Drill Intercepts, Including 20m at 4.9 g/t Gold, Expand Gemfield Deposit

SCOTTSDALE, AZ--(Marketwire - November 1, 2012) -  International Minerals Corporation (TSX: IMZ) (SWISS: IMZ) (or "the Company") reports significant new drill intersections and results from additional metallurgical studies at the Gemfield project on the 100%-owned Goldfield Property, Nevada.

A positive feasibility study was completed for the Gemfield project in July (see press release dated July 17, 2012) for a 6,000 metric tonnes per day ("tpd") heap leach gold mine that could produce 66,000 ounces of gold per year commencing by mid-2015. Based on the new metallurgical results the design throughput has been increased to 7,500 tpd, with only minor modifications to the initial process flowsheet, and results in an approximately 14% decrease in processing and general and administrative ("G&A") operating costs on a per tonne basis.

Gemfield Drilling Update:

Highlights of the new assay results from the southern extension (Gemfield Southeast) of the known Gemfield deposit include the following notable drill intercepts. Drill-hole locations are shown on the attached map (Appendix 2) and a complete list of significant drill-hole results is attached in Appendix 1:

• 19.8m at 4.9 grams per tonne ("g/t") in drill-hole Gem 493 (RC)
• 35.1m at 5.1 g/t in GEM 494 (RC) see note below.
• 13.7m at 17.9 g/t in GEM 515 (RC)
• 16.8m at 3.7 g/t in GEM 534 (RC)

Additional results from geotechnical and infill drilling within the known Gemfield deposit include the following intercepts.

• 36.0m at 1.5 g/t in GEMC 047 (core)
• 47.2m at 3.9 g/t in GEMC 048 (core)
• 39.6m at 1.3 g/t in GEMC 051 (core)

Note: All uncut average gold grades; true widths are between 70% and 100% of drill intercept width except for drill-holes GEM 494 and GEM 515, where true width is between 35 and 60% of drill intercept width. All drill intersections are oxide material suitable for heap leaching.

The current reverse circulation ("RC") drilling program has been focused on the newly-identified Gemfield Southeast expansion zone, which was not part of the mineral reserves in the recent feasibility study. The core drilling program has been focused on geotechnical work for the planned open pit and additional infill drilling within the main part of the Gemfield deposit.

These new drill results for Gemfield and the Southeast Extension will be included in an updated mineral resource and reserve estimations to be announced in the first quarter of 2013. In conjunction with the basic engineering definitive cost estimate, the updated reserve estimates will form the basis of a new economic model for Gemfield, which will be announced by IMZ in the second quarter of 2013.

Current proven and probable reserves for the Gemfield deposit comprise 14.3 million tonnes ("Mt") at 1.1 g/t gold containing approximately 511,000 gold ounces at a cut-off grade of 0.3 g/t gold and a base-case metal price of $1,300. The reserves comprise 11.0 Mt at 1.2 g/t gold (412,000 ounces) in the proven reserve category and 3.2 Mt at 0.9 g/t gold (99,000 ounces) in the probable reserve category. See the Company's news release of July 12, 2012 for further details of the reserve estimate and feasibility study.

Metallurgical Testwork Update

Column percolation testwork from three composite drill-hole samples show no significant decrease in gold recovery between a crush size of 100% passing 12.5mm or 100% passing 25 mm. Gold recoveries at the 25mm crush size ranged from 83% to 93%, while gold recoveries for the 12.5mm crush size ranged from 82% to 91%. Additional testwork, however, will be required to confirm the recovery at the 25mm crush size.

The indicated increase in crush size of the ore allows the process plant design throughput to be increased to 7,500 tpd with only minor modification to the 6,000 tpd facility envisaged in the July 2012 feasibility study. Estimated processing operating costs will be reduced by 11% from $6.36 per tonne ("/t") to approximately $5.65/t. G&A costs will be reduced by 20% from $2.92/t to approximately $2.34/t, for a potential total operating cost saving of approximately $1.29/t processed (or 14%). The corresponding impact on the capital cost of the mine fleet or the mine operating cost per tonne has not yet been estimated by IMZ.

Mine Development Update

M3 Engineering and Technology Corporation ("M3") of Tucson, Arizona have been selected as the Engineering, Procurement and Construction Management ("EPCM") contractor to develop the Gemfield mine. Basic engineering is underway and should be complete by April of 2013. Environmental Baseline Studies ("EBS") are well advanced and are expected to be completed in November of this year. SRK Consulting of Reno Nevada have been contracted to complete the project Plan of Operations (PoO) which will be used in the Environment Impact Statement and permitting. The PoO is expected to be filed with the US Bureau of Land Management ("BLM") in January of 2013. Permitting is expected to commence in Q1 2013 and will take approximately 18 months from approval of the PoO.

IMZ is also pleased to announce that Mr. Paul Valenti has accepted the role of General Manager of the overall Goldfield Project and brings 38 years of experience operating and developing mines both in the US and internationally. He began his career working for major companies (Kennecott Copper and Anaconda Minerals) and has also held senior management positions with both junior and intermediate precious metals producers. Prior to joining IMZ he has been responsible for the permitting, engineering, construction and operation of four gold heap leach operations, three of which were in Nevada. He is a graduate of Michigan Technological University with a degree in Metallurgical Engineering.

About International Minerals

International Minerals is a silver-gold producer, explorer and developer with silver-gold production from its 40%-owned Pallancata Mine in Peru, which is operated by Hochschild. In 2011, Pallancata was the sixth largest primary silver mine in the world. Production at Pallancata in calendar year 2012 is estimated by IMZ to be 7.8 million ounces of silver and 32,000 ounces of gold (on a 100% project basis).

IMZ also owns a 40% interest in the development-stage Inmaculada gold-silver project in Peru, which is scheduled to be in production by December 2013 and expected to produce approximately 124,000 ounces of gold and 4.2 million ounces of silver annually on a 100% project basis.

In addition to Inmaculada, Pallancata and Goldfield, IMZ also holds 100% ownership interests in the advanced-stage Converse gold project in Nevada and variable ownership interests in gold projects in Ecuador (Rio Blanco 100% and Gaby ~60%). The Company intends to sell its assets in Ecuador.

IMZ is listed on the Toronto Stock Exchange (since 1994) and the Swiss Stock Exchange (since 2002).

General

Sample preparation and analytical work for the Gemfield drilling program were carried out by Inspectorate in Reno, Nevada, an ISO 9001:2000 certified laboratory which employs industry-standard analytical methods. As part of IMZ´s QA/QC protocol, standard samples and blanks were inserted into the sample processing stream at a rate of one per 10 samples. Duplicate and alternate laboratory check samples also form part of this sampling protocol. The technical disclosure including drill results in this news release has been reviewed by IMZ's Qualified Person, VP Corporate Development Nick Appleyard.

To access this news release from IMZ's website, click here: http://www.intlminerals.com/news/2012-news.

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, production expectations including operating costs and metallurgical recoveries, 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 metallurgical recoveries and then obtaining the fair market value of the Rio Blanco and Gaby properties, political and regulatory risks; risks related to the new mining law in Ecuador, and other risks and uncertainties detailed in the Company's Annual Information Form dated September 28, 2012 for the financial year ended June 30, 2012, 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.

Note: All uncut average gold grades; true widths are between 70% and 100% of drill intercept width except for drill-holes GEM 494, GEM 515 and GEMC 052, where true width is between 35 and 60% of drill intercept width. All drill intersections are oxide material suitable for heap leaching.