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Imperial Reports Red Chris Production and Exploration Update for 2021 Second Quarter

Exploration Programs

imperialmetals.com

News Release

Imperial Reports Red Chris Production and Exploration Update for 2021 Second Quarter

Vancouver | July 21, 2021 | Imperial Metals Corporation (the “Company”) (TSX:III) reports Red Chris metal production (100%)

for the second quarter of 2021 was 17.6 million pounds copper and 15,451 ounces gold, compared to 15.9 million pounds

copper and 15,850 ounces gold produced during the first quarter of 202 1. Improved t hroughput and recover y for the

quarter were offset by lower head grades of 0.40% copper and 0.35 g/t gold compared to 0.43% copper and 0.42g/t gold in

the first quarte r. Imperial’s 30% portion of the first quarter production was 5.3 million pounds copper and 4,635 ounces

gold.

The newly installed cleaner column was commissioned during the quarter and is now operating. Early results have shown

improved gold recovery over results prior to the installation of this cleaner column cell.

The portal site excavation has been completed and the exploration decline is progressing, having advanced 21 metres as of

July 14, 2021 . The East Zone high grade pod is being drilled at a tighter spacing to provide the information required to

consider “early mining” as part of the Red Chris Block Cave Pre -Feasibility Study . Mining of this particularly high-grade

section of the East Zone prior to the block cave mining may increase initial cash flow and help fund the development of

block caving operations. The Pre-Feasibility Study is expected to be released by the end of September 2021.

Exploration Update

Drilling continues to expand the higher-grade mineralization at East Ridge, the recently discovered extension of the Red

Chris deposit. Drill hole RC700 intersected 366 metres grading 1.1g/t gold and 0.93% copper from a depth of 738 metres,

including 146 metres grading 2.1g/t gold and 1.6% copper from a depth of 780 metres. The discovery of such wide zones of

high-grade mineralization, which are comparable to some of the better intercepts from the East Zone, clearly illustrates the

potential for the East Ridge to develop into an important new development area. Hole RC700 was drilled 100 metres above

the previously reported hole RC688. Drill hole RC692 targeted the 100 m etre down-plunge projection of mineralization

intersected in hole RC684. Hole RC692 successfully intersected 274 metres of 0.40g/t gold and 0.41% copper from 1090

metres to 1364 metres.

Brian Kynoch, President of Imperial Metals Corporation, said “RC700 has yielded the highest grades to date from the East

Ridge. This intercept is similar to those encountered in the high -grade pods in the East Zone and shows that this eastern

extension of mineralization at Red Chris has the potential to contain high -grade pods similar to those in the East Zone.”

Red Chris - Significant results since June 9, 2021 drilling update:

Hole ID From (m) To (m) Width (m) Gold (g/t) Copper (%)

RC700 738 1104 366 1.1 0.93

including 774 1000 226 1.6 1.3

including 780 926 146 2.1 1.6

RC692 1090 1364 274 0.40 0.41

including 1242 1336 94 0.61 0.49

During the second quarter there were up to eight drill rigs in operation, completing 26 drill holes for a total of about 30,055

drilled metres. All the holes, except six geotechnical drill holes, intersected mineralization. Since the commencement of

the Joint Venture in 2019, 137 drill holes totalling about 166,686 metres have been drilled.

Drilling is ongoing at East Ridge to further define the extent and continuity of this zone, with ten holes completed and three

in progress. The follow up drilling is being completed on a nominal 100 x 100 metre grid to determine the footprint of the

mineralization and demonstrate the continuity of the higher-grade mineralization. The East Ridge is open in all directions

and has extended the eastern limit of copper and gold mineralization.

Approximately 50,000 metres of growth-related drilling is planned this calendar year.

imperialmetals.com

Jim Miller-Tait, P.Geo., Imperial Metals Vice President Exploration, is the designated Qualified Person as defined by National

Instrument 43-101 for the Red Chris exploration program and has reviewed this news release. Red Chris samples for the

2021 drilling reported were analysed at Bureau Veritas Mineral La boratories in Vancouver. A full QA/QC program using

blanks, standards and duplicates was completed for all diamond drilling samples submitted to the labs. Significant assay

intervals reported represent apparent widths. Insufficient geological information is available to confirm the geological

model and true width of significant assay intervals.

Cross section and plan view maps are available on imperialmetals.com.

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About Imperial

Imperial is a Vancouver based exploration, mine development and operating company. The Company, through its

subsidiaries, owns a 30% interest in the Red Chris mine, and a 100% interest in both the Mount Polley and H uckleberry

copper mines in British Columbia.

Company Contacts

Brian Kynoch | President | 604.669.8959

Darb Dhillon | Chief Financial Officer | 604.488.2658

Jim Miller-Tait | Vice President Exploration | 604.488.2676

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this news release are not statements of historical fact and are “forward -looking” statements.

Forward-looking statements relate to future events or future performance and reflect Company manageme nt’s expectations

or beliefs regarding future events and include, but are not limited to, statements and inferences regarding the potential for

continued improved gold recovery from the newly installed cleaner column, the Company’s expectations and timing with

respect to the Red Chris Block Cave Pre -Feasibility Study, current and planned drilling programs at Red Chris, including mining

of the East Zone high grade pod and plans to define the extent and continuity of the mineralization in the East Ridge and t he

potential importance of the East Ridge as a development area, and statements regarding cash flow and the funding of block

caving operations.

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. 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 -looking statements.

In making the forward -looking statements in this release, the Company has applied certain factors and assumptions that are

based on information currently available to the Company as well as the Company’s current beliefs and assumptions. These

factors and assumptions and beliefs and assumptions include, t he risk 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 at www.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, many of which are beyond

the Company’s ability to control or predict. 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 and all forward -looking statements in this news release are qualified

by these cautionary statements. Such information is given only as of the date of this news release. The Company does not assume

any obligation to update its forward -looking information to reflect new information, subsequent events or otherwise, except as

required by law.