SCOTTSDALE, AZ--(Marketwired - September 30, 2013) - International Minerals Corporation (TSX: IMZ) (SWISS: IMZ) (the "Company" or "IMZ") reports its operating achievements and its annual audited consolidated financial results for the fiscal year ended June 30, 2013.

All dollar amounts in this news release are reported in US Dollars, unless otherwise noted.

Operating Achievements for Fiscal Year Ended June 30, 2013:

The Company:

• received a total of $15.9 million of cash distributions from the operations of the Pallancata Mine in Peru (40%-owned by IMZ). Since 2009, the Company has received approximately $125.6 million in cash distributions from Pallancata.
  
  
• paid its first ever dividend to shareholders in January 2013, in the amount of C$0.12 per share (C$14.1 million in total).
  
  
• implemented an aggressive cost reduction program in the United States and Peru in April, with the potential to reduce spending by approximately $8 to $9 million (approximately 35% to 37%) from the 2013 calendar year budgeted levels of $24.2 million. IMZ's partner, Hochschild Mining plc ("Hochschild"), has implemented an action plan to conserve capital, reduce operating costs, and review all discretionary expenditures at Pallancata and Inmaculada. IMZ anticipates a reduction in total combined project expenditures at Pallancata and Inmaculada for the remainder of calendar 2013 of approximately $14 million (40% attributable to IMZ). The approximately $14 million in reduced expenditures consists of (i) at Pallancata: approximately $10.5 million from mining operations and $1.2 million from exploration spending and (ii) at Inmaculada: approximately $2.3 million in reduced exploration drilling expenditures. IMZ expects that the cost reductions at Pallancata will have minimal impact on the annual production target for calendar 2013 of 7.4 million ounces of silver and 26,000 ounces of gold (40% attributable to IMZ).
  
  
• closed a $140.0 million debt facility for Suyamarca (40%-owned by IMZ and 60%-owned Hochschild) in March 2013 which will be used to fund a portion of the construction and development costs for the Inmaculada gold-silver project (100%-owned by Suyamarca and operated by Hochschild). This loan is non-recourse to the owners of Suyamarca.
  
  
• completed an update of the July 2012 feasibility study for its 100%-owned Gemfield project at the Goldfield property in Nevada ("Updated Feasibility Study"), which showed improved economics (increased production and lower unit costs) over the 2012 feasibility study. The Company has submitted the Gemfield Mine Plan of Operations to the U.S. Bureau of Land Management ("BLM") and the submittal and acceptance of this report has commenced the formal permitting process.
  
  
• closed the sale of its interests in the Rio Blanco and Gaby resource properties in Ecuador as part of its strategic withdrawal from Ecuador. The Company has received $10.6 million to date and may receive up to an additional $18.0 million, if certain future conditions are met.
  
  

Financial Performance for Fiscal Year Ended June 30, 2013 ("FY 2013"):

The Company reported:

• a net and comprehensive loss after taxes of $11.2 million (a loss of $0.09 per share) compared to net and comprehensive income of $4.8 million ($0.04 per share) for the prior fiscal year ended June 30, 2012 ("FY 2012").
  
  
• net income from continuing operations after taxes of $12.5 million ($0.11 per share) compared to net income from continuing operations after tax of $28.0 million ($0.23 per share) for FY 2012. The year over year decline in earnings from continuing operations was due to lower income from associate due to a 7.8% reduction in silver equivalent ounces sold and a 12.7% decrease in average spot silver prices.
  
  
• a net loss from discontinued operations after taxes of $23.7 million (a loss of $0.20 per share) compared to a loss of $23.2 million (a loss of $0.19 per share) for FY 2012. In both fiscal years, write-downs on the Ecuadorian properties were the major contributing factors to the loss from discontinued operations, although in FY 2012 the write-down on the Ecuadorian properties of $53.2 million was off-set by a gain of $30.0 million from the sale of the Ruby Hill Mine net smelter return royalty.
  
  
• total expenses of $8.4 million compared to total expenses of $11.3 million in FY 2012.
  
  
• miscellaneous income of $0.5 million compared to a loss on miscellaneous items of $1.2 million in FY 2012.
  
  
• cash flow provided by continuing operations for the FY 2013 of $11.8 million compared to $29.1 million for FY 2012. The cash distributions from Pallancata declined on a year over year basis and accounts for the majority of the difference in cash flow.
  
  
• cash flow used in discontinued operations of $5.6 million for FY 2013 compared to cash flow provided by discontinued operations of $5.3 million for FY 2012.This amount excludes $10.6 million received by the Company from the sale of the Ecuador discontinued operations, which amount is reported in Investing Activities.
  
  
• total cash flow provided by operating activities of $6.2 million for FY 2013 compared to $34.4 million for FY 2012. This amount excludes $10.6 million received from the sale of the Ecuador discontinued operations described above.
  
  
• cash and cash equivalents at June 30, 2013 of approximately $58.2 million (June 30, 2012: $81.2 million) and working capital of $65.6 million (June 30, 2012: $126.7 million).
  
  
• total assets of approximately $337.6 million (June 30, 2012: $336.2 million) and total shareholders' equity of $323.2 million (June 30, 2012: $324.7 million).
  
  
• the following operating and financial performance for the Pallancata Mine in Peru:
  
  
  • The Company's 40% share of the equity income from the Pallancata Mine was approximately $20.5 million compared to $43.0 million for FY 2012. Cash distributions for FY 2013 totaled $15.9 million compared to $40.0 million for FY 2012;
    
    
  • For FY 2013, production (on a 100% basis) was approximately 7.4 million ounces of silver (FY 2012: 8.2 million ounces) and 28,322 ounces of gold (FY 2012: 29,689 ounces). The Company's 40% share was approximately 3.0 million ounces of silver (FY 2012: 3.3 million ounces) and 11,329 ounces of gold (FY 2012: 11,876 ounces). The decrease in gold and silver production compared to FY 2012 was due primarily to a decrease in the grades of both silver and gold processed in the mill caused by higher mining dilution.
    
    
  • For FY 2013, Total Cash Costs, after by-product gold credits (as defined by the Gold Institute), were $9.27 per ounce of silver produced (FY 2012: $7.36 per ounce) and Total Cash Costs per ounce of silver equivalent sold (as defined by the Gold Institute) were $12.71 (FY 2012: $11.35) and All-in Sustaining Mine Costs per ounce of silver equivalents sold (as defined by the Company, see definition below) were $19.86 (FY 2012: $18.90). Costs per ounce of silver net of gold by-product credit increased in FY 2013 because of (a) lower silver and gold production, (b) lower gold by-product credits (c) a modest 3.3% increase in operating costs. All-in Sustaining Mine Costs actually fell by 3% on a year over year basis and therefore the increase on a per ounce basis was because of less silver equivalent ounces sold in FY 2013 compared to FY 2012.
    
    

Financial Performance for Fourth Fiscal Quarter Ended June 30, 2013:

The table below summarizes the financial results for the fourth fiscal quarters ended June 30, 2013 and June 30, 2012. All amounts are in United States dollars.

Operating Statistics for the Pallancata Mine (100% project basis):

The table below reports key operating and cost statistics for the Pallancata Mine for the fiscal quarters ended June 30, 2013 and 2012 and for the fiscal years ended June 30, 2013 and 2012.

Notes:
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 in-process concentrate. Numbers for gold and silver ounces in the sold category have been rounded.
3. Silver and gold ounces sold are reported as gross ounces.
4. Total cash costs, using the Gold Institute definition, comprise: mine operating costs, mined ore inventory adjustment, toll processing costs, mine general and administrative costs, Hochschild management fee, concentrate transportation and smelting costs, and government royalty. The cost per ounce is net of by-product credit, with by-product gold revenue off-setting operating costs.
5.Total cash cost per silver equivalent ounces sold include the same costs as total cash costs, after by-product credits, adjusted for finished goods inventory but instead of deducting by product credits, the gold ounces sold are converted to silver equivalents using monthly average spot prices for gold and silver.
6. All-in Sustaining Mine costs, calculated on the basis of silver equivalent ounces sold include Total cash costs per ounce sold, All capital expenditures at the mine, all exploration spending at the mine, workers' profit share, community program payments applicable to the mining operations and any other costs incurred at the mine site considered relevant for sustaining mining operations.

Company Outlook

During the remainder of the 2013 calendar year and for the 2014 fiscal and calendar years, the Company's exploration and development efforts are expected to focus primarily on:

• At the 40%-owned Pallancata Silver Mine in Peru, working with Hochschild to (a) produce approximately 7.4 million ounces of silver and 26,000 ounces of gold during both periods (the Company's estimate on a 100% project basis), (b) increase profitability by reducing both operating and capital expenditures, and (c) increase mineral resources and reserves to extend the existing mine life (approximately 3.5 years based on current reserves).
  
  
• At the 40%-owned Inmaculada gold-silver project, also in Peru, in cooperation with Hochschild advancing the project to production in the second half of calendar 2014, subject to financing of IMZ's share of the remaining capital expenditures (approximately $56 million) and the timely receipts of all permits required for the mine.
  
  
• At the 100%-owned Gemfield heap leach gold project at the Goldfield property in Nevada, completing the permitting and commencing construction, subject to financing, with a goal of commencing production in the second half of calendar 2016.
  
  
• Continually evaluating all facets of the Company's capital, technical and administrative expenditures to reduce costs in response to the current depressed market conditions in the mining sector and precious metal markets.
  
  
• Continuing to seek strategic acquisitions in precious metals properties and/or companies in low political risk countries in the Americas.
  
  

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.

The consolidated financial statements and accompanying notes are posted on the Company's website at:
http://www.intlminerals.com/investors/financial-reports

Cautionary Statement:

The Gold Institute calculation of Total Cash Costs per ounce of silver produced and Total Cash Costs per ounce of silver equivalents sold and the Company's calculation of All-in Sustaining Mine Costs per silver equivalent ounces sold are non-IFRS financial measures, which Company management believes are useful in measuring operational performance. Please refer to the Management's Discussion and Analysis for the fiscal year ended June 30, 2013 (on SEDAR) for a detailed description of how these cost metrics are calculated. 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, production expectations, estimates of costs on a per ounce basis (produced or sold) drilling and development programs on the Company's projects, timing of completion of economic studies, construction and production, the timing related to completing a sale of Rio Blanco and Gaby and, obtaining any required environmental, construction and production permits. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to obtaining mining and environmental permits; delays in completing economic studies mining and development risks; financing risks; risk of commodity price fluctuations; the uncertainty in estimating and then obtaining the fair market value of the Rio Blanco receivable, certain estimates and assumptions used in determining the Company's financial results, political and regulatory risks; and other risks and uncertainties detailed in the Company's Annual Information Form for the year ended June 30, 2013, 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.

Nature and continuance of operations

The accompanying notes are an integral part of these consolidated financial statements and can be found on the Company's website at:
http://www.intlminerals.com/investors/financial-reports.

The accompanying notes are an integral part of these consolidated financial statements and can be found on the Company's website at:
http://www.intlminerals.com/investors/financial-reports.

The accompanying notes are an integral part of these consolidated financial statements and can be found on the Company's website at:
http://www.intlminerals.com/investors/financial-reports.