III Imperial Metals Corporation

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES       


Imperial Metals Corporation (the "Company") (TSX:III) announces it has closed
its previously announced offering of US$325 million 7% Senior Notes (the
"Notes"). The Notes are unsecured and will mature on March 15, 2019. Interest on
the Notes will accrue and be payable semi-annually on each March 15 and
September 15, commencing September 15, 2014. 


References to dollar amounts in this press release are to Canadian dollars
unless otherwise indicated.


Concurrently with the closing of the Notes offering, the Company entered into a
five year senior secured credit facility (the "Senior Credit Facility") with a
syndicate of lenders providing for a $200 million revolving credit facility
consisting of two tranches: a $50 million revolving working capital tranche for
general corporate purposes and a $150 million revolving construction tranche to
fund Red Chris project costs. 


The Company has used a portion of the net proceeds of the Notes offering and
borrowings under the Senior Credit Facility to repay the outstanding amounts
under its $250 million unsecured line of credit with Edco Capital Corporation
("Edco") and its revolving demand loan agreement with a commercial lender. The
Company intends to use the balance of such proceeds and borrowings to fund
capital expenditures related to the Red Chris project and for general corporate
purposes.


In addition, the Company entered into a five year $75 million junior unsecured
loan facility with Edco (the "Subordinated Credit Facility"). Edco is owned by
Mr. N. Murray Edwards, a significant shareholder of the Company. Interest is
payable at 10% per annum on amounts borrowed under the facility. The
Subordinated Credit Facility is available to fund project cost overruns
associated with the Red Chris project, backstop the payment of certain third
party reimbursement obligations relating to an extension of the Northwest
Transmission Line, and for general corporate purposes. In connection with this
facility, Edco will receive a $750,000 commitment fee and warrants to acquire
750,000 of the Company's shares at $20 per share. The Subordinated Credit
Facility advances, the fees thereunder and the warrants granted in connection
therewith constitute a related party transaction within the meaning of
Multilateral Instrument 61-101. Management considers the Subordinated Credit
Facility to be advantageous as it provides additional timing and flexibility for
financing the completion of the Red Chris project. Management also considers the
terms and conditions of the Subordinated Credit Facility and related warrants to
be reasonable, in the context of the market. These arrangements were reviewed
and approved by the independent members of the Company's Board of Directors. The
material change report in relation to this transaction will be filed less than
21 days before closing as the Company completed this transaction on March 12,
2014 as all necessary approvals had been received and the Company wished to
complete the transaction as soon as commercially feasible after such approvals
were obtained. 


Edco purchased US$50 million principal amount of Notes and directors and
officers of the Company purchased an additional US$3.35 million principal amount
of Notes. These purchases were made on the same terms and conditions as
purchases of Notes by other investors. These transactions also constitute
related party transactions within the meaning of Multilateral Instrument 61-101.


The Subordinated Credit Facility transaction with Edco and the purchases of
Notes referred to above are exempt from the formal valuation and minority
approval requirements of Multilateral Instrument 61-101 as they represent less
than 25% of the Company's market capitalization.


The offer and sale of the Notes will not be registered under the United States
Securities Act of 1933, as amended (the "Securities Act") or the securities laws
of any state or the securities laws of any other jurisdiction. The Notes may not
be offered or sold in the United States absent registration or an applicable
exemption from the registration requirements of the Securities Act and
applicable state securities laws. Accordingly, the Notes will be offered and
sold in the United States only to "qualified institutional buyers" in accordance
with Rule 144A under the Securities Act, and outside the United States in
reliance on Regulation S under the Securities Act. In addition, in all cases,
the Notes may only be offered and sold on a private placement basis pursuant to
an exemption from the prospectus requirements of the Securities Act (British
Columbia) and, if applicable, securities laws in other provinces and territories
in Canada. Further, the Notes may only be offered and sold outside the United
States and Canada on a private placement basis pursuant to certain exemptions
from applicable securities laws.


This press release shall not constitute an offer to sell or the solicitation of
an offer to buy the Notes, nor shall there be any offer or sale of the Notes in
any jurisdiction in which such offer, solicitation or sale would be unlawful.


About Imperial

Imperial is an exploration, mine development and operating company based in
Vancouver, British Columbia. The Company operates the Mount Polley copper/gold
mine in British Columbia and the Sterling gold mine in Nevada. Imperial has 50%
interest in the Huckleberry copper/molybdenum mine and has 50% interest in the
Ruddock Creek lead/zinc property, both in British Columbia. The Company is in
development of its wholly owned Red Chris copper/gold property in British
Columbia. 


Cautionary Note Regarding "Forward-Looking Information"

This press release contains "forward-looking information" or "forward-looking
statements" within the meaning of Canadian and United States securities laws,
which we will refer to as "forward-looking information". Except for statements
of historical fact relating to the Company, certain information contained herein
constitutes forward-looking information. When we discuss mine plans; costs and
timing of current and proposed exploration or development; development;
production and marketing; capital expenditures; construction of transmission
lines; cash flow; working capital requirements and the requirement for
additional capital; operations; revenue; margins and earnings; future prices of
copper and gold; future foreign currency exchange rates; future accounting
changes; future prices for marketable securities; future resolution of
contingent liabilities; receipt of permits; or other matters that have not yet
occurred, we are making statements considered to be forward-looking information
or forward-looking statements under Canadian and United States securities laws.
We refer to them in this press release as forward-looking information. The
forward-looking information in this press release may include words and phrases
about the future, such as: plan, expect, forecast, intend, anticipate, estimate,
budget, scheduled, targeted, believe, may, could, would, might or will.
Forward-looking information includes disclosure relating to project development
plans, costs and timing. We can give no assurance the forward-looking
information will prove to be accurate.

It is based on a number of assumptions management believes to be reasonable,
including but not limited to: the continued operation of the Company's mining
operations, no material adverse change in the market price of commodities or
exchange rates, that the mining operations will operate and the mining projects
will be completed in accordance with their estimates and achieve stated
production outcomes and such other assumptions and factors as set out herein. It
is also subject to risks associated with our business, including but not limited
to: the risk that further advances may not be available under credit facilities;
risks inherent in the mining and metals business; commodity price fluctuations
and hedging; competition for mining properties; sale of products and future
market access; mineral reserves and recovery estimates; currency fluctuations;
interest rate risks; financing risks; regulatory and permitting risks;
environmental risks; joint venture risks; foreign activity risks; legal
proceedings; and other risks that are set out in the Company's Management's
Discussion & Analysis in its 2012 Annual Report. If our assumptions prove to be
incorrect or risks materialize, our actual results and events may vary
materially from what we currently expect as provided in this press release. We
recommend you review the Company's most recent Annual Information Form and
Management's Discussion & Analysis in its 2012 Annual Report, which includes
discussion of material risks that could cause actual results to differ
materially from our current expectations. Forward-looking information is
designed to help you understand management's current views of our near and
longer term prospects, and it may not be appropriate for other purposes. We will
not necessarily update this information unless we are required to by securities
laws.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Imperial Metals Corporation
Brian Kynoch
President
604.669.8959


Imperial Metals Corporation
Andre Deepwell
Chief Financial Officer
604.488.2666


Imperial Metals Corporation
Gordon Keevil
Vice President Corporate Development
604.488.2677


Imperial Metals Corporation
Sabine Goetz
Shareholder Communications
604.488.2657
investor@imperialmetals.com
www.imperialmetals.com

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