Indicator Minerals Inc. Drills First Kimberlite at Nanuq North: Financial News

Indicator Minerals Inc. Drills First Kimberlite at Nanuq North
Wednesday September 3, 2008 9:00 am ET

VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Sep 3, 2008 -- Indicator Minerals Inc. (the "Company" or "Indicator") (CDNX:IME.V - News) announced today that kimberlite has been discovered on the Nanuq North Project.

Kimberlite NQN-001 was discovered during a short, late season drill campaign. Based on ground geophysical data, NQN-001 is interpreted as having a minimum surface area of 4.5 hectares. The discovery hole, inclined at -58 degrees, terminated in kimberlite after a continuous intersection between seven and 87m. A 150 kg sample of the kimberlite has been sent to the Saskatchewan Research Council laboratory for diamond analysis.

"This key development confirms that Nanuq North hosts large kimberlites. We are eagerly awaiting diamond results as recent work by Peregrine Diamonds Ltd., immediately to the south at Nanuq, led to the discovery of some of the most significantly diamondiferous kimberlites in Canada's eastern Arctic," states Bruce Counts, President and CEO of Indicator Minerals.

Numerous untested geophysical targets and multiple kimberlite indicator mineral trains have been identified at Nanuq North. Planning for an aggressive 2009 exploration program, including drilling, is in progress. The property is located immediately north of the Nanuq Project where three, diamond-bearing kimberlites were drilled in 2007 resulting in the discovery of a new Canadian diamond district.

Exploration expenditures on the 33,100 hectare Nanuq North property are currently funded on a 50/50 basis by Peregrine Diamonds Ltd. ("Peregrine") (Toronto:PGD.TO - News) and Indicator. Under the terms of a letter agreement, the Hunter Exploration Group ("Hunter") retains a 20 percent interest and Peregrine and Indicator each retain 40 percent interests in 16 claims covering 13,900 hectares, including the claim that hosts NQN-001. Hunter also retains a two percent gross overriding royalty on these claims and their 20 percent interest is carried through completion of a scoping study. Peregrine and Indicator each have an undivided 50 percent interest in the remaining 19,200 hectares of claims at Nanuq North. Indicator is the operator of the project.

Mr. Bruce Counts, P.Geoph., President & CEO of Indicator, is a Qualified Person under NI 43-101 and is responsible for the design and execution of the programs carried out by Indicator on the Nanuq North property.

About Indicator Minerals:

Indicator Minerals Inc. is a Canadian exploration company focused on the discovery and development of economic diamond deposits. Founded in 2004, the company has assembled a highly qualified technical team, experienced in worldwide diamond exploration. Indicator is exploring more than 5.5 million acres of targeted ground in the Canadian arctic and has three key projects in Nunavut: Darby, Borden and Nanuq North. Indicator's management has positioned the company to be a sophisticated player in both Canadian and international diamond exploration by forming strategic partnerships, acquiring highly prospective properties and conducting systematic and efficient exploration programs. Indicator is a member of the Discovery Group of Companies.

On behalf of the Board

Indicator Minerals Inc.

Bruce Counts, P.Geoph., President & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.