International Minerals Corporation
FRANKFURT : MIW
TSX : IMZ
Swiss : IMZ

International Minerals Corporation

May 15, 2006 18:28 ET

International Minerals Reports Third Quarter Financial Results

SCOTTSDALE, ARIZONA--(CCNMatthews - May 15, 2006) - International Minerals Corporation (the "Company") (TSX:IMZ)(SWISS:IMZ)(FWB:MIW) has filed its unaudited, management-prepared March 31, 2006 interim financial statements and management discussion and analysis ("MD&A") on SEDAR. Highlights of these financials for the third quarter of the Company's 2006 fiscal year are shown below (all numbers are reported in US Dollars):

- The Company's consolidated loss for the three-month period ended March 31, 2006 (the "current period") was $120,621 or $0.001 per share. This compares to a loss of $292,076 or $0.004 per share for the same quarter in 2005. The reduced loss for the current period is primarily due to a $93,950 "swing" in the non-cash foreign exchange category, from a non-cash loss of $82,130 in last year's equivalent period to a non-cash gain of $11,820 in the current period due to a strengthening of the Canadian dollar versus the US dollar during the current period.

- Cash and short-term investments decreased by $5,975,862 (from $10,211,242 at fiscal year-end June 30, 2005) to $4,235,380 as at March 31, 2006, due primarily to exploration and feasibility study expenditures on the Company's three principal resource projects - the Rio Blanco and Gaby gold properties in Ecuador and the Pallancata silver-gold property in Peru.

- Working capital was $4,740,249 at March 31, 2006, a reduction of $5,510,499 from year end June 30, 2005, resulting from exploration and development expenditures on properties and corporate expenses for the nine-month period. The Company has no long-term debt.

- Capitalized resource property expenditures for the current period increased slightly to $2,345,622 compared to expenditures of $2,197,220 for the same period last year, reflecting a similar level of exploration activities at the Company's Rio Blanco, Gaby and the Pallancata properties. These expenditures continued to advance the Company's projects towards various important objectives including: (a) advancement of the Rio Blanco project towards production in 2008, together with additional exploration and development drilling, (b) completion of the (on- going since March 2006) feasibility study at Gaby by 2008, and (c) the completion of a joint venture agreement for the Pallancata property with Hochschild to fast-track development permitting and production at Pallancata (see news release dated January 23, 2006 for details).

- Subsequent to quarter end, the Company announced that it had filed a final short form prospectus with the securities regulatory authorities in all of the provinces of Canada in connection with a previously announced underwritten public offering of units and convertible unsecured subordinated debentures (collectively the "Offering"). The Offering totals Cdn$92.2 million (approximately $84 million) before brokerage commissions and other expenses (please see News Release dated May 10, 2006 for details).

ON BEHALF OF THE BOARD

Stephen J. Kay, President and CEO


The Toronto, Swiss and Frankfurt Stock Exchanges neither approve nor disapprove the information contained in this News Release.

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