SCOTTSDALE, AZ--(Marketwire - Nov 14, 2012) - International Minerals Corporation (TSX: IMZ) (SWISS: IMZ) ("Company" or "IMZ") is pleased to report its operating achievements and financial results for the first fiscal quarter ended September 30, 2012.

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

Significant Achievements for the First Fiscal Quarter Ended September 30, 2012 (the "Current Quarter"):

• The Company received a $6.0 million cash distribution from the Pallancata Mine in July 2012, bringing the Company's 40%-share (Hochschild Mining plc "Hochschild" 60%-owner and operator) of cumulative cash distributions from Pallancata to $115.7 million since August 2009. The Company has also been advised by the Suyamarca Board of Directors that it should expect to receive a further cash distribution of $4.0 million from Pallancata in December 2012.
  
  
• At the 40%-owned Inmaculada development project also in Peru (Hochschild 60%-owner and operator), development is progressing on schedule and Hochschild has completed its $100 million contractual development cost commitment. In September 2012, the Peruvian government approved the Environmental Impact Study for Inmaculada, achieving a critical milestone in the project's development.
  
  
• At the 100%-owned Goldfield property in Nevada, the Company has engaged the services of M3 Engineering and Technology Corporation ("M3") of Tucson, Arizona to manage the Engineering, Procurement and Construction Management ("EPCM") activities relating to the design and construction of the Gemfield project heap leach gold mine. M3 has commenced the detailed design activities for this project. SRK Consulting of Reno Nevada has been contracted to complete the project Plan of Operations ("PoO") which will be used in the preparation of the Environment Impact Statement and permitting. The PoO is expected to be filed with the US Bureau of Land Management ("BLM") in December of 2012. Permitting is expected to commence in the first calendar quarter of 2013 and is expected to take approximately 18 months from approval of the PoO.
  
  
• Also at the Gemfield project, the Company continues with on-going process optimization studies and step-out drilling in the recently discovered Gemfield Southeast area. In addition, results of the recent metallurgical test work have illustrated that a larger crush size could possibly allow for a 25% increase in plant throughput (to 7,500 tpd) with no significant decrease in recoveries. This could mean that estimated processing operating costs may be reduced by 11% from $6.36 per tonne to $5.65 per tonne and G&A costs may be reduced by 20% from $2.92 per tonne to $2.34 per tonne; a combined potential reduction of approximately 14% in total operating costs. Additional metallurgical testwork, however, will be required to confirm the recoveries from the larger crush size.
  
  

Financial Performance for the First Fiscal Quarter Ended September 30, 2012:

The Company:

• Reported net income from continuing operations after tax for the first fiscal quarter ended September 30, 2012 of $10.7 million or $0.09 per share compared to net income from continuing operations after tax of $14.5 million or $0.12 per share for the fiscal quarter ended September 30, 2011 (the "Prior Year's Quarter), reflecting in both periods the earnings from the Pallancata Mine.
  
  
• Reported cash flow from continuing operations of $6.0 million for the Current Quarter compared to $18.2 million for Prior Year's Quarter, with the change representing the difference in the cash distributions from the Pallancata Mine during the respective quarters.
  
  
• Reported a net loss from discontinued operations after tax of $1.1 million for the Current Quarter compared to net income from discontinued operations after tax of $0.7 million for the Prior Year's Quarter. The loss from discontinued operations in the Current Quarter represents on-going maintenance costs in Ecuador while the contribution to income in the Prior Year's Quarter was income from the Ruby Hill mine royalty.
  
  
• Reported net and comprehensive income after tax of $9.6 million or $0.08 per share, for the Current Quarter compared to net and comprehensive income of $15.2 million or $0.13 per share, for the Prior Year's Quarter. The most significant reason for the decline in earnings was because of a reduction in earnings from the Pallancata Mine that was a result of lower metal production and a decline in the prices of gold and silver.
  
  
• At the Pallancata Mine:
  
  

1. The Company's 40% share of the equity income from the Pallancata Mine was approximately $10.7 million for the Current Quarter compared to $15.1 million for the Prior Year's Quarter. Cash distributions paid to the Company for the Current Quarter totaled $6.0 million compared to $16 million in the Prior Year's Quarter;
   
   
2. Production for the Current Quarter (on a 100% basis) was approximately 1.9 million ounces of silver (Prior Year's Quarter: 2.3 million ounces) and 6,814 ounces of gold (Prior Year's Quarter: 9,370 ounces). The Company's 40% share was approximately 757,310 ounces of silver (Prior Year's Quarter: 916,322 ounces) and 2,726 ounces of gold (Prior Year's Quarter: 3,748 ounces). The reasons for the decrease in gold and silver production were lower ore grades and metallurgical recoveries compared to the Prior Year's Quarter.
   
   
3.  For the Current Quarter, direct site cash costs were $4.69 per ounce of silver produced after gold by-product credit (Prior Year's Quarter: $1.01 per ounce) and total cash costs after gold by-product credit (as defined by the Gold Institute) were $8.49 per ounce of silver produced (Prior Year's Quarter: $5.44 per ounce). For the Current Quarter compared to the Prior Year's Quarter total cash operating costs, before by-product credit, decreased by 3% and, therefore, both direct site and total cash costs per ounce reported increased because of lower by-product credits and a decrease in silver production.
   
   

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 September 30, 2012 and 2011 and for the fiscal years ended June 30, 2012 and 2011.

		Quarter Ended 09/30/2012		Quarter Ended 09/30/2011		Fiscal Year Ended 06/30/2012		Fiscal Year Ended 06/30/2011
Ore mined (tonnes)		276,459		269,273		1,041,857		1,069,428
Ore processed (tonnes)		277,092		268,673		1,090,033		1,063,008
Head grade- Ag (grams/tonne)		257		313		280		324
Head grade- Au (grams/tonne)		1.2		1.4		1.2		1.4
Concentrate produced (tonnes)		2,073		2,266		8,380		8,622
Silver production (ounces)		1,893,274		2,290,805		8,185,244		9,461,573
Gold production (ounces)		6,814		9,370		29,689		34,517
Silver sold ( ounces)		1,651,900		1,935,300		8,127,900		9,531,300
Gold sold (ounces)		5,870		8,017		28,766		32,824
IMZ direct site costs (US$)		4.69		1.01		3.31		2.21
IMZ total cash costs (US$)		8.49		5.44		7.37		6.04

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 now reported as gross ounces. IMZ has also restated the previously reported sales, which had been reported as net payable ounces.
4. 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 (see notes 5 and 6 below).
5. Direct site costs per ounce silver comprise direct mining costs, mined ore inventory adjustment, toll processing costs and. mine general and administrative costs. The cost per ounce is net of by-product credit, with by-product gold revenue offsetting operating costs.
6. 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 (currently approximately 3% of gross revenue for Pallancata). The cost per ounce is net of by-product credit, with by-product gold revenue offsetting operating costs.

Company Outlook

During the 2013 fiscal year, 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 continue production at the 3,000 tpd mining rate to produce approximately 7.8 million ounces of silver and 32,000 ounces of gold, in calendar 2012 (the Company's estimate on a 100% project basis) and increasing mineral resources and reserves to extend the existing mine life (approximately 4.0 years based on current reserves).
  
  
• At the 40%-owned Inmaculada gold-silver project, also in Peru:
  
  
• Working with Hochschild to continue with mine development, permitting and construction with production targeted to commence prior to the end of calendar year 2013, subject to the timely receipt of final construction permits, and continuing with an aggressive exploration program in order to expand reserves and resources.
  
  
• At the 100%-owned Goldfield property in Nevada: advancing the Gemfield project to construction in 2014, following the completion of permitting, with the goal of potential production in mid-calendar year 2015.
  
  
• At the 100%-owned Converse gold project, also in Nevada: continuing with additional technical studies depending upon the results of on-going metallurgical testwork.
  
  
• Finalize the sale of the 100%-owned Rio Blanco gold-silver project and the approximately 60%-owned Gaby project in Ecuador.
  
  
• Continuing to seek investment opportunities in precious metals properties in low political risk jurisdictions in the Americas, where the Company believes it can increase the value of such properties using its exploration, development, financing and administrative abilities to enhance value.
  
  

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 Company's Financial Statements and Management's Discussion and Analysis (MD&A) are posted on the Company's website at: www.intlminerals.com/investors/financial-reports or at www.sedar.com under the Company's name.

Cautionary Statement:

The Gold Institute calculation of Direct Site Costs and Total Cash Costs are non-IFRS financial measures, which Company management believes are useful in measuring operational performance. 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, metallurgical recoveries and operating costs, drilling and development programs on the Company's projects, timing relating to the completion of the sale of Rio Blanco and Gaby projects, and timing of completion of economic studies, construction and production, 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; the uncertainty in estimating and then obtaining the fair market value of the Rio Blanco and Gaby properties, financing risks; risk of commodity price fluctuations; the uncertainty in estimating metallurgical recoveries and operating costs, political and regulatory risks; and other risks and uncertainties detailed in the Company's Annual Information Form for the 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.

INTERNATIONAL MINERALS CORPORATION
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(Expressed in United States dollars) (Unaudited)
				September 30, 2012			June 30, 2012
ASSETS
Current
	Cash and equivalents			$	83,171,095		$	81,243,474
	Receivables				29,364			79,105
	Due from related party				16,849			6,210,377
	Prepaid expenses and deposits				42,963			35,373
	Investments				2,162,496			2,557,195
	Discontinued operations - Ecuador resource properties				39,925,185			39,976,344
		Current assets			125,347,952			130,101,868
Non-current
	Property, plant and equipment				28,001,043			359,724
	Investment in associate				156,828,036			133,146,660
	Investment in resource properties				48,739,759			72,401,093
	Reclamation bonds				210,100			185,100
		Non-current assets			233,778,938			206,092,577
Total assets				$	359,126,890		$	336,194,445
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
	Accounts payable			$	1,245,953		$	1,397,461
	Accrued severance and payroll costs				745,547			736,500
	Due to related parties				35,429			17,649
	Discontinued operations - mine royalty				113,152			113,152
	Discontinued operations - Ecuador resource properties				1,094,478			1,103,150
		Current liabilities			3,234,559			3,367,912
Non-current
	Deferred income tax liability				8,160,000			8,160,000
		Non-current liabilities			8,160,000			8,160,000
Shareholders' equity
	Capital stock				240,817,227			240,784,904
	Reserves				5,102,397			4,869,396
	Equity gain on carried interest				29,962,332			16,782,196
	Retained earnings				71,850,375			62,230,037
		Capital and reserves attributable to the shareholders of the Company			347,732,331			324,666,533
Total liabilities and shareholders' equity				$	359,126,890		$	336,194,445

Nature and continuance of operations

Approved on November 9, 2012 by the Directors:
"Stephen J. Kay"	Director		"W. Michael Smith"	Director
Stephen J. Kay			W. Michael Smith

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.

INTERNATIONAL MINERALS CORPORATION
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME
(Expressed in United States dollars) (Unaudited)
				2012				2011
Revenue				$	-			$	-
Income from associate					10,681,607				15,089,200
Other income					1,547,592				1,265,048
		Total income			12,229,199				16,354,248
Expenses
	Amortization and depreciation				(195,727	)			(191,958	)
	Salaries and employee benefits				(590,099	)			(391,165	)
	Administrative costs				(514,148	)			(580,080	)
	Stock-based compensation				(254,579	)			(93,699	)
	Financing expense				-				(561,808	)
		Total expenses			(1,554,553	)			(1,818,710	)
Income from continuing operations before taxes					10,674,646				14,535,538
Income taxes					-				-
Net income from continuing operations after taxes					10,674,646				14,535,538
Discontinued operations net of taxes
	Income from mine royalty				-				671,617
	Costs of discontinued operations - Ecuador resource properties				(1,061,890	)			-
	Income (loss) from discontinued operations				(1,061,890	)			671,617
Net income and comprehensive income after taxes				$	9,612,756			$	15,207,155
Net income from continuing operations after taxes per common share
	Basic			$	0.09			$	0.12
	Diluted			$	0.09			$	0.11
Income/(loss) from discontinued operations after taxes per common share
	Basic			$	(0.01	)		$	0.01
	Diluted			$	(0.01	)		$	0.01
Net income after taxes per common share
	Basic			$	0.08			$	0.13
	Diluted			$	0.08			$	0.12
Weighted average number of common shares outstanding - basic					117,585,887				120,387,368
Weighted average number of common shares outstanding - diluted					117,913,846				127,059,865

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.

INTERNATIONAL MINERALS CORPORATION
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(Expressed in United States dollars) (Unaudited)
				2012				2011
CASH FLOWS FROM CONTINUING OPERATIONS
	Net income for the year from continuing operations			$	10,674,646			$	14,535,538
	Adjustments to net income:
		Amortization and depreciation			195,727				191,958
		Stock-based compensation			254,579				93,699
		Unrealized foreign exchange gain			(66,197	)			(2,071,016	)
		Realized gain on sale of investments			(200,456	)			-
		Unrealized (gain) loss on investments			(453,944	)			693,518
		Financing expense			-				561,808
		Equity income from investment in associate			(10,681,607	)			(15,089,200	)
		Interest income			(101,084	)			(154,857	)
		Cash distributions received from investment in associate			6,000,000				16,000,000
	Changes in non-cash working capital items:
		Decrease in receivables			52,508				3,299,514
		Increase in prepaid expenses and deposits			(7,590	)			(85,360	)
		Increase in accounts payable			225,260				226,080
		Decrease in due from related party (excluding cash distribution)			193,528				-
		(Decrease) increase in accrued severance and payroll costs			(54,772	)			1,919
		Increase (decrease) in due to related party			17,780				(37,458	)
	Net cash flow from continuing operations provided by operating activities				6,048,378				18,166,143
		Discontinued operations - mine royalty			-				1,698,095
		Discontinued operations - Ecuador resource properties			(1,019,403	)			(3,690	)
	Net cash flow used in discontinued operations				(1,019,403	)			1,694,405
	Net cash provided by operating activities				5,028,975				19,860,548
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
	Proceeds from the issuance of common shares				18,327				307,388
	Net cash flow provided by financing activities				18,327				307,388
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
	Resource property expenditures				(4,293,249	)			(4,291,335	)
	Purchase of investments				-				(157,165	)
	Sale of investments				1,115,193				-
	Interest received				98,317				100,796
	Purchase of property and equipment				(14,942	)			(30,320	)
	Reclamation bonds				(25,000	)			-
	Discontinued operations - Ecuador resource properties				-				(4,037,075	)
	Net cash flow used in investing activities				(3,119,681	)			(8,415,099	)
Change in cash and equivalents for the period					1,927,621				11,752,837
Cash and equivalents, beginning of period					81,243,474				85,839,236
Cash and equivalents, end of period				$	83,171,095			$	97,592,073

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.