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

International Minerals Corporation

November 16, 2006 08:30 ET

International Minerals Reports First Quarter Financial Results

SCOTTSDALE, ARIZONA--(CCNMatthews - Nov. 16, 2006) - International Minerals Corporation (the "Company") (TSX:IMZ)(SWX:IMZ)(FWB:MIW) has filed its first quarter fiscal year 2007 unaudited, management-prepared September 30, 2006 interim financial statements and management discussion and analysis ("MD&A") on SEDAR. Highlights of these financials are shown below (all numbers are reported in US Dollars):

- The Company's consolidated loss for the three-month period ended September 30, 2006 (the "current period") was $1,455,922 or $0.02 per share. This compares to income of $255,026 or $0.00 per share for the same period in 2005, which was primarily due to a non-cash foreign exchange gain. The significant loss for the current period reflects primarily the write-off to expenses of the previously capitalized expenditures for the Vetaspata resource property in Peru ($1.63 million). In addition, interest and financing costs of $778,231 (2005 - $Nil) were incurred as a result of the Cdn$40 million in convertible debentures that were issued under the recent (May 2006) prospectus offering. These expenses were offset by increased interest income of $880,600 (2005 - $66,880) earned on the higher cash and equivalent balances held during the current period as a result of the approximately $85.1 million in proceeds from the combined equity/convertible debt prospectus offering.

- Cash and equivalents decreased by $3,515,951 from $82,717,138 at fiscal year-end June 30, 2006, to $79,201,187 as at September 30, 2006 due principally to a significant increase in expenditures on continuing exploration and development of the Company's principal resource projects: the Rio Blanco and Gaby gold properties in Ecuador, together with exploration on the Antabamba, Urbaque (formerly Pallancata East) and Pacapausa joint venture properties in Peru.

- Working capital was $80,502,291 at September 30, 2006, a reduction of $2,573,839 from year end June 30, 2006, primarily for the reasons stated above. The Company's long-term debt (related to the convertible debenture portion of the recent prospectus offering) rose to $31,226,043, reflecting an increase of $367,342 in accreted interest charges and foreign exchange loss (due to the strengthening of the Canadian dollar against the US dollar in the current period) from $30,858,701 at year end June 30, 2006.

- Capitalized resource property expenditures for the current period increased to $3,169,350 compared to expenditures of $1,547,519 for the same period last year, reflecting the significantly increased level of exploration and development activity during the current period, primarily at the Company's Rio Blanco and Gaby properties.

The Company continues to advance its projects towards various important objectives including: (a) obtaining required environmental and production permits for construction of the mining and processing facilities at the Rio Blanco property in Ecuador, which is targeted to commence production in the first half of 2008; (b) continuation of the feasibility study at the Gaby property in Ecuador, which is targeted for completion in the second half of 2007; (c) initiation of an exploration drilling program at Pallancata in Peru and the advancement of the main Pallancata project towards production in the third quarter of 2007 by the Company's partner, Hochschild Mining Plc; (d) continuation of exploration drilling commitments under the Antabamba and Urbaque agreements with Barrick in Peru; (e) initial drilling at the Pacapausa project in Peru; (f) continuing evaluation of targets under the IAMGOLD joint venture regional exploration agreement in Peru: and (g) assessment of potential new property acquisitions. The Company is well-funded to proceed with this aggressive business plan.

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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