III Imperial Metals Corporation

Imperial Metals Corporation (the “Company”) (TSX:III) is pleased to announce the completion of its previously announced rights offering (the “Rights Offering”), which expired at 2:00 p.m. (Pacific Time) Friday, June 24, 2022. The Company will issue a total of 13,475,400 common shares in the Rights Offering for gross proceeds of approximately $41.0 million.

The Company will issue a total of 9,948,611 common shares under basic subscription privileges in the Rights Offering and a total of 3,526,789 common shares under additional subscription privileges. To the knowledge of the Company, no person will become an insider as a result of the Rights Offering. The total number of issued and outstanding common shares of the Company upon completion of the Rights Offering will be 154,871,341.

The proceeds of the Rights Offering will be used as set out in the Company’s Rights Offering circular dated May 19, 2022.

Shareholdings of N. Murray Edwards

As a result of the Rights Offering, N. Murray Edwards beneficially will own and control 69,375,775 common shares of the Company, representing 44.80% of the Company’s issued and outstanding common shares as of the date hereof. Prior to the Rights Offering, Mr. Edwards owned and controlled 59,622,910 common shares, representing 42.17% of the Company’s issued and outstanding common shares. The common shares were acquired by Mr. Edwards for investment purposes and he may acquire or dispose of securities of the Company in the future depending on market conditions, reformulation of plans and/or other relevant factors, in each case in accordance with applicable securities laws. This portion of the news release is issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, which requires a report to be filed on SEDAR (www.sedar.com) by Mr. Edwards containing additional information with respect to the foregoing matters. A copy of the early warning report may be obtained directly from the Company upon request at the telephone number below.

This news release does not constitute an offer for sale or the solicitation of an offer to buy any securities in the United States. The Company registered the offer and sale of the shares issuable on exercise of the rights on a Form F-7 registration statement (File No. 333-256267) under the U.S. Securities Act of 1933, as amended, a copy of which can be found at www.sec.gov and may also be obtained by contacting the Chief Financial Officer at 604.488.2658 or by email at darb.dhillon@imperialmetals.com.

About Imperial

Imperial is a Vancouver based exploration, mine development and operating company. The Company, through its subsidiaries, owns a 30% interest in the Red Chris mine, and a 100% interest in both the Mount Polley and Huckleberry copper mines in British Columbia. Imperial also holds a portfolio of 23 greenfield exploration properties in British Columbia.

Company Contacts

Brian Kynoch | President | 604.669.8959Darb Dhillon | Chief Financial Officer | 604.488.2658

Cautionary Note Regarding Forward-Looking Statements 

Certain information contained in this news release are not statements of historical fact and are "forward-looking" statements. Forward-looking statements relate to future events or future performance and reflect Company management's expectations or beliefs regarding future events and include, but are not limited to, specific statements regarding the Rights Offering and the intended use of proceeds raised under the Rights Offering. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “outlook”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative of these terms or comparable terminology. In this document certain forward-looking statements are identified by words including “guidance”, “expectations”, “targeted”, “plan”, “planned”, “estimated”, “calls for” and “expected”. Forward-looking information is not based on historical facts, but rather on then current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Company operates, including assumptions that: the Company will receive all necessary regulatory, stock exchange and third party approvals in respect of the Rights Offering; the timing of the Rights Offering will meet the Company’s expectations based on its business and operational requirements; and the Rights Offering will provide sufficient liquidity to support the Company’s intended use of the proceeds therefrom. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. We can give no assurance that the forward-looking information will prove to be accurate.

By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks that the Rights Offering will not provide the expected liquidity or benefits to the Company’s business or operations; risks that required consents and approvals will not be received in order to advance or complete the Rights Offering; uncertainties relating to the cost of completing the Rights Offering; risks that could cause the Company to allocate the proceeds of the Rights Offering in a manner other than as disclosed, including all of the risks related to the Company's business, financial condition, result of operations and cash flows; and other risks of the mining industry as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements.