Imperial Metals Corporation (TSX:III) reports financial results for the three and nine months ended September 30, 2026. Imperial’s consolidated production for the third quarter of 2026 totalled 8,535,703 pounds copper and 11,648 ounces gold.

“With improved throughput in the third quarter and the continued progress on the Phase 5 pushback, metal production at Mount Polley improved during the quarter compared to the second quarter of 2026. The key highlight for the quarter however is the progress on the Red Chris Block Cave Definitive Feasibility Study which is starting to reveal a combination of scale, quality and growth potential as we get closer to a final investment decision”, said the President, Brian Kynoch.

FINANCIAL

Total revenue was $149.9 million in the September 2026 quarter compared to $168.8 million in the 2025 comparative quarter.

In the September 2026 quarter, Mount Polley mine had 1.0 concentrate shipments (2025-1.5 concentrate shipments). The Red Chris mine (100% basis) had 4.0 concentrate shipments (2025-5.0 concentrate shipments).

Variations in revenue are impacted by the timing and quantity of concentrate shipments, metal prices and exchange rates, and period end revaluations of revenue attributed to concentrate shipments where copper and gold prices will settle at a future date.

At September 30, 2026, the Company had not hedged any copper, gold or US/CDN Dollar exchange.

The London Metals Exchange cash settlement copper price per pound averaged US$6.41 in the September 2026 quarter compared to US$4.44 in the 2025 comparative quarter. The LBMA (London Bullion Market Association) Final and Initial gold price per troy ounce averaged US$4,266 in the September 2026 quarter compared to US$3,454 in the 2025 comparative quarter. The average US/CDN Dollar exchange rate was 1.399 in the September 2026 quarter compared to the exchange rate of 1.377 in the September 2025 quarter. In CDN Dollar terms the average copper price in the September 2026 quarter was CDN$8.96 per pound compared to CDN$6.12 per pound in the 2025 comparative quarter, and the average gold price in the September 2026 quarter was CDN$5,967 per ounce compared to CDN$4,758 per ounce in the 2025 comparative quarter.

Revenue revaluation for the September 2026 quarter was $5.7 million, compared to $7.2 million in the comparative quarter of 2025. Revenue revaluations arise from changes in metal prices between the initial recognition of revenue and the settlement date and/or the reporting balance sheet date, together with adjustments to payable metal quantities following receipt of final assay results.

Net income for the September 2026 quarter was $1.2 million ($0.01 income per share) compared to net income of $38.5 million ($0.23 income per share) in the 2025 comparative quarter. The decrease in net income of $37.3 million was primarily due to the following factors:

• Income from mine operations decreased to $22.9 million in the September 2026 quarter from $72.1 million in the September 2025 quarter, a decrease of $49.2 million, partially offset by:
• Net interest expense decreased to $3.5 million in the September 2026 quarter from $5.9 million in the September 2025 quarter, increasing net income by $2.4 million; and
• Tax expense decreased to $10.3 million in the September 2026 quarter from $21.1 million in the September 2025 quarter, increasing net income by $10.8 million.

Capital expenditures including leases were $64.6 million in the September 2026 quarter, a decrease of $4.5 million from $69.1 million in the 2025 comparative quarter. The September 2026 quarter expenditures included $36.0 million in exploration and development, $18.8 million for tailings dam construction and $9.8 million of other capital.

OPERATIONS

During the quarter ended September 30, 2026, Imperial’s consolidated metal production was 8.535 million pounds copper (Q3 2025-13.925 million pounds copper) and 11,648 ounces gold (Q3 2025-15,783 ounces gold). Imperial anticipates the consolidated metal production for Mount Polley and Red Chris will achieve the guidance of 79.0 – 87.0 million pounds copper and 87,500 – 96,500 ounces gold for 2026.

Mount Polley Mine

Mount Polley metal production for the third quarter of 2026 was 4.104 million pounds copper and 7,931 ounces gold, compared to 7.655 million pounds copper and 9,285 ounces gold produced during the third quarter of 2025. Metal production was down compared to the 2025 third quarter on lower metal grades and lower copper recovery. Copper production was up 21% and gold production was up 16% in the third quarter compared to the second quarter of this year, establishing a trend for better performance at Mount Polley. The current mine plan targets 5.8 million pounds copper and 11,000 ounces gold to be produced in fourth quarter of 2026, which indicates a continuation of the positive trend.

Throughput accelerated substantially later in the summer with an average 22,875 tonnes per day through August and September, compared to 17,260 in the January through July period, as some changes in the grinding circuit operating practices and equipment were implemented.

Mill feed for the third quarter of 2026 was sourced 18% from the Springer pit Phase 5 pushback supplemented by 16% from Phase 4, 19% from C2 pit and 46% from stockpiles. The high percentage of low-grade stockpile material resulted in lower copper and gold head grade. In the fourth quarter of 2026 higher-grade material from Phase 5 will begin to be delivered to the mill and reduce the need to process lower grade stockpiles.

The Boundary pit is a small, high strip ratio but high-grade pit, with an estimated reserve of 592,039 tonnes at a grade of 0.65% copper, 0.58 g/t gold and 4.39 g/t silver. Waste stripping at Boundary pit took place throughout the third quarter, with approximately 300,000 tonnes of waste rock removed, and a minimal tonnage of ore mined. This early development work positions the Boundary pit to begin to contribute higher-grade ore in the fourth quarter of 2026.

Non-acid generating (NAG) waste was placed on both the buttresses and embankments of the tailings storage facility (TSF), totaling approximately 2.5 million tonnes. In addition to the NAG placement, work progressed steadily on the TSF embankment raise and 987 buttress foundation preparation and water management infrastructure.

As Mount Polley was delayed in the delivery of ore from Phase 5, and it will be difficult to meet the range of guidance estimated at the beginning of the year. Initiation of mining at the Boundary zone was commenced ahead of schedule to attempt to offset the delay in Phase 5 ore delivered to the plant. The revised guidance for 2026 production at Mount Polley is 16.0 – 18.0 million pounds of copper and 30,500 – 33,700 ounces gold.

Exploration program

Diamond drilling started in February 2026 and initially followed up on the successful results from the first drilling campaign at the Mount Polley mine in more than a decade in the Bell pit area. Since February 2026, there have been 41 diamond drill holes completed totaling 8,620 metres focusing on the historic Bell pit area, the expansion of the Cariboo zone laterally and to depth and a single hole testing the Wight pit at depth for potential underground mining.

Exploration, development, and capital expenditures in the third quarter of 2026 were $18.1 million, compared to $36.0 million in the 2025 comparative quarter.

Red Chris Mine

Red Chris production (100%) for the third quarter of 2026 was 14.771 million pounds copper and 12,391 ounces gold compared to 20.900 million pounds copper and 21,660 ounces gold during the same quarter of 2025. Both copper and gold production were down compared to the third quarter of 2025, with copper production down 29% and gold production down 43%. Imperial’s 30% share of Red Chris mine production was 4.431 million pounds copper and 3,717 ounces gold.

The decrease in copper production was a result of a 38% decrease in copper grade (0.36% vs. 0.59%) with lower recovery, slightly offset by a 17% increase in throughput. The decrease in gold production was a result of lower gold grade in the mill feed (0.30 g/t gold vs. 0.56 g/t gold) and lower gold recovery (56.90% vs. 62.70%) partially offset by higher throughput compared to the same quarter last year.

Both copper and gold production remain on track to achieve the budgeted 2026 production.

Imperial’s 30% share of exploration, development, and capital expenditures were $45.2 million in the September 2026 quarter, compared to $30.7 million in the 2025 comparative quarter.

Block Cave Feasibility Study

The Red Chris Block Cave project is a large-scale copper-gold opportunity located in the Golden Triangle of British Columbia, Canada. The project is designed to mine the porphyry copper-gold system beneath the existing open pit and includes an underground Block Cave mine, expansion of existing processing facilities, and upgrades to site infrastructure unlocking higher-grade mineralization at depth.

The feasibility study is nearing completion, subject to review and governance oversight with a full funds investment decision now expected in early 2027.

Advancement in the feasibility study is nearing completion and now reflects a better view of the investment requirements, schedule and production profile. On a 100% ownership basis, the first phase of the project is expected to produce more than 1.8 billion pounds of copper and 3.0 million ounces of gold over its initial thirteen-year cave life.

Subject to approval by the Red Chris Joint Venture, construction of the Red Chris Block Cave is expected to commence in 2027, with commercial production targeted for 2033. The project is expected to ramp up to an average between 145 and 187 million pounds of copper, and 275 and 325 thousand ounces of gold per year between 2035 and 2040.

The Red Chris mine has the potential for up to 70 years of mine life. The initial Block Cave project establishes the foundation for subsequent phased development, including additional macro blocks, the East Ridge, and other high confidence exploration targets. Forty percent of the planned upfront investment in processing facilities, material handling systems and other key infrastructure is expected to support potential future expansions, providing significant long-term optionality across the project and the broader Golden Triangle district.

The Golden Triangle has been prioritized by both the Provincial Government of British Columbia and the Federal Government of Canada as a region of national importance. Critical minerals, indigenous partnerships, clean energy infrastructure, and Northwest B.C. economic development have been identified as strategic priorities, resulting in enhanced policy support, regulatory attention, and infrastructure investment in the region. In July 2026, the Government of Canada announced a $500 million contribution to support the project, reinforcing Red Chris as a nationally significant critical minerals project. The Red Chris Joint Venture is continuing to work with the Canadian government to finalize the terms of the grant and expects to reach an agreement in the coming months.

As the feasibility study nears completion, the project has already achieved several key milestones, including the receipt of amended regulatory approvals from the Province of British Columbia in June 2026 that enable the transition from open pit mining to block caving. The amended Environmental Assessment Certificate was achieved through a consent-based process with the Tahltan Nation, reflecting a shared commitment to responsible resource development, meaningful Indigenous participation and long-term benefits for local communities.

The total estimated development capital for the project incorporating the $500 million grant from the government of Canada for the development of critical minerals projects, will be released by Imperial following completion of a National Instrument 43-101 technical report prepared for Imperial based on the feasibility study completed by Newmont.

The Red Chris Joint Venture will continue to validate the underlying assumptions and execution plan as the feasibility study is finalized ahead of the anticipated full funds investment decision in early 2027. An investment decision remains subject to the approval of Red Chris Joint Venture.

Exploration Program

Exploration drilling consisted of a surface drill rig deployed in the Far West prospect, with several holes drilled to test the depth extension of near-surface mineralization.  Upon completion of this program, the rig was moved to the Main zone later in Q3 to test the offset of mineralization along the South Boundary fault.  An underground drill continued to operate throughout the quarter for geotechnical data as part of the Block Cave development.

Huckleberry Mine

Huckleberry operations ceased in August 2016 and the mine remains on care and maintenance status.

Successful diamond drilling in the Southwest Main zone in 2025 was followed by 22 additional diamond drill holes in Q1 2026 to further extend the known mineralization. This work also followed relogging and re-assaying of historical drillholes from the Main zone. All holes drilled in 2026 intersected significant copper, molybdenum, silver and gold mineralization. No additional exploration or diamond drilling was completed in Q2 or Q3 2026.

The Company has commenced preliminary work on the cost of restarting Huckleberry and is targeting to have a completed reopening plan by the end of 2026 that includes a mine plan optimized with the new diamond drilling data.

For the September 2026 quarter, Huckleberry incurred idle mine costs comprised of $1.9 million in operating costs and $0.1 million in depreciation expense compared to $1.8 million in operating cost and $0.3 million in depreciation expense in the comparable quarter of 2025.

Exploration, development, and capital expenditures were $0.4 million in September 2026 quarter compared to $1.7 million in September 2025 quarter.

TECHNICAL INFORMATION

The technical and scientific information related to the Company’s mineral projects has been reviewed and approved by Steve Robertson, P.Geo., Imperial’s Vice President Corporate Development, and a designated Qualified Person as defined by NI 43-101.

EARNINGS AND CASH FLOW

Select Quarter Financial Information

About Imperial

Imperial is a Vancouver based exploration, mine development and operating company with holdings that include the Mount Polley mine (100%), the Huckleberry mine (100%), and the Red Chris mine (30%). Imperial also holds a portfolio of 21 greenfield exploration properties in British Columbia.