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Imperial Reports 2017 Production and 2018 Production Targets

Corporate Updates

imperialmetals.com 

  News Release 

Imperial Reports 2017 Production and 2018 Production Targets

Vancouver | January 11, 2018 | Imperial Metals Corporation (the “Company”) (TSX:III) reports its 2017 metals production

from all operations totaled 93.7 million pounds copper and 81,425 thousand ounces gold.

Red Chris Mine

In 2017, the Red Chris mill achieved 95% of design capacity averaging 28,433 tonnes per calendar day.

Fourth quarter production totaled 23.23 million pounds copper and 13,020 ounces gold, compared to 19.65 million pounds

copper and 8,426 ounces gold in the 2017 third quarter, an increase of 18% and 55% respectively. Copper and gold grades

were higher in the fourth quarter and averaged 0.52% copper and 0.324 g/t gold, with the higher grades delivered to the mill

from the lower benches in the Ma in zone pit. Metal recoveries a lso increased to 81.03% for copper and 49.99% for gold.

The average copper recovery for the fourth quarter sets a new r ecord high for Red Chris, and the gold recovery is a record

high for a quarter during which only Main Zone ores were treated.

The quarterly production chart highlights the significant rise in gold production between the 2017 first and fourth quarters

from 5,811 to 13,020 ounces. This is the result of the gold gra de increasing from 0.201 g/t to 0.324 g/t, and gold recovery

increasing from 37.43% to 49.99%. Copper production during the year increased approximately 42% from the first quarter

to year end as a result of better grade and recovery.

3 Months Ended December 31 Year Ended December 31

2017 2016 2017 2016

Ore milled - tonnes 2,498,900 2,291,150 10,378,181 9,651,738

Ore milled per calendar day - tonnes 27,162 24,904 28,433 26,371

Grade % - copper 0.520 0.382 0.413 0.507

Grade g/t - gold 0.324 0.193 0.233 0.309

Recovery % - copper 81.03 75.96 79.01 77.52

Recovery % - gold 49.99 32.83 43.00 49.04

Copper – 000’s pounds 23,234 14,659 74,636 83,614

Gold – ounces 13,020 4,661 33,416 47,088

Silver – ounces 43,884 25,918 133,157 190,624

The 2018 production target for Red Chris is 72-77 million pounds copper and 31-33 thousand ounces gold.

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  imperialmetals.com 

Mount Polley Mine

Fourth quarter production totaled 4.02 million pounds copper an d 10,252 ounces gold, a slight increase compared to 3.98

million pounds copper and 9,989 ounces gold in the 2017 third q uarter. Ore release from the Cariboo pit was slower than

planned at the beginning of the year as the forest fires in the Cariboo region affected mining operations this summer. The

reduction in mill feed available from the Cariboo pit resulted in a higher percentage of mill feed coming from stockpiles in

the fourth quarter.

3 Months Ended December 31 Year Ended December 31

2017 2016 2017 2016

Ore milled - tonnes 1,806,399 1,632,355 6,723,188 6,684,824

Ore milled per calendar day - tonnes 19,635 17,743 18,420 18,265

Grade % - copper 0.178 0.208 0.199 0.247

Grade g/t - gold 0.283 0.326 0.322 0.310

Recovery % - copper 56.77 66.60 64.53 69.66

Recovery % - gold 62.47 66.00 68.93 69.78

Copper – 000’s pounds 4,023 4,977 19,071 25,339

Gold – ounces 10,252 11,291 48,009 46,444

Silver – ounces 7,888 11,237 36,626 90,125

Approximately 5 million tonnes of mill tailings were stored in the Springer pit following the resumption of operations in

2015. To remove the tailings from the Springer pit and gain acc ess to the ore beneath, a dredge is being mobilized to pump

the tailings from the pit to the repaired and buttressed tailings facility. We expect this to be complete by early 2019.

Mining in the Cariboo pit will be completed in mid-2018. The mine then will rely on stockpiled ore to provide mill feed for

the balance of the year. This will result in a temporary reduction in mine operations staff in 2018 and 2019.

The 2018 production target for Mount Polley is 17-19 million pounds copper and 44-47 thousand ounces gold.

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About Imperial

Imperial is a Vancouver exploration, mine development and operating company. The Company, through its subsidiaries, owns the Red Chris,

Mount Polley and Huckleberry copper mines in British Columbia. Imperial also holds a 50% interest in the Ruddock Creek lead/zinc property.

Company Contacts

Brian Kynoch | President | 604.669.8959

Andre Deepwell | Chief Financial Officer | 604.488.2666

Gordon Keevil | Vice President Corporate Development | 604.488.2677

Sabine Goetz | Shareholder Communications | 604.488.2657 | [email protected]

Forward-Looking Information and Risks Notice

Forward-looking statements relate to future events or future performance and reflect Company management's expectations or beliefs regarding

future events and include, but are not limited to, 2018 production targets for the Red Chris and Mount Polley mines; the expected completion of

the dredging of Mount Polley’s Springer pit by early 2019; expectations that mining in Mount Polley’s Cariboo pit will be completed in mid-

2018 after which stockpiled ore will provide mill feed for the balance of the year; anticipated temporary reductions in mine operations staff in

2018 and 2019. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”,

“is expected”, “outlook”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or

variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”,

“occur” or “be achieved” or the negative of these terms or comparable terminology. In this document certain forward-looking statements are

identified by words including “guidance”, “expectations”, “targeted”, “plan”, “planned”, “estimated”, “calls for” and “expected”. Forward-

looking information is not based on historical facts, but rather on then current expectations, beliefs, assumptions, estimates and forecasts about

the business and the industry and markets in which Imperial operates, including assumptions regarding Red Chris mine and Mount Polley mine

operations being conducted in accordance with our current plans, and assumptions regarding receipts of any required approvals. Such statements

are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. We can give no assurance that the forward-

looking information will prove to be accurate.

By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual

results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed

or implied by the forward-lookin g statements. Such factors incl ude, among others, operational risks and hazards, including una nticipated

environmental, industrial and geological events and developments and the inability to insure against all risks; risks of failure of plant, equipment,

processes, transportation and other infrastructure to operate as anticipated; and other risks of the mining industry as well as those factors detailed

from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of

which are filed and available for review on sedar.com. Although the Company has attempted to identify important factors that could cause actual

actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions,

events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be

accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not

place undue reliance on forward-looking statements.