SOURCE: Industrial Minerals Inc.

September 20, 2006 14:24 ET

Industrial Minerals, Inc. - Company Announces Executive Appointments

TORONTO -- (MARKET WIRE) -- September 20, 2006 -- Industrial Minerals, Inc. (OTCBB: IDSM) (the "Company"). The Board of directors of the Company advises that Mr. Cam Birge has been appointed President and a Director and that Mr. Robert Dinning C.A. has been appointed Chief Financial Officer and Director, effective immediately.

Mr. Birge has been a consultant to private and public companies for the past eight years specializing in the areas of organizational development and operations, public and private company financing, strategic management, conflict resolution and negotiations.

Mr. Birge has also been Vice-President of Operations for The Trust for Sustainable Development, where he was instrumental in assembling a management team that successfully negotiated the development of the $3 billion Loreto Bay project, one of the largest real estate developments underway in North America. He previously worked for Bell Canada Mobile Communications in Toronto as Business and Operations Analyst in Southern Ontario, the largest market in Canada.

Mr. Birge's background also includes almost twenty years in public and private education. He served as Associate Professor of Business at United States International University for five years where he was twice elected by his peers to be the Head of Graduate Business Studies on the Academic Council.

Mr. Dinning is a Chartered Accountant with skills in many business areas, including extensive experience commencing in 1971 in public company corporate management, public and private company financing, acquisitions and reorganizations. He is a life time member of the Institute of Chartered Accountants of Alberta, having been appointed in 2003.

His background includes experience as an Investment Banker for a large public financial institution formerly owned by the Royal Bank of Canada and Chief Financial Officer and Secretary for one of Canada's largest public broadcasting companies located in Vancouver, BC.

He has also been an officer and director of several public companies over the past 25 years and is currently a director and CFO of a public mining company listed in the USA, a director and officer of a technology company in the USA, as well as a director of several private companies.

Mr. Larry Van Tol resigned as President and a director of the Company due to personal reasons and has returned to his family business. The office in Mankato, Minnesota will be closed September 30, 2006.

Consultants have been engaged regarding an extensive review of both mining and financial operations and announcements will be made in due course when this is completed.

About Industrial Minerals, Inc.

Industrial Minerals Inc. through its wholly owned subsidiary Industrial Minerals Canada Inc., headquartered in Toronto, Ontario, Canada, owns 100% of the undivided interest in the Bissett Creek Graphite patented mineral lease, containing a resource of 640,000 tonnes of flake graphite on approximately 10% of the patented mineral lease that has been drilled to date. The property is comprised of 28 patented claims covering an area of approximately 504 hectares (1,245 acres). It has been the subject of substantial earlier exploration drilling, trenching and metallurgical test work by KHD Canada, Kilborn Engineering, Pincock Alan and Holt and Cominco Engineering Services. The property is located in Maria Township in the Province of Ontario, Canada. The property is one of the largest and purest natural flake graphite deposits in the world. The Company plans to become the leading producer of large flake crystalline graphite in North America and a prominent market participant internationally.

Safe Harbor Statement

All statements contained herein, as well as oral statements that may be made by the Company or by officers, directors or employees of the Company acting on the Company's behalf that are not statements of historical fact, constitute "forward-looking statements" and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties are outlined in the Company's Annual Report on Form 10-K for 2005 as filed with the Securities and Exchange Commission. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

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