Mr. Brian Kynoch reports

IMPERIAL REPORTS SECOND QUARTER 2023 FINANCIAL RESULTS

Imperial Metals Corp. has released financial results for the three and six months ended June 30, 2023, as summarized in this news release and discussed in detail in the 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 $85.8-million in the June, 2023, quarter compared with $36.4-million in the 2022 comparative quarter.

In the June, 2023, quarter, the Red Chris mine (100-per-cent basis) had 3.6 concentrate shipments (2022: 4.5 concentrate shipments). Mount Polley mine had 1.4 concentrate shipments (2022: nil concentrate shipments).

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 $3.85 (U.S.) in the June, 2023, quarter compared with $4.32 (U.S.) in the 2022 comparative quarter. The LBMA (London Bullion Market Association) gold price per troy ounce averaged $1,978 (U.S.) in the June, 2023, quarter compared with $1,873 (U.S.) in the 2022 comparative quarter. The average U.S./Canadian-dollar exchange rate was 1.343 in the June, 2023, quarter, 5.2 per cent higher than the exchange rate of 1.277 in the June, 2022, quarter. In Canadian-dollar terms, the average copper price in the June, 2023, quarter was $5.17 per pound compared with $5.52 per pound in the 2022 comparative quarter, and the average gold price in the June, 2023, quarter was $2,657 per ounce compared with $2,391 per ounce in the 2022 comparative quarter.

A negative revenue revaluation in the June, 2023, quarter was $8.2-million as compared with a negative revenue revaluation of $7.3-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 June, 2023, quarter was $16.0-million (10 cents per share) compared with net loss of $29.3-million (21 cents per share) in the 2022 comparative quarter. The decrease in net loss of $13.3-million was primarily due to the following factors:

• Mine operations went from an income of $100,000 in the June, 2022, quarter to a loss of $10.5-million in June, 2023, increasing net loss by $10.6-million.
• Mount Polley restart costs went from $30.2-million in the June, 2022, quarter to nil in June, 2023, decreasing net loss by $30.2-million.
• Interest expense went from $1.7-million in June, 2022, to $7.4-million in June, 2023, increasing net loss by $5.7-million.

Capital expenditures including leases were $42.5-million in the June, 2023, quarter, an increase of $2.9-million from $39.6-million in the 2022 comparative quarter. The June, 2023, quarter expenditures included $11.9-million in exploration, $10.7-million for tailings dam construction, $3.3-million on stripping costs and $16.6-million of other capital.

At June 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.

Operations

During the quarter ended June 30, 2023, Imperial's consolidated metal production was 11,181,595 pounds copper and 14,289 ounces gold, with 7,062,836 pounds copper and 10,185 ounces gold produced from Mount Polley and 4,118,759 pounds copper and 4,104 ounces gold from its 30-per-cent share of Red Chris mine production.

For detailed information, refer to Imperial Metals' second 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). Imperial Metals also holds a portfolio of 23 greenfield exploration properties in British Columbia.

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