i-minerals Announces Positive Results of the Preliminary Economic Assessment Study of Its Bovill Kaolin Halloysite Quartz and K-Spar Project in Latah County, Idaho USA.

VANCOUVER, British Columbia, Dec. 5, 2011 /PRNewswire/ -- i-minerals inc. (TSX.V: IMA; Pink Sheets: IMAHF) ("the Company") is pleased to announce estimated inferred Mineral Resources of 38.4 million short tons and the accompanying results of its Preliminary Economic Assessment Study ("PEA") for its Bovill Kaolin-Halloysite-Quartz-K-Spar Project (the "Bovill Kaolin Project").  Based upon a 26 year mine model, the PEA yielded an after tax NPV of  US$155 million and an IRR of 29% .The PEA supporting the Mineral Resource estimate presented in this press release was managed by SRK Consulting (US) Inc. ("SRK") in Lakewood, Colorado, who also completed the Mineral Resource estimation.  Tetra Tech ("TT") was commissioned by the Company to complete environmental, geotechnical, and site reclamation engineering and design.  Roberts & Schaefer ("R&S) was commissioned to complete the design for the planned processing and product packaging facilities.  

Dr. Bart Stryhas constructed the geologic and resource model reported below.  He is responsible for the resource estimation methodology and the resource statement.  Dr. Stryhas is independent of the issuer applying all of the tests in Section 1.4 of NI 43-101.  

The PEA is being completed by SRK, TT, and R&S and will be filed on SEDAR (at www.sedar.com) in its entirety as required.  All values presented in this press release are in US imperial units and 4Q 2011 US dollars.  

Statement of Mineral Resources

The Mineral Resources are reported in Table 1 at a cut-off grade of 20% clay.  The primary clay material is comprised of an aggregate of halloysite, kaolin, quartz and k-spar with estimated mass percentages as follows: halloysite 6.6%, kaolin 16.7%, quartz 29.7% and 13.0% K-spar, with a weighted average product price of US$240 per ton.  

Results of the Preliminary Assessment

The PEA assumed a weighted average price of primary clay products - halloysite, kaolin, metakaolin, quartz and K-spar of - of $240/ton as supported by a market studies completed by i-minerals, and preliminary studies being undertaken by a European company specializing in halloysite research and a major international marketing and research firm.  Resources can support a mine life of well in excess of 50 years; however initial indicative economics were performed assuming a 25+-year market for primary clay products.  Production highlights are tabulated below.  

On an after-tax basis, technical-economics indicate an NPV6% of US$155 million with an IRR of 29%.  Payback will occur 3 years from the start of production.  Economic results are summarized below.  

i-minerals' Bovill Kaolin Project is a development stage project located in north-central Idaho.  The primary clay resources represent the largest deposits of high quality feldspar, quartz, kaolin and halloysite in the Western United States.  This preliminary assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable such resources to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized.

"Over the past few years there have been significant technological advances in composites materials for applications such as solar glass and other green energy technologies, plastics and polymers, cosmetics and other life sciences applications that is creating increasing demand for our high value mineral products," commented Thomas Conway President and CEO of i-minerals inc. "Given the more robust economics associated with the Bovill Kaolin Project, greater shareholder value can be created through the development of the these assets in preference over the Kelly's Basin soda-spar quartz deposit.  Accordingly the Bovill Kaolin Project will be the Company's focus for the foreseeable future."

i-minerals inc.

per: "Thomas M. Conway"

Thomas M. Conway,
President  & CEO

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

This News Release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various risks. Actual results could differ materially from those projected as a result of the following factors, among others: changes in the world wide price of mineral market conditions, risks inherent in mineral exploration, risk associated with development, construction and mining operations, the uncertainty of future profitability and uncertainty of access to additional capital.  .

SOURCE i-minerals inc.