SOURCE: Industrial Minerals Inc.

September 12, 2007 12:55 ET

Industrial Minerals, Inc. Stakes Additional 950 Acres at Bissett Creek

OAKVILLE, ON--(Marketwire - September 12, 2007) - Industrial Minerals, Inc. (OTCBB: IDSM) (the "Company")

The Company is pleased to announce the staking of new claims at its Bissett Creek Graphite project, located in Maria Township in Northern Ontario, Canada.

Industrial Minerals, Inc. has a 100% undivided interest in the mineral lease. The property is comprised of 28 claims covering an area of about 1,400 acres (566 hectares). The Company previously staked four mining claims comprising 900 acres (364 hectares), which are contiguous to its Bissett Creek mine property.

Completed this summer, the Company also added an additional 950 acres (384 hectares) of staked claims to the site, increasing the area for development to approximately 3,250 acres (1,315 hectares).

The site itself is located in Maria Township, about 300 km north-northeast of Toronto and 100 km east of North Bay, Ontario. The property connects to Highway 17 (the Trans-Canada Highway) by 16 km of good gravel road, of which 14 km is maintained by the Province of Ontario. This represents approximately 4 hours trucking time to industrial consumers in the Toronto area, which in turn is 12-16 hours from some of the largest graphite markets in the world in the northern and eastern regions of the U.S.A.

"Management felt it essential that our resource body be protected," commented David Wodar, President of Industrial Minerals, Inc., and added, "this will ensure even further longevity to Industrial Minerals' core asset."

The Company also announces the recent addition of Senior Metallurgical Advisor, Mr. David Michaud to the Company's Advisory Board. Mr. Michaud has a degree in Mining Engineering from Queen's University, and more than 15 years of experience in mine and mill design and operation both in Canada and South America, David will be an invaluable resource to the Company. He will bring best practices from other mining operations, and provide crucial input into the metallurgical testing and pilot plant design required to scale up Bissett Creek to full production.

You can find out more about Industrial Minerals, Inc. from our New Web Site at: www.industrialmineralsinc.com.

About Industrial Minerals, Inc.

Industrial Minerals, Inc. through its wholly owned subsidiary Industrial Minerals Canada Inc., headquartered in Oakville, Ontario, Canada, owns 100% of the undivided interest in the Bissett Creek Graphite patented mineral lease, containing a resource of 640,000 tons 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 2006 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.

Contact Information

  • For further information, please contact:

    David Wodar
    President
    Industrial Minerals, Inc.
    Tel: (905) 829-0220
    Fax: (905) 829-5220
    Toll free: 1-888-829-0220
    Email Contact

    New Web Site:

    www.industrialmineralsinc.com

    INDUSTRIAL MINERALS, INC.
    2904 South Sheridan Way, Suite 100
    Oakville, Ontario
    L6J 7L7