Construction Underway At Red Chris

VANCOUVER, BC - Imperial Metals Corporation reported its Red Chris copper/gold development project in northwest British Columbia, located 80 kilometres south of Dease Lake.

Red Chris Construction Update

Construction at Red Chris is well underway with completion of the excavation in the process plant area, and the start of concrete placement on September 24. The access road from the plant area to the tailings impoundment area (TIA) was completed in September, enabling haulage to the process plant of concrete aggregates produced from a gravel source located within the TIA. Red Chris is on schedule for plant start-up in 2014.

Work at Red Chris is currently being financed through cash flow from existing operations and an existing $75 million credit facility from the Company''s bankers. To provide Imperial with additional working capital, the Company''s bankers have agreed to increase Imperial''s credit facility from $75 million to $150 million, and to extend the maturity date of the entire credit facility to September 30, 2013. The additional $75 million has been guaranteed by Mr. N. Murray Edwards, a significant shareholder of the Company. In consideration of the guarantee, Mr. Edwards will receive an annual fee of $472,500 representing 0.63% of the additional $75 million. Payment of the guarantee fee to Mr. Edwards constitutes a related party transaction within the meaning of Multilateral Instrument 61-101.

The company's address is 200-580 Hornby Street, Vancouver, BC V6C 3B6, 604.669.8959.