International Minerals Reports $7.2 Million Net Income (before Taxes) for First Fiscal Quarter Ending September 30, 2010

International Minerals Corporation (TSX: IMZ)(SWX: IMZ)(Toronto and
Swiss stock exchanges: 'IMZ?, the 'Company?) reports results for the
fiscal first quarter ending September 30, 2010 (the 'current quarter?)
of $7.2 million in consolidated net income before income tax
provisions, including net equity earnings of $9.2 million for
the 40%-owned Pallancata Mine in Peru. All amounts in this news release
are reported in US dollars.

Highlights

During the 3-month period from July 1, 2010 through September 30, 2010,
the Company accomplished the following significant results:

• 
  Completed the current quarter with approximately $25.4 million in
  cash, aggregate working capital of approximately $25.7 million, total
  assets of approximately $321.5 million and retained earnings of
  approximately $753,000.
  
• 
  Realized net income of approximately $7.2 million before provisions
  for a future income tax liabilities and $4.4 million after tax ($0.04
  per share) compared to net income after tax of approximately $1.2
  million ($0.01 per share) for the same period in 2009. The net income
  for the current quarter was due primarily to the net equity income
  from the Pallancata Mine joint venture. The Company also received
  royalty income of $0.9 million from Barrick's Ruby Hill gold mine in
  Nevada.
  
• Generated gross equity income totaling approximately $9.2
  million and net equity income of approximately $8.9 million
  for the current quarter from the 40%-owned Pallancata Mine compared to
  $5.8 million and $5.0 million for the respective quarter for 2009. No
  dividends were received during the current quarter as Hochschild has
  no statutory policy of distributing dividends on a quarterly basis.
  
• 
  Produced approximately 2.5 million ounces of silver and 8,254
  ounces of gold from the Pallancata Mine (100% project basis),
  compared to 2.5 million ounces of silver and 9,320 ounces of gold
  (100% project basis) in the prior quarter ended June 30, 2010. Of this
  total production, the Company′s 40% share was approximately 1.0
  million ounces of silver and 3,728 ounces of gold. The decrease in
  gold ounces produced from the previous quarter results mainly from a
  decrease in average head-grade mined.
  
• 
  Realized direct onsite costs at the Pallancata Mine of $2.53 per
  ounce ('/oz?) silver (after gold by-product credit) and total
  cash costs (as defined by the Gold Institute) of $5.77/oz silver
  (after gold by-product credit). Costs per ounce have increased
  slightly from the previous quarter due primarily to lower gold
  production in the current quarter.
  

Additional Financial Information for the Current Quarter:

The consolidated net income for the current quarter was $7.2 million
before provisions for income taxes and $4.4 million after taxes ($0.04
basic and diluted per share) compared to a net income after taxes of
$1.2 million ($0.01 basic and diluted per share) for the equivalent
period in 2009. The increase in income between the comparative periods
resulted primarily from net equity income received from the Pallancata
Mine joint venture of $8.9 million ($5.0 million in 2009), net royalty
income of $0.7 million ($Nil in 2009) and no foreign exchange loss ($1.6
million in 2009), offset by the impact of the income tax provision for
the Pallancata Mine of $2.8 million ($Nil in 2009).

The Company realized gross equity income from the Pallancata Mine for
the current quarter of $9.2 million (2009 ? $5.2 million). Equity income
was greater in the current quarter as the mine was operating at higher
production rates than in the comparative period of 2009. Net equity
income is offset by expenses for non-reimbursable joint venture
monitoring costs of $73,425 (2009 - $164,348) and amortization of
$249,267 (2009 - $99,288), capitalized in previous years.

No dividend payments were received in the current quarter from the
Pallancata Mine, but a dividend distribution is expected to be received
before the end of the calendar year. The Pallancata joint venture
company (Suyamarca) does not have a policy with respect to the quarterly
payment of dividends. Dividends are distributed on an ad hoc basis by
Suyamarca dependent upon the cash flow requirements at the Pallancata
Mine. IMZ has received $16 million in dividends to date from the mine in
calendar year 2010.

Other income included royalty income from the Ruby Hill Mine of $820,382
(2009 - $Nil) and interest earned on cash and equivalents of $36,022
(2009 - $111,877).

Capitalized resource property expenditures for the current quarter were
$5,694,630 compared to $1,433,176 for the same period last year,
reflecting increased expenditures on the additional projects acquired
following the acquisitions of Ventura Gold Corp. and Metallic Gold
Ventures, Inc. early in 2010.

The Company reports its interest in the Pallancata Mine on an equity
accounting basis and its interest in the Inmaculada property on a 100%
basis less the non-controlling interest of Hochschild.

Company Outlook

During the balance of fiscal year 2011, the Company's exploration and
development efforts are expected to focus primarily on:

• 
  At the Pallancata Mine:
  

Working with our joint venture partner, Hochschild to continue
production at the 3,000 tpd mining rate, and produce approximately 10
million ounces of silver and 33,000 of gold in calendar 2010 (the
Company′s estimate on a 100% project basis).

Increasing mineral resources and reserves to extend the existing mine
life (approximately 4 years based on current reserves).

• 
  Continuing with the aggressive exploration and development at
  the Inmaculada Project, working with Hochschild to move the
  project into production in three years following the recent Framework
  Agreement to sell 11% of the Company's ownership to Hochschild so that
  Hochschild will own a 60% interest (and become operator) and the
  Company will own a 40% interest (See News Release dated October 12,
  2010 for details of the Framework Agreement).
  
• 
  Commencing a feasibility study at theGoldfield gold project
  to be completed by calendar year-end 2011, with the goal of
  potential production in 2014;
  
• 
  Commencing a scoping study on the Converse gold-silver project to
  be completed by the second quarter of 2011.
  
• 
  Undertaking further discussions with the Ecuadorian government with
  respect to clarification of certain tax and royalty issues related to
  the 2009 Mining Law, in order to advance the 100%-owned Rio Blanco
  gold-silver project and the Gaby gold project (approximately 60% IMZ
  interest in the estimated contained resource ounces).
  
• 
  Continuing to seek additional strategic joint venture alliances, such
  as that with Hochschild at Pallancata and Inmaculada, in order to
  fast-track projects and to reduce future cash outlays by the Company.
  

To view the Company′s complete financial statements, please click the
following link: http://www.intlminerals.com/release.php?R_ID=124&Kind=FS&Rel=S

To view the Company′s management discussion and analysis (MD&A), please
click the following link: http://www.intlminerals.com/release.php?R_ID=124&Kind=FS&Rel=M

Cautionary Statement:

The Gold Institute calculation of Direct Site Costs and Total Cash
Costs are non-Canadian GAAP 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, drilling and development programs on the
Company′s projects, timing of commencement of construction and
production and, obtaining of required environmental 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 environmentalpermits; mining
and development risks; financing risks; risk of commodity price
fluctuations; political and regulatory risks; risks related to the new
mining law in Ecuador, and other risks and uncertainties detailed in the
Company′s Amended Annual Information Form for the year ended June 30,
2010, 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

In
North America:

Paul Durham, +1 203-940-2538

Vice
President Corporate Relations

or

In
Europe:

Oliver Holzer, +41 (0) 44 854 11 39

Marketing
Consultant

IR@intlminerals.com

http://www.intlminerals.com