Mr. Brian Kynoch reports

IMPERIAL REPORTS 2023 FINANCIAL RESULTS

Imperial Metals Corp. has released financial results for its fiscal year ended Dec. 31, 2023.

Total revenue increased to $344.5-million in 2023 compared with $172.8-million in 2022, an increase of $171.7-million or 99 per cent.

Revenue from the Mount Polley mine in 2023 was $233.3-million compared with $42.7-million in 2022, an increase of $190.6-million. In 2023, the Mount Polley mine had 5.7 concentrate shipments (2022: 1.0 concentrate shipment). Mount Polley restarted its operations in late June of 2022.

Revenue from the Red Chris mine in 2023 was $109.8-million compared with $129.5-million in 2022, a decrease of $19.7-million. In 2023, the Red Chris mine (100-per-cent basis) had 12.4 concentrate shipments (2022: 14.6 concentrate shipments).

Variations in revenue are impacted by the restart of operations, the 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 $3.85 (U.S.) in 2023 compared with $4 (U.S.) in 2022. London Bullion Market Association London gold price per troy ounce averaged $1,943 (U.S.) in 2023 compared with $1,801 (U.S.) in 2022. The average U.S./Canadian-dollar exchange rate in 2023 was 1.350 compared with an average of 1.302 in 2022. In Canadian-dollar terms, the average copper price in 2023 was $5.19 per pound compared with $5.21 per pound in 2022, and the average gold price in 2023 was $2,622 per ounce compared with $2,345 per ounce in 2022.

Revenue in 2023 decreased by a $7.6-million negative revenue revaluation compared with a negative revenue revaluation of $4.9-million in 2022. 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 in 2023 was $36.7-million (23 cents per share) compared with net loss of $75.9-million (51 cents per share) in 2022. The majority of the decrease in net loss of $38.8-million was primarily due to the following factors:

• Loss from mine operations reduced to $13.7-million in 2023 from loss of $28.7-million in 2022, a decrease in net loss of $15.0-million.
• Mine restart costs went from $64.9-million in 2022 to nil in 2023, a decrease in net loss of $64.9-million, which was slightly offset by the increase of $2.2-million in idle mine cost from $6.5-million in 2022 to $8.7-million in 2023.
• Net gain on disposal of mineral properties decreased by $17.8-million from $16.9-million in 2022 to a loss of $900,000 in 2023.
• Interest expense of $8.9-million in 2022 increased to $31.3-million in 2023, an increase of $22.4-million as a result of additional financing required to support working capital and capital expenditures in 2023 at the company's operating mines.

Capital expenditures including finance leases were $137.3-million in 2023, down from $150.0-million in 2022. Expenditures in 2023 included:

• $44.9-million in exploration, an increase of $3.5-million in comparison with 2022 of $41.4-million;
• $36.6-million for tailings dam construction, a decrease of $100,000 in comparison with 2022 of $36.7-million;
• $12.6-million on stripping costs, a decrease of $11.2-million in comparison with 2022 of $23.8-million;
• Investment in other plant and equipment of $43.2-million, a decrease of $4.9-million in comparison with 2022 of $48.1-million.

At Dec. 31, 2023, the company had $24.9-million in cash compared with $27.5-million at Dec. 31, 2022.

At Dec. 31, 2023, the company had not hedged any copper, gold or U.S./Canadian-dollar exchange. 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.

Technical information

The technical and scientific information 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.

Jim Miller-Tait, PGeo, vice-president, exploration, with Imperial Metals, is the designated qualified person as defined by National Instrument 43-101 for the Red Chris, Mount Polley and Huckleberry mines exploration programs.

Outlook

Corporate and operations

At Dec. 31, 2023, the company had not hedged any copper, gold or U.S.-dollar/Canadian-dollar exchange. Quarterly revenues will fluctuate depending on copper and gold prices, the U.S.-dollar/Canadian-dollar exchange rate, and the timing of concentrate sales, which is dependent on concentrate production and the availability and scheduling of transportation.

Newmont guidance for Red Chris mine production (100 per cent) is 85.0 million pounds of copper and 57,000 ounces of gold for the calendar year 2024.

The company will need to conclude further financing arrangements to finance its share of cost of the continuing development of a block cave mine at Red Chris.

Exploration

Imperial Metals maintains a large portfolio of greenfield exploration properties in British Columbia. These properties have defined areas of mineralization and exploration potential. Management continues to evaluate various opportunities to advance many of these properties.

Exploration at Red Chris for 2024 will be focused on further definition of the East Ridge zone.

Exploration diamond drilling is planned for early 2024 at Mount Polley to continue following the new zones delineated from 2023 diamond drilling.

At Huckleberry, in 2024, the exploration program will focus on additional diamond drilling following up on the success of the 2023 program.

Acquisitions

Management continues to evaluate potential acquisitions.

For detailed information, refer to Imperial Metals' 2023 management's discussion and analysis 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). Imperial Metals also holds a portfolio of 23 greenfield exploration properties in British Columbia.

We seek Safe Harbor.