i-minerals inc.
TSX VENTURE : IMA
PINK SHEETS : IMAHF

i-minerals inc.

March 10, 2011 09:01 ET

i-minerals inc.: Feasibility, Permitting and Metallurgical Work Update

- Flotation Testing of feldspathic (feldspar - quartz) sand fraction derived from primary clay underway

- SRK designs 15 hole drill program on Kelly's Basin to upgrade first 10 years of production to Proven Reserve from Probable Reserve

- Permitting on schedule for submittal of draft Environmental Assessment to the US Army Corps of Engineers on or before August 15, 2011.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 10, 2011) - i-minerals inc. (TSX VENTURE:IMA)(PINK SHEETS:IMAHF) ("the Company") has been advised by Minerals Research Laboratory at North Carolina State University ("MRL") bench scale flotation testing of a feldspathic sand sample derived from the primary clay is underway. The feldspathic sand fraction is the residual portion of primary clay after the kaolinite – halloysite clay fraction has been removed. MRL will utilize a triple flotation process for upgrading the quartz product similar to that used during previously test work on the Kelly's Basin granitoid ores. This earlier flotation work yielded a quartz product with total trace elements of approximately 117 parts per million ("ppm"), which aside from titanium levels of about 12 ppm , meets all high pure quartz product market specifications (total trace elements < 300ppm). At present, i-minerals has identified a number of high value market applications that are tolerant of titanium at the 12 ppm levels. The purpose of this round of metallurgical work is to determine whether there is lower initial titanium levels in the quartz derived from the primary clays. Should the current flotation work indicate lower initial levels of titanium, samples will be sent to an internationally recognized specialty laboratory in Europe for leach testing to see if the quartz can be further upgraded to ultra high purity quartz (total trace elements < 30 ppm). Ultra high purity quartz products can command prices of several thousand dollars per ton.

With respect to the Kelly's Basin feasibility, the Company has received from SRK Consulting (US) Inc. ("SRK") a series of collar locations for 15 additional drill holes. The purpose of these drill holes is to upgrade the first 10 years of production under the mine plan to proven reserves from the current probable reserves (please refer to the Kelly's Basin Prefeasibility Study available on our website at www.imineralsinc.com). The holes are all relatively short, generally about 150 feet and should take about 18 days to complete once drilling is underway. The higher classification of reserve will facilitate raising a portion of the capital costs through debt instruments such as state revenue bonds as the repayment period of the bonds will be parallel to the defined proven resource. Subject to the completion of the current financing, the feasibility study on Kelly's Basin should be completed on or before August 15, 2011.

Tetra Tech Environmental, the primary environmental consultant has provided a detailed permitting schedule. Subject to the completion of the current financing the Section 404 Wetlands Permit Application, Section 401 Clean Water Act requirements, DEQ Air Quality and other permit applications are expected to be submitted on or before August 15, 2011. The draft National Environmental Policy Act ("NEPA") Environmental Assessment ("EA") is expected to be submitted to the Army Corps for review and comment on or before August 15, 2011.

President and CEO Thomas Conway noted, "In the few weeks I have been president of i-minerals I have completed a thorough review of the projects and related production plans and have met with all major consultants to the company: SRK, Roberts & Schaeffer and Tetra Tech. This baseline work has been satisfactorily completed by these well regarded engineering firms. I believe the development schedule at Kelly's Basin had unnecessarily fallen off schedule and the initial assessment of the primary clay deposits unduly delayed. My mandate as CEO is to complete the feasibility and submit all permitting applications on Kelly's Basin on or before August 15, 2011. Successful completion of the feasibility and permitting process as scheduled will allow the Company to begin to pursue the funding of capital costs for the Kelly's Basin deposit towards the end of the year. We also need to gain a better understanding of our primary clay deposits, which driven by the indications of very large volumes of halloysite offers great potential. To this end we are planning on completing a phase two drill program and prefeasibility study prior to year end. I am confident with the closing of the recently announced financing we can meet these objectives and begin to unlock the significant value of these deposits. As a company we need to work harder to make the investment community more aware of our company and the significant value of its deposits as our market value does not reflect the valuations calculated in our recent prefeasibility study and PEA."

A. Lamar Long, CPG, is a qualified person ("QP") for i-minerals inc. and has reviewed and approved the contents of this release.

About i-minerals inc.

i-minerals holds ten minerals leases in northwestern Idaho that host two deposits of high value industrial minerals. Kelly's Basin is a feldspar-quartz deposit that is the subject of an ongoing feasibility study. A pre-feasibility study completed by SRK Consulting (USA) Inc. of Denver Co ("SRK"), calculated a NPV of $61 million and an IRR of 19%. The primary clay deposits which contain a mixture of kaolinite, halloysite, quartz and feldspar were the subject of a Preliminary Economic Assessment (the "PEA") also by SRK which calculated a NPV of $95 million and an IRR of 48%. While additional assessment work needs to be completed, the PEA indicates the primary clay deposits represent the largest deposit of halloysite in North America. Halloysite is a unique tubular shaped alumina-silicate mineral often referred to as a halloysite nanotube which is being increasingly used in nanotechnology applications.

i-minerals inc.

Thomas M. Conway, President & CEO

This News Release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of risk factors beyond its control, and actual results may differ materially from the expected results.

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