June 27, 2008

Industrial Minerals, Inc. – Corporate Update

TORONTO, June 27 /PRNewswire-FirstCall/ -- Industrial Minerals Inc. (IMI) - OTCBB: IDSM - (or "the Company") announced today the following changes to its Board of Directors and Management team:

   1) Appointment of Gregory Borden Bowes and Christopher Crupi as Directors      ----------------------------------------------------------------------    a) On June 23, 2008, the Board of Directors of the Company appointed      Gregory Borden Bowes to fill a vacancy on the Board. Mr. Bowes is the      Chief Financial Officer of Orezone Resources Inc. (OZN; TSX, AMEX)      which has completed a bankable feasibility study on a gold deposit in      Burkina Faso, West Africa. Mr. Bowes holds an MBA from Queens      University and an Hons. B.Sc. in geology from the University of      Waterloo. He was formerly the CEO of San Anton Resources (TSX:SNN) a      Mexican focused exploration company which is advancing the Cerro del      Gallo deposit where a 43-101 mineral resource of + 10 million ounces      gold equivalent has been outlined. Mr. Bowes previous experience      includes President of an international engineering company and the      Vice-President of Northgate Exploration Limited.    b) On June 23, 2008, the Board of Directors of the Company appointed      Christopher Crupi to fill a vacancy on the Board. Mr. Crupi is a      chartered accountant, and the President and Chief Executive Officer      and a director of Paramount Gold and Silver Corp, a publicly traded      company listed on the AMEX and TSX stock exchanges. Prior to this,      Mr. Crupi was a Vice President of Pricewaterhouse Coopers LLP, and was      also president and chief financial officer of AMMEX Gold and Silver      Corp., a publicly traded exploration mining company with property      interests in the United States and Mexico. Mr. Crupi received a      Bachelor of Commerce degree from the University of Ottawa in 1992, and      his Chartered Accountant designation in 1995. Mr. Crupi was a special      assistant to the Honorable Don Mazankowski, Deputy Prime Minister and      Minister of Finance of Canada from 1988 to 1993.    2) Resignation of William Thompson as Director      -------------------------------------------       On June 20, 2008, William Thompson resigned as a Director of the      Company. There were no material disagreements between Mr. Thompson and      the Company as to the Company's operations or reporting.    3) Resignation of Patrick Michaud as Chief Financial Officer      ---------------------------------------------------------       On June 23, 2008, the Company accepted the resignation of Patrick      Michaud as Chief Financial Officer of the Company. There were no      material disagreements between Mr. Michaud and the Company as to the      Company's operations or financial reporting.    4) Appointment of Robert Dinning as Interim Chief Financial Officer      ----------------------------------------------------------------       On June 23, 2008, Robert Dinning was appointed to replace Patrick      Michaud as the Company's Interim Chief Financial Officer. Mr. Dinning      was the Company's Chief Financial Officer from September 15, 2006 to      April 4, 2008. Mr. Dinning is a Chartered Accountant and life time      member of the Alberta Institute of Chartered Accountants. Mr. Dinning      has operated a consulting practice since 1977. He has an extensive      background in corporate finance, operating in the mining and high tech      industries. Mr. Dinning has been an officer and director of various      public and private companies for the past 35 years, including      companies in the United States and Canada. Mr. Dinning is currently a      director of Apollo Gold & Energy Inc.    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 approximately 725,000 tonnes (327,700 tonnes indicated & 397,900 tonnes inferred) of flake graphite based on approximately 7.0% 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.

   Forward Looking Statements   --------------------------  
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". Forward looking statements are based on opinions and estimates of management at the date the statements are made, and are subject to a wide variety of risks, uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

Cautionary Note to US Investors - The United States Securities and Exchange Commission (SEC) limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. The Company uses terms such as "reserves", "resources", "geological resources", "proven", "probable", "measured", "indicated", or "inferred", which may not be consistent with the reserve definitions established by the S.E.C. U.S. investors are urged to consider closely the disclosure in our Form 10-KSB, File # 000-30651. You can review and obtain copies of these filings from the SEC's website at http://www.sec.gov/edgar.shtml.


Industrial Minerals Inc.

CONTACT: Mr. Paul Cooper, Chief Operating Officer, Industrial MineralsInc, [email protected], Tel: (905) 829-0220, ext. 222, Tollfree: 1-888-829-0220, http://www.industrialmineralsinc.com/