Indicator Minerals Inc.
TSX VENTURE : IME

Indicator Minerals Inc.

May 17, 2006 13:58 ET

Indicator Minerals Closes Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 17, 2006) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES

Indicator Minerals Inc. ("IME" or "Indicator") (TSX VENTURE:IME) announced today that it has completed its previously announced non-brokered private placement for aggregate gross proceeds of $3,514,850.

The private placement was comprised of 2,105,636 flow-through common shares at a price of $0.55 per share and 4,713,500 units at a price of $0.50 per unit. Each unit is comprised of one common share and one share purchase warrant, each share purchase warrant exercisable for one common share for a period of 18 months following issuance, at a price of $0.65 per share during the first nine months and $0.75 per share during the second nine months.

Finder's fees in the aggregate amount of $175,389 and an aggregate of 320,648 finders' warrants exercisable for up to 320,648 common shares for a period of 12 months following issuance at a price of $0.70 per share were paid to ten finders in respect of certain subscriptions in the private placement.

The securities are subject to a hold period and may not be traded until September 16, 2006 except as permitted by Canadian securities legislation and the TSX Venture Exchange.

The independent directors of the Company approved the participation by three directors of the Company in the private placement on the same terms as arm's length investors in the aggregate amount of 350,000 units. Security holdings of insiders in the Company have increased as a result of such participation.

The Company intends to use the proceeds of the private placement to conduct exploration on the Company's properties and for general working capital purposes.

Indicator Minerals Inc. is a Canadian exploration company focused on the discovery of economic diamond deposits. Founded in 2004, the company has assembled one of the most qualified technical teams in worldwide diamond exploration. Indicator has two key projects in the Franklin District of Nunavut: Darby and Barrow, Darby has been advanced to the drill ready stage.

On behalf of the Board

Indicator Minerals Inc.

Bruce Counts P.Geoph., President & CEO

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

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