International Minerals Corporation
Swiss : IMZ

International Minerals Corporation

October 12, 2006 08:30 ET

International Minerals Reports Increased Reserves at Rio Blanco Project, Ecuador

Update on Time Line to Production

SCOTTSDALE, ARIZONA--(CCNMatthews - Oct. 12, 2006) - International Minerals Corporation ("IMC") (TSX:IMZ)(SWISS:IMZ)(FWB:MIW) is pleased to announce an increase in estimated proven and probable reserves at its 100%-owned Rio Blanco gold-silver project in Ecuador. The previous mineral reserve estimate of 521,000 ounces of gold and 4,039,000 ounces of silver (as announced in a news release on January 30, 2006) has now increased to 605,000 ounces of gold and 4,307,000 ounces of silver (see Table 1 below for details).

The new reserves result from the incorporation of indicated resources for the recently discovered San Luis veins (as announced in a news release dated May 30, 2006) into a new mine development plan in order to define a new reserve estimate. This additional work was performed by Wardrop Engineering ("Wardrop") of Sudbury, Canada based on updates of their original mine development plan, which formed part of the January 2006 independent feasibility study carried out at Rio Blanco under the overall supervision of Micon International Limited of Toronto, Canada (See news release of January 30, 2006 for details).

Based on the new reserve estimate shown in Table 1, Rio Blanco will remain as an 800 tonnes per day ("tpd") underground mining operation (as envisaged in the feasibility study) for an initial mine life of approximately eight years (an increase of just over one year in mine life), using conventional mining and processing methods to recover the contained gold and silver.

Estimated Mineral Reserves

Table 1 below summarizes the currently estimated proven and probable reserves for the Rio Blanco project, which were prepared in accordance with National Instrument ("NI") 43-101 by Wardrop (Qualified Person, Mining Engineer Ivan Arriagada P. Eng) as at October 12, 2006.

Table 1. Estimated Mineral Reserves - Alejandra North and San Luis

Gold Silver
----------------- -----------------
Reserve Grade Contained Grade Contained
Zone Category Tonnes (g/t) Ounces (g/t) Ounces
Alejandra Proven 142,560 10.8 49,000 90 410,000
Probable 1,879,020 7.9 476,000 59 3,562,000
Total Proven 2,021,580 8.1 526,000 61 3,973,000

San Luis Proven - - - - -
Probable 125,868 19.5 79,000 83 334,000

Alejandra Proven 2,147,448 8.8 605,000 62 4,307,00
North and and
San Luis Probable

Note 1, The mineral reserves are derived from total Measured and
Indicated resources of 2,150,000 tonnes at an average grade of
9.5 g/t gold and 69 g/t silver containing 661,000 ounces of gold
and 4,785,000 ounces of silver at a cut-off grade of 3 g/t gold
for Alejandra North and 4 g/t gold for San Luis (see news
release dated May 30, 2006 for details).
Note 2, The previously announced mineral reserves for Alejandra North
of 1,990,000 tonnes were at an average grade of 8.1 g/t gold
and 63 g/t silver containing 521,000 ounces of gold and
4,039,000 ounces of silver at a cut-off grade of 4 g/t gold
(see news release dated January 30, 2006 for details).
Note 3, The mineral reserves are estimated using a 4 g/t gold cut-off
and a $475/oz gold price.
Note 4, The mineral reserves remain subject to overall metallurgical
recoveries of 87% for gold and 70% for silver.
Note 5, Mining dilution of approximately 10%, with a diluting grade of
1.7 g/t gold has been accounted for in the reserves.
Note 6, Mining losses have been estimated at 10% for general mining,
plus approximately 10% of the sill pillar that will not be
recovered. These losses are accounted for in the reserves.
Note 7, The mineral reserve estimate for Alejandra North varies
slightly from the feasibility study estimate due to expected
better recovery from the sill pillar based on the updated mine
plan prepared by Wardrop.

Time Line for Production

Mine and Quarry Engineering Services of San Mateo, California are progressing well with Basic Engineering for the project, which is scheduled to be completed by March, 2007, at which time updated capital, operating and economic estimates will be completed and the feasibility study will be formally updated.

Proposals have been requested for Detailed Engineering, Procurement and Construction ("EPC") work, and a contractor will be selected in December 2006 to commence these activities in early 2007. Wardrop has already been pre-selected to conduct the Detailed Engineering of the mine, including all aspects of the shaft and hoisting equipment. In addition, Mas Errasurriz of Santiago, Chile has been pre-selected as the mining contractor.

The permitting process is on-going with public diffusions of project information taking place at all levels of stakeholder interest (from Government Ministries to local communities) in order to define the "Terms of Reference" (a formal requirement under Ecuadorian law) for the final Environmental Impact Study ("EIS"). The EIS is scheduled to be submitted in late November, and while exact timelines for approval are not easy to estimate, IMC anticipates receipt of environmental approval for the project early in the second quarter of 2007.

Final governmental approval of the EIS is the key "trigger" for all site development and construction activities on the project. Given IMC's current estimate of the timing of the receipt of all the necessary permits, production is now estimated to commence in the second quarter of 2008.

Proposed Mining Method

The Alejandra North deposit is expected be mined by a long hole open stoping technique with a combination of paste and waste rock backfill using mobile diesel-operated rubber-tired equipment. San Luis will be mined by means of conventional sub-level stoping. The majority of the mine will be accessed via a shaft and a ramp system connected to surface at two portals. A shaft will be located central to the deposits and close to the process plant location to minimize ore transportation and its location may also be advantageous to access potential new mineralized zones (e.g. the Bolivar area), currently being tested further to the east. The shaft is a new addition by Wardrop in the mine design due to higher diesel fuel costs that make truck haulage via a ramp a more expensive option. The mining methods employed will utilize ramp access to the mining levels (20 m between each level) and each stope will be backfilled after mining is completed. The mine will now also use a paste backfill instead of hydraulic backfill, principally due to scheduling issues.

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

Resignation of Officer

IMC also advises that its Vice-President of Finance, Quinn Bastian, has resigned to assume a position outside of the mining industry. IMC is currently seeking an appropriate replacement.


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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