SOURCE: International Minerals Corporation

March 17, 2008 08:30 ET

International Minerals Announces 187% Increase in Reserves at Pallancata Mine, Peru

SCOTTSDALE, AZ--(Marketwire - March 17, 2008) - International Minerals Corporation ("IMZ") (TSX: IMZ) (SWX: IMZ) (FRANKFURT: MIW) has received updated mineral resource and reserve estimates for the Pallancata silver-gold mine in southern Peru from the mine operator, London-listed Hochschild Mining PLC ("Hochschild"). Pallancata is jointly-owned by IMZ (40%) and Hochschild (60%).

Proven and probable mineral reserves are now estimated by Hochschild on a 100% basis at 3.5 million tonnes at an average grade of 289 grams per tonne ("g/t") silver and 1.2 g/t gold containing a total of 32.9 million ounces of silver and 142,000 ounces of gold. This represents an increase of 187% from the previously released reserve estimates (see IMZ news release dated August 30, 2007). IMZ's attributable share of Proven and Probable Reserves is estimated at approximately 1.41 million tonnes at 289 g/t silver and 1.2 g/t gold for approximately 13.2 million contained ounces of silver and 57,000 ounces of gold.

IMZ has retained independent technical consultants, IMC Group Consulting Limited of London, England ("IMCGCL") to review and audit the mineral resource and reserve estimates and to produce an independent technical report in support of the new estimates. This National Instrument ("NI") 43-101 Technical Report will be filed on SEDAR within 45 days.

Table 1 below shows estimated mineral resources and reserves for the Pallancata mine as calculated by Hochschild under JORC rules. Resources and reserves are reported at a cut-off grade of 148 g/t silver equivalent, which reflects the most recent operating cost estimates and metal prices of US$10.50 per ounce of silver and US$600 per ounce of gold. The Qualified Persons for the estimate are IMCGCLs' Dr Stephen Henley FIMMM, C.Eng and Dr John Knight.C.Geol, Eur. Geol.

Table 1: Pallancata Mine – Mineral Reserve and Resource Estimates
 (as of March 13, 2008)

                                        100%      100%   IMZ 40%   IMZ 40%
                      Average Average  Basis--   Basis-- Attribut  Attribut
                      Grade    Grade  Contained Contained -able    -able
Estimage              (g/t     (g/t     Silver    Gold     Silver   Gold
Category     Tonnes   silver)  gold)    Ounces   Ounces    Ounces   Ounces
---------   --------- ------- ------- ---------- ------- ---------- -------
Proven
 Reserves   2,573,000     279     1.2 23,076,000 101,000  9,230,000  40,000
---------   --------- ------- ------- ---------- ------- ---------- -------
Probable
 Reserves     974,000     315     1.3  9,861,000  41,010  3,944,000  16,000
---------   --------- ------- ------- ---------- ------- ---------- -------
Total
 Reserves   3,546,000     289     1.2 32,937,000 142,000 13,175,000  57,000
---------   --------- ------- ------- ---------- ------- ---------- -------
---------   --------- ------- ------- ---------- ------- ---------- -------
Measured
 Resources  2,309,000     321     1.4 23,830,000 104,000  9,532,000  42,000
---------   --------- ------- ------- ---------- ------- ---------- -------
Indicated
 Resources    905,000     394     1.6 11,466,000  47,000  4,586,000  19,000
---------   --------- ------- ------- ---------- ------- ---------- -------
Total
 Measured
 and
 Indicated
 Resources  3,214,000     342     1.5 35,296,000 150,000 14,118,000  60,000
---------   --------- ------- ------- ---------- ------- ---------- -------
---------   --------- ------- ------- ---------- ------- ---------- -------
Inferred
 Resources  2,154,000     479     1.4 33,173,000  93,000 13,269,000  37,000
=========   ========= ======= ======= ========== ======= ========== =======


1. 40% of the estimated reserve and resource estimate ounces are
   attributable to the Company, 60% are attributable to Hochschild.
2. The above Measured and Indicated Resources include Proven and Probable
   Reserves.
3. Metal prices used are US$10.50/oz for silver and US$600/oz for gold.
4. The estimated reserves include an allowance of 5% for ore loss during
   mining and up to 20% for dilution with zero grade depending on
   individual stope configuration.
5. The estimated mineral resources are not mineral reserves and do not have
   demonstrated economic viability.
6. Numbers have been rounded in all categories to reflect the precision of
   the estimates.
7. The mineral resources were estimated using ordinary kriging for the
   western portion of the vein, which accounts for 99% of the Measured and
   Indicated resource and Inverse Distance to the power of 5 for the other
   areas of the vein.
8. Contained metal in estimated reserves remains subject to metallurgical
   recoveries.
9. The Hochschild resource and reserve estimates reflect the deposit at
   Pallancata as of yearend 2007.  To date in 2008 approximately 50,900
   tonnes have been mined at an average grade of 340 g/t silver and
   1.6 g/t gold.  This equates to approximately 550,000 ounces of silver
   and 2,640 ounces of gold that have been depleted from the reserves
   shown in Table 1.

As announced by IMZ in a January 16, 2008 news release, IMZ was informed by Hochschild that it is planning to ramp-up underground mine production from 500 tonnes per day ("tpd") at the September 2007 start-up to 2,250 tpd by end of calendar year 2008. Hochschild's plans for this significant increase in production during 2008 are projected to result in the Pallancata Mine producing in excess of 4 million ounces of silver equivalent in 2008, with 40% or over 1.6 million ounces silver equivalent attributable to IMZ (on the basis of a silver to gold ratio of 60:1).

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

Hochschild Mining PLC does not accept any responsibility for the adequacy or inadequacy of the disclosure made in this news release and any such responsibility is hereby disclaimed in all respects.

Cautionary Statement:

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 estimated metallurgical recoveries, mining dilution, changes in mine planning, which could impact such recoveries and mining dilution and could impact current and future mineral reserve and resource estimates, timing and scale of production and processing, reserve and resource additions, estimated average mineral grades and estimated contained metal in mineral reserve and resource estimates. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of production and processing rates; risks relating to estimates of mineral resources and reserves; risks relating to capital and production costs; risks relating to obtaining mining and environmental permits; mining and development risks; risk of commodity price fluctuations; political and regulatory risks; and other risks and uncertainties detailed in the Company's Renewal Annual Information Form for the year ended June 30, 2007, 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.

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