INDUSTRIAL MINERALS INC. (IMI) PLANS EXPANDED 2008 DRILL PROGRAM ON BISSETT CREEK

NEWS RELEASE

INDUSTRIAL MINERALS, INC.

2904 South Sheridan Way, Suite #100 – Oakville Ontario Canada L6J 7L7

INDUSTRIAL MINERALS INC. (IMI) PLANS EXPANDED

2008 DRILL PROGRAM ON BISSETT CREEK GRAPHITE SITE

Toronto, Ontario, Canada — April 15th, 2008 — Industrial Minerals Inc. (IMI) -OTCBB: IDSM - (or “the Company”) is pleased to announce that it has developed plans for an expanded exploratory and confirmation drill program on its Bissett Creek large-flake graphite property in Eastern Ontario.

As noted in previous press releases, the Company completed its NI 43-101 resource estimate of approximately 725,000 tonnes of high quality large flake graphite in December, 2007. This resource is based on prior drill programs covering approximately 7% of the available 3,250 acres (1,315 hectares) leased or staked by the Company. In view of the strong market fundamentals for natural graphite in both traditional and emerging sectors, the Company feels there are compelling reasons to expand its resource base and head grade through additional drilling.

“Improving the grade and identifying areas with lower stripping ratios, while also expanding the resource, will reduce our overall operating costs and further enhance our business model”, states IMI COO Paul Cooper. Previous drill programs on the 7% already explored included in excess of 450 drill holes. The proposed program, slated for the summer and fall of 2008, has a projected cost of approximately $800,000, and will include 125 new NQ diamond-drill holes (approximately 50 metres per hole for a total of 6,250 metres). A portion of these will represent a step-out program in areas where prior drilling had indicated zones of high grade ore. The balance of the holes will be drilled in a series of defined areas where visible outcroppings of graphite ore are apparent.

The Bissett Creek site contains large flake graphite and the Company expects to recover concentrate at greater than 96% purity level with a standard wet flotation process. These results have been borne out in recent months as the Company conducted extensive metallurgical tests on its ore. Achieving purity levels greater than 96% in the initial flotation process will reduce the operating loads and production costs in the subsequent high-purity processing operations. By further improving the purity to 99.9% and higher for applications in emerging high-purity, high value market segments such as lithium-ion batteries, solar panel applications and graphene products, the Company feels it can develop an excellent revenue model once production commences in late 2010.

“Given the potential demand for natural graphite that these emerging segments represent, as well as the traditional segments such as refractory applications, there is a clear need for the Company to carry out the planned drill program”, stated David Wodar, President of IMI. “It will also better position the Company with a growing list of potential customers in North America, Europe and Asia, many of whom are large multinational graphite and/or industrial mineral marketing organizations looking for a new and reliable supply of natural graphite”.

The Company will follow-up with additional details on the drill program, and other key aspects of its strategic plans for developing the world-class Bissett Creek site in the months ahead.

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” and are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995 and Section 21E of the United States Securities Exchange Act of 1934, as amended.. Such forward-looking statements include our statements about future financing, future relationships with customers and operational plans that depend upon financing that we have not secured as of the date of this press release. All 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 2007 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. 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 reader is cautioned that the term, “resource,” is not a term that is recognized by SEC guidelines for disclosure of mineral properties. Generally, “resources” estimates do not rise to the level of certainty required by SEC guidelines. The mineralized material described above is not considered a “reserve” as that term is used in the mining industry and in SEC disclosure guidelines. The Company must undertake a feasibility study before it can estimate the value of its mineral assets. U.S. investors are urged to consider closely the disclosure in our Form 10-KSB, File No. 000-30651. You can review and obtain copies of these filings from the SEC’s website at http://www.sec.gov/edgar.shtml.

NO STOCK EXCHANGE, SECURITIES COMMISSION, OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.

Industrial Minerals, Inc.

For further information, please contact:

David Wodar, President

Industrial Minerals Inc

dwodar@industrialmineralsinc.com

Tel: 905.829.0220

Toll free: 1.888.829.0220