MERGER: Imperial and Selkirk announce arrangement

VANCOUVER — Imperial Metals Corp. and Selkirk Metals Corp. have signed a definitive agreement under which Imperial will acquire all of the issued and outstanding share of Selkirk. The deal gives Selkirk shareholders a choice of either $0.12 cash for each share held or one Imperial share for each 30 Selkirk shares held. Using stock prices on Wed., Sept. 16, 2006, the deal offers approximately a 16% premium for Selkirk shares.

The arrangement is subject to the usual regulatory conditions, but if completed as planned, it will make Selkirk a wholly owned subsidiary of Imperial, giving Imperial control of several additional base metal properties that would complement its existing Mount Polley and Huckleberry mines. Selkirk is testing the Ruddock Creek, Kneb, LJ and Ghost zinc-lead properties in southeast British Columbia and the Robb Lake and Wasi properties in the north-central part of the province.

More information about the two companies may be read at www.ImperialMetals.com and www.SelkirkMetals.com.