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Millennium Mining Corp. (“IMMC” or the “Company”) (TSX VENTURE:IMI) reports its 2nd Quarter 2012 financial statements and MD&A (the “Quarterly Report”) for the 2nd Quarter ended June 30, 2012 (BC Form 51-102F1). Pursuant to the requirements of National Instrument 54-102, this news release provides a summary of the information contained in the Quarterly Report.

Summary of 2nd Quarter Results Ended June 30

—————————————————————————-
International Financial Reporting Standards
—————————————————————————-
2nd Quarter 2nd Quarter Year to Date
Fiscal 2012 Fiscal 2011 Fiscal 2012
—————————————————————————-
General and
Administrative
Expenditures $ 108,062 $ 83,268 $ 214,235
—————————————————————————-
(Gain) Loss on Foreign
Exchange $ 21,180 $ (1,495) $ 37,955
—————————————————————————-
Stock Based Compensation$ 240,000 $ – $ 240,000
—————————————————————————-
Gain on Disposal –
Mineral Properties $ – $ – $ 640,000
—————————————————————————-
Net Income (Loss) for
the Period $ (384,365) $ (83,816) $ 129,517
—————————————————————————-
Net and Comprehensive
Income (Loss) for the
Period $ (544,865) $ (67,816) $ (284,981)
—————————————————————————-
Net Loss Per Share $ 0.00 $ 0.00 $ 0.00
—————————————————————————-

—————————————————————————-
International Financial Reporting Standards
—————————————————————————-
As at June 30, 2012 December 31, 2011
—————————————————————————-
Deferred Mineral Property Expenditures $ 5,479,410 $ 5,044,945
—————————————————————————-
Total Assets $ 5,907,843 $ 5,405,448
—————————————————————————-
Total Liabilities $ 935,908 $ 801,444
—————————————————————————-
Share Capital 15,483,297 15,082,923
—————————————————————————-
Common Shares Outstanding 93,661,346 89,636,497
—————————————————————————-
Fully Diluted Shares Outstanding 113,586,721 103,426,723
—————————————————————————-


Summary Discussion


At June 30, 2012, the Company had a total of 93,661,346 common shares outstanding.


During the six months ended June 30, 2012 the Company recorded a net income of $129,517 as compared to a net loss of $186,705 during the comparable period in fiscal 2011. The material variances during the period are as follows:

i.  The Company realized a gain of $640,000 on the sale of the remaining 20%
interest in the Hilda/Guadalupe property. IMMC received 4 million First
Mex shares and a 2% NSR payable to IMMC with 1% re-purchasable by First
Mex for US$1 million dollars;
ii. The Company granted 1,615,000 stock options and extended the expiry date
of 1,930,000 stock options all expiring December 31, 2014. The Company
recorded a $240,000 stock based compensation during the second quarter
of fiscal 2012 as compared, to $18,000 during the comparable period in
fiscal 2011; and,

iii.The Company recorded a loss on foreign exchange of $37,955 during the
first six months of fiscal 2012, as compared to a foreign exchange gain
of $7,207 in the comparable period in fiscal 2011 on the translation of
our international subsidiaries.


During the first six months of fiscal 2012 the Company issued 3,974,849 common shares. These common shares were issued pursuant to the exercise of 50,000 stock options for proceeds of $5,000; the exercise of 3,569,265 warrants for proceeds of $359,927; and, the exercise of 355,584 broker warrants for proceeds of $28,447.


The Company’s working capital has decreased to a deficit of $881,975 at June 30, 2012 as compared to a deficit of $594,901 at December 31, 2011.


General and Administration


Comparison of the quarterly results


Overall, there was a 30% increase in general and administration expenses to $108,062 in the second quarter of fiscal 2012 from $83,268 in the second quarter of fiscal 2011 and a 1.7% decrease from $106,163 recorded in the first quarter of fiscal 2012. The variances were as follows:

i.  The Company recorded $240,000 stock based compensation during the second
quarter of fiscal 2012 as compared to nil during the comparable period
in fiscal 2011 and nil recorded in the first quarter of fiscal 2012;

ii. The Company recorded a loss on foreign exchange of $21,180 during the
second quarter of fiscal 2012, as compared to a foreign exchange gain of
$1,495 in the second quarter of fiscal 2011 and a $16,775 loss recorded
in the first quarter of fiscal 2012 on the translation of our
international subsidiaries;

iii.Promotion and trade show costs increased to $29,596 in the second
quarter of fiscal 2012 from $20,923 in the second quarter of 2011. The
primary difference is a result of marketing costs targeting the social
media network. There was also an increase from the $21,303 recorded in
the first quarter of fiscal 2012 because of the additional investor
relations costs;

iv. Salaries and benefits increased during the second quarter of fiscal 2012
to $14,286 from $8,643 recorded in the second quarter of fiscal 2011,
due to additional administration required for its property record
keeping, regulatory filings and other legal document filings;

v. Filing fees increased during the second quarter of fiscal 2012 to
$10,264 compared to $1,886 incurred in the comparable period in fiscal
2011 primarily because of additional TSX-V filings related to stock
options and annual fees; and,

vi. The Company incurred $19,945 in accretion of finance fees and interest
accruals on the loan payable in the second quarter of fiscal 2012 and
nil in the comparable period in fiscal 2011;


The Company recorded a net loss of $384,365 during the second quarter of fiscal 2012, as compared to a net loss of $83,816 during the second quarter of fiscal 2011. The primary reason for difference is the $240,000 stock based compensation expense and the $21,180 foreign exchange loss.


Comparison of the results for the six months ending June 30, 2012


Overall, there was a 28% increase in general and administration expenses to $214,235 in the first six months of fiscal 2012 from $167,609 in the first six months of fiscal 2011.

i.  The Company recorded $240,000 stock based compensation during the first
six months of fiscal 2012 as compared to $18,000 during the comparable
period in fiscal 2011;

ii. The Company recorded a loss on foreign exchange of $37,955 during the
first six months of fiscal 2012, as compared to a foreign exchange gain
of $7,207 in the first six months of fiscal 2011;

iii.Promotion and trade show costs decreased to $50,899 in the first six
months of fiscal 2012 from $58,296 in the first six months of fiscal
2011. The primary difference is the $22,000 incurred in making a video
during the first six months of fiscal 2011;

iv. Salaries and benefits increased during the first six months of fiscal
2012 to $29,516 from $16,955 recorded in the first six months of fiscal
2011 due to additional administration required for its property record
keeping, regulatory filings and other legal document filings;

v. Filing fees increased during the first six months of fiscal 2012 to
$20,485 compared to $11,515 incurred in fees for fees on the exercise of
warrants and fees for the additional stock options granted; and,

vi. The Company incurred $39,890 in accretion of finance fees and interest
accruals on the loan payable in the first six months quarter of fiscal
2012 and nil in the comparable period in fiscal 2011 and decreased from
the $36,114 recorded in the fourth quarter of fiscal 2011.


The Company recorded a net income of $129,517 during the first six months of fiscal 2012, as compared to a net loss of $186,705 during the first six months of fiscal 2011. The primary reason for difference is a realized gain of $640,000 on the sale of the Company’s remaining 20% interest in the Hilda/Guadalupe property to First Mex which was partially offset by the $240,000 stock option expense.


Exploration Programs


Nivloc Mine, Nevada Property


The Nivloc Mining Project is an advanced exploration project focused on the past-producing Nivloc silver-gold mine in the Silver Peak mining district in Nevada.


To date the Company has completed a 10,500 metres drill program consisting of 37 drill holes. The Company plans to continue the drilling program in October / November of 2012, which program will be funded by the exercise of outstanding warrants and a planned private placement. Drill hole results from drill hole 1 through drill hole 34 have been announced by the Company and these results have been filed on SEDAR and can be reviewed on the Company’s website at www.immc.ca.


Simon Mine, Nevada Property


The Simon Mine is a former producing polymetallic mine, located in the Walker-Lane Trend south of Reno, Nevada. Shut down in the late 1960s, this project now presents itself as an exploration and development play offering both size and grade potential for long-term mining. Historical records of ore shipped from the 905 drift (89 rail cars) indicate average grades 12 oz Ag, 0.04 oz Au, 9% Pb, 5.7% Zn and 3% Cu. (These historic figures are considered relevant and demonstrate the potential of the property, but need to be verified by the Company). A drilling program began in February, 2010 and was completed in August, 2010. Results were reported for seven drill holes. The Company plans to carry out a phase II drill program sometime in 2012/2013.


Subsequent Events


At August 16, 2012, the Company announced by news release, filed on SEDAR and the Company’s website, the results of its initial National Instrument 43-101 compliant independent Mineral Resource Estimate on its Nivloc Silver and Gold Project located in Southwest Nevada, USA (the “Nivloc Property”). The independent technical report on the Nivloc Property (the “Technical Report”), dated effective December 31, 2011, concludes that the area tested by the 2011 drilling program contains an Inferred Mineral Resource, at 40 g/t Ag cut-off, of 1,640,000 tonnes at a grade of 106.47 g/t Ag and 0.78 g/t Au. The Technical Report recommends a Phase 1 exploration program having these objectives: 1) improving the level of confidence within the drilled area by tightening the drill spacing (at least 11 drill holes); 2) expanding the currently defined resource area by drill testing along strike towards the northeast and southwest (at least 5 drill holes); and 3) initiating preliminary metallurgical, and engineering studies and baseline data collection in anticipation of an underground exploration and development program (Phase II). This recommended work program is expected to upgrade the resource from the inferred to the indicated category, but there can be no assurance of such an expected upgrade. The recommended program includes a total of 16 drill holes (4,000 meters) and is estimated to cost approximately $1.3 million. The Technical Report will be filed on SEDAR on or before August 31, 2012.


Management is focused on precious metal polymetallic projects in the Americas and is working towards building a strong, stable and well financed mineral exploration and small mines mining company.


Concurrently with this news release, the Company is filing its 1st Quarter Report with the regulatory authorities through SEDAR (www.sedar.com), and has mailed it to shareholders who have requested copies and whose names appear on the Company’s Supplemental List. Additional information about International Millennium Mining Corp. and its mineral property interests, including technical reports, is available on the internet at the SEDAR website www.sedar.com, or on the Company’s website www.immc.ca.


International Millennium Mining Corp. (TSX-V: IMI) is a mineral exploration and development company engaged in acquiring known smaller mine deposits, such as its Nivloc, Nevada silver-gold mine project, in the Americas, with the goal of advancing the properties to the mining stage. Emerging targets include silver, gold, copper, zinc and lead. The Company’s common shares trade on the TSX Venture Exchange under the symbol: IMI and on the Frankfurt Exchange under the symbol: L9J.


ON BEHALF OF THE BOARD


John A. Versfelt, President and CEO


Further information about the Company can be found on SEDAR (www.sedar.com).


This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, potential mineral recovery processes and other business transactions timing. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.



Contacts:
International Millennium Mining Corp.
Ms. Sheri Barton
403-217-5830
[email protected]

International Millennium Mining Corp.
Mr. John Versfelt
President & CEO
604-984-9907

Office: +52 (662) 688-5815

[email protected]

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