Mr. Brian Kynoch reports

IMPERIAL REPORTS THIRD QUARTER 2023 FINANCIAL RESULTS

Imperial Metals Corp. has released financial results for the three and nine months ended Sept. 30, 2023, as summarized in this news release and discussed in detail in its management's discussion and analysis. The company's financial results are prepared in accordance with international financial reporting standards.

Quarter highlights

Financial

Total revenue was $78.5-million in the September, 2023, quarter compared with $41.7-million in the 2022 comparative quarter.

In the September, 2023, quarter, the Red Chris mine (100-per-cent basis) had 3.4 concentrate shipments (2022: 4.4 concentrate shipments). The Mount Polley mine had 1.2 concentrate shipments (2022: 0.3 concentrate shipment).

Variations in revenue are impacted by the restart of the Mount Polley mine operations, timing and quantity of concentrate shipments, metal prices and exchange rates, and period-end revaluations of revenue attributed to concentrate shipments, where copper and gold prices will settle at a future date.

The London Metal Exchange cash settlement copper price per pound averaged $3.79 (U.S.) in the September, 2023, quarter compared with $3.51 (U.S.) in the 2022 comparative quarter. The LBMA (London Bullion Market Association) gold price per troy ounce averaged $1,929 (U.S.) in the September, 2023, quarter compared with $1,729 (U.S.) in the 2022 comparative quarter. The average U.S./Canadian-dollar exchange rate was 1.341 in the September, 2023, quarter, 2.7 per cent higher than the exchange rate of 1.306 in the September, 2022, quarter. In Canadian-dollar terms, the average copper price in the September, 2023, quarter was $5.08 per pound compared with $4.59 per pound in the 2022 comparative quarter, and the average gold price in the September, 2023, quarter was $2,587 per ounce compared with $2,258 per ounce in the 2022 comparative quarter.

A negative revenue revaluation in the September, 2023, quarter was $3.4-million as compared with a negative revenue revaluation of $5.3-million in the 2022 comparative quarter. Revenue revaluations are the result of the metal price on the settlement date and/or the current period balance sheet date being higher or lower than when the revenue was initially recorded or the metal price at the last balance sheet date and finalization of contained metal as a result of final assays and weights.

Net loss for the September, 2023, quarter was $2.9-million (two cents per share) compared with net loss of $27.9-million (18 cents per share) in the 2022 comparative quarter. The decrease in net loss of $25.0-million was primarily due to the following factors:

• Mine operations improved from a loss of $9.2-million in the September, 2022, quarter to an income of $500,000 in the September, 2023, quarter, decreasing net loss by $9.7-million.
• Mount Polley restart costs were $12.3-million in the September, 2022, quarter compared with nil in the September, 2023, quarter, decreasing net loss by $12.3-million as the Mount Polley mine was in operations.
• Interest expense increased from $2.4-million in the September, 2022, quarter to $8.7-million in the September, 2023, quarter, increasing net loss by $6.3-million.
• Tax expense was $1.9-million in the September, 2022, quarter compared with a tax recovery of $9.0-million in the September, 2023, quarter, decreasing net loss by $10.9-million.

Capital expenditures including leases were $39.8-million in the September, 2023, quarter, a decrease of $1.4-million from $41.2-million in the 2022 comparative quarter. The September, 2023, quarter expenditures included $11.7-million in exploration, $13.6-million for tailings dam construction, $3.5-million on stripping costs and $11.0-million of other capital.

At Sept. 30, 2023, the company had not hedged any copper, gold or U.S./Canadian-dollar exchange. Quarterly revenues will fluctuate depending on copper and gold prices, the U.S./Canadian-dollar exchange rate, and the timing of concentrate sales, which is dependent on concentrate production and the availability and scheduling of transportation.

Qualified person

The technical and scientific information in this news release related to the company's mineral projects has been reviewed and approved by Brian Kynoch, PEng, president of Imperial Metals, who is a designated qualified person as defined by National Instrument 43-101.

For detailed information, refer to Imperial Metals' third quarter 2023 report available on the Imperial Metals website and SEDAR+.

About Imperial Metals Corp.

Imperial Metals is a Vancouver-based exploration, mine development and operating company with holdings that include the Mount Polley mine (100 per cent), the Huckleberry mine (100 per cent) and the Red Chris mine (30 per cent). In addition, Imperial Metals has a portfolio of 23 greenfield exploration properties located mainly in British Columbia. Imperial Metals also holds royalty interests in another 13 properties. Management continues to evaluate various opportunities to advance many of these properties.

We seek Safe Harbor.