Industrial Minerals Inc. Acquires Mining Claims Contiguous To Main Graphite Property

    TORONTO--July 10, 2002--Industrial Minerals Inc. (OTCBB:INDM), through its new wholly owned subsidiary Industrial Minerals Canada Inc., announced today that it has acquired, at the cost of staking, three unpatented mining claims, comprising 16 units, in Maria Township, Province of Ontario, Canada.
    Two of the mining claims, consisting of approximately 200 hectares, are located north of, and are contiguous to, the company's main Bissett Creek graphite property. The company acquired these two claims in order to expand it's coverage of the known graphite deposit, which extends for more than a half mile to the north of the main deposit, and is trending westerly.
    The third claim, consisting of approximately 48 hectares, was acquired in order to encompass an access road leading to the main block. As a pilot mill was once located in this area, the company decided that the existing foundations might be useful for certain buildings which the project may need to establish, such as an office or cookery.
    Industrial Minerals Inc. owns 100% of the undivided interest in the Bissett Creek Graphite patented mineral lease, containing a reserve of 640,000 tons of flake graphite, located in Maria Township in the Province of Ontario, Canada. 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.

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