Industrial Minerals : Further High Grade Silica Sand Results Returned

ASX ANNOUNCEMENT

6th April 2022

ABN 87 648 183 297

For personal use only

FURTHER HIGH GRADE SILICA SAND

RESULTS RETURNED

Preparation Underway for Maiden Resource Estimate at

Stockyard

Highlights

• • Latest round of auger drilling completed at the Stockyard Project has identified and extended multiple large areas of high purity silica sand (HPSS)

• • Results from 635 auger samples have returned grades greater than 98.5% SiO2, with an average grade of 98.9% SiO2 (reported above 98.5% SiO2)

• • More than 20 High Purity Silica Sand (HPSS) deposits now defined at Stockyard by 50 x 50m spaced auger drilling, to an average depth of 1.10 metres from surface

• • Placer Consulting PL (Placer) engaged and QAQC workstreams underway in preparation for Stockyard maiden Mineral Resource estimate

• • Key workstreams advancing for Stockyard Scoping Study and in preparation for Mining Lease application

• • Additional HPSS targets confirmed by regional soil sampling over the wider Stockyard project, with a best result of 99.1% SiO2 returned, and several high priority areas identified for follow up

• • Field activities and auger campaigns set to continue in April, with work aimed at testing high priority targets and further growing Stockyard mineralisation

Industrial Minerals Ltd (ASX: IND or the Company) is pleased to announce the results of exploration activities undertaken at the Stockyard Project, with assay results now returned from most of the drilling undertaken in 2021.

Recent auger drilling at the Stockyard Project has highlighted multiple large HPSS mineralised bodies, with the latest round of results returning 635 samples grading greater than 98.5% SiO2, for an average grade of 98.9% SiO2 and 976 ppm Fe2O3 ppm.

More than 70 per cent (635 out of 863 samples), reported above the 98.5% SiO2 cut-off grade, which is a very pleasing result, further validating the technical team's approach to identifying suitable target areas for drill testing and delineating high purity silica.

A summary of recent drilling results from Stockyard are tabled below.

Table 1. Summary of Stockyard assay results reported greater than 98.5 % SiO2

SiO2%	Al2O3 ppm	Fe2O3 ppm	TiO2 ppm	LOI-1000oc%
Average	98.9	1948	976	2653	0.39
Range	98.5 - 99.5	615 - 5571	303 - 9308	1180 - 5766	0.03 - 0.91

www.industmin.com

Suite 38, 460 Stirling Highway Peppermint Grove, WA, 6011 Australia

ASX ANNOUNCEMENT

6th April 2022

ABN 87 648 183 297

For personal use only

The HPSS mineralised bodies defined by drilling now extend over a combined area of more than 230 hectares, and have an average depth of 1.1 metres, as highlighted by assays returned from auger drilling in Figure 1.

These latest assay results confirm and extend the positive results returned from IND's previous campaign of auger drilling at Stockyard, reported to the ASX in November 2021, giving the Company confidence to progress the project to the next stage of Mineral Resource Estimation (MRE) and to continue the Scoping Studies (SS) that have already commenced.

The Company is pleased to report that data review, geological interpretation, and additional QAQC workstreams are well advanced in preparation for the maiden Mineral Resource Estimate which is set to commence this quarter.

Several key Scoping Study items are already underway, with the metallurgical testwork program, process flowsheet design, mining and logistics studies also set to be expanded this quarter.

Stockyard represents the first in a pipeline of exciting projects that IND intend to evaluate through low impact and low-cost exploration, enabling a rapid pathway to development and mining of high-purity silica sand for export to the high-growth Asian markets.

The development of the Stockyard Project will form a blueprint for IND's development strategy going forward, with a further eleven HPSS projects set to feature in upcoming exploration campaigns.

The scale and nature of the silica sands being defined by drilling supports a Low Impact Mining (LIM) Strategy. Mining will be conducted on predominantly cleared farmland, removing unwanted deep unfertile sand from paddocks, and minimising the need for clearing native vegetation. This represents a positive impact for both the farm owner and the environment.

The rapid exploration and development of IND's HPSS projects represents a unique opportunity at a time where the Chinese market is experiencing regional supply interruptions due to increasing environmental compliance standards, and a shortage of low iron silica supply.

IND's Technical Director Jeff Sweet commented,

"We have continued to identify, sample and test further target areas within the Stockyard Project with promising results. All targets are intercepting white sand at surface and are outside areas of native vegetation."

"Close relationships have been built with landowners at ten properties within the Stockyard Project area, adding support to IND's plans to explore and develop multiple low impact mining targets and reduce the risks associated with single source projects."

www.industmin.com

Suite 38, 460 Stirling Highway Peppermint Grove, WA, 6011 Australia

ASX ANNOUNCEMENT

6th April 2022

ABN 87 648 183 297

For personal use only

Stockyard Project Activities Update

Exploration Activities

Assay results have been returned for the Company's latest campaign of auger drilling which was completed at the Stockyard Project in December 2021. A total of 863 auger holes were drilled for 874 metres, for an average hole depth of 1.01 metres. This latest campaign of auger drilling results has been successful in identifying and extending multiple large high purity silica sand (HPSS) bodies.

Auger drilling has now been completed within an area approximately 15 kilometres east-west by 9 kilometres north-south, on a nominal 50 x 50 metre grid, over private farmland where access agreements are in place with pastoralists.

The multiple HPSS mineralised bodies defined by auger drilling now extend over a combined area of more than 230 hectares to an average depth of 1.10 metres, as highlighted in Figure 1.

More than 70 per cent (635 out of 863 samples), reported above the 98.5% SiO2 cut-off grade, returning an average of 98.9% SiO2 and 938 ppm Fe2O3. Of importance to note is that more than two thirds of the assay results (322 out of 863 samples) returned grades greater than 99.0% SiO2, further highlighting the purity of the silica sand deposits being targeted.

These high priority areas are now the focus of further studies and QAQC workstreams to facilitate a maiden Mineral Resource Estimate (MRE).

A total of 1450 auger holes have now been drilled and sampled at the Stockyard project for a total of 1468 metres. Assays have been returned for 985 of these holes, with results pending for the remaining 565.

Unfortunately, there was an incident at the assay laboratory and several of the Stockyard auger samples were destroyed by fire. These holes have since been redrilled and samples submitted for analysis, with results pending. Once received, these results will be incorporated into the dataset and will feature in the upcoming MRE.

Although the loss of samples to fire has been frustrating, the Company is confident that it can rapidly expand and develop the Stockyard resource base with the addition of these missing samples once they are incorporated into the existing dataset.

A campaign of reconnaissance soil sampling was recently undertaken over the broader Stockyard project with results highlighting the presence of high purity silica sand, with grades returned ranging between 97.7% and 99.1% SiO2. The locations and significant results from the Stockyard regional soil sampling program is detailed in Figure 2.

These results further add support to IND's strategy of identifying high quality silica sand projects in underutilised, low value pastoral land. These newly identified high purity silica areas are planned to be followed up by auger drilling and sampling campaigns in the coming months.

In February the Company commissioned MNG Survey to undertake a Lidar survey for the South Eneabba project area, which incorporates the Stockyard project.

www.industmin.com

Suite 38, 460 Stirling Highway Peppermint Grove, WA, 6011 Australia

ASX ANNOUNCEMENT

6th April 2022

ABN 87 648 183 297

For personal use only

Lidar is an active remote sensing technology that uses laser light to detect and measure surface features on the earth. Lidar-derived high-resolution elevation data products enable highly accurate terrestrial surveying, land surveying, and topographical mapping.

The Lidar survey products will be used as inputs to the upcoming MRE, mine assessment and planning, and will facilitate submission of items related to the Mining Lease application.

Mineral Resource Estimate & Scoping Study

IND is pleased to have secured the services of Richard Stockwell of Placer Consulting PL (Placer) to undertake the Stockyard Mineral Resource Estimate (MRE). Placer is a detrital minerals-focused consultancy with expertise in mineral exploration, resource development and mine reconciliation.

Richard Stockwell is a Fellow of the Australian Institute of Geoscientists and a Geologist with 23 years of industry experience. Richard is a passionate explorer and a Competent Person for the reporting of detrital mineral resources.

Several MRE workstreams are well advanced, including an independent data review and verification and additional QAQC items are being undertaken to ensure a robust MRE that will form the basis of the Stockyard Scoping Study and Mining Lease application.

IND are currently in discussions with further parties to broaden the Company's technical capability and to continue progressing and expanding Scoping Study workstreams, with studies set to ramp up this quarter.

The Stockyard Scoping Study will aim to:

• • Identify any DSO product or products that can be produced from Stockyard white sand

• • Identify the process required to meet the required specification

• • Investigate environmental implications and planning

• • Investigate and determine the costs of production on an FOB Geraldton basis

• • Develop a draft marketing/technical Material Safety Data Sheet (MSDS)

• • Identify risks and opportunities associated with the DSO option

• • Assess fixed and working capital cost estimates to support production under a DSO scenario

Mining Lease Application

IND is in the process of identifying and engaging technical expertise to assist with the preparation of items required for submission of a Mining Proposal, Mine Closure Plans, Project Management Plans and Works Approvals.

The Company is in advanced discussions with suitably qualified mining, processing, and logistics service providers who have a proven track record in the delivery of these types of projects.

Further updates on the appointment of technical experts are expected to be announced in the coming quarter.

Marketing Off-take Agreements

Raw white sand samples shipped to a potential offtake party for further definitive testing at their own glass manufacturing plants in China have met with positive feedback from the potential customers.

www.industmin.com

Suite 38, 460 Stirling Highway Peppermint Grove, WA, 6011 Australia

ASX ANNOUNCEMENT

6th April 2022

ABN 87 648 183 297

For personal use only

Potential offtake partners have confirmed that the very high SiO2 content combined with the low impurity profile are desirable qualities that could potentially represent a high value premium product for IND.

The Company is working closely with potential customers in China on the quality and specifications of products that suit various downstream uses.

Next Steps

IND's primary objective for 2022 is the rapid development of the Stockyard Project. This will entail achieving key milestones including:

• • Assessment and reporting of a maiden Resource Estimate and Scoping Study at Stockyard

• • The application and approval of a Mining Lease for Stockyard

• • Submission and approval of statutory requirement including Mining Proposal, Mine Closure Plans, Project Management Plans and Works Approvals

• • Engagement of mining, processing and logistics service providers

• • The further growth and development of potential customers with the aim to enter into offtake agreements and commence trial shipments

• • Continued systematic assessment and exploration across IND's 12 high purity silica sands projects

• • Further engagement with farmers and stakeholders, presenting IND's Low Impact Mining (LIM) Strategy highlighting the benefits to agricultural productivity while minimising negative impacts on the environment

• • Continued engagement and development of relationships with potential customers in China

IND's low impact and low-cost rapid exploration and resource definition technique give the Company a significant advantage in its efforts to rapidly explore and develop its highly prospective tenure and pipeline of quality projects.

The Company looks forward to providing further updates as results come to hand.

This announcement has been approved by the Industrial Minerals Board.

For enquiries regarding this release please contact:

Mr. Ashley Pattison,

Executive Chair [phone]

Website:www.industmin.com

Contact:[e-mail]

www.industmin.com

Suite 38, 460 Stirling Highway Peppermint Grove, WA, 6011 Australia