International Precious Metals Corporation Commences Pilot Scale Test Program.

TORONTO, Ontario--(BUSINESS WIRE)--Dec. 19, 1996--International Precious Metals Corporation (IPM) announced today that, based on successful bench scale tests for gold and platinum, it has begun a scaled up pilot plant test program.

Samples recovered from its leach process were assayed by two independent laboratories, one Canadian based and the other U.S. based. The gold assay results were reported as follows: -0-

                         November 1996 Leach Results
               --------------------------------------------------
                      Lab A                     Lab B
Sample No.      oz/ton       grams/tonne     oz/ton   grams/tonne
-----------------------------------------------------------------
111            0.312          10.69          0.266     9.13
118            0.312          10.69          0.272     9.33
147            0.228           7.82          0.189     6.48
158            0.363          12.43          0.309     10.59
201            0.270           9.26          0.237     8.11
207            0.298          10.20          0.266     9.13

-0-
    The samples selected are representative samples from six of the
121 holes drilled by IPM earlier this year on the first of six 1
square kilometer BRX grids.  The original grid of 121 drill holes to
30 meters depth (100 feet) tested 50 million tons of BRX (Black Rock
Extended) material.  The above samples are representative of the
entire hole from the locations detailed in the accompanying diagram
on page 2.
    These results contrast with the results obtained by IPM earlier
in 1996 largely due to a breakthrough in assaying of the material.
The previous results were obtained via a leaching process that by its
very nature failed to produce total material values but rather a
minimal recoverable number.  These new results are both higher and
reproducible, with a very high degree of correlation.
-0-

                         March 1996 Leach Results
               -----------------------------------------
                           Averages on Holes
Sample No.          oz.ton              grams/tonne
--------------------------------------------------------
111                 0.068               2.33
118                 0.057               1.95
147                 0.068               2.33
158                 0.042               1.44
201                 0.037               1.27
207                 0.046               1.58
--------------------------------------------------------

-0-

The significance of these greatly improved recovery values is profound for IPM -- it breaks an eighteen month technical log-jam and enables the company to carry out assaying with a high degree of confidence, thus allowing for the work on recovery techniques to be advanced at a greater rate.

The company's sustained technical effort produced the breakthrough, substantiating the recovery of significant amounts of physical gold as demonstrated by the comparison of results. Platinum results from these same bench scale tests are awaiting returns of verification assays.

IPM will be able to apply the bench scale of this leach process as a routine assay procedure for most future BRX work, as well as specific check assaying on the original grid samples. This should enable IPM to bring the 1 square kilometer grid to resource status in the first half of 1997.

Drilling will also commence on the five additional grids as previously outlined in the company's regional exploration program in 1995. Results from the five grids will then be incorporated with the existing results from the original grid in order to determine the overall scale of the BRX project during 1997.

Additionally, exploration drill holes from the primary source material (hard rock) of up to 150 meters in depth and hard-rock core samples previously obtained during the 1996 diamond drilling program will also be tested for recovery.

On December 16, IPM instructed an independent laboratory to initiate a scaled-up recovery test program. First stage testing will start with 50 pound samples and in the second stage will move up to 1,000 pound samples in a pilot scale facility. This round of pilot scale testing should take approximately eight weeks to complete.

During the normal course of the small scale and pilot scale tests, IPM's mining consultants Behre Dolbear & Co., Inc. will continue their participation as an integral part of the program. The precious metal products from the pilot scale tests will be evaluated by refiners who have already tested samples from the bench scale program and have expressed interest in purchasing the precious metal concentrates.

The company believes it is now in a very good position to advance the BRX project to a resource status during the first half of 1997 utilizing the existing BRX grid and the additional five that IPM plans to drill in order to augment the overall resource status. Proceeds from warrants that have been exercised and those that the company expects to be exercised will provide the funding for this work.

For more information, contact: -0- Operations Office: 4625 S. Ash Ave., Suite J-1 Tempe, AZ 85282 Tel: [phone] Fax: [phone]

Registered Office: 390 Bay Street, Suite 502 Toronto, ON M5H 2Y2 Tel: [phone] Fax: [phone]

Internet Site: http://www.ipmcf.com e-mail: [e-mail]

CONTACT: International Precious Metals Corporation

Operations Office, 800/482-6429 (Tempe, AZ)

Registered Office, 416/368-1489 (Toronto)