SOURCE: i-minerals inc.

August 03, 2006 12:00 ET

i-minerals Engages SRK to Complete Feasibility Study on Kelly's Basin

AMEC Subcontracted for Environmental and Permitting; Metallurgical and Marketing Work and Infrastructure Analysis Ongoing

VANCOUVER, BC, -- (MARKET WIRE) -- August 3, 2006 -- i-minerals inc. (TSX-V: IMA) has engaged SRK Consulting (US), Inc. ("SRK") of Denver, Colorado to complete a 43-101-compliant feasibility study on the Kelly's Basin feldspar -- quartz deposit on the Company's Helmer -- Bovill property located near the town of Bovill in Latah County, Idaho. The feasibility study process is underway following detailed meetings with SRK, AMEC Engineering, who will undertake the environmental and permitting components, Ruen-Yeager Engineering, who is undertaking an infrastructure scoping study and senior management of i-minerals. The completion of a positive feasibility study, together with the acquisition of all necessary permits, will allow i-minerals to seek financing for the capital costs necessary to place the Kelly's Basin deposit into commercial production.

SRK will manage the feasibility process and complete all required tasks including the completion of a mine plan and economic assessment of the Kelly's Basin property. SRK staff have completed site visits and examined the drill core and are reviewing drill logs and analytical data. SRK has provided detailed schedules of tasks to be completed and has sufficient professional staff available to complete the full feasibility study in a timely fashion.

AMEC Earth & Environmental of Helena, Montana will complete the environmental aspects of the feasibility study and oversee the mine permitting process. The initial site visit has been completed and no obstacles were identified that would prohibit an orderly completion of the environmental or permitting processes.

Ruen-Yeager & Associates of Coeur d'Alene, Idaho is undertaking the industrial site scoping study to identify the most suitable locations for a production facility in the Bovill area. Factors incorporated into the selection process include access to electricity, water and natural gas and proximity to rail and highway transportation arteries. Information generated as part of this scoping study will aid in operating and capital cost estimates.

i-minerals has completed significant preliminary work that will be incorporated into the feasibility study. Two phases of grid-based drilling have been completed. The first, utilizing 400-foot drill hole centers was sufficient for the calculation of an NI 43-101-compliant measured and indicated resource of 10.78 million tons (MT) of granitoid rock containing 4.31 MT of recoverable feldspar and 1.72 MT of quartz. The second drill program reduced the drill hole spacing to 200-foot centers and will form the basis of the reserve calculation completed during the feasibility study.

The Company has completed several phases of metallurgical testing at Mineral Research Laboratory at North Carolina State University ("MRL"). The most recent metallurgical work on a composite sample derived from ten of the Phase 1 drill holes is nearing completion. Both feldspar and quartz products have been produced and have been sent for final analysis. This work, as well as four earlier series of metallurgical testing, has led to the initial development of a feldspar process flow sheet. Results from the analysis of the latest quartz product will generate preliminary information as to the purity of the quartz product that can be produced and guide the development of the initial flow sheet for the production quartz products. This bench scale production of feldspar and quartz products and the development of the related flow sheets provide important inputs into the initial capital and operating cost estimates.

i-minerals management is continuing extensive marketing work that has identified prospective domestic target accounts. Discussions are continuing with these target accounts, a number of which have asked for and received samples of i-minerals products for their internal testing. In addition, the State of Idaho has provided the Company with extensive contact information for certain Asian markets that can be serviced through Port of Lewiston and the Snake River-Columbia River barge system to tidewater. Overall, the marketing work completed to date has demonstrated that there is strong demand for i-minerals products in those markets where the Company maintains a transportation and product advantage. As with any industrial mineral commodity, a commercial interest in the Company's mineral products must be demonstrated as part of a feasibility study.

"We are pleased to be working with a well known and respected group such as SRK to complete the Kelly's Basin portion of the Helmer-Bovill project feasibility," commented Roger Kauffman, President and CEO of i-minerals. "Completion of the feasibility study will quantify much of our previous work and provide a financial assessment of the Kelly's Basin deposit -- which is only one of three potentially significant deposit types on the Helmer-Bovill property."

A. Lamar Long, CPG, is the Qualified Person ("QP") for the Helmer-Bovill project under NI 43-101. He oversees the quality control and quality assurance program and the construction of all samples for metallurgical analysis and reviews all analytical results prior to public release.

i-minerals inc.

per: "Roger Kauffman"

Roger Kauffman, President & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

This News Release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various risks. Actual results could differ materially from those projected as a result of the following factors, among others: changes in the world wide price of mineral market conditions, risks inherent in mineral exploration, risk associated with development, construction and mining operations, the uncertainty of future profitability and uncertainty of access to additional capital.

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