Industrial Minerals Inc.
OTC Bulletin Board : IDSM

Industrial Minerals Inc.
Northern Graphite Corporation

Northern Graphite Corporation

April 19, 2010 08:30 ET

Northern Graphite Initiates Pre Feasibility Study

OTTAWA, ONTARIO--(Marketwire - April 19, 2010) - Northern Graphite Corporation ("Northern" or the "Company"), a subsidiary of Industrial Minerals Inc. (OTCBB:IDSM), announces that SGS Canada Inc. has been engaged to prepare a Pre Feasibility Study for the Bissett Creek graphite project.

SGS Canada Inc. Geostat office (formerly Geostat Systems International Inc.) previously completed a NI 43-101 compliant resource estimate and Preliminary Assessment on Bissett Creek and will update and refine their work to the standards required for a Pre Feasibility Study which is expected to be completed in the third quarter of this year. A full Feasibility Study was completed on Bissett Creek by Kilborn, Cominco Engineering and others in 1989, including the estimation of a proven and probable reserve, but it pre dates NI 43-101 and is not compliant. The Feasibility Study included over 7,200 meters of diamond drilling in 160 holes and the completion of bulk sampling, pilot plant testing and extensive lab work. While the Preliminary Assessment confirmed the results of these studies, additional metallurgical testing will be undertaken by SGS as part of the Pre Feasibility and a small infill drilling program will also be carried out.

Gregory Bowes, CEO of Northern stated that "A substantial body of high quality work has already been completed and we do not expect any surprises but it is important and necessary to bring it up to NI 43-101 standards." He added that "Environmental and permitting work is already underway and our goal remains to be in a position to make a construction decision within 12 to 18 months."

Northern owns 100% of the large Bissett Creek graphite deposit which is located 15km from the Trans-Canada highway, east of North Bay, Ontario. A full feasibility study was completed by Kilborn Engineering and others in 1989 (which pre-dates National Instrument 43-101 and is not compliant), but Bissett Creek was not developed due to a subsequent decline in graphite prices. Graphite prices have since recovered due to the ongoing industrialization of China, India and other emerging economies. However, new applications such as lithium ion batteries, fuel cells and nuclear and solar power have the potential to create significant incremental demand growth. There is up to 20 times more graphite than lithium, in a lithium ion battery. China, which produces 80% of the world's graphite, is seeing production and export growth leveling off and export taxes and a licensing system have been instituted. With limited worldwide exploration and few potential development projects on the horizon, the Company is well positioned to benefit from the continued improvement in graphite demand and prices.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities described herein have not been registered under the United States Securities

Act of 1933, as amended, and may not be offered or sold in the United States or to a U.S. person absent registration or an applicable exemption from the registration requirements of such Act.

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 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 2008 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.

NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED OF THE CONTENTS OF THIS RELEASE

Contact Information

  • Industrial Minerals Inc.
    Greg Bowes, CEO
    Ph 613 241-9959