Ok Tedi to Repurchase Five Percent Net Smelter Royalty From Inmet Mining for US$335 Million

TORONTO, ONTARIO -- (Marketwire) -- 12/02/10 -- Inmet Mining Corporation (Inmet) (TSX: IMN) announced today that it has reached agreement with Ok Tedi Mining Limited (OTML) for OTML to repurchase from Inmet the previously announced 5 percent net smelter royalty (NSR) that Inmet was to receive from OTML. OTML will pay US$335 million to Inmet to repurchase the NSR. The repurchase of the NSR has been approved by the board and shareholders of OTML.

Under the prior arrangement for the NSR, Inmet would have exchanged its 18 percent equity interest in OTML and at closing for that transaction, would have received a cash payment equal to 18 percent of OTML's working capital and a 5 percent net smelter royalty on revenues of product produced from the Ok Tedi mine thereafter. The NSR would have applied during Ok Tedi's current mine life, which is expected to end by mid-2014.

Under the NSR repurchase agreement, Inmet will now receive at closing the cash payment of US$335 million in lieu of its entitlements under the NSR arrangement. Closing of the NSR repurchase is expected to take place on or before January 31, 2011.

Forward looking information

Securities regulators encourage companies to disclose forward-looking information to help investors understand a company's future prospects. This press release contains statements about our future financial condition, results of operations and business.

These are 'forward-looking' because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, expect, anticipate, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.

About Inmet

Inmet is a Canadian-based global mining company that produces copper, zinc and gold. We have interests in four mining operations in locations around the world: Cayeli, Las Cruces, Pyhasalmi and Ok Tedi. We also have a 100 percent interest in Cobre Panama, a development property in Panama.

Contacts:

Inmet Mining Corporation

Flora Wood

Director, Investor Relations

1-416-361-4808
www.inmetmining.com