SOURCE: International Minerals Corporation

March 03, 2008 17:00 ET

International Minerals Acquires Remaining 50% Interest in Papa Grande Property at Gaby Gold Project, Ecuador; Increase in Overall Attributable Gold Resources

SCOTTSDALE, AZ--(Marketwire - March 3, 2008) - International Minerals Corporation (TSX: IMZ) (SWISS: IMZ) (FRANKFURT: MIW) ("IMZ") reports that it has acquired an option to purchase the remaining 50% interest in the Papa Grande deposit not currently owned by IMZ. The Papa Grande deposit is one of two gold deposits comprising the Gaby Project in Ecuador.

The acquisition of the remaining 50% interest in the Papa Grande property raises the number of Measured and Indicated Resources attributable to IMZ in the overall Gaby Project by approximately 21%, from an estimated 3.78 million to 4.59 million contained ounces of gold (224 million tonnes ("Mt") at an average grade of 0.64 grams per tonne ("g/t")). It also increases the Inferred Resources attributable to IMZ by approximately 20%, from an estimated 1.66 million to 2.03 million contained ounces of gold (95 Mt at an average grade of 0.66 g/t). See Table 1a for a breakdown of the mineral resources attributable to IMZ.

On February 11, 2008, IMZ announced combined Measured and Indicated Resources, on a 100% project basis, estimated by FSS Canada (an independent consulting firm) of approximately 308 Mt at an average grade of 0.63 g/t gold, containing approximately 6.2 million ounces of gold. Additional Inferred Resources were estimated to be 122 Mt at an average grade of 0.65 g/t gold, containing approximately 2.6 million ounces of gold. Both mineral resource estimates are based on a cut-off grade of 0.4 g/t gold and a base-case gold price of US$650 per ounce. See Table 1b for a breakdown of the overall mineral resources for the Gaby Project.

Please see IMZ's news release dated February 11, 2008 for further details of the mineral resource calculations and the results of the preliminary feasibility study for the Gaby project. A National Instrument 43-101 Technical Report will be filed shortly with full details of the resource estimate, including details of the Papa Grande option agreement.

The Gaby Project consists of two adjacent gold deposits: the Main Gaby deposit and the Papa Grande deposit located 1.5 km to the east, and is located 130km south of the port of Guayaquil and adjacent to the Pan-American Highway.

          Table 1a. Gaby Project - Mineral Resource Estimates
                  Updated IMZ Attributable Gold Ounces

Resource      Cut-Off     Tonnes    Gold         IMZ           Contained
Estimate       Grade       (Mt)     Grade    Attributable     Gold Ounces
Category     (g/t gold)             (g/t)    Gold Ounces     (100% Project)
----------   ----------   ------    -----    ------------    --------------
Measured        0.4         34.2     0.73        797,000        1,051,000
----------   ----------   ------    -----    ------------    --------------
Indicated       0.4        189.9     0.62      3,794,000        5,186,000
----------   ----------   ------    -----    ------------    --------------
Measured &
Indicated       0.4        224.1     0.64      4,591,000        6,237,000
----------   ----------   ------    -----    ------------    --------------
Inferred        0.4         95.5     0.66      2,030,000        2,571,000
----------   ----------   ------    -----    ------------    --------------

            Table 1b. Gaby Project - Mineral Resource Estimates
                             100% Project Basis

        Resource      Cut-Off     Tonnes    Gold     Contained Gold
        Estimate       Grade       (Mt)     Grade        Ounces
        Category     (g/t gold)             (g/t)    (100% Project)
        ----------   ----------   ------    -----    --------------
        Measured        0.4         45.7     0.72      1,051,000
        ----------   ----------   ------    -----    --------------
        Indicated       0.4        262.8     0.61      5,186,000
        ----------   ----------   ------    -----    --------------
        Measured &
        Indicated       0.4        308.4     0.63      6,237,000
        ----------   ----------   ------    -----    --------------
        Inferred        0.4        122.3     0.65      2,571,000
        ----------   ----------   ------    -----    --------------

Note:  1. Numbers are rounded to reflect the precision of a resource
       2. The estimated mineral resources are not mineral reserves and
          do not have demonstrated economic viability.
       3. To limit the influence of individual high-grade gold samples,
          grade cutting was used. Gold assay grades were capped at 30 g/t.
       4. Average dry bulk densities of 2.77 g/cm3 for intrusive rocks
          2.97 g/cm3 for volcanic rocks and 1.36 g/cm3 for the saprolite
          (oxidized zone) were applied to block volumes.
       5. The grades were interpolated using the "Probability Assisted
          Constrained Kriging" estimation technique within the sulfide
          geologic domain and ordinary kriging within the saprolite.
       6. The contained metal estimates remain subject to factors such
          as mining dilution and process recovery losses.

Terms of Papa Grande Option Agreement

In order to exercise its option to acquire an additional 50% interest in the Papa Grande property (for an aggregate interest of 100%), IMZ is required to pay US$12.0 million over a 6-year period ending February 2014. US$500,000 has been paid as of the date of the signing of the agreement. The remaining option payments are scheduled every six months for the first three years (a total of US$4.0 million) and annually for the remaining three years (a total of US$7.5 million).

The technical information reported in this news release was supervised and reviewed by IMC's Qualified Person, Technical Manager, Nick Appleyard.

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

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