Imperial Metals Corporation
TSX : III

Imperial Metals Corporation

September 25, 2007 22:15 ET

Imperial Reports on Federal Court Ruling Regarding the Red Chris Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 25, 2007) - Imperial Metals Corporation (TSX:III) reports the Federal Court of Canada today ruled that the Federal environmental assessment of the Red Chris project was procedurally incorrect and should have been carried out by way of a comprehensive study review and not as a screening level review.

The Court found the Department of Fisheries and Oceans and Natural Resources Canada ("Responsible Authorities") did not have the authority under the Canadian Environmental Assessment Act ("CEAA"), to re-scope the project to a screening level review after the Responsible Authorities had determined they would proceed by comprehensive study review.

The judgment sets aside the Federal environmental assessment completed in May 2006 which determined the Red Chris project was not likely to cause significant adverse environmental effects. As a result of this judgment, the Responsible Authorities will be required to revisit the environmental assessment of the project under CEAA.

The decision of the Federal Court does not affect the Environmental Assessment Certificate issued by the Province of British Columbia in August 2005 following a thorough environmental assessment that concluded the Red Chris Project is not likely to cause significant adverse impacts.

The Company sees this decision as a setback for environmental review of projects in Canada by significantly limiting the ability of Federal and Provincial authorities to harmonize their respective review processes and avoid costly duplication and uncertainty.

The Company will be conferring with the Responsible Authorities to determine how they wish to proceed.

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