Imperial Metals Corp. has updated the mineral reserve and mineral resource estimates for the Mount Polley and Huckleberry mines.

Mount Polley updated mineral reserve and mineral resource estimate

The reserve and resource estimate for Mount Polley has been updated as of Jan. 1, 2009. The current estimate incorporates open pit mining of the Southeast, C2, Pond and Springer zones, in addition to completing the current Wight pit in the Northeast zone, and reflects 12 months of mine production since the Jan. 1, 2008, estimate. As of Jan. 1, 2009, total Mount Polley reserves are 46.2 million tonnes of 0.34 per cent copper, 0.29 gram per tonne gold and 0.95 g/t silver, compared with 55.6 million tonnes of 0.36 per cent copper, 0.30 g/t gold and 0.66 g/t silver at Jan. 1, 2008. The Bell pit was completed in 2008, and the Wight pit will be completed in the second quarter of 2009. Exploration in 2008 brought the Pond zone into a minable reserve scheduled for open pit mining in the third quarter of 2009 subject to obtaining required approvals. In total 6.9 million tonnes were mined in 2008. The current mine life for Mount Polley is to the fourth quarter of 2015. Drilling continues to expand the resources on the site, with 113.0 million tonnes of mineral resources identified in the measured and indicated category and 29.0 million tonnes of mineral resources identified in the inferred category, in addition to the reserves below.

             MOUNT POLLEY MINE PROVEN AND PROBABLE RESERVES

                            Grade                Contained metal

                                             Copper    Gold   Silver  Strip-
                     Copper  Gold Silver        (lb)    (oz)     (oz)  ping
Zone/pit  Tonnes ore      %   g/t    g/t   000,000s    000s     000s  ratio

Wight        785,362   0.73 0.209  5.573      12.64    5.28   140.72   0.39
Springer  39,233,777  0.336  0.27  0.716     290.62  340.58   903.16   2.13
Pond       1,372,216  0.476  0.27  6.898      14.40   11.91   304.32    3.5
Southeast  1,752,306  0.274 0.513   1.11      10.58   28.90    62.54   1.39
C2         3,006,923  0.295 0.446  n/a(i)     19.56   43.12    n/a(i)  4.62
          ----------  ----- -----  -----     ------  ------  -------
Total     46,150,584  0.342 0.290  0.951     347.80  429.78  1410.74

(i) Silver assay values are not significant in this zone.

Reserve calculation parameters

The parameters used in this updated resource are based on updated pit designs and the current Mount Polley production schedule. The ultimate pit designs were based on $1.75 (U.S.) copper, $800.00 (U.S.) gold, $10.00 (U.S.) silver and $1.25 Canadian/U.S. exchange rate.

The economic mineral reserves and resources at Mount Polley mine were calculated as follows:

• A 3-D block model was constructed using Minesight mining software.
• The property was zoned based on geological zones, the blocks and drill holes were then coded to reflect the zones.
• The drill holes were composited to five-metre downhole composites.
• Mineralized zones were identified within the geological zones, by kriging an indicator to identify the blocks that have a high probability of having a copper grade greater than a 0.15 per cent.
• The drill hole composites were then coded to match the indicator codes in the block model.
• Outlier grades were capped, and variograms for copper, gold, silver and iron in each zone were generated.
• Grades were kriged into the block model, using zone and indicator matching.
• An oxide ratio number for each block was interpolated using an ID3 method, with zone and indicator matching. The oxide ratio number is used in the mill recovery formula.
• The mill recoverable grades were calculated using formulas based on historical recoveries as well as on-site and offsite metallurgical testwork.
• A dollar value was calculated for each block based on the metals prices, the Canadian/U.S. exchange rate, and mining, shipping and smelting costs.
• Lerchs-Grossman pit optimization software was used to identify economic pit shell based on the above economic parameters. Pit designs were created using the economic pit shells and design parameters from Golder Geotechnical Consultants of Vancouver.

                             RESOURCE BY ZONE(i)
   (resource values based on a copper equivalent cut-off of 0.3 per cent)

                                 Grade                Contained metal

                     Copper                         Copper    Gold   Silver
               Tonnes equiv Copper   Gold Silver       (lb)    (oz)     (oz)
Zone           ore(i)     %      %    g/t    g/t  000,000s    000s     000s

Northeast
(ii)
boundary
Measured   19,631,561 0.774  0.580  0.229  4.077    251.02  144.54  2573.28
Indicated   2,666,499 0.677  0.464  0.267  3.281     27.28   22.89   281.28
Inferred    2,366,199 0.500  0.372  0.156  2.301     19.41   11.87   175.05
Zuke(iii)
Measured         (iii) (iii)  (iii)  (iii)  (iii)     (iii)   (iii)    (iii)
Indicated        (iii) (iii)  (iii)  (iii)  (iii)     (iii)   (iii)    (iii)
Inferred         (iii) (iii)  (iii)  (iii)  (iii)     (iii)   (iii)    (iii)
Bell
Measured    9,562,373 0.420  0.233  0.238  n/a(i)    49.12   73.17    n/a(i)
Indicated     976,160 0.376  0.227  0.190  n/a(i)     4.89    5.96    n/a(i)
Inferred      828,312 0.372  0.236  0.174  n/a(i)     4.31    4.63    n/a(i)
Springer
Measured   18,437,736 0.592  0.359  0.297  0.709    145.93  176.06   420.29
Indicated  26,536,116 0.538  0.300  0.302  0.643    175.50  257.65   548.58
Inferred   25,475,566 0.540  0.290  0.316  0.561    162.87  258.82   459.49
C2
Measured    5,352,649 0.490  0.237  0.363  n/a(i)    27.97   62.47    n/a(i)
Indicated   4,045,493 0.488  0.240  0.356  n/a(i)    21.40   46.30    n/a(i)
Southeast
Measured   18,421,459 0.515  0.180  0.414  1.052     73.02  245.20   623.06
Indicated   5,306,026 0.424  0.159  0.325  0.978     18.62   55.44   166.84
Pond
Measured    1,477,694 0.654  0.379  0.324  5.774     12.34   15.39   274.32
Indicated     630,108 0.502  0.268  0.257  6.279      3.72    5.21   127.20
            --------- -----  -----  -----  -----     -----   -----  -------
Total
resource
Measured/
indi-
cated     113,043,874 0.568  0.325  0.305  1.380    810.81 1110.28  5014.84
Inferred   28,670,077 0.532  0.295  0.299  0.688    186.59  275.32   634.54

(i) Silver assay values are not significant in this zone.

(i) Proven and probable reserves are not included in these resource
values.

(ii) The Northeast zone contains the Wight pit. 

(iii) The Zuke zone is a high-grade underground target now being
delineated south of the Boundary zone. Some assay results from 2008 and
2009 drilling in the Zuke zone are pending. A resource estimate for this
new zone will be available later this summer.

               COPPER EQUIVALENT CALCULATION BY ZONE
      (resource values based on a CuEq cut-off of 0.3 per cent)

Northeast(i)   EqCu per cent equals copper plus gold/1.44 plus silver/116
Pond           EqCu per cent equals copper plus gold/1.44 plus silver/116
Springer       EqCu per cent equals copper plus gold/1.27 plus silver/116
C2             EqCu per cent equals copper plus gold/1.27
Southeast      EqCu per cent equals copper plus gold/1.27 plus silver/116

(i) The Northeast zone contains the Wight pit.

Resource values were identified by summing all blocks that fall outside of the economic pit and having a block grade greater than 0.3-per-cent copper equivalent. The copper equivalent was calculated using relative recovery and metal price for copper, gold and silver. The resources were classified as inferred, indicated and measured based on the following three items — minimum number of drill holes used in the estimate, minimum number of composites and the maximum distance to the nearest composite.

                           RESOURCE CALCULATION PARAMETERS

Resource       Minimum number of holes    Mininum number of  Maximum distance to
classification       used for estimate           composites    nearest composite

Inferred                             1                3.000                  60m
Indicated                            2                3.000                  50m
Measured                             3                5.000                  25m

The ore reserves and resources were calculated and verified by Art Frye, manager of mining, Mount Polley Mining Corp., and Greg Gillstrom, PEng, geological engineer, the designated qualified person as defined by National Instrument 43-101.

Brian Groves, President and CEO of Skygold Ventures stated:  “The large drilling program completed in 2008 and the development of robust geological and grade models for the Main Zone have resulted in the significant increases in each category of the updated resource estimate.”

The updated resource at selected gold cut-off grades is as follows:

Spanish Mountain updated resources (at a 0.50 g/t gold cut-off)

An increase of 45% was realized in the expansion of the higher grade component of the Main Zone at a cut-off grade of 0.70g/t as portrayed in the following table.

Spanish Mountain updated resources (at a 0.70 g/t gold cut-off)

The Main Zone updated resource estimate at a cut-off grade of 0.3 g/t gold is as follows:

Readers are cautioned that mineral resources, which are not mineral reserves, do not have demonstrated economic viability.

The updated resource estimate is based on a detailed three dimensional geologic model produced by Company geologists and incorporates recently identified structural controls to the mineralization on the Project.  This model separates stratigraphic controlled and structurally controlled mineralized domains and will be important for the ongoing program on the Property. A north-south trending structural corridor may be traced for over two kilometres and is thought to be a key factor in localizing gold mineralization within the Main Zone at Spanish Mountain.

A total of 323 diamond drill holes completed by Skygold from 2005 to 2008 was the basis for the updated resource.  This represents a total of 74,797 metres of drilling and 67,468 individual gold assays determined by standard metallic screen analysis.  Analysis of the gold grade distribution resulted in individual sample assays from stratigraphic controlled domains being capped at 36 g/t gold which affected only 7 assays.  Assays from structurally controlled domains were capped at 19.5 g/t gold which affected only 3 assays.  Additional factors included in the resource estimate are as follows:

• Three dimensional solids constraining the mineralization were produced from cross sections and level plans by Skygold geologists.
• Uniform 5 metre down hole composites were produced within the constraining solids.  Intervals less than 2.5 metres (at the solid boundaries) were combined with adjoining intervals.
• A block model, with blocks 20 x 20 x 10 metres was superimposed over the three dimensional solid.
• 181 specific gravity measurements were taken (using the weight in air – weight in water method) from core samples across the mineralized zone and from multiple lithologies.  The resource update used the average value of 2.78.
• Grade interpolation was done using ordinary kriging using search ellipses determined by variography.

The complete NI 43-101 compliant report will be filed on Sedar within 45 days as required under NI 43-101.

Scott Weekes, VP Exploration stated:  “This updated resource estimate again highlights the size of the gold system at Spanish Mountain.  At a 0.3 g/t cutoff, there are 3.9 million ounces in material averaging just under 0.6 g/t gold in the Measured and Indicated category and an additional 460,000 ounces in the Inferred category.  The resource model also indicates a relatively cohesive block of near surface material that averages over 1.0 g/t gold.  Ongoing engineering and economic studies will quantify this near surface mineralization and help define economic parameters for the deposit.  The close proximity to existing infrastructure (roads, power, work force etc) and the geometry of the Spanish Mountain deposit are expected to have a positive impact on project economics.”

Discussion of results

Geological modeling based on data from the 2008 drill program, has identified a key structural control to the gold mineralization and geology in the Main Zone.  This controlling feature can be traced for approximately 2km.  The recognition of this structure and its influence on the gold distribution in key stratigraphic horizons has allowed Skygold to create a detailed geological and mineralization model.  This model has identified additional targets to the north and south of the Main Zone as well as at depth.  The model will also serve as an exploration aid in identifying additional targets elsewhere on the Property. Reconnaissance drilling in these areas has already intersected gold mineralization in structures. The Company will focus on identifying favourable stratigraphy elsewhere along these structures.

Future Plans

Further diamond drilling is planned in 2009.  Diamond drilling will focus on continued expansion of the Main Zone to the north, south and at depth. Drilling will also focus on targets away from the Main Zone that are derived from the current geological model.

The Company will explore the possibility of a bulk sampling program to provide material to optimize metallurgical recoveries.  Initial work indicates gold recover in excess of 88% utilizing bulk flotation followed by Carbon in Leach (CIL) recovery.  As the Main Zone outcrops in a number of areas the bulk sampling program will have access to a variety of mineralizing styles and grades.

Economic and engineering studies will focus on defining preliminary economic parameters for the Spanish Mountain deposit.  This will include potential operating costs, capital expenditures and scale of production.  One of the primary goals of these studies will be to determine realistic cut-off grades for the deposit.

Mr. Gary Giroux, MASc, P. Eng (BC) is a geological engineer working for Giroux Consultants Ltd. and is the Qualified Person as defined by NI 43-101 for the resource estimate.  Mr. Giroux has over 35 years of experience in mineral exploration, development and production.  He specializes in computer applications in resource estimation and has authored numerous papers related to that field.  He has practiced as a geological engineer since 1970 and has provided geostatistical services to the industry since 1976.  Mr. Giroux and Giroux Consultants Ltd. are independent of Skygold under NI 43-101.

Dr. Giles Peatfield, P.Eng. is an independent geological engineer.  He has over 40 years experience in mineral exploration as an employee of a major mining company and latterly as an independent consultant.  He specializes in project evaluation and quality control issues, including design of sampling protocols and on-going monitoring of assay data.  Dr. Peatfield is independent of Skygold under NI 43-101.

R. Bob Singh P.Geo, the Company’s Exploration Manager for the Project, is a qualified person (as defined under NI 43-101) and has reviewed the contents of this news release.

On Behalf of the Board of Directors,