions remain under consideration by the Minister.

The Company cannot, at this time, provide any specific guidance on when the Company will restart operations at the Magellan Mine. The Company does not expect to be in a position to make a decision on restarting the Magellan Mine until after the Minister issues the final operating conditions and Magellan Metals completes a review of these final operating conditions and their potential impact on any restart plans. The Company has provided its input to the Minister on the Section 46 Report and is therefore awaiting the release of its final operating conditions. Both during and subsequent to the first quarter of 2012, Magellan Metals and Enirgi Group, the Company's major shareholder, held discussions with the Minister, his staff and regulators with respect to matters related to finalising the operating conditions. The Company cannot at the date hereof, provide guidance on the timing of the issuance of the final operating conditions by the Minister nor on their content. The length of time between making the decision to restart the Magellan Mine and the actual commencement of operations at the Magellan Mine may be affected by several factors, including the content of the final operating conditions and pre-operational ramp-up. For instance, the final operating conditions may require that Magellan Metals complete certain actions prior to the recommencement of transportation from the Magellan Mine. In addition, following a decision to restart and prior to commencing a restart of operations at the Magellan Mine, Magellan Metals would need to undergo a significant recruiting and training effort. Once the restart of the Magellan Mine has commenced, the Company expects that it would take greater than six months of operations before the mine and processing plant would be operating at full production levels.

A full discussion of the events for the three year period to March 29, 2012 is contained in the Annual Information Form dated March 29, 2012 (the "2011 AIF") under the heading "Three-Year History - Operations", and is incorporated herein by reference. The 2011 AIF is available on the Ivernia web site at www.ivernia.com and on SEDAR at www.sedar.com.

The table below summarizes quarterly mine production, process production, shipments and inventories for the three months ended March 31, 2012 and March 31, 2011:

Developments Related to the Magellan Mine

During the current care and maintenance period, the mine and processing plant have been maintained in a state of readiness for a restart of operations and on the basis of minimizing the amount of time required for a ramp -up of operations to full production levels. All process vessels have been drained, flushed and inspected with minor repairs conducted and the process vessels then refilled with water to prevent corrosion. All major equipment including mills, motors, pumps and agitators are operated on a routine basis to ensure that they are in good working order. Power supply has been rationalised in line with reduced power requirements. A number of minor projects have been completed at the Magellan Mine to provide protection against lightning strike damage to electronic and computer systems as there was some minor equipment damage that occurred after lightning strikes in 2011. At the start of the care and maintenance period, all haul roads were secured. Access to the open Magellan and Cano pits have been limited to authorised personnel and regular inspections indicate that the Magellan and Cano pits have remained in geotechnically stable condition throughout the care and maintenance period.

Since entering the care and maintenance period, Magellan Metals has substantially completed its internal comprehensive end-to-end review of all its compliance activities and response systems related to the Magellan Mine, including the mining, processing, transporting and management of lead carbonate production and export functions with the final review expected to be completed upon receipt of final operating conditions from the Minister. A compliance register cataloguing legal obligations and Magellan Metals commitments has been completed. The objective of the end-to-end review is to prevent an ongoing pattern of temporary disruptions to operations and to further reduce risks associated with the wide range of potential events that can impact on compliance with what the Company believes are the most stringent transport conditions placed on any Western Australian mining operation. A consequence of the end-to-end review was a rationalisation of Magellan Metals' compliance procedures from over 900 to approximately 400 compliance procedures.

Magellan Metals has implemented a new RMP designed to provide overall guidance to the identification and mitigation of risk to all aspects of the business. The RMP is supported by associated procedures and processes upon the identification of certain risks across the business including through sessions held with each of our key contractors. An updated risk register has been developed and mitigation plans are being prepared. A key Magellan Mine risk mitigation initiative is a comprehensive permit-to-work system which has been developed and is expected to be commissioned in the second quarter of 2012.

During the first quarter of 2012, the Company continued its internal planning process for a restart of operations and the shipment of lead carbonate concentrate stockpiles which included planning work on process, health and hygiene improvement projects to support a restart of operations and a resumption of shipments. Plans and quotes have been prepared for a rapid roll-out of restart capital projects based on the EPA's Draft Recommended Conditions, however these plans may change depending on the form and content of the final conditions.

A successful restart will be dependent on ensuring key personnel are in place. The care and maintenance team was carefully selected to ensure core skills were retained to allow for an efficient restart and the care and maintenance personnel are expected to fill key managerial, supervisory and staff roles in processing, maintenance, OHS&E, contracts, HR, finance and logistics. A restructured organization chart has been designed to meet the increased compliance and assurance programs upon a restart. Recruitment strategies are being developed to deliver the desired organisational culture consistent with the vision and values developed by the Magellan Metals leadership team.

The Company will continue its internal planning process for a restart of operations; however, as previously mentioned, no decision on a restart of operations is expected to be made until final operating conditions are issued by the Minister.

Capital Resources and Working Capital Requirements

As at May 8, 2012, the Company had approximately $5.5 million in cash to fund ongoing care and maintenance activities at the Magellan Mine and any costs associated with the restart of the Magellan Mine, if and when a restart decision is made. The Company expects to continue to have negative cash flows during the care and maintenance period. These negative cash flows may be offset by any revenue generated from the sale of stockpiled lead carbonate concentrate held at the Magellan Mine. However, Magellan Metals does not expect to be able to commence the shipping of stockpiles prior to the release of the final operating conditions by the Minister. Further, the final operating conditions, once issued, may require that Magellan Metals fulfill certain conditions to the satisfaction of the regulators prior to the recommencement of transportation of lead carbonate concentrate from the Magellan Mine. Accordingly, the Company cannot provide any guidance on the timing for the shipment of stockpiles from the Magellan Mine.

On March 29, 2012, the Company received the Enirgi Commitment.

The Company expects that it will likely require additional financing to restart the Magellan Mine, in excess of current cash balances, the Enirgi Commitment and any proceeds it may receive from the shipment of lead carbonate concentrate stockpiles. The quantum of this funding requirement cannot be estimated at this time and will be contingent on the timing of the receipt of final operating conditions from the Minister, the content of those final operating conditions (including any conditions required to be completed to the satisfaction the regulators before recommencing transportation and operations), net proceeds received from the sale of stockpiles, as well as general market conditions, including but not limited to lead prices, foreign exchange and capital markets. If the Company was unable to secure this additional financing, the Company may be unable to restart the Magellan Mine which, in turn, could affect its future ability to continue as a going concern. Notwithstanding the Enirgi Commitment currently in place and that the Company has been successful in the past in securing financing; there can be no assurance that the steps management is taking will be successful.

Management's Discussion and Analysis and Consolidated Financial Statements

Ivernia's unaudited financial statements and management's discussion and analysis for the three months ended March 31, 2012 were filed today and will be available on the Ivernia website at www.ivernia.com or SEDAR at www.sedar.com.

About Ivernia

Ivernia is an international base metal mining company and the owner of the Magellan Mine, located in Western Australia.

Ivernia trades under the symbol "IVW" on the Toronto Stock Exchange. Additional information on Ivernia is available on the Company's website at www.ivernia.com and at SEDAR at www.sedar.com.

Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking information within the meaning of securities laws. All statements included herein (other than statements of historical facts) which address activities, events or developments that management anticipates will or may occur in the future are forward-looking statements, including statements as to the following: the duration of the suspension of the Company's transportation of lead carbonate from the Magellan Mine, the duration of the period of care and maintenance commenced in April 2011, future targets and estimates for production, capital expenditures, operating costs, cash costs, mineral resources, mineral reserves, life of mine, recovery rates, grades and prices, business strategies and measures to implement such strategies, competitive strengths, estimated goals and plans for Ivernia's future business operations, lead market outlook and other such matters. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "contemplate", "target", "believe", "plan", "estimate", "expect", and "intend" and statements that an event or result "may", "will", "can", "should", "could" or "might" occur or be achieved and other similar expressions.
These statements are based upon certain reasonable factors, assumptions and analyses made by management in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. However, whether actual results and developments will conform with management's expectations is subject to a number of risks and uncertainties, including factors underlying management's assumptions, such as, finalization and content of Magellan Metals' final operating conditions, the duration of the suspension of the Company's transportation of lead carbonate from the Magellan Mine, the duration of the period of care and maintenance commenced in April 2011, the timing and need for additional financing, risks relating to the operations being placed on care and maintenance, matters relating the restart of mining and milling operations, matters relating to ramping up mining and milling throughput and operations, regulatory compliance and approvals, metal price volatility, lead carbonate concentrate treatment charges, exchange rates, regulatory proceedings and litigation, the fact that the Company has a single mineral property, resources and reserves, health and safety, environmental factors, mining risks, metallurgy, labour and employment regulations, government regulations, insurance, dependence on key personnel, constraints on cash flow, the nature of mineral exploration and development, matters relating generally to the transportation of lead carbonate, presence of a majority shareholder, matters related to public opinion, matters related to the Esperance settlement and shipments through the Port of Fremantle, and common share price volatility and the dilution of the Company's common shares. Additional factors and considerations are discussed in the Company's 2011 AIF and may be included in other documents filed from time to time by Ivernia with Canadian securities regulatory authorities. While Ivernia considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. These factors may cause the actual results of the Company to differ materially from those discussed in the forward- looking statements, and there can be no assurance that the actual results or developments anticipated by management will be realized or, even if substantially realized, that they will have the expected results on the Company. Undue importance should not be placed on forward-looking information nor should reliance be placed upon this information as of any other date. Except as required by law, while it may elect to, Ivernia is under no obligation and does not undertake to update this information at any particular time.