GABY

International Minerals announced that the company has signed Memoranda of Understanding with a Chinese company, China CAMC Engineering Co., Ltd. for the financing and construction of the compoany’s Rio Blanco and Gaby gold projects in Ecuador.

International Minerals announced an update on the ongoing exploration drill program aimed at defining additional mineral resources at the Pallancata silver-gold mine in Peru. To date the 2009 exploration program at Pallancata drilled 11 holes for a total of 3,638m, in addition to the ongoing delineation and development drilling being conducted with underground drill rigs within the Pallancata Mine. Highlights includes from Hole VC09-002 with 0.7m grading 406 g/t silver and 1.6 g/t gold, in VC09-003 intersected 0.8m grading 527 g/t silver and 2.2 g/t gold and 1.5m grading 785 g/t silver and 1.5 g/t gold was found in VC09-005.

Results of an internal project optimization study and an updated mineral resource estimate for the Gaby gold porphyry deposit were reported. The Gaby Project was on hold pending the expiry of a Mining Mandate (which has suspended all exploration and production activities in Ecuador since April 2008) and the approval of a new mining law, which is expected in the coming weeks. Since the Feb11/08 PFS, an internal project optimization study has been undertaken by International Minerals Corporation (IMZ) to determine an optimal scale for the mining operation and process flowsheet in order to lower operating costs and benefit from improved economies of scale. For the optimization study, tonnage throughputs were considered at 20,000 tpd (the base case for the PFS), 40,000 tpd, 60,000 tpd and 80,000 tpd, using gold prices ranging from $750/oz to $1,500/oz. The optimization “base case” selected by IMZ is the 60,000 tpd case at $1,000/oz gold, which could yield a cash flow of US$916 million over a 16-year mine life at an estimated capital cost of US$900 million and could recover approximately 5.3 million gold ounces at an average annual production of approximately 330,000 ounces of gold. The Net Present value (NPV) at a 5% discount rate is approximately US$331 million and the Internal Rate of Return (IRR) is approximately 11%. At this base case projection, the project could break even at a gold price of approximately $850/oz. Previously released resource estimates have included grades for copper. Copper recovery has now been eliminated from the process flowsheet as the contained copper values at consensus long-term copper prices of approximately US$1.50 per pound do not meet the requirement of a “reasonable prospect for economic extraction” under NI 43-101 and therefore are no longer included in IMZ’s resource inventory for the Gaby Project.