International Minerals Reports Solid First Quarter Production Results and Updates Reserve Estimate at Pallancata Mine in Peru

International Minerals Corporation (TSX:IMZ) (SWX:IMZ) reports that production at the Pallancata silver-gold mine in southern Peru increased 160% for silver and 156% for Gold for the calendar first quarter ended March 31, 2009 (Q1 2009) from the calendar first quarter a year ago.

In addition, IMZ also announces an update to mineral reserve and resource estimates for the Pallancata Mine, jointly owned by IMZ (40% interest) and Hochschild Mining plc ("Hochschild”, 60% interest and operatorship).

Quarterly Production

Table 1 below shows that Pallancata’s Q1 2009 production compared to the prior quarter ended December 31, 2008 (Q4 2008) was lower due to the seasonal effect of fewer processing days in Q1 versus Q4 and also due to the temporary labor stoppage by local workers as described in IMZ’s March 24 and 27, 2009 news releases. The labor dispute was resolved by Hochschild and will not impact Pallancata’s full year 2009, 100% production estimate by IMZ of 7 million ounces of silver and 25,000 ounces of gold. Total cash costs for calendar 2009 are still estimated at approximately $6.50 per ounce silver, after gold by-product credit.

For Q1 2009, direct site costs were $4.16 per ounce of silver and total cash costs were $6.62 per ounce of silver, both after gold by-product credit. These costs are lower by 7% and 3%, respectively, compared to Q4 2008, largely due to the higher average grade of silver and higher gold by-product price during Q1 2009. The Pallancata Mine is currently ramping up from 2,000 tonnes per day ("tpd”) in Q4 2008 to a planned 3,000 tpd by the end of calendar 2009.

Notes to Tables 1 and 2:

1. The head grades for silver and gold are based on the overall metallurgical balance for the process plant.

2. The difference between "produced” metal ounces and "sold” metal ounces is a combination of the smelter metal payability factors (96% for both silver and gold for the current period) and in-process concentrate. Quarterly silver production is shown rounded to hundreds of ounces.

3. Direct Site Costs per ounce silver and Total Cash Costs per ounce silver reflect a "mined ore inventory adjustment”. IMZ believes that this calculation more accurately matches costs with ounces of production. (Also see notes 4 and 5 below.)

4. Direct Site Costs per ounce silver comprise direct mining, mined ore inventory adjustment, toll processing and mine general and administrative costs (net of gold by-product credit).

5. Total Cash Costs, using the Gold Institute’s definition, comprise: mine operating costs, mined ore inventory adjustment, toll processing costs, mine general and administrative costs, Hochschild’s management fee, concentrate transportation and smelting costs, taxes (other than federal income tax) and the Peruvian government royalty.

Reserves and Resources

Table 3 below shows updated estimated mineral reserves and resources for the Pallancata Mine (effective date of December 31^st, 2008) based on information supplied by the mine operator, Hochschild. Resources and Reserves are reported at a cut-off grade of 158 grams per tonne ("g/t”) silver equivalent, which reflects a marginal economic cut-off value of $46 per tonne using metal prices of US$12 per ounce of silver and US$800 per ounce of gold.

Updated Proven and Probable Reserve estimates ("Reserves”), on a 100% basis, comprise 4.3 million tonnes at an average grade of 366 grams per tonne ("g/t”) silver and 1.5 g/t gold, containing a total of 50.6 million ounces of silver and 209,000 ounces of gold (or approximately 64.5 million ounces of silver equivalent using US$12 per ounce silver and US$800 per ounce gold).

The updated Measured and Indicated Resource estimate ("M&I Resources”), on a 100% basis, comprises 4.3 million tonnes at an average grade of 415 g/t silver and 1.7 g/t gold, containing a total of 57.5 million ounces of silver and 238,000 ounces of gold. The M&I Resources include the estimated Reserves. An additional 1.2 million tonnes at an average grade of 395 g/t silver and 1.6 g/t gold containing a total of 15.5 million ounces of silver and 62,000 ounces of gold are estimated in Inferred Resources.

Hochschild’s data and methodology have been reviewed by Toronto-based independent consultants Micon International’s Geraint Harris for the reserve estimates and Reno Pressacco for the resource estimates. Both are Qualified Persons as defined by National Instrument 43-101. IMZ will file a Technical Report on Sedar in support of this disclosure within 45 days.

1. Measured and Indicated Resources include Proven and Probable Reserves.

2. Metal prices used are US$12/oz for silver and US$800/oz for gold.

3. The estimated reserves include 12% for ore loss during mining and 13% for dilution assigned using zero grade.

4. The estimated mineral resources are not mineral reserves and do not have demonstrated economic viability.

5. Numbers have been rounded in all categories to reflect the precision of the estimates.

6. The mineral resources were estimated using ordinary kriging for the major vein units and inverse distance to the power of three for peripheral veins.

7. The mineral reserves were estimated from the Life of Mine plan, which defined sustaining capital requirements and mine operating costs, to demonstrate that these reserves can be economically extracted and processed. Mining losses and dilution were determined based on sub-surface geotechnical conditions, the mining method employed and equipment capabilities for each area of the mine.

8. Contained metal in estimated reserves remains subject to metallurgical recovery losses.

9. The resource and reserve estimates reflect the deposit at Pallancata as of December 31, 2008.

Commenting on the updated resource and reserve estimates, Stephen Kay, President and Chief Executive Officer of IMZ said, "The overall mineral grades for M&I Resources and Reserves have improved considerably. The decrease in the overall resource and reserve estimates compared to the data released by IMZ in August 2008 was due primarily to a change to a more conservative resource and reserve estimation methodology by Hochschild, which was applied to all of their underground mining operations in South America. As of December 31, 2008, Hochschild’s 60% interest in Pallancata represents approximately 40% and 34% of Hochschild’s total reserve base in silver and silver equivalent ounces, respectively (based on Hochschild’s March 25, 2009 published data), and so it is an important part of both IMZ’s and Hochschild’s cash flow potential for the future.”

The technical information reported in this news release was 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.

For additional information, contact Wendy Yang at (1) 303-357-4863
Internet Site: http://www.intlminerals.com

Cautionary Statement:

The Gold Institute calculation of Direct Site Costs and Total Cash Costs are non-Canadian GAAP financial measures, which IMZ management believes are useful in measuring operational performance. 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 estimates of production, total cash costs and reserves and resources. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks in attaining ramped-up production and processing rates, risks of cost escalation, risks of estimating mineral resources and reserves, variances between mineral reserves and actual mineral production and other risks and uncertainties detailed in the Company’s Renewal Annual Information Form for the year ended June 30, 2008, 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.