International Minerals - 2008 Review and 2009 Business Plans

Scottsdale, Arizona, December 18, 2008 � International Minerals Corporation (TSX and SWX: �IMZ� or �the Company�) reports a calendar year-end summary of its corporate and project activities during 2008 and its business plans for calendar year 2009.

Corporate

• The Company�s share price, like that of most resource companies, has not performed well in 2008 due primarily to prevailing adverse market conditions not only in the natural resources sector but also in the general financial market. IMZ�s current share price is essentially at the same level as five years ago.

• Management believes that the Company�s accomplishments of the past year (especially at the Pallancata underground silver-gold mine in Peru) combined with our future plans will remedy this situation and IMZ�s share price should recover in 2009 together with a likely resurgence in metal prices.

• In terms of financial health, the Company is in the enviable position of having a strong balance sheet with cash and short-term investments of over US$50 million at calendar 2008 year end, with expected cash dividends commencing in late 2009 from the 40%-owned Pallancata Mine.

• In mid-October 2008, IMZ instituted a share repurchase program because the Board believed that the market price of the Company did not fully reflect the underlying value of the Company�s business and its future business prospects. An update on the share repurchase program will be provided in the Company�s second fiscal quarter financial information for the period ending December 31, 2008.

A brief update on the Company�s key projects is provided below:

Pallancata Silver-Gold Mine, Peru

• Owned 40% by IMZ and 60% by the mine operator, Hochschild Mining plc.

• Pallancata has become one of the success stories in the mining industry in 2008 and is now the number-one primary silver mine in Peru in terms of silver reserves.

• Proven and probable reserve estimates in August 2008 were approximately 80 million ounces of silver equivalent (using a 75:1 silver:gold ratio) contained within 5.8 million tonnes at 329 g/t silver and 1.2 g/t gold in proven and probable reserves. See IMZ news release dated August 25, 2008 for further details.

• Production (100% project basis):

- From start-up (September 2007) to September 30, 2008 almost 3 million ounces of silver and over 10,000 ounces of gold have been produced.

- For calendar year 2008, production is expected to reach approximately 4.5 million ounces of silver and 18,000 ounces of gold.

- In 2009, Pallancata should become one of the top-10 largest primary silver mines in the world, producing an expected 6 to 7 million ounces of silver annually.

• Total cash costs, including the government royalty, are currently under US$6.00 per ounce of silver net of by-product gold credits. Currently, direct mine site costs (included in the US$6.00 cash cost) are approximately US$3.15 per ounce (assuming only mining, processing and mine G&A costs).

• IMZ�s net earnings from the Pallancata Mine to September 30, 2008 are approximately US$3.8 million.

• Because all cash flow has been required for funding the aggressive capital expansion program at the Pallancata Mine, to date there have been no cash dividends distributed to the joint venture partners. Cash dividends are expected to commence, however, in the final quarter of calendar year 2009, dependent on metal prices and ongoing capital requirements.

Rio Blanco and Gaby Gold Projects, Ecuador

• It has been a difficult year for the mining/exploration sector in Ecuador.

• The market awaits the expiry of the mining mandate (that suspended exploration and mining activities in April) and approval of the new mining law in January 2009. Normalization of exploration/mining activities likely will likely take several months longer while the detailed regulations for the mining law are prepared and approved.

• The negotiation of project-specific mining contracts (covering issues such as income/windfall taxes and royalty payments) for the more advanced projects (such as IMZ�s Rio Blanco, Kinross� Fruta del Norte, IAMGOLD�s Quimsacocha and Corriente�s Mirador projects) are expected to take up to an additional to six months to negotiate with the government.

• In calendar year 2009, IMZ does not expect to spend significant funds in Ecuador at the Rio Blanco underground gold-silver project and the Gaby open-pit gold project and has already reduced its workforce accordingly. The Company is, however, maintaining its significant in-country infrastructure and its commitment to developing its Ecuadorian projects.

• IMZ has previously completed much of the environmental permitting process for the proposed development of a mining operation at Rio Blanco. Final permitting approval is expected by the end of 2009, with construction (subject to required additional financing) starting in 2010.

• In February 2008, the Company completed a preliminary feasibility report at Gaby, which was not positive at US$650 per ounce gold price but is currently being optimized for higher tonnage production. Results of the optimization program will be announced in the first quarter of 2009.

New Acquisitions

• In the current market there are significant opportunities for IMZ to acquire gold-silver companies and/or projects that are in or near production at low acquisition costs that have not been seen in the industry for the past 20 years. IMZ is well-positioned with its cash resources and strong technical team to take advantage of this situation.

• IMZ�s preference is to seek these opportunities in the Americas, especially in South America in order to leverage off of IMZ�s considerable technical and corporate expertise from over 15 years of exploration and development of projects in that region.

• The Company has evaluated at least 25 companies/projects in 2008, using its experienced acquisition team, and management is confident that IMZ will achieve at least one major acquisition during the coming year.

The technical information in this news release was reviewed by IMZ�s Qualified Person, Nick Appleyard, Technical Manager.

          For additional information, contact Wendy Yang Tel: (303) 357-4863

Internet Site: http://www.intlminerals.com

Cautionary Statement:

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 capital expansion costs and completion, drilling and development programs on the Company�s projects, timing of commencement of production, completion of feasibility studies, obtaining of required environmental and production permits, and timing and amounts of future cash flows from operations. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of mineral resources and reserve; risks relating to project capital and production costs; risks relating to obtaining mining and environmental  permits; mining and development risks; risk of commodity price fluctuations; political and regulatory risks; risks related to a new mining law in Ecuador, 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.