National Plastics Exposition 2003 McCormick Place, Chicago, Illinois - Industrial Minerals, Inc. Appoints New CEO and President

    CHICAGO--June 25, 2003--Industrial Minerals Inc. (OTCBB:IDLM), announced today the appointment of R.A (Bob) Stoutley to the position of President and CEO effective June 30, 2003. Concurrently, Mr. Edward Verby stepped down from the position of President and CEO. Mr. Verby was instrumental in the initial development stages of the firm, and will continue to Chair the Board of Directors of Industrial Minerals, Inc.
    Mr. Stoutley was most recently Vice-President of Air Products Canada Ltd, a wholly owned subsidiary of Air Products and Chemicals. Air Products is a leading global supplier of industrial gases and chemicals operating in 32 countries. Mr. Stoutley was with Air Products for twenty years in increasing roles of responsibility. Initially hired to establish sales and operations in Western Canada, Mr. Stoutley advanced through positions in sales, sales management, business and project development and finally Vice President and member of the board of directors of Air Products Canada Ltd.
    Mr. Stoutley has joined Industrial Minerals personnel at the National Plastics Exposition in Chicago. This trade show is being held from June 23 to June 27 inclusive. The thrust of Industrial Minerals presentation at the show is to replace carbon black, which is used to make plastics electrically conductive, with Industrial Minerals expanded graphite. This market, on a global scale, is serviced by many of the world's largest multinational corporations. Graphite products when used as replacements, cost 50% less and surpass carbon black and nano tubes in conductivity. The Company has received considerable interest from potential customers. Several of these companies have requested samples of Industrial Mineral's expanded graphite.
    Industrial Minerals Inc. owns 100% of the undivided interest in the Bissett Creek Graphite patented mineral lease, containing a graphite resource 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 1245 acres (504 hectares). It has been the subject of substantial earlier exploration drilling, trenching and metallurgical test work by Cominco Engineering Services, Kilborn Engineering, Pincock Alan and Holt and KHD Canada. The company also owns three unpatented mining claims comprising approximately 645 acres (250 hectares) which are contiguous to the Bissett Creek property.

    Disclaimer: Statements, which are not historical facts, are forward-looking statements. The Company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors which may be identified from time to time in the Company's public announcements.