Red Chris Mineral Resource Tonnage Increased by 103%

Red Chris Mineral Resource Tonnage Increased by 103%

Vancouver - February 2, 2012 - Imperial Metals Corporation (III-TSX) reports a tonnage increase of 103% in the Measured and Indicated Resource at its Red Chris copper/gold deposit. The 2012 Technical Report⁽¹⁾ (“2012 Report”) includes assay results from 62 diamond drill holes totalling over 69 thousand metres completed since the May 2010 resource update. The Measured and Indicated Resource increased to 8.89 billion pounds copper and 12.90 million ounces gold, while the Inferred Resource increased to 7.44 billion pounds copper and 11.35 million ounces gold, all at a 0.1% copper cut-off.

For the first time the 2012 Report provides a calculation of the significant silver resource contained in the Red Chris deposit. Historic drilling had not been consistently assayed for silver, however drilling completed by Imperial since 2007 was assayed for silver which has provided sufficient data to calculate a silver resource. There are 44.61 million ounces silver in the Measured and Indicated category and 47.04 million ounces silver in the Inferred category, all at a 0.1% copper equivalent cut-off.

Historically resource calculations for the Red Chris deposit were completed using a copper only grade cut-off to estimate the resource tonnage and grade. The 2012 Report provides an estimate using a copper only grade cut-off for continuity however, as gold is a major contributor to the value of the Red Chris deposit, a copper equivalent (“CuEq”)cut-off has been included in this report. Imperial will report resources using a CuEq cut-off for future updates when estimating the tonnage and grade of the Red Chris mineral resource.

Accordingly, the tables in this news release provide Red Chris mineral resource estimates using both a copper only cut-off and a CuEq cut-off at a range of 0.1% to 0.3%. Utilizing the CuEq cut-off makes a large difference at higher cut-offs with almost double the measured and indicated resource. For example there are 936.21 million tonnes at a 0.3% CuEqcut-off compared to 504.69 million tonnes at a 0.3% copper only cut-off.

2012 MEASURED + INDICATED MINERAL RESOURCES (Copper Only Cut-Off)
Cu Cut-Off	Tonnes	CuEq %	Copper %	Gold g/t	Silver g/t	lbs Copper	oz Gold	oz Silver
>=0.1	1,258,473,600	0.506	0.321	0.319	1.102	8,892,051,030	12,902,970	44,587,874
>=0.2	907,956,800	0.603	0.381	0.381	1.206	7,624,405,067	11,130,715	35,204,936
>=0.3	504,697,856	0.787	0.490	0.509	1.432	5,449,793,464	8,262,489	23,236,223

2012 MEASURED + INDICATED MINERAL RESOURCES (Copper Equivalent Cut-Off)
CuEq Cut-Off	Tonnes	CuEq %	Copper %	Gold g/t	Silver g/t	lbs Copper	oz Gold	oz Silver
>=0.1	1,260,268,288	0.506	0.320	0.319	1.101	8,896,396,672	12,909,215	44,610,942
>=0.2	1,218,017,664	0.517	0.327	0.327	1.114	8,778,055,255	12,801,462	43,624,437
>=0.3	936,210,496	0.598	0.374	0.385	1.224	7,710,990,648	11,573,399	36,842,236

2012 INFERRED MINERAL RESOURCES (Copper Only Cut-Off)
Cu Cut-Off	Tonnes	CuEq %	Copper %	Gold g/t	Silver g/t	lbs Copper	oz Gold	oz Silver
>=0.1	1,266,320,512	0.429	0.267	0.279	0.991	7,442,752,715	11,358,969	40,346,732
>=0.2	785,098,880	0.535	0.333	0.347	1.145	5,756,737,224	8,766,378	28,901,535
>=0.3	378,613,504	0.696	0.430	0.457	1.345	3,585,833,958	5,566,579	16,372,291

2012 INFERRED MINERAL RESOURCES(Copper Equivalent Cut-Off)
CuEq Cut-Off	Tonnes	CuEq %	Copper %	Gold g/t	Silver g/t	lbs Copper	oz Gold	oz Silver
>=0.1	1,658,879,360	0.357	0.218	0.239	0.882	7,968,963,487	12,752,210	47,040,773
>=0.2	1,216,387,328	0.441	0.271	0.292	1.020	7,275,309,676	11,407,734	39,889,916
>=0.3	871,156,032	0.518	0.315	0.349	1.138	6,047,813,802	9,760,898	31,873,465

The copper equivalent estimate was based on copper and gold values and metal prices. No provision was made for metallurgical recoveries for the metals. The formula used to calculate copper equivalent values is:

CuEq = [Cu% + (Au g/t *0.583)]: using US$3.00/lb copper price & US$1,200/oz gold price

The mineral resource estimate was prepared internally by Art Frye, Mine Operations Manager, Mount Polley mine, and Greg Gillstrom, P.Eng, Senior Geological Engineer, Imperial Metals Corporation. Mr. Gillstrom is designated as the Qualified Person as defined under 43-101 for the resource calculation. Messrs. Gillstrom and Frye have each reviewed the contents of this release.

Tables containing the mineral resource at cut-off grades ranging from 0.1% to 1.5%, along with tables with estimates for each resource category, will be available on the Company’s website⁽²⁾ and will be contained in the 2012 Report which the Company expects to file on SEDAR (www.sedar.com) within 10 days.
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For comparison purposes, the tables below provide the 2010 Report⁽³⁾
measured and indicated, and inferred mineral resource estimates:

2010 MEASURED + INDICATED MINERAL RESOURCES (Copper Only Cut-Off)
Cu Cut-Off	Tonnes	CuEq %	Copper %	Gold g/t	Silver g/t	lbs Copper	oz Gold	oz Silver
>=0.1	617,417,000	0.534	0.38	0.36	-	5,139,790,000	7,162,000	-

2010 INFERRED MINERAL RESOURCES (Copper Only Cut-Off)
Cu Cut-Off	Tonnes	CuEq %	Copper %	Gold g/t	Silver g/t	lbs Copper	oz Gold	oz Silver
>=0.1	619,129,000	0.443	0.30	0.32	-	4,120,730,000	6,429,000	-

RED CHRIS EXPLORATION UPDATE

Exploration has now resumed at the Gulley zone on drill hole RC11-564, which was suspended at a depth of 810 metres when 2011 drilling shut down for a seasonal hiatus.

In late 2011 Imperial had completed two drill holes in the East Ridge area located outside of the proposed pit area⁽⁴⁾. Drill hole RC11-565 was collared 425 metres east of the planned pit and intersected 79.0 metres of mineralization grading 0.39% copper and 0.21 g/t gold starting at 713.9 metres depth. Drill hole RC11-566 stepped out 1,320 metres to the east of the proposed pit and did not intersect significant mineralization but provided important geologic information regarding the stratigraphy, alteration and structure on the regional scale.

Steve Robertson, P.Geo., the designated Qualified Person as defined by National Instrument 43-101 for the exploration programs at Red Chris, has reviewed this news release. Samples for the diamond drilling reported at Red Chris were analyzed both at Acme Analytical Laboratories in Vancouver and at Imperial’s Mount Polley minesite. A full QA/QC program using blanks, standards and duplicates was maintained for all samples submitted to the labs. The Red Chris porphyry mineralization may be irregular in shape so true thicknesses have not been estimated.

Imperial’s wholly owned Red Chris copper/gold project is located 80 kilometres south of Dease Lake in northwest British Columbia. The property lies at an elevation of 1,500 metres above sea level on a plateau with topography and climate favourable to mining operations. Access to the property from pavement at Highway 37 is six kilometres along the Ealue Lake Road, and 17 kilometres along the Red Chris access trail.

Imperial is a mine development and operating company based in Vancouver, British Columbia. The Company’s key properties are two open pit mines: Mount Polley copper/gold mine and Huckleberry copper/molybdenum mine, both in British Columbia, as well as the development stage Red Chris copper/gold property in British Columbia and the Sterling gold property in Nevada.

Documents available on www.imperialmetals.com:
⁽¹⁾ Red Chris 2012 Updated Technical Report (will be available within 10 days of the date of this news release)
⁽²⁾ Red Chris mineral resource tables with cut-off grades ranging from 0.1%-1.5%
⁽³⁾ Red Chris 2010 Technical Report
⁽⁴⁾ Red Chris deep drilling plan map
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Contact: Brian Kynoch, President 604.669.8959; Gordon Keevil, VP Corporate Development 604.488.2677;
Sabine Goetz, Investor Relations 604.488.2657 // website: www.imperialmetals.com // email: info@imperialmetals.com

CAUTIONARY NOTE REGARDING “FORWARD-LOOKING INFORMATION”:

THIS NEWS RELEASE CONTAINS “FORWARD-LOOKING STATEMENTS” WITHIN THE MEANING OF CANADIAN AND UNITED STATES SECURITIES LAWS. EXCEPT FOR STATEMENTS OF FACT RELATING TO THE COMPANY, CERTAIN INFORMATION CONTAINED HEREIN CONSTITUTES FORWARD-LOOKING STATEMENTS.

WHEN WE DISCUSS CURRENT AND FUTURE EXPECTATIONS OR ASSUMPTIONS; FUTURE PRICE OF COPPER AND GOLD; OR OTHER THINGS THAT HAVE NOT YET HAPPENED IN THIS NEWS RELEASE BASED ON THESE CALCULATIONS, WE ARE MAKING STATEMENTS CONSIDERED TO BE FORWARD-LOOKING INFORMATION OR FORWARD-LOOKING STATEMENTS UNDER CANADIAN AND UNITED STATES SECURITIES LAWS. WE REFER TO THEM IN THIS NEWS RELEASE AS FORWARD-LOOKING INFORMATION. THE FORWARD-LOOKING INFORMATION IN THIS NEWS RELEASE TYPICALLY INCLUDES WORDS AND PHRASES ABOUT THE FUTURE, SUCH AS: PLAN, EXPECT, FORECAST, INTEND, ANTICIPATE, ESTIMATE, BUDGET, SCHEDULED, BELIEVE, MAY, COULD, WOULD, MIGHT AND WILL.

WE CAN GIVE NO ASSURANCE THAT THE FORWARD-LOOKING INFORMATION WILL PROVE TO BE ACCURATE. IT IS BASED ON A NUMBER OF ASSUMPTIONS MANAGEMENT BELIEVES TO BE REASONABLE, INCLUDING BUT NOT LIMITED TO: THE CONTINUED OPERATION OF THE COMPANY’S MINING OPERATIONS, THAT THE MINING OPERATIONS WILL OPERATE AND THE MINING PROJECTS WILL BE COMPLETED IN ACCORDANCE WITH THEIR ESTIMATES AND ACHIEVE STATED PRODUCTION OUTCOMES, AND SUCH OTHER ASSUMPTIONS AND FACTORS AS SET OUT HEREIN. IT IS ALSO SUBJECT TO RISKS ASSOCIATED WITH OUR BUSINESS, INCLUDING BUT NOT LIMITED TO: RISKS INHERENT IN THE MINING AND METALS BUSINESS; COMMODITY PRICE FLUCTUATIONS AND HEDGING; COMPETITION FOR MINING PROPERTIES; SALE OF PRODUCTS AND FUTURE MARKET ACCESS; MINERAL RESERVES AND RECOVERY ESTIMATES; CURRENCY FLUCTUATIONS; INTEREST RATE RISK; FINANCING RISKS; ENVIRONMENTAL RISKS; FOREIGN ACTIVITIES; LEGAL PROCEEDINGS; AND OTHER RISKS THAT ARE SET OUT IN OUR ANNUAL INFORMATION FORM AND MANAGEMENT’S DISCUSSION & ANALYSIS. IF OUR ASSUMPTIONS PROVE TO BE INCORRECT OR RISKS MATERIALIZE, OUR ACTUAL RESULTS AND EVENTS MAY VARY MATERIALLY FROM WHAT WE CURRENTLY EXPECT AS SET OUT IN THIS NEWS RELEASE.

WE RECOMMEND YOU REVIEW OUR ANNUAL INFORMATION FORM AND ANNUAL MANAGEMENT’S DISCUSSION AND ANALYSIS, WHICH INCLUDE A DISCUSSION OF MATERIAL RISKS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM OUR CURRENT EXPECTATIONS. FORWARD-LOOKING INFORMATION IS DESIGNED TO HELP YOU UNDERSTAND MANAGEMENT’S CURRENT VIEWS OF OUR NEAR AND LONGER TIME PROSPECTS, AND IT MAY NOT BE APPROPRIATE FOR OTHER PURPOSES. WE WILL NOT NECESSARILY UPDATE THIS INFORMATION UNLESS WE ARE REQUIRED TO BY SECURITIES LAWS.

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