International Minerals Reports Production Results From Pallancata Mine for Quarter Ended December 31, 2012 and Full Calendar

International Minerals Reports Production Results From Pallancata Mine for 
Quarter Ended December 31, 2012 and Full Calendar Year 2012 
SCOTTSDALE, AZ -- (Marketwire) -- 01/29/13 --  International Minerals
Corporation (TSX: IMZ) (SWISS: IMZ) (the "Company" or "IMZ")
announces production results from its 40%-owned Pallancata silver
mine in Peru (Hochschild 60%-owned and operator) for its fiscal 2013
second quarter ended December 31, 2012 ("Current Quarter") and for
the calendar 12-month period ended December 31, 2012 ("Calendar Year
2012"). 
In the Current Quarter, the Pallancata Mine produced (on a 100%
basis) approximately 1.9 million ounces of silver (2011: 2.3 million
ounces) and 7,402 ounces of gold (2011: 8,304 ounces). The Company's
40% share of production for the Current Quarter was approximately 0.8
million ounces of silver (2011: 0.9 million ounces) and 2,961 ounces
of gold (2011: 3,322 ounces).  
For Calendar Year 2012, the Pallancata Mine produced (on a 100%
basis) approximately 7.4 million ounces of silver (8.8 million ounces
in Calendar Year 2011) and 26,231 ounces of gold (33,881 ounces in
Calendar Year 2011). The Company's 40% share of production for
Calendar 2012 was approximately 3.0 million ounces of silver (3.5
million ounces in 2011) and 10,492 ounces of gold (13,553 ounces in
2011).  
The decreases in gold and silver production for both the Current
Quarter and Calendar Year 2012 compared to the respective previous
periods are due primarily to a decrease in the grades of both silver
and gold processed because (a) the mine experienced an increase in
mining dilution due to the narrower veins being mined, and (b) the
mine encountered production scheduling constraints which restricted
mine development and backfill placement. These issues are currently
being addressed by the mine operator. 
IMZ anticipates that production from the Pallancata Mine for Calendar
Year 2013 will be similar to 2012 at approximately 7.4 million ounces
of silver and 26,000 ounces of gold, with approximately 3.0 million
ounces of silver and 10,400 ounces of gold representing IMZ's 40%
share of anticipated 2013 production. 
Operating Statistics for the Pallancata Mine (100% basis and IMZ 40%
basis). 
The Table below reports key production statistics for the Pallancata
Mine for the Current Quarter (ended December 31, 2012) and Calendar
Year 2012 (12 months ended December 31, 2012), together with the
respective previous periods. 


 
                                                                            
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                                  Quarter    Quarter      Year       Year   
                                    Ended      Ended      Ended      Ended  
                                 12/31/2012 12/31/2011 12/31/2012 12/31/2011
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                                 100 % Basis                                
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Ore mined (tonnes)                  301,894    291,607  1,059,329  1,039,674
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Ore processed (tonnes)              288,858    293,060  1,094,250  1,070,466
----------------------------------------------------------------------------
Head grade- Silver (grams/tonne)        255        293        256        301
----------------------------------------------------------------------------
Head grade- Gold (grams/tonne)          1.1        1.3        1.1        1.3
----------------------------------------------------------------------------
Silver production (ounces)        1,941,821  2,288,930  7,440,604  8,767,394
----------------------------------------------------------------------------
Gold production (ounces)              7,402      8,304     26,231     33,881
----------------------------------------------------------------------------
                                IMZ 40% Basis                               
----------------------------------------------------------------------------
Silver production (ounces)          776,728    915,572  2,976,242  3,506,958
----------------------------------------------------------------------------
Gold production (ounces)              2,961      3,322     10,492     13,553
----------------------------------------------------------------------------

 
Note: 
1. The reported head grades for silver and gold are based on the
overall metallurgical balance for the process plant. 
Production costs for both the Current Quarter and Calendar Year 2012
will be provided in a Company news release to be issued after the
close of markets on February 14, 2013, together with disclosure of
the financial results for the Current Quarter. 
With respect to the financial results for the Current Quarter, as a
result of lower income from Pallancata and a further write-down of
approximately US$14.5 million in the carrying value of the Ecuador
assets (see the Company's November 21, 2012 news release), the
Company expects to report a net loss for the Current Quarter. This
loss remains to be fully quantified but at this time it is
anticipated to be in the US$9 million to $10 million range, compared
to net income after tax of US$11.1 million for the quarter ended
December 31, 2011. Net income after tax for the fiscal 6-month period
ended December 31, 2012 is expected to be close to break-even
compared to net income after tax of US$26.3 million for the fiscal
6-month period ended December 31, 2011. 
Ecuador Update 
IMZ has entered into preliminary agreements for the sale of the
properties in Ecuador. Both IMZ and the respective buyers are working
closely with the Government of Ecuador to obtain the required
government approvals in order to finalize these transactions. Further
details will be provided when the required approvals are obtained. 
Inmaculada Project Update 
At the Company's 40%-owned Inmaculada gold-silver project in Peru
(Hochschild 60%-owned and operator), a loan arrangement on favorable
terms with a syndicate of Peruvian banks is currently being
negotiated by Minera Suyamarca S.A.C. (the company jointly owned by
the Company and Hochschild) to finance part of the capital costs for
Inmaculada. The amount and terms of this loan are expected to be
finalized with the banks by the end of March 2013 and will be
announced to the market at that time. It is anticipated that
Inmaculada will commence production in the second half of 2014 (See
IMZ new release dated November 26, 2012 for more details). 
The technical disclosure in this news release has been reviewed by
IMZ's Qualified Person, Nick Appleyard, VP Corporate Development. 
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. 
Cautionary Statement: 
Forward-looking statements in this release include statements
regarding risks related to: mine production expectations; timing of
construction and production of projects; financing of capital
projects; estimates of financial results; and completion of the sale
of the Rio Blanco and Gaby properties. Factors that could cause
actual results to differ materially from anticipated results include
risks and uncertainties such as: mining, production and processing
risks; risks relating to obtaining construction and mining permits;
risks related to financing capital projects; risks associated with
estimating financial results; for the Rio Blanco and Gaby properties
in Ecuador - risks of obtaining government approvals and the
uncertainty in estimating and then receiving their fair market value;
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. 
For additional information, contact: 
In North America:
Paul Durham
VP Corporate Relations
Tel: +1 480 483 9932 
In Europe: 
Oliver Holzer
Marketing Consultant
+41 44 853 00 47 
Renmark Financial Communications:
Christine Stewart 
+1-416-644-2020 
or 
Robert Thaemitz 
Tel +1-514-939-3989 
Or send an email to: Information@intlminerals.com 
Internet Site: http://www.intlminerals.com