Industrial Minerals receives positive results from prelimary economic assessment on its Bissett Creek crystal flake graphite deposit

    TORONTO, Nov. 21 /CNW/ - Industrial Minerals Inc. - OTCBB: IDSM - (or
"the Company") is pleased to announce that it has received a draft technical
report that was prepared under, and is compliant with, National Instrument
43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") from
Geostat Systems International Inc. ("Geostat"), a leading international
engineering and geological services firm. The qualified persons signing this
technical report are Gilbert Rousseau Eng. and Claude Duplessis, Eng., Manager
of Geostat Systems International Inc, both of whom have reviewed and approved
this press release. Geostat is independent of the Company within the meaning
of NI 43-101.
    The highlights of the Preliminary Assessment NI 43-101 (draft) report are
as follows:

      -  A crystalline graphite flake resource estimate has been identified
         consisting of 327,700 tonnes of graphite in the indicated category
         plus 397,900 tonnes of graphite in the inferred category, above a
         1.5% graphitic carbon cut-off grade. This resource estimate covers
         less than 10% of the property, and is based on historical data from
         158 previous diamond drill holes and a 6-hole drill validation
         program completed in August, 2007.

      -  Based on the NI 43-101 resource estimate, and using a projected
         plant capacity of 2,500 tonnes per day, the mine life is estimated
         to be 35+ years. The conceptual open pit mine plan recovers 91% of
         the above resources. This review has also confirmed that the flake
         size within the deposit is evenly distributed across the ore body
         and that the graphitic gneiss is sub-horizontal and has a maximum
         known thickness of 70m.

      -  Geostat also carried out a series of new metallurgical and
         geological tests on the ore body in 2007. These tests confirmed
         consistent recovery of approximately 70% (by weight) of the large
         flake +48 mesh fraction. It was also found that the purity levels of
         the graphite were in the 95%+ range. Both of these are significant
         results given that large, high purity flake typically commands
         significantly higher prices in the graphite marketplace.

      -  Bissett Creek has been further characterized by its structure as a
         crystalline flake ore body that is free of many of the chemicals or
         contaminants often found in such deposits. This makes the flake more
         suitable for upgrade and purification applications that can command
         additional premium prices in the graphite marketplace.

      -  Average grades of total graphitic carbon in the resources range
         between 2.2% and 3.1% (for a 1.5% and 2.8% cut-off, respectively).
         Testing to develop these results was performed using the LECO
         (actual graphitic carbon) methodology. The LECO test methodology
         assists in ensuring a truer confirmation of the graphitic grade.

      -  Geostat has concluded that Bissett Creek should prove to be
         economically viable. Applying a discount rate of 10% which yields a
         NPV (Net Present Value) of approximately $88.1 million, and a
         corresponding projected IRR (Internal Rate of Return) of
         approximately 28% before taxes. The payback period in the base case
         is 4 years. It should also be noted that Geostat carried out a
         detailed economic sensitivity analysis that modified prices, costs
         and graphite recoveries over a +/- 25% range producing a
         corresponding of IRR range between 13-42%.

      -  Within the parameters of this economic and resource profile, it is
         the recommendation of Geostat that the Company proceed with a
         feasibility study on the project.

    Based on these results, and strong market fundamentals, the Company plans
to accelerate the next phase of its mine development, including the
installation of a pilot plant in early 2008. In this regard, the Company has
received a proposal for a bankable feasibility study and expects to execute a
contract in the coming weeks. The Company also plans to carry out further
drilling to confirm the existence of additional large flake graphite on known
areas of the remaining 90% of the property. As noted, graphite market growth
is projected to remain strong as traditional and emerging market applications
increase demand and product prices. The Company therefore feels this is an
excellent time to be proceeding with all of its mine development and marketing
    The final version of the entire NI 43-101 technical report will become
available for the public within 45 days; interested investors are encouraged
to review the Company's website at or filings at

    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 327,700 tonnes indicated plus 397,900 tonnes inferred
of flake graphite based on approximately 10% of the patented mineral leases
that have been drilled to date. The property is comprised of 28 claims
covering an area of approximately 1,315 hectares (3,250 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 Company believes the property
is one of the largest and purest natural flake graphite deposits in the world.
Its goal is 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. In addition, estimates of mineral reserves and resources may constitute
forward looking statements to the extent they involve estimates of the
mineralization that will be encountered if the property is developed. 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-KSB for
2006 as filed with the Securities and Exchange Commission. There can be no
assurance that future developments affecting the Company will be those
anticipated by management, or set forth in this news release. The Company is
not obligated, and assumes no obligation, to revise or update any
forward-looking statements in order to reflect events or circumstances that
may arise after the date of this release.

    Information Concerning Mineralization and Resources

    All mineral resources have been estimated in accordance with the
definition standards on mineral resources and mineral reserves of the Canadian
Institute of Mining, Metallurgy and Petroleum referred to in National
Instrument 43-101, commonly referred to as NI 43-101. U.S. reporting
requirements for disclosure of mineral properties are governed by the United
States Securities and Exchange Commission (SEC) Industry Guide 7. Canadian and
Guide 7 standards are substantially different. This press release uses the
terms "indicated" and "inferred" resources. We advise investors that while
those terms are recognized and required by Canadian regulations, the SEC does
not recognize them. Inferred mineral resources are considered too speculative
geologically to have economic considerations applied to them that enable them
to be categorized as mineral reserves.


For further information:

For further information: David Wodar, President, Industrial Minerals
Inc,, Tel: (905) 829-0220, Fax: (905) 829-5220,
Toll free: 1-888-829-0220, or: Martti Kangas,
The Equicom Group,, Tel: (416) 815-0700 x 243

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