May 20, 2008               
Realizes $4.12 Million ($0.04 per share) in Net Income for Third Quarter

International Minerals Corporation (TSX and SWX: “IMZ” or “the Company”) reported $4.12 million in net income, including $3.66 million in equity earnings from its 40%-owned Pallancata silver-gold mine in Peru for the fiscal third quarter ending March 31, 2008. IMZ’s joint venture partner at Pallancata, Hochschild Mining PLC (“Hochschild”), is the mine operator and holds a 60% interest in the project.

For the nine month period ended March 31, 2008, IMZ reported a loss of $0.77 million, partially offset by an equity earnings of $2.87 million from its 40% interest in the Pallancata Mine.

The Pallancata joint venture company, Minera Suyamarca S.A.C, has not yet distributed any cash dividends to the joint venture partners from the Pallancata Mine, but such dividends are expected to be paid by the end of June 2008.

During the 3-month period ended March 31, 2008, IMZ achieved the following significant accomplishments (all amounts reported in US$):

·         Completed the quarter with $67.1 million in cash and equivalents, aggregate working capital of $65.5 million and total assets of $155.0 million.

·         Generated net income of $4.12 million, primarily comprised of: equity earnings from IMZ’s 40% interest in the Pallancata Mine; a non-cash foreign exchange gain; and interest income. IMZ accounts for its interest in Pallancata on an equity accounting basis.

·         Realized production at the Pallancata Mine of 50,893 tonnes producing approximately 500,000 ounces of silver and 1,930 ounces of gold on a 100% basis, with the Company’s 40% share of production being approximately 200,000 ounces of silver and 770 ounces of gold.  

·         Realized fiscal year-to-date production at the Pallancata Mine of 129,228 tonnes of ore recovering 1,204,000 ounces of silver and 4,690 ounces of gold on a 100% basis, with the Company’s 40% share being 481,600 ounces of silver and 1,876 ounces of gold since start up in September 2007.

·         Announced updated proven and probable reserves at the Pallancata Mine of 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 on a 100% basis. See news release dated March 17, 2008 for details.  This updated reserve estimate represents a 187% increase from the previously-released reserve estimates. An updated National Instrument (NI) 43-101 technical report is pending.

·         Expended $4.7 million in resource property activities mainly in preliminary feasibility study drilling, metallurgy and field work for the Gaby gold property in Ecuador; for detailed engineering, metallurgy, field work and development costs for the Rio Blanco gold-silver project in Ecuador; and for exploration field work on the Urbaque project (adjacent to Pallancata) in Peru.

·         Continued working on an updated capital and operating cost estimate for the Rio Blanco project in Ecuador, which is expected to be completed by June 30, 2008.  

·         Announced an estimated 308.4 million tonnes at an average grade of 0.63 g/t gold containing 6.2 million ounces of measured and indicated gold resources at the Gaby gold property in Ecuador (the first NI 43-101 compliant mineral resource estimate). See news release dated February 11, 2008 for details. The Company also announced the results of a preliminary feasibility study for the Gaby project, which was not positive at a base case gold price of $650/oz gold. Optimization studies using higher production tonnages are ongoing at Gaby to evaluate the economy of scale effects on the overall project economics. This study is expected to be completed by the end of September 2008.

·         Received assay results from an additional 38 core drill holes totaling 10,927 meters (“m”) at the Main Gaby deposit at Gaby, including a drill intersection of 205m grading 1.3 g/tgold and 202m at 0.8 g/t gold.  These new drill results were not included in the measured and indicated resource estimate described above.

Quarterly production statistics, as reported by Hochschild, for the Pallancata Mine (100% basis) are summarized below for the last two calendar quarters:

Subsequent to the end of the quarter, on April 18, 2008, the National Constituent Assembly in Ecuador approved a new mining mandate, pending the issuance of a revised mining law.  The Company is analyzing the impact of the mandate on its Rio Blanco project (currently in the permitting process) and the Gaby project (currently in the preliminary feasibility stage of development).  Until the Company understands the full impact of the mining mandate, all drilling and the majority of on-site exploration activities at the Ecuador projects have been suspended. Critical technical studies, however, are continuing at both Rio Blanco and Gaby.  As far as the Company is aware, all of its concessions remain in good standing, however, the effects of the mining mandate have not yet been clarified.

For additional information, contact Wendy Yang at Tel: (303) 357-4863

Internet Site: http://www.intlminerals.com    E-mail:info@intlminerals.com

International Minerals Corporation
7950 E. Acoma Drive, Suite 211
Scottsdale, AZ 85260
U.S.A.
Tel: (480) 483-9932 • Fax: (480) 483-9926