International Minerals Reports Second Fiscal Quarter Ending December 31, 2012 Financial and Operating Highlights

International Minerals Reports Second Fiscal Quarter Ending December 31, 2012 
Financial and Operating Highlights 
SCOTTSDALE, AZ -- (Marketwire) -- 02/14/13 --   International
Minerals Corporation (TSX: IMZ) (SWISS: IMZ) (the "Company") reports
operating highlights and financial results for the second fiscal
quarter ended December 31, 2012 ("Q2 2013").  
For Q2 2013 the Company reported $5.5 million in income from
continuing operations after tax, or $0.05 per share. After recording
a $15.7 million loss on discontinued operations relating to the
Ecuadorian resource properties, the Company reported a net and
comprehensive loss after tax of $10.2 million, or $0.09 per share.  
For the fiscal six month period ended December 31, 2012 ("H1 2013")
the Company reported income from continuing operations after tax of
$16.2 million, or $0.14 per share, and a net and comprehensive loss
after tax of $0.6 million, or $0.00 per share. Included in the loss
for H1 2013 was a loss on discontinued operations of $16.8 million
related to the write-down of the Ecuadorian properties. 
All amounts are in US Dollars unless otherwise stated. 
Significant Achievements for the Period Ended December 31, 2012  


 
--  Received a $4.0 million cash distribution from the Pallancata silver
    mine in Peru (100%-owned by Minera Suyamarca S.A.C., "Suyamarca") in
    December 2012, bringing the Company's 40%-share of cumulative cash
    distributions from Pallancata to approximately $120 million since
    August 2009. Suyamarca is 60%-owned by Hochschild Mining plc
    ("Hochschild") and 40%-owned by the Company. Hochschild is the
    operator of the Pallancata Mine.
    
    
--  Hochschild has completed funding of the first $100 million of
    expenditures for the development of the Inmaculada gold-silver project
    (also in Peru and also 100%-owned by Suyamarca) as required under the
    Suyamarca joint venture agreement. The Company's share of such
    expenditures at Inmaculada was carried by Hochschild until the $100
    million expenditure milestone was reached by Hochschild. In November
    2012, IMZ contributed its proportionate share ($8.0 million) of a $20
    million cash-call for the ongoing development costs at Inmaculada.
    
    
--  In November 2012, IMZ's Board of Directors approved the payment,
    commencing in January 2013, of an annual dividend of Cdn$0.12 per
    common share.
    
    
--  The Company signed preliminary agreements for the sale of its resource
    properties in Ecuador. 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.
    
    
--  Basic engineering for the 100%-owned Gemfield heap leach gold project
    (at the Goldfield property) in Nevada continues to progress on
    schedule and is expected to be completed early in the next four to
    five months, at which time a revised capital cost estimate will be
    available. The Company anticipates filing its Plan of Operations with
    the U.S. Bureau of Land Management by the end of April 2013.
    Permitting is expected to start promptly thereafter and is expected to
    take approximately 18 months.
    
    
--  The Company signed option agreements to explore three new early-stage
    precious metal exploration properties: Stonewall Spring and Rye in
    Nevada and Acoma in Peru.

  
Financial Performance for the Three-Month Period Ended December 31,
2012 (Q2 2013): 
The Company: 


 
--  Reported net income from continuing operations after tax of $5.5
    million, or $0.05 per share, compared to net income from continuing
    operations after tax of $10.3 million, or $0.08 per share, for the
    fiscal quarter ended December 31, 2011 ("Q2 2012"). The change in
    income from continuing operations primarily reflects lower earnings
    from the Pallancata Mine.
    
    
--  Reported cash flow from continuing operations provided by operating
    activities of $2.5 million compared to $9.4 million for Q2 2012, 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 $15.7
    million compared to net income from discontinued operations after tax
    of $0.8 million for Q2 2012. The loss from discontinued operations in
    Q2 2013 represents an additional impairment charge of $14.5 million
    related to the anticipated sale of the Ecuador properties combined
    with on-going maintenance costs in Ecuador. The contribution to income
    in Q2 2012 reflected revenue from the Ruby Hill mine royalty in Nevada
    (the "Nevada Mine Royalty").
    
    
--  Reported a net and comprehensive loss after tax of $10.2 million, or
    ($0.09) per share, compared to net and comprehensive income of $11.1
    million, or $0.09 per share, for Q2 2012. The primary reasons for the
    decline in net and comprehensive income were the additional write-down
    of the carrying value of the resource properties in Ecuador and the
    decline in earnings from the Pallancata Mine.

  
At the Pallancata Mine: 
i. The Company's 40% share of equity income from the Pallancata Mine
was approximately $7.4 million compared to $13.4 million for Q2 2012.
Cash distributions paid to the Company for Q2 2013 totaled $4.0
million compared to $12.0 million in Q2 2012.   
ii. Production (on a 100% basis) was approximately 1.9 million ounces
of silver (Q2 2012: 2.3 million ounces) and 7,402 ounces of gold (Q2
2012: 8,304 ounces). The Company's 40% share was approximately
776,728 ounces of silver (Q2 2012: 915,572 ounces) and 2,961 ounces
of gold (Q2 2012: 3,322 ounces). The primary reasons for the decrease
in gold and silver production were: (i) the mine experienced an
increase in mining dilution due to narrower veins being mined, and
(ii) the mine encountered production scheduling constraints which
restricted mine development and backfill placement. These issues are
currently being addressed by the mine operator.   
iii. Direct site cash costs (as defined by the Gold Institute) were
$5.18 per ounce of silver produced after gold by-product credit (Q2
2012: $2.35 per ounce). Total cash costs (also as defined by the Gold
Institute) after gold by-product credit were $9.58 per ounce of
silver produced (Q2 2012: $6.26 per ounce). For Q2 2013 compared to
Q2 2012, total cash operating costs increased because (i) silver
production declined by 15%, (ii) by-product credits declined by 9%,
and (iii) mine G&A costs increased mainly because of local community
land-use payments, increased personnel costs and increased
maintenance costs.  
Financial Performance for the Six-Month Period Ended December 31,
2012 ("H1 2013"): 
The Company: 


 
--  Reported net income from continuing operations after tax of $16.2
    million, or $0.14 per share, compared to net income from continuing
    operations after tax of $24.8 million or $0.21 per share for the six
    month period ended December 31, 2011 ("H1 2012"). The reduction in
    earnings is mainly attributable to lower earnings from the Pallancata
    Mine caused by higher mine administrative costs and lower gold and
    silver production.
    
    
--  Reported cash flow from continuing operations provided by operating
    activities of $8.6 million compared to $27.5 million for H1 2012, with
    the change representing the difference in the cash distributions from
    the Pallancata Mine during the respective periods.
    
    
--  Reported a net loss from discontinued operations after tax of $16.8
    million compared to net income from discontinued operations after tax
    of $1.5 million for H1 2012. The loss from discontinued operations in
    H1 2013 mainly reflects the $14.5 million write-down recorded to the
    carrying value of the resource properties in Ecuador, while the
    contribution to income in H1 2012 was revenue from the Nevada Mine
    Royalty.
    
    
--  Reported a net and comprehensive loss after tax of $0.6 million, or
    $0.00 per share, compared to net and comprehensive income of $26.3
    million, or $0.21 per share, for H1 2012. The major reason for the
    loss in H1 2013 was the write-down of the carrying value for the
    discontinued operations in Ecuador.

  
At the Pallancata Mine: 
i. The Company's 40% share of the equity income from the Pallancata
Mine was approximately $18.0 million compared to $28.5 million for H1
2012. Cash distributions paid to the Company for H1 2013 totaled
$10.0 million compared to $28.0 million in H1 2012.  
ii. Production (on a 100% basis) was approximately 3.8 million ounces
of silver (H1 2012: 4.6 million ounces) and 14,216 ounces of gold (H1
2012: 17,674 ounces). The Company's 40% share was approximately 1.5
million ounces of silver (H1 2012: 1.8 million ounces) and 5,686
ounces of gold (H1 2012: 7,070 ounces). The reasons for the decrease
in gold and silver production are as described previously.  
iii. Direct site cash costs were $4.94 per ounce of silver produced,
after gold by-product credit (H1 2012: $1.68 per ounce). Total cash
costs after gold by-product credit were $9.04 per ounce of silver
produced (H1 2012: $5.85 ounce). The increase in costs is largely
attributable to lower silver production, lower by-product credits and
an increase in mine G&A costs as described previously.  
Operating Statistics for the Pallancata Mine (100% Basis; 40%
attributable to IMZ).  
The table below reports key operating and cost statistics for the
Pallancata Mine on a (100% basis) for the quarters ended December 31,
2012 and 2011, respectively and for the calendar years ended December
31, 2012 and 2011, respectively, together with the results from the
quarter ended September 30, 2012. 


 
-----------------------------------------------------------------
-----------
                       Quarter    Quarter    Quarter      Year       Year   
                         Ended      Ended      Ended      Ended      Ended  
                      12/31/2012 12/31/2011 09/30/2012 12/31/2012 12/31/2011
----------------------------------------------------------------------------
Ore mined (tonnes)       301,894    291,607    276,459  1,059,329  1,039,674
----------------------------------------------------------------------------
Ore processed (tonnes)   288,858    293,060    277,092  1,094,250  1,070,467
----------------------------------------------------------------------------
Head grade- Ag (g/t)         255        293        257        256        301
----------------------------------------------------------------------------
Head grade-Au (g/t)          1.1        1.3        1.2        1.1       1.33
----------------------------------------------------------------------------
Concentrate produced                                                        
(tonnes)                   2,212      2,363      2,073      8,308      8,608
----------------------------------------------------------------------------
Silver production (oz) 1,941,821  2,288,930  1,893,274  7,440,604  8,768,394
----------------------------------------------------------------------------
Gold production (oz)       7,402      8,304      6,814     26,231     33,881
----------------------------------------------------------------------------
Silver Sold (oz)       2,071,312  2,636,200  1,651,900  7,279,600  9,063,800
----------------------------------------------------------------------------
Gold sold (oz)             7,764      9,315      5,875     25,100     33,900
----------------------------------------------------------------------------
IMZ direct site costs                                                       
($/oz Ag after by-                                                          
product credit)             5.18       2.35       4.69       5.14       2.20
----------------------------------------------------------------------------
IMZ total cash costs                                                        
($/oz Ag after by-                                                          
product credit)             9.58       6.26       8.49       9.16       6.38
----------------------------------------------------------------------------

 
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. Silver sales have been rounded.
 3. Silver
and gold ounces sold are reported as gross 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
(Also 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 gold by-product credits.
 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, local and regional
taxes and the government royalty. The costs per ounce are net of gold
by-product credits. 
Company Outlook 
During the remainder of the 2013 fiscal and calendar years, the
Company's exploration and development efforts are expected to focus
primarily on: 


 
--  At the Pallancata silver mine in Peru:
    
    
    --  Working with Hochschild to produce approximately 7.4 million
        ounces of silver and 26,000 ounces of gold in calendar year 2013
        (the Company's estimate on a 100% basis).
        
        
    --  Increasing mineral resources and reserves to extend the existing
        mine life (approximately 4 years based on current reserves).
        
        
--  At the Inmaculada gold-silver project in Peru:
    
    
    --  Working with Hochschild to continue with permitting and mine
        development with production targeted to commence in the second
        half of 2014.
        
        
    --  Continuing with an aggressive exploration program to expand
        reserves and resources.
        
        
--  At the 100%-owned Gemfield heap leach project at the Goldfield
    property in Nevada, completing all permitting activities with a view
    to commencing construction in 2014 (subject to financing) and
    production in mid-2015.
    
    
--  Completing the sale of the Company's resource properties in Ecuador.
    
    
--  Continuing to seek additional strategic joint venture alliances, such
    as that with Hochschild at Pallancata and Inmaculada, in order to
    fast-track projects to production and to reduce future cash outlays by
    the Company.

  
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: 
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.
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 Ecuadorian 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; risks of obtaining government approvals for the
Ecuadorian properties 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.    


 
                                                                            
INTERNATIONAL MINERALS CORPORATION                                          
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION             
(Expressed in United States dollars)                                        
(Unaudited)                                                                 
                                                                            
                                                  December 31,      June 30,
                                                          2012          2012
                                                 ------------- -------------
ASSETS                                                                      
                                                                            
Current                                                                     
  Cash and equivalents (Note 6)                  $  73,748,634 $  81,243,474
  Receivables                                          156,947        79,105
  Due from related party (Note 13)                      29,813     6,210,377
  Prepaid expenses and deposits                         23,751        35,373
  Investments (Note 7)                               2,036,018     2,557,195
  Discontinued operations - Ecuador resource                                
   properties (Note 8)                              25,150,025    39,976,344
                                                                            
    Current assets                                 101,145,188   130,101,868
                                                                            
Non-current                                                                 
  Property, plant and equipment (Note 10)           30,398,125       359,724
  Investment in associate (Note 9)                 178,044,581   133,146,660
  Investment in resource properties (Note 11)       49,869,388    72,401,093
  Reclamation bonds (Note 12)                                -       185,100
                                                 ------------- -------------
                                                                            
    Non-current assets                             258,312,094   206,092,577
                                                                            
Total assets                                     $ 359,457,282 $ 336,194,445
                                                 ============= =============
                                                                            
LIABILITIES AND SHAREHOLDERS' EQUITY                                        
                                                                            
Current                                                                     
  Accounts payable                               $   1,544,782 $   1,397,461
  Accrued severance and payroll costs                  652,762       736,500
  Due to related parties (Note 13)                       1,603        17,649
  Dividends payable (Note 14)                       14,338,345             -
  Discontinued operations - mine royalty (Note                              
   8)                                                  113,152       113,152
  Discontinued operations - Ecuador resource                                
   properties (Note 8)                               1,141,284     1,103,150
                                                 ------------- -------------
                                                                            
    Current liabilities                             17,791,928     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 (Note 14)                          240,817,227   240,784,904
  Reserves (Note 14)                                 5,356,795     4,869,396
  Equity gain on carried interest (Note 9)          40,000,000    16,782,196
  Retained earnings                                 47,331,332    62,230,037
                                                 ------------- -------------
                                                                            
    Capital and reserves attributable to the                                
     shareholders of the Company                   333,505,354   324,666,533
                                                 ------------- -------------
                                                                            
Total liabilities and shareholders' equity       $ 359,457,282 $ 336,194,445
                                                 ============= =============
                                                                            
Nature and continuance of operations (Note 1)                               
Subsequent Event (Note 19)                                                  
                                                                            
Approved on February 12, 2013                                               
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 may be viewed by clicking this link.  


 
                                                                            
INTERNATIONAL MINERALS CORPORATION                                          
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME           
(Expressed in United States dollars)                                        
For the three and six month periods ended December 31 (Unaudited)           
                                                                            
                          3-Month       3-Month       6-Month       6-Month 
                           Period        Period        Period        Period 
                       12/31/2012    12/31/2011    12/31/2012    12/31/2011 
                     ------------  ------------  ------------  ------------ 
                                                                            
Revenue              $          -  $          -  $          -  $          - 
                     ============  ============  ============  ============ 
                                                                            
Income from                                                                 
 associate (Note 9)     7,359,244    13,448,800    18,040,851    28,538,000 
                                                                            
Other income (loss)                                                         
 (Note 5)                (520,257)     (202,043)    1,027,335     1,063,005 
                     ------------  ------------  ------------  ------------ 
                                                                            
    Total income        6,838,987    13,246,757    19,068,186    29,601,005 
                     ------------  ------------  ------------  ------------ 
                                                                            
Expenses                                                                    
  Amortization and                                                          
   depreciation                                                             
   (Note 5)              (195,737)     (193,619)     (391,464)     (385,577)
  Salaries and                                                              
   employee benefits                                                        
   (Note 5)              (313,675)    ( 423,349)     (892,187)     (814,514)
  Administrative                                                            
   costs (Note 5)        (558,111)     (837,679)   (1,083,846)   (1,417,759)
  Stock-based                                                               
   compensation                                                             
   (Note 14)             (254,398)      (81,040)     (508,977)     (174,739)
  Financing expense             -      (536,184)            -    (1,097,992)
  Write-off of                                                              
   resource                                                                 
   properties                   -       (60,463)            -       (60,463)
                     ------------  ------------  ------------  ------------ 
                                                                            
    Total expenses     (1,321,921)   (2,132,334)   (2,876,474)   (3,951,044)
                     ------------  ------------  ------------  ------------ 
                                                                            
Income from                                                                 
 continuing                                                                 
 operations before                                                          
 taxes                  5,517,066    11,114,423    16,191,712    25,649,961 
                                                                            
Income taxes                    -      (820,000)            -      (820,000)
                     ------------  ------------  ------------  ------------ 
                                                                            
Income from                                                                 
 continuing                                                                 
 operations after                                                           
 taxes                  5,517,066    10,294,423    16,191,712    24,829,961 
                     ------------  ------------  ------------  ------------ 
                                                                            
Discontinued                                                                
 operations, net of                                                         
 taxes                                                                      
  Income from mine                                                          
   royalty (Note 8)                     845,986                   1,517,603 
  Costs and write                                                           
   down - Ecuador                                                           
   resource                                                                 
   properties (Note                                                         
   8)                 (15,697,764)            -   (16,759,654)            - 
                     ------------  ------------  ------------  ------------ 
                                                                            
Income (loss) from                                                          
 discontinued                                                               
 operations           (15,697,764)      845,986   (16,759,654)    1,517,603 
                     ------------  ------------  ------------  ------------ 
                                                                            
Net income and                                                              
 comprehensive                                                              
 income (loss) after                                                        
 taxes               $(10,180,698) $ 11,140,409  $   (567,942) $ 26,347,564 
                     ============  ============  ============  ============ 
                                                                            
Income from                                                                 
 continuing                                                                 
 operations after                                                           
 taxes per common                                                           
 share                                                                      
  Basic              $       0.05  $       0.08  $       0.14  $       0.21 
  Diluted            $       0.05  $       0.08  $       0.14  $       0.20 
Income (loss) from                                                          
 discontinued                                                               
 operations after                                                           
 taxes per common                                                           
 share                                                                      
  Basic              $      (0.13) $       0.01  $      (0.14) $       0.01 
  Diluted            $      (0.13) $       0.01  $      (0.14) $       0.01 
Net income (loss)                                                           
 after taxes per                                                            
 common share                                                               
  Basic              $      (0.09) $       0.09  $       0.00  $       0.22 
  Diluted            $      (0.09) $       0.09  $       0.00  $       0.21 
                     ============  ============  ============  ============ 
                                                                            
Weighted average                                                            
 number of common                                                           
 shares outstanding                                                         
 - basic (Note 14)    117,586,376   120,467,808   117,586,131   120,427,588 
Weighted average                                                            
 number of common                                                           
 shares outstanding                                                         
 - diluted            117,911,475   126,942,725   117,912,651   127,010,765 
                     ============  ============  ============  ============ 

 
The accompanying notes are an integral part of these consolidated
financial statements and may be viewed by clicking this link. 


 
                                                                            
INTERNATIONAL MINERALS CORPORATION                                          
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS                     
(Expressed in United States dollars)                                        
For the three and six month periods ended December 31 (Unaudited)           
                                                                            
                          3-Month       3-Month       6-Month       6-Month 
                           Period       Period         Period        Period 
                            Ended         Ended         Ended         Ended 
                       12/31/2012    12/31/2011    12/31/2012    12/31/2011 
                     ------------  ------------  ------------  ------------ 
CASH FLOWS FROM                                                             
 CONTINUING                                                                 
 OPERATIONS                                                                 
  Net income for the                                                        
   period from                                                              
   continuing                                                               
   operations        $  5,517,066  $ 10,294,423  $ 16,191,712  $ 24,829,961 
  Adjustments to net                                                        
   income:                                                                  
    Amortization and                                                        
     depreciation         195,737       193,619       391,464       385,577 
    Stock-based                                                             
     compensation         254,398        81,040       508,977       174,739 
    Unrealized                                                              
     foreign                                                                
     exchange loss                                                          
     (gain)                45,629       566,524       (20,568)   (1,504,492)
    Realized loss                                                           
     (gain) on sale                                                         
     of investments        22,093             -      (178,363)            - 
    Unrealized loss                                                         
     (gain) loss on                                                         
     investments           40,237      (432,106)     (413,707)      261,412 
    Write-off of                                                            
     resource                                                               
     properties                 -        60,463             -        60,463 
    Financing                                                               
     expense                    -       536,184             -     1,097,992 
    Equity income                                                           
     from investment                                                        
     in associate      (7,359,244)  (13,448,800)  (18,040,851)  (28,538,000)
    Interest income      (104,896)     (136,650)     (205,980)     (291,507)
    Cash                                                                    
     distributions                                                          
     received from                                                          
     investment in                                                          
     associate          4,000,000    12,000,000    10,000,000    28,000,000 
  Changes in non-                                                           
   cash working                                                             
   capital items:                                                           
    Increase in                                                             
     receivables         (122,793)     (606,247)      (70,285)    2,693,267 
    Decrease                                                                
     (increase) in                                                          
     prepaid                                                                
     expenses and                                                           
     deposits              19,212        25,648        11,622       (59,712)
    Increase                                                                
     (decrease) in                                                          
     accounts                                                               
     payable              173,144       (72,630)      398,404       153,450 
    (Increase)                                                              
     decrease in due                                                        
     from related                                                           
     party                                                                  
     (excluding cash                                                        
     distribution)        (12,964)      374,770       180,564       374,770 
    Decrease in                                                             
     accrued                                                                
     severance and                                                          
     payroll costs       (104,851)      (60,756)     (159,623)      (58,837)
    Decrease in due                                                         
     to related                                                             
     party                (33,826)       (7,268)      (16,046)      (44,726)
                     ------------  ------------  ------------  ------------ 
                                                                            
  Net cash flow from                                                        
   continuing                                                               
   operations                                                               
   provided by                                                              
   operating                                                                
   activities           2,528,942     9,368,214     8,577,320    27,534,357 
                                                                            
    Discontinued                                                            
     operations -                                                           
     mine royalty                                                           
     (Note 8)                   -     1,182,153             -     2,880,248 
    Discontinued                                                            
     operations -                                                           
     Ecuador                                                                
     resource                                                               
     properties                                                             
     (Note 8)            (875,798)     (124,058)   (1,895,201)     (127,748)
                     ------------  ------------  ------------  ------------ 
                                                                            
  Net cash flow                                                             
   (used by) from                                                           
   discontinued                                                             
   operations            (875,798)    1,058,095    (1,895,201)    2,752,500 
                     ------------  ------------  ------------  ------------ 
                                                                            
  Net cash provided                                                         
   by operating                                                             
   activities           1,653,144    10,426,309     6,682,119    30,286,857 
                     ------------  ------------  ------------  ------------ 
                                                                            
CASH FLOWS FROM                                                             
 (USED IN) FINANCING                                                        
 ACTIVITIES                                                                 
  Proceeds from the                                                         
   issuance of                                                              
   common shares                -       361,972        18,327       669,360 
  Convertible                                                               
   debenture                                                                
   interest payment             -    (1,097,992)            -    (1,097,992)
  Repurchase of                                                             
   common shares                -    (6,610,331)            -    (6,610,331)
                     ------------  ------------  ------------  ------------ 
                                                                            
  Net cash flow                                                             
   (used in)                                                                
   provided by                                                              
   financing                                                                
   activities                   -    (7,346,351)       18,327    (7,038,963)
                                                                            
CASH FLOWS FROM                                                             
 (USED IN) INVESTING                                                        
 ACTIVITIES                                                                 
  Resource property                                                         
   expenditures        (1,352,308)   (4,288,601)   (4,228,328)   (8,579,936)
  Purchase of                                                               
   investments                  -             -             -      (157,165)
  Sale of                                                                   
   investments             38,660             -     1,153,853             - 
  Interest received       100,106       161,665       198,423       262,461 
  Cash contributions                                                        
   to investment in                                                         
   associate           (8,000,000)            -    (8,000,000)            - 
  Capital                                                                   
   expenditures -                                                           
   property, plant                                                          
   and equipment       (2,026,836)            -    (3,444,065)            - 
  Purchase of                                                               
   property and                                                             
   equipment              (45,327)     (101,700)      (60,269)     (132,020)
  Reclamation bonds       210,100             -       185,100             - 
  Discontinued                                                              
   operations -                                                             
   Ecuador resource                                                         
   properties (Note                                                         
   8)                           -    (1,056,438)            -    (5,093,513)
                     ------------  ------------  ------------  ------------ 
                                                                            
  Net cash flow used                                                        
   in investing                                                             
   activities         (11,075,605)   (5,285,074)  (14,195,286)  (13,700,173)
                     ------------  ------------  ------------  ------------ 
                                                                            
Change in cash and                                                          
 equivalents for the                                                        
 period                (9,422,461)   (2,205,116)   (7,494,840)    9,547,721 
Cash and                                                                    
 equivalents,                                                               
 beginning of period   83,171,095    97,592,073    81,243,474    85,839,236 
                     ------------  ------------  ------------  ------------ 
                                                                            
Cash and                                                                    
 equivalents, end of                                                        
 period              $ 73,748,634  $ 95,386,957  $ 73,748,634  $ 95,386,957 
                     ============  ============  ============  ============ 

 
The accompanying notes are an integral part of these consolidated
financial statements and may be viewed by clicking this link. 


 
                                                                            
INTERNATIONAL MINERALS CORPORATION                                          
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY                  
(Expressed in United States dollars, except share amounts)                  
December 31, 2012 (Unaudited)                                               
                                                             
                        ------------------------------------ 
                                    Capital Stock            
                          Number                             
                         of shares      Amount      Reserves 
                        -----------  ------------ ---------- 
Balance December 31,                                         
 2011                   120,482,876  $239,610,642 $4,699,078 
                        -----------  ------------ ---------- 
Issued on exercise of                                        
 options                     98,500       674,146   (275,988)
Expiry of options                 -             -     (6,460)
Repurchase of common                                         
 shares                  (3,000,000)      500,116          - 
Stock-based                                                  
 compensation                     -             -    452,766 
Equity component of                                          
 debentures                       -             -          - 
Equity gain on carried                                       
 interest                         -             -          - 
Net income for the                                           
 period                           -             -          - 
                        -----------  ------------ ---------- 
Balance June 30, 2012   117,581,376  $240,784,904 $4,869,396 
                        -----------  ------------ ---------- 
Issued on exercise of                                        
 options                      5,000        32,323    (13,996)
Forfeiture of options             -             -     (7,582)
Stock-based                                                  
 compensation                     -             -    254,579 
Equity gain on carried                                       
 interest                         -             -          - 
Net income for the                                           
 period                           -             -          - 
                        -----------  ------------ ---------- 
Balance September 30,                                        
 2012                   117,586,376  $240,817,227 $5,102,397 
                        -----------  ------------ ---------- 
Stock-based                                                  
 compensation                     -             -    254,398 
Equity gain on carried                                       
 interest                         -             -          - 
Cash dividends to                                            
 common shareholders              -             -          - 
Net (loss) for the                                           
 period                           -             -          - 
                        -----------  ------------ ---------- 
Balance December 31,                                         
 2012                   117,586,376  $240,817,227 $5,356,795 
                        -----------  ------------ ---------- 
                                                             
 
                                                                            
                        -----------  ----------- ------------  ------------ 
                                                                            
                            Equity                                          
                          component                                         
                                 of  Equity gain                            
                        convertible   on carried     Retained         Total 
                         debentures     interest     earnings        equity 
                        -----------  ----------- ------------  ------------ 
Balance December 31,                                                        
 2011                   $ 4,945,008  $ 7,400,000 $ 89,648,164  $346,302,892 
                        -----------  ----------- ------------  ------------ 
Issued on exercise of                                                       
 options                          -            -            -       398,158 
Expiry of options                 -            -        6,460             - 
Repurchase of common                                                        
 shares                           -            -  (10,813,665)  (10,313,549)
Stock-based                                                                 
 compensation                     -                         -       452,766 
Equity component of                                                         
 debentures              (4,945,008)           -    4,945,008             - 
Equity gain on carried                                                      
 interest                         -    9,382,196            -     9,382,196 
Net income for the                                                          
 period                           -            -  (21,555,930)  (21,555,930)
                        -----------  ----------- ------------  ------------ 
Balance June 30, 2012   $         -  $16,782,196 $ 62,230,037  $324,666,533 
                        -----------  ----------- ------------  ------------ 
Issued on exercise of                                                       
 options                          -            -            -        18,327 
Forfeiture of options             -            -        7,582             - 
Stock-based                                                                 
 compensation                     -            -            -       254,579 
Equity gain on carried                                                      
 interest                         -   13,180,136            -    13,180,136 
Net income for the                                                          
 period                           -            -    9,612,756     9,612,756 
                        -----------  ----------- ------------  ------------ 
Balance September 30,                                                       
 2012                   $         -  $29,962,332 $ 71,850,375  $347,732,331 
                        -----------  ----------- ------------  ------------ 
Stock-based                                                                 
 compensation                     -            -            -       254,398 
Equity gain on carried                                                      
 interest                         -   10,037,668            -    10,037,668 
Cash dividends to                                                           
 common shareholders              -            -  (14,338,345)  (14,338,345)
Net (loss) for the                                                          
 period                           -            -  (10,180,698)  (10,180,698)
                        -----------  ----------- ------------  ------------ 
Balance December 31,                                                        
 2012                   $         -  $40,000,000 $ 47,331,332  $333,505,354 
                        -----------  ----------- ------------  ------------ 

 
The accompanying notes are an integral part of these consolidated
financial statements and may be viewed by clicking this link. 
For additional information, contact: 
In North America 
Paul Durham
VP Corporate Relations 
Tel: +1 203-883-8358  
In Europe 
Oliver Holzer
Marketing Consultant
+41 44 853 00 47 
Renmark Financial Communications:
Christine Stewart 
+1-416-644-2020 
Robert Thaemitz 
+1-514-939-3989 
Or email us at: Information@intlminerals.com 
Internet Site: www.intlminerals.com 
 
 
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