Imperial Metals Corporation (TSX:III) reports the tailings storage facility at
its Mount Polley mine was breached, releasing an undetermined amount of water
and tailings in the early morning of August 4. The cause of the breach is
unknown at this time.  

Senior company management are at the mine site and are working with mine
operating personnel, local agencies, provincial ministry officials and the
engineers of record to assess the extent of the breach and the impact of the
released water and tailings on the surrounding area.

The Company will provide further information when confirmed and available.

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 mine and has 50% interest in the Ruddock
Creek lead/zinc property, both in British Columbia. Imperial 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. If we discuss mine plans; costs and
timing of current and proposed exploration, 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.  

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, believe, may, could, would, might or will. 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: 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 current
Management's Discussion & Analysis. 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 review of
the Company's current Management's Discussion & Analysis, 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

Brian Kynoch

Gordon Keevil
Vice President Corporate Development

Sabine Goetz
Shareholder Communications