Zinc/Lead Joint Exploration Project in Canada

January 6, 2011

ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) and Mitsui Mining & Smelting Co., Ltd. (hereinafter “Mitsui”) have formally agreed with Selkirk Metals Corp. (hereinafter “Selkirk”), a 100% owned subsidiary of Imperial Metals Corporation, regarding the Ruddock Creek zinc/lead joint exploration project in Canada, and have concluded a Joint Venture Agreement on December 30, 2010.
Under the terms of the agreement, Mitsui and ITOCHU shall bear all exploration expenditures to a maximum of CA$20 million (approximately 1.6 Billion Yen) up until March 31, 2013, and shall thereby acquire a 50% interest in the Ruddock Creek Project. A mineral resource in excess of 3 million tonnes has been identified at Ruddock Creek, and with acceleration and high efficiency of the exploratory operations, the joint venture between Selkirk, Mitsui, and Itochu shall be aimed at increasing the mineral resource to an economic level and continue towards the goal of development and operation of the Ruddock Creek Project.
Mitsui and ITOCHU have utilized the exploration expenditures subsidy system provided by Japan Oil, Gas and Metals National Corporation (JOGMEC).

Outline of Project Area

Project Name	Ruddock Creek Zinc/Lead Joint Exploration Project
Location	British Columbia, Canada. Approximately 500 km north east of Vancouver
Mineral Title Holder	Selkirk Metals Corp./ Mount Polley Mining Corp
Project Area	Approximately 105km²

Possible Production Plan

Targeted Resource	Minimum 9 million tonnes
Production	2,000 tonnes/day x 350 days = 700,000 tonnes/year
Mine Life	13 years
Target Grade	Zn 7.2%, Pb 1.5%

Location Map

Outline of Imperial Metals Corporation

Principal Address	Vancouver, British Columbia, Canada
Listing	Listed on the Toronto Stock Exchange (TSX-III)
Establishment	1959
Business Activities	Mining company that owns and operates the Huckleberry Mine and Mount Polley Mine. In addition to zinc, production and exploration for copper, gold and molybdenum.