SCOTTSDALE, AZ--(Marketwire - Sep 28, 2012) - International Minerals Corporation (TSX: IMZ) (SWISS: IMZ) (the "Company" or "IMZ") is pleased to report its operating achievements and financial results for the fiscal year ended June 30, 2012.

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

Significant Achievements for Fiscal Year Ended June 30, 2012

• Together with its partner, Hochschild Mining plc ("Hochschild"), IMZ completed a positive feasibility study on the 40%-owned Inmaculada property (Hochschild: 60% owner and operator) in Peru and commenced development of the mine, with a targeted production date of December 2013, subject to the receipt of final construction permits.
  
  
• Completed a positive feasibility study for its 100%-owned Gemfield gold deposit on the Goldfield property in Nevada and is successfully advancing permitting, with a goal of commencing mine construction by mid calendar year 2014 and production in mid calendar year 2015.
  
  
• IMZ received significant cash distributions during the fiscal year ended June 30, 2012 (the "Current Year") of $40.0 million from its 40%-owned Pallancata Mine in Peru, compared to $46.0 million for the fiscal year ended June 30, 2011 ("the Prior Year").
  
  
• In May 2012, IMZ sold its 3% net smelter return ("NSR") royalty on production from Barrick's Ruby Hill gold mine in Nevada for $38 million (net of taxes) and recorded a gain on the sale of $27.9 million.
  
  
• The Company completed a Normal Course Issuer Bid share repurchase program and repurchased 3.0 million of its common shares through the Toronto Stock Exchange at a cost of Cdn$17.1 million.
  
  
• Also in May 2012, the Company redeemed with $39.6 million cash, at maturity, its convertible debentures, while still maintaining a strong cash and equivalents position of $81.2 million at the end of the Current Year compared to $85.8 million at the end of the Prior Year.
  
  
• Released a positive preliminary economic assessment (or scoping study) at the 100%-owned Converse property in Nevada.
  
  
• Reported, for the first time, proven and probable reserves at both the Gemfield deposit and the Inmaculada property.
  
  

Financial Performance for Fiscal Year Ended June 30, 2012:

The Company:

• Reported cash flow from continuing operations for the Current Year of $29.1 million compared to $35.9 million for the Prior Year.
  
  
• Reported cash flow from discontinued operations of $5.3 million for the Current Year compared to $3.8 million for Prior Year; these amounts, however, do not include the $38 million received from the sale of the Ruby Hill royalty, which is classified as proceeds from investing activities.
  
  
• Ended the Current Year with approximately $81.2 million in cash and equivalents (Prior Year $85.8 million) and total assets of approximately $336.2 million. Total assets decreased from $369.7 million at fiscal year end June 30, 2011 primarily due to the $53.2 million write-down of the carrying value of the resource properties in Ecuador.
  
  
• Reported net income from continuing operations after tax of $28.0 million for the Current Year, or $0.23 per share, compared to $56.7 million for the Prior Year or $0.48 per share.
  
  
• Reported a gain and income from discontinued operations related to the Ruby Hill royalty of $30.0 million for the Current Year, or $0.25 per share, compared to $3.6 million for the Prior Year, or $0.03 per share.
  
  
• Reported a loss from discontinued operations related to the resource properties in Ecuador of $53.2 million for the Current Year, or a loss of $0.44 per share, as a result of the decision to seek alternatives to maximize the value of these assets.
  
  
• Reported net income and comprehensive income after tax of $4.8 million, or $0.04 per share, compared to net income and comprehensive income after tax of $60.3 million, or $0.51 per share for the Prior Year.
  
  
• Ended the Current Year with working capital of $126.7 million compared to $50.4 million at fiscal year end June 30, 2011. This working capital includes $40 million in estimated proceeds, net of selling costs, from the potential disposition of the resource properties in Ecuador.
  
  
• At the Pallancata Mine in Peru:
  
  
  • The Company's 40% share of the equity income from the Pallancata Mine was approximately $43.0 million compared to $56.8 million for the Prior Year. Cash distributions for the Current Year totaled $40.0 million compared to $46.0 million for the Prior Year. An additional $6.0 million was received in July, 2012, which was a receivable at June 30, 2012;
    
    
  • For the Current Year, production (on a 100% basis) was approximately 8.2 million ounces of silver (Prior Year: 9.5 million ounces) and 29,689 ounces of gold (Prior Year: 34,517 ounces).The Company's 40% share was approximately 3.3 million ounces of silver (Prior Year: 3.8 million ounces) and 11,876 ounces of gold (Prior Year: 13,807 ounces). The decrease in gold and silver production compared to the Prior Year was due primarily to a decrease in the grades of both silver and gold processed because (a) higher metal prices allowed lower-grade material to be mined profitably, and (b) the mine experienced an increase in mining dilution due to the narrower veins being mined and c) the mine experienced operational scheduling constraints which restricted mine development and backfill placement; and
    
    
  • For the Current Year, direct onsite cash costs were $3.31 per ounce of silver produced after gold by- product credit (Prior Year: $2.21 per ounce) and total cash costs (as defined by the Gold Institute) were $7.37 per ounce of silver produced (Prior Year: $6.04 per ounce) after gold by-product credit. Costs per ounce of silver net of gold by-product credit increased in the Current Year primarily because of (a) lower silver and gold production, (b) lower gold by-product credit (c) an increase in mining costs associated with the preparation of stopes exploiting the narrower veins, and, (d) increased Peruvian mining taxes (under the newly-enacted law in late 2011, which replaced the existing government royalty with an operating-profit based tax).
    
    

Financial Performance for the Three-Month Period Ended June 30, 2012:

The Company:

• Reported cash flow from continuing operations for the quarter ended June 30, 2012 (the "Current Quarter") of $8.4 million compared to $15.1 million for the quarter ended June 30, 2011 (the "Prior Year's Quarter").
  
  
• Reported cash flow from discontinued operations of $1.0 million for the Current Quarter compared to $1.4 million for Prior Year's Quarter; these amounts, however, do not include the $38 million received from the May 2012 sale of the Ruby Hill royalty, which is classified as proceeds from investing activities.
  
  
• Reported a net loss after tax from continuing operations of $2.4 million for the Current Quarter, or a loss of $0.02 per share, compared to net income from continuing operations after tax of $19.4 million for the Prior Year's Quarter or $0.16 per share.
  
  
• Reported a gain from discontinued operations related to the sale of the Ruby Hill royalty of $27.9 million for the Current Quarter, or $0.24 per share, compared to $1.7 million for the Prior Year's Quarter, or $0.01 per share.
  
  
• Reported a loss from discontinued operations related to the resource properties in Ecuador of $53.2 million for the Current Quarter, or a loss of $0.45 per share, as a result of the Company's decision to seek alternatives to maximize the value of these assets. 
  
  
• Reported a net and comprehensive net loss after tax of $27.7 million, or a loss of $0.23 per share for the Current Quarter compared to net and comprehensive income of $21.2 million, or $0.18 per share for the Prior Year's Quarter, due primarily to the write-down of the Rio Blanco and Gaby properties.
  
  
• At the Pallancata Mine:
  
  
  • The Company's 40% share of the equity income from the Pallancata Mine was approximately $3.2 million for the Current Quarter compared to $13.3 million for the Prior Year's Quarter. Cash distributions for the Current Quarter totaled $12.0 million compared to $26.0 million in the Prior Year's Quarter;
    
    
  •  For the Current Quarter, production (on a 100% basis) was approximately 1.8 million ounces of silver (Prior Year's Quarter: 2.2 million ounces) and 6,402 ounces of gold (Prior Year's Quarter: 8,427 ounces). The Company's 40% share was approximately 730,150 ounces of silver (Prior Year's Quarter: 867,970 ounces) and 2,561 ounces of gold (Prior Year's Quarter: 3,371 ounces). The reasons for the decrease in gold and silver production compared to the Prior Year's Quarter are the same as previously explained in the fiscal year end disclosure; and
    
    
  • For the Current Quarter direct onsite cash costs were $5.36 per ounce of silver produced after gold by-product credit (Prior Year's Quarter: $2.87 per ounce) and total cash costs (as defined by the Gold Institute) were $9.08 per ounce of silver produced (Prior Year's Quarter: $7.89 per ounce) after gold by-product credit. Costs per ounce of silver net of gold by-product credit increased in the Current Quarter primarily because of (a) lower silver and gold production, (b) lower gold by-product credit, and (c) increased mine site operating costs as explained previously in the fiscal year end disclosure.
    
    

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

		Quarter Ended 06/30/2012		Quarter Ended 06/30/2011		Fiscal Year Ended 06/30/2012		Fiscal Year Ended 06/30/2011
Ore mined (tonnes)		259,421		256,048		1,041,857		1,069,428
Ore processed (tonnes)		270,961		266,673		1,090,033		1,063,008
Head grade- Silver (grams/tonne)		250		295		280		324
Head grade- Gold (grams/tonne)		1.08		1.3		1.2		1.4
Concentrate produced (tonnes)		2,006		2,071		8,380		8,622
Silver production (ounces)		1,825,387		2,169,924		8,185,244		9,461,573
Gold production (ounces)		6,402		8,427		29,689		34,517
Silver sold (ounces)		1,730,300		2,165,600		8,127,900		9,531,300
Gold sold (ounces)		5,950		7,942		28,766		32,824
IMZ direct site costs (US$)		5.36		2.87		3.31		2.21
IMZ total cash costs (US$)		9.08		7.89		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.

Investor Relations Update

In August 2012, the Company engaged the services of Renmark Financial Communications (www.renmarkfinancial.com) of Montreal and Toronto, Canada, to assist the Company in developing an expanded audience within the retail investor market in Canada. Renmark has been providing investor services for 14 years and currently assists over 40 Canadian mining companies.

In July 2012, IMZ engaged the services of Madaus Capital Partners GmbH of Munich, Germany as marketing consultants to introduce the Company to institutions, high net worth individuals and other interested participants in the financial industry in Germany.

Company Outlook

During the 2013 calendar year, the Company's exploration and development efforts are expected to focus primarily on:

• At the Pallancata Silver Mine (40% IMZ) in Peru:
  
  
  • Working with Hochschild 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).
    
    
  • Increasing mineral resources and reserves to extend the existing mine life (approximately 4.0 years based on current reserves).
    
    
• At the Inmaculada gold-silver project (40% IMZ), 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, but subject to the receipt of final construction permits.
    
    
  • Continuing with an aggressive exploration program in order to expand reserves and resources.
    
    
• At the Goldfield gold project (100% IMZ) in Nevada: advancing the Gemfield deposit to construction in 2014, following the completion of permitting, with the goal of potential production in mid-calendar year 2015.
  
  
• At the Converse gold project (100% IMZ), also in Nevada: commencing a feasibility study at the end of calendar year 2012, if metallurgical testwork justifies such a study.
  
  
• At the Rio Blanco gold-silver project (100% IMZ) and the Gaby gold project (approximately 60% IMZ) in Ecuador, implementing its strategy to maximize their value, including their sale.
  
  
• Continuing to seek investment opportunities in precious metals properties in low political risk countries 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, 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 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 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
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Expressed in United States dollars)
				June 30, 2012			June 30, 2011			July 1, 2010
ASSETS
Current
	Cash and equivalents			$	81,243,474		$	85,839,236		$	29,031,435
	Receivables				79,105			2,847,666			3,682,704
	Due from related party				6,210,377			557,367			-
	Prepaid expenses and deposits				35,373			81,357			116,324
	Investments				2,557,195			4,437,839			3,082,317
	Discontinued operations - Ecuador resource properties				39,976,344			-			-
		Current assets			130,101,868			93,763,465			35,912,780
Non-current
	Property, plant and equipment				359,724			250,789			209,649
	Investment in associate				133,146,660			120,133,542			36,666,973
	Investment in resource properties				72,401,093			56,814,136			121,277,222
	Reclamation bonds				185,100			135,100			138,000
	Discontinued operations - mine royalty				-			13,152,415			13,897,695
	Discontinued operations - Ecuador resource properties				-			85,451,660			81,457,321
		Non-current assets			206,092,577			275,937,642			253,646,860
Total assets				$	336,194,445		$	369,701,107		$	289,559,640
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
	Accounts payable			$	1,397,461		$	700,771		$	2,602,807
	Accrued severance and payroll costs				736,500			652,708			1,226,778
	Due to related parties				17,649			62,079			11,819
	Accrued interest payable on convertible debentures				-			187,661			174,869
	Convertible debentures				-			40,944,188			-
	Discontinued operations - mine royalty				113,152			-			-
	Discontinued operations - Ecuador resource properties				1,103,150			872,566			1,604,175
		Current liabilities			3,367,912			43,419,973			5,620,448
Non-current
	Convertible debentures				-			-			36,646,543
	Deferred income tax liability				8,160,000			8,000,000			8,000,000
	Discontinued operations - mine royalty				-			-			600,000
		Non-current liabilities			8,160,000			8,000,000			45,246,543
Shareholders' equity
	Capital stock				240,784,904			245,260,695			217,204,514
	Reserves				4,869,396			4,774,831			7,100,512
	Equity component of convertible debentures				-			4,945,008			4,945,008
	Equity gain on carried interest				16,782,196			-			-
	Retained earnings				62,230,037			63,300,600			2,666,515
		Capital and reserves attributable to the shareholders of the Company			324,666,533			318,281,134			231,916,549
	Non-controlling interest in subsidiary				-			-			6,776,100
Total liabilities and shareholders' equity				$	336,194,445		$	369,701,107		$	289,559,640

Nature and continuance of operations
Commitments
Subsequent Events
Approved on September 27, 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 the consolidated financial statements. See full financial statements on the Company's website at:
www.intlminerals.com/investors/financial-reports

INTERNATIONAL MINERALS CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Expressed in United States dollars)
YEAR ENDED JUNE 30
				2012				2011
Revenue				$	-			$	-
Income from associate					42,952,390				56,788,504
Other income/(loss)					(1,178,435	)			12,206,564
		Total income			41,773,955				68,995,068
Expenses
	Amortization and depreciation				(776,985	)			(761,063	)
	Salaries and employee benefits				(3,387,372	)			(2,848,555	)
	Administrative costs				(3,374,828	)			(2,098,400	)
	Stock-based compensation				(627,506	)			(662,768	)
	Financing expense				(2,427,346	)			(3,801,160	)
	Write-downs				(739,566	)			(2,134,102	)
		Total expenses			(11,333,603	)			(12,306,048	)
Income from continuing operations before taxes					30,440,352				56,689,020
Deferred income taxes					(160,000	)			-
Income taxes					(2,292,474	)			-
Net income from continuing operations after taxes					27,987,878				56,689,020
Discontinued operations net of taxes
	Disposal gain and income from mine royalty				30,042,021				3,632,190
	Write-down of discontinued operations - Ecuador resource properties				(53,238,265	)			-
	Income/(loss) from discontinued operations				(23,196,244	)			3,632,190
Net income and comprehensive income after taxes				$	4,791,634			$	60,321,210
Net income from continuing operations after taxes per common share
	Basic			$	0.23			$	0.48
	Diluted			$	0.23			$	0.48
Income/(loss) from discontinued operations after taxes per common share
	Basic			$	(0.19	)		$	0.03
	Diluted			$	(0.19	)		$	0.03
Net income after taxes per common share
	Basic			$	0.04			$	0.51
	Diluted			$	0.04			$	0.51
Weighted average number of common shares outstanding - basic					119,726,674				118,222,472
Weighted average number of common shares outstanding - diluted					120,298,346				118,984,254

The accompanying notes are an integral part of the consolidated financial statements. See full financial statements on the Company's website at:
www.intlminerals.com/investors/financial-reports

INTERNATIONAL MINERALS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in United States dollars)
YEAR ENDED JUNE 30
				2012				2011
CASH FLOWS FROM CONTINUING OPERATIONS
	Net income for the year from continuing operations			$	27,987,878			$	56,689,020
	Adjustments to net income:
		Amortization and depreciation			776,985				761,063
		Stock-based compensation			627,506				662,768
		Unrealized foreign exchange (gain)/loss			(1,358,469	)			2,419,178
		Realized gain on sale of investments			(1,135,855	)			-
		Unrealized loss/(gain) on investments			2,162,135				(1,259,424	)
		Write-downs			739,566				2,897,965
		Financing expense			2,114,809				3,801,160
		Equity income from investment in associate			(42,952,390	)			(56,788,504	)
		Gain on sale of investment in associate			-				(12,487,218	)
		Interest income			(283,071	)			(285,174	)
		Deferred income tax expense			160,000				-
		Cash distributions received from investment in associate			40,000,000				36,000,000
	Changes in non-cash working capital items:
		Decrease in receivables			183,220				3,532,287
		Decrease in prepaid expenses and deposits			45,984				34,967
		Increase (decrease) in accounts payable			358,323				(153,124	)
		Increase in due from related party			(210,377	)			-
		(Decrease) increase in accrued severance and payroll costs			(89,906	)			16,865
		(Decrease) increase in due to related party			(44,430	)			50,260
	Net cash flow from continuing operations provided by operating activities				29,081,908				35,892,089
	Net (loss)/income for the year from discontinued operations				(23,196,244	)			3,632,190
		Discontinued operations - mine royalty			(24,734,433	)			145,280
		Discontinued operations - Ecuador resource properties			53,235,898				41,422
	Net cash flow provided by discontinued operations				5,305,221				3,818,892
	Net cash provided by operating activities				34,387,129				39,710,981
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
	Share issuance costs				-				(33,856	)
	Proceeds from the issuance of common shares				1,067,518				25,395,893
	Convertible debenture interest payment				(2,114,809	)			(2,205,099	)
	Convertible debenture payment				(39,577,883	)			-
	Repurchase of common shares				(16,923,880	)			-
	Net cash flow (used in) provided by financing activities				(57,549,054	)			23,156,938
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
	Resource property expenditures				(15,148,669	)			(17,093,600	)
	Proceeds from sale of property ownership interest				2,650,000				15,000,000
	Purchase of investments				(648,162	)			(148,054	)
	Sale of investments				1,295,517				-
	Interest received				218,412				211,464
	Purchase of property and equipment				(221,934	)			(80,736	)
	Reclamation bonds				(50,000	)			2,900
	Recovery of investment in resource properties				-				603,065
	Discontinued operations - mine royalty				38,000,000				-
	Discontinued operations - Ecuador resource properties				(7,529,001	)			(4,555,157	)
	Net cash flow provided by (used in) investing activities				18,566,163				(6,060,118	)
Change in cash and equivalents for the year					(4,595,762	)			56,807,801
Cash and equivalents, beginning of year					85,839,236				29,031,435
Cash and equivalents, end of year				$	81,243,474			$	85,839,236

Supplemental disclosure with respect to cash flows

The accompanying notes are an integral part of the consolidated financial statements. See full financial statements on the Company's website at:
www.intlminerals.com/investors/financial-reports