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Imperial Reports Third Quarter 2023 Financial Results

Press Release

Vancouver | November 7, 2023 | Imperial Metals Corporation (“Imperial” or the “Company”) (TSX:III) reports financial results for the three and nine months ended September 30, 2023, as summarized in this news release and discussed in detail in the Management’s Discussion & Analysis. The Company’s financial results are prepared in accordance with International Financial Reporting Standards (“IFRS”). The reporting currency of the Company is the Canadian (“CDN”) Dollar.

QUARTER HIGHLIGHTS

FINANCIAL

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

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

Variations in revenue are impacted by the re-start 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 will settle at a future date.

The London Metals Exchange cash settlement copper price per pound averaged US$3.79 in the September 2023 quarter compared to US$3.51 in the 2022 comparative quarter. The LBMA (London Bullion Market Association) gold price per troy ounce averaged US$1,929 in the September 2023 quarter compared to US$1,729 in the 2022 comparative quarter. The average US/CDN Dollar exchange rate was 1.341 in the September 2023 quarter, 2.7% higher than the exchange rate of 1.306 in the September 2022 quarter. In CDN Dollar terms the average copper price in the September 2023 quarter was CDN$5.08 per pound compared to CDN$4.59 per pound in the 2022 comparative quarter, and the average gold price in the September 2023 quarter was CDN$2,587 per ounce compared to CDN$2,258 per ounce in the 2022 comparative quarter.

A negative revenue revaluation in the September 2023 quarter was $3.4 million as compared to 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 ($0.02 per share) compared to net loss of $27.9 million ($0.18 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 $0.5 million 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 to $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, and

• tax expense was $1.9 million in the September 2022 quarter compared to 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 September 30, 2023, the Company had not hedged any copper, gold or US/CDN Dollar exchange. Quarterly revenues will fluctuate depending on copper and gold prices, the US/CDN 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 September 30, 2023, Imperial’s consolidated metal production was 12,182,493 pounds copper and 14,335 ounces gold, with 8,056,570 pounds copper and 11,321 ounces gold produced from Mount Polley and 4,125,923 pounds copper and 3,014 ounces gold from the Company’s 30% share of Red Chris mine production. Mount Polley Mine

Q3 2023 vs Q2 2023

Mount Polley metal production for the third quarter of 2023 was 8,056,570 pounds copper and 11,321 ounces gold, compared to 7,062,836 pounds copper and 10,185 ounces gold produced during the second quarter of 2023. Metal production increased by 14.1% for copper and 11.2% for gold for this quarter due to slightly higher copper grades and higher throughput. The throughput averaged 16,959 tonnes per day compared to 15,724 tonnes per day, copper recovery was 79.5% compared to 79.9% and gold recovery was 70.1% compared to 68.3%. Excellent metal recoveries continued to be achieved throughout the quarter despite additional throughput being restricted as the mill motor, which was damaged due to a lightning strike in the second quarter, was under repair until October 2023.

Mining of tailings from the Springer Pit continued, with 1.1 million m3 removed by mid-October 2023 representing about 50% of the total tailings required to be removed since the removal of tailings began on May 8, 2023. The tailings being removed are being dry stacked atop the Southeast Rock Dump. All the tailings are expected to be removed from the Springer Pit by the first quarter of 2024; following this, the Phase 4 pit will have a very low strip ratio of about 0.3 to 1.

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