Highlights

Since January 2011, International Millennium Mining Corp., through its wholly owned Nevada subsidiary International Millennium Mining Inc.  (together “IMMC”), has completed 37 holes totaling approximately 10,500 metres of diamond drilling. Previous mining at Nivloc focused on high-grade lenses of ore that were encountered while drifting along this vein structure. The IMMC drilling program has identified several parallel to sub-parallel mineralized vein zones within a 150 foot wide structure. It appears, from available data, that only one of these vein zones was exploited by prior mining activity. In addition to the potential for high-grade lenses similar to those that were mined historically, the material between the lenses is consistently mineralized and the entire structure may have potential as a low grade, bulk mineable deposit.

Of the 34 holes drilled in the 2011 drill program, 30 intersected the altered, crushed and quartz-bearing zone referred to as the Nivloc Structure (Holes 11NL-5 to 11NL-34). The remaining 4 holes (10NL-1 to 11NL-4) were either suspended due to drilling conditions or were stopped short of the down-dip projection of the zone. Hole NL11-21 contained the widest interval of mineralization encountered to date, 200.8 feet assaying 120 g/t Ag and 1.10 g/t Au, an interval of which included: 4.5 feet of 731g/t Ag and 8.61 g/t Au. The best silver assay interval to date is from Hole 30, with a 5.5 foot intersection assay of 1,725 g/t Ag.

The “Target Zone” for the Company's 2011 drilling program was a zone between two small, previously mined zones within the northeast-southwest-trending vein structure and between the 200 and 800 foot level drifts in the old mine workings. The 800 foot mine level is approximately 900 feet vertically below surface, and the vein and workings dip from -45 to -65 degrees toward the northwest.  The structure has been traced at surface and in old development drifts for a distance in excess of 2,000 metres. The IMMC 2011 drilling program indicated that the area targeted within the Nivloc Structure ranges from 25 to 70 metres wide and contains several parallel vein zones that were the focus of previous mining at Nivloc. These vein zones are of relatively high grade, but the material separating them is also consistently mineralized and the entire structure may have potential as a bulk-minable deposit, but there can be no assurance of such potential until further work is performed.

In the Company's July 31, 2012 NI 43-101 Techincal Report on the Nivloc Property, an Inferred Mineral Resource Estimate was calculated by applying a silver cut-off grade to the block model data and reporting the resulting tonnes and grades. The silver equivalent (AgEq) was calculated using a 50:1 Ag to Au ratio. The undiluted and Inferred Mineral Resource Estimate of the Nivloc silver-gold mineralized zone at various silver cut-off grades has been summarized in the Statistical Summary Table, below.

The resources outlined by the 40 g/t Ag cutoff are considered to best reflect the status of exploration at Nivloc. At the 40 g/t Ag cutoff, the area drilled contains an Inferred Mineral Resource Estimate of 1,640,000 tonnes grading 106.47 g/t Ag and 0.78 g/t Au.

Nivloc Data - Statistical Summary

 

Ag Cutoff g/t

 

Tonnage

Ag Average Grade, g/t

Au Average Grade, g/t

 

Ag Total oz

 

Au Total oz

 

AgEq Total oz

(50:1 Ratio)

10

2,817,000

70.68

0.55

6,422,000

50,000

8,912,000

20

2,176,000

87.20

0.67

6,120,000

47,000

8,464,000

40

1,640,000

106.47

0.78

5,633,000

41,000

7,689,000

60

1,350,000

118.67

0.87

5,167,000

38,000

7,055,000

80

906,000

142.83

1.06

4,175,000

31,000

5,719,000

100

708,000

157.66

1.17

3,599,000

27,000

4,931,000

Cautionary Statement:

Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing or other relevant issues. There is no guarantee that IMMC will be successful in obtaining any or all of the requisite consents, permits or approvals, regulatory or otherwise for the Nivloc project or that the project will be placed into production.

Due to the uncertainty which may attach to Inferred Mineral Resources, it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration. Confidence in the estimate is insufficient to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic
viability worthy of public disclosure.

2011 Drill Program - Drill Hole Examples

Hole no.

Interval Drilled

Width (ft)

Ag (g/t)

Au (g/t)

11NL-21

506.7 - 707.5

200.8

120.0

1.01

Including

517.0 - 526.0

9.0

418.0

0.72

Including

554.0 - 558.0

4.0

731.0

8.61

11NL-23

424.2 - 429.0

4.8

131.6

0.47

 

589.0 - 653.0

64.0

124.4

 0.69

Including

636.0 - 649.5

13.5

273.4

 1.66

Including

641.0 - 646.0

5.0

449.0

 1.84

11NL-24

332.5 - 343.0

10.5

231.0

2.51

 

683.5 - 724.0

40.5

134.0

 1.89

Including

683.5 - 695.5

12.0

267.1

 2.79

11NL-25

397.9 - 413.0

15.1

100.9

0.86

 

737.3 - 842.0

104.7

129.0

 0.85

Including

754.0 - 759.0

5.0

353.0

3.97

Including

799.8 - 813.2

13.4

209.4

0.94

And

833.0 - 842.0

9.0

260.9

 2.19

11NL-26

927.0 - 1036.0

109.0

78.0

0.37

Including

929.5 - 942.0

12.5

139.6

1.02

Also Including

1017.0 - 1025.0

8.0

266.4

1.14

11NL-27

433.0 - 451.2

18.2

84.0

0.46

Including

433.0 - 439.7

6.7

201.0

0.72

1NL-28

842.0 - 915.0

73.0

157.8

1.33

Including

842.0 - 848.5

6.5

244.8

5.06

Including

846.5 - 848.5

2.0

395.0

11.55

Also Including

902.0 - 911.0

9.0

352.7

2.53

Including

907.0 - 911.0

4.0

431.0

2.7

11NL-29

593.4 - 766.0

172.6

53.3

0.64

Including

752.5 - 766.0

13.5

292.3

2.46

11NL-30

538.0 - 734.0

196.0

98.6

0.31

Including

710.5 - 734.0

23.5

462.5

0.63

Including

710.5 - 716.0

5.5

1725.0

0.16

11NL-31

876.0 - 929.0

53.0

92.3

0.86

Including

896.0 - 918.0

22.0

165.3

1.88

Hudson Decline

One of the more significant discoveries from review of the historic data associated with the Nivloc Property was a surveyors drawing of a decline known as the "Hudson Decline", the collar of which was subsequently located approximately 800 metres east of the Main Nivloc Shaft. This decline extends approximately 450 metres towards the NNW and an off-ramp at the 350 metre point extends westward for 200 metres to a point that is projected to be within 52 metres laterally of the old Nivloc underground workings. This decline, is in relatively good condition and with modest rehabilitation could prove very useful in the future exploration and development of the Nivloc Structure.