Mr. Brian Kynoch reports

IMPERIAL REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS

Imperial Metals Corp. has released its financial results for the three months ended March 31, 2024.

Quarter highlights

Financial

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased by $4.4-million to $10.3-million in Q1 2024, compared with $5.9-million in Q1 2023.

Total revenue was $84.6-million in the March, 2024, quarter, compared with $92.7-million in the 2023 comparative quarter.

In the March, 2024, quarter, Mount Polley mine had 1.3 concentrate shipments (2023 -- 1.4 concentrate shipments). The Red Chris mine (100-per-cent basis) had 4.0 concentrate shipments (2023 -- 2.4 concentrate shipments).

Variations in revenue are impacted by 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 Metals Exchange cash settlement copper price per pound averaged $3.83 (U.S.) in the March, 2024, quarter, compared with $4.05 (U.S.) in the 2023 comparative quarter. The LBMA (London Bullion Market Association) cash settlement gold price per troy ounce averaged $2,072 (U.S.) in the March, 2024, quarter, compared with $1,888 (U.S.) in the 2023 comparative quarter. The average U.S.-dollar/Canadian-dollar exchange rate was 1.349 in the March, 2024, quarter, 0.22 per cent lower than the exchange rate of 1.352 in the March, 2023, quarter. In Canadian-dollar terms, the average copper price in the March, 2024, quarter was $5.17 (Canadian) per pound, compared with $5.48 (Canadian) per pound in the 2023 comparative quarter, and the average gold price in the March, 2024, quarter was $2,795 (Canadian) per ounce, compared with $2,553 (Canadian) per ounce in the 2023 comparative quarter.

A negative revenue revaluation in the March, 2024, quarter was $200,000, as compared with a $5.9-million of positive revenue revaluation in the 2023 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.

Net loss for the March, 2024, quarter was $9.2-million (six cents per share), compared with a net loss of $7.3-million (five cents per share) in the 2023 comparative quarter. The increase in net loss of $1.9-million was primarily due to the following factors:

• Loss from mine operations was $1.5-million in March, 2024, quarter, which is an improvement of $100,000 in comparison with a loss of $1.6-million in March, 2023, comparative quarter.
• Idle mine cost went from $2.1-million in March, 2023, to $1.9-million in the March, 2024, quarter.
• Interest expense increased from $6.0-million in March, 2023, to $10.5-million in March, 2024, increasing net loss by $4.5-million.
• Tax recovery went from $4.4-million in March, 2023, to $6.6-million in March, 2024, decreasing net loss by $2.2-million.

The average U.S.-dollar/Canadian-dollar exchange rate in the March, 2024, quarter was 1.349, compared with an average of 1.352 in the 2023 comparative quarter.

Capital expenditures including leases were $36.2-million in the March, 2024, quarter, an increase of $11.9-million from $24.3-million in the 2023 comparative quarter. The March, 2024, quarter expenditures included $16.5-million in exploration, $7.3-million on stripping costs, $2.9-million for tailings dam construction and $9.5-million of other capital.

At March 31, 2024, 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.

Operations

During the quarter ended March 31, 2024, Imperial's consolidated metal production was 12.35 million pounds copper (Q1 2023 -- 10.16 million pounds copper) and 12,861 ounces gold (Q1 2023 -- 13,129 ounces gold).

Mount Polley mine

Mount Polley metal production for the first quarter of 2024 was 7,355,191 pounds copper and 10,009 ounces gold, compared with 8,347,899 pounds copper and 10,349 ounces gold produced during the fourth quarter of 2023. Mill throughput was up 20.3 per cent, with 1.67 million tonnes being treated, compared with 1.39 million tonnes treated in the first quarter of 2023. Copper production in the first quarter of 2024 was up by 10.1 per cent because of the increase in throughput, which offset lower grade and recovery compared with first quarter of 2023.

Tailing removal from the Springer pit was 84 per cent completed at the end of March, 2024, and is expected to be complete by early May, 2024. Stripping for the phase 5 pushback of the Springer pit mined approximately 1.7 million tonnes of waste by the end of March, 2024.

At Mount Polley, a diamond drilling program started on March 3, 2024, which focused on two goals. The first is to test for mineralization around the perimeter of the planned Springer pit, where there are gaps in the three-dimensional mineralization model. The second goal is to follow-up on the successful drilling in the Springer zone last year by filling gaps in the drilling of the zone and by continuing to test the zone at depth. The first two drill holes of this program have been completed and the third is in progress. About 1,800 metres of drilling were completed by the end of the quarter.

Exploration, development and capital expenditures in the first quarter of 2024 were $15.8-million, compared with $4.8-million in the 2023 comparative quarter.

Red Chris mine

Red Chris production (100 per cent) for the first quarter of 2024 was 16,660,225 pounds copper and 9,507 ounces gold, compared with 11,589,689 pounds copper and 10,496 ounces gold during the same quarter of 2023.

In the 2024 first quarter, Red Chris copper production was up 44 per cent compared with the same quarter in 2023 and down 9 per cent for gold compared with the same quarter of 2023. The increase in copper production was a result of a 33-per-cent increase in copper grade (0.431 per cent versus 0.325 per cent) and an 8-per-cent increase in recovery (83.4 per cent versus 77.4 per cent). The drop in gold production in the first quarter 2024 was the result of lower gold grade (0.263 g/t gold versus 0.311 g/t gold) being treated compared with the same quarter last year.

Imperial's 30-per-cent portion of Red Chris mine for the first quarter of 2024 was 4,998,000 pounds copper and 2,852 ounces gold.

Imperial's 30-per-cent share of exploration, development and capital expenditures were $20.4-million in the March, 2024, quarter, compared with $19.4-million in the 2023 comparative quarter.

Block Cave decline and drilling progress

The underground development has continued with total of 9,220 metres (including all vent drives) completed. The decline to access the extraction level (Nagha decline) had advanced 4,372 metres as of March 31, 2024. Development work on the conveyor declines advanced 1,541 metres on legs two and three by the quarter-end.

Huckleberry mine

Huckleberry operations ceased in August, 2016, and the mine remains on care and maintenance status.

Site personnel continue to focus on maintaining site access, water management, maintenance of site infrastructure and equipment, and mine permit compliance. Work is also planned in 2024 to investigate and update the tailings facility design for Huckleberry.

For the March, 2024, quarter, Huckleberry incurred idle mine costs comprising $1.7-million in operating costs and $300,000 in depreciation expense, compared with $1.8-million in operating cost and $300,000 in depreciation expense in the comparable quarter of 2023.

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, and a designated qualified person as defined by National Instrument 43-101.

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

About Imperial Metals Corp.

Imperial 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 also holds a portfolio of 23 greenfield exploration properties in British Columbia.

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