I-Minerals' UltraHallopure Halloysite used in Development of Mineral Impregnated Wound Cloth by German Institute of Diabetes "Gerhardt Katsch" Karlsburg

VANCOUVER, BC--(Marketwired - January 18, 2017) - I-Minerals lnc. (TSX VENTURE: IMA) (OTCQB: IMAHF) (FRANKFURT: 61M) (the "Company") has been advised by German Institute of Diabetes "Gerhardt Katsch" Karlsburg ("IDK"), in cooperation with DURTEC GmbH of Neubrandenburg, Germany ("DURTEC"), that excellent Research and Development results have been achieved using the Company's Ultra Hallopure halloysite product in the development of a state of the art wound treatment cloth.

As noted in the Company's press release of February 9, 2016, IDK and DURTEC developed a new wound treatment material utilizing a new impregnation technology developed wherein halloysite nanotubes ("HNTs") can be impregnated into textile fibers. Halloysite, which is essentially kaolinite in a nanotube shape, offers all the benefits of kaolinite based materials, but the hollow core of the halloysite can be loaded with various medical compounds if desired. Throughout 2016, IDK in collaboration with DURTEC, have done comprehensive developmental work on the wound treatment cloth including the performance of several in vitro tests and animal tests to demonstrate the blood clotting potential of new types of mineral-impregnated materials for wound treatment.

Dr. Eckhard Salzsieder, Director of the IDK stated: "At this moment we know that our wound treatment cloth has comparable, or in some instances, better blood clotting action as compared with Z-Medica 's Combat Gauze product. In addition, we have identified a broader spectrum of potential applications and a low cost technology for production. In 2017, we have two additional R&D-projects planned with our partners from the textile industry to demonstrate the enormous application potential of our blood clotting and wound healing materials and to create first prototype products ready for use in medicine."

"Everyone at I-Minerals is excited by this game changing technology and the Company is uniquely positioned to be a halloysite supplier to this and other developing life science applications," stated Thomas Conway, President and CEO of I-Minerals Inc. "Halloysite deposits are rare with less than a dozen that are currently known to be potentially economic. The largest producer has cristobalite, a silica dioxide and carcinogen, mixed with the halloysite, and others have too high a heavy metal count or too poor an aspect ratio to be effective or acceptable material. Our 2016 Feasibility Study has halloysite production modelled up to 15,000 ton per year. Within the deposit there are areas with higher concentrations of halloysite we can preferentially mine to meet additional halloysite demand as required. All told, I-Minerals is well positioned to be the preeminent halloysite supplier to the life science markets."

A. Lamar Long, CPG, is a qualified person ("QP") for I-Minerals Inc. and has reviewed and approved the contents of this release.

About I-Minerals Inc.

I-Minerals is developing multiple deposits of high purity, high value halloysite, quartz, potassium feldspar and kaolin at its strategically located Helmer-Bovill property in north central Idaho. A 2016 Feasibility Study on the Bovill Kaolin Deposit led by led by GBM Engineers LLC, who were responsible for overall project management and the process plant and infrastructure design, including OPEX and CAPEX calculated an After Tax NPV of US$249.8 million with a 25.8% After Tax IRR. Initial CAPEX was estimated at $108.3 million with a 3.7 year After Tax payback. Other engineering services were provided by HDR Engineering, Inc. (all environmental components; hydrology / hydrogeology; road design); Tetra Tech, Inc. (tailings storage facility design); Mine Development Associates (mine modelling; ore scheduling; mineral reserve estimation); and SRK Consulting (U.S.) Inc. (mineral resource estimation). Permitting work with the State of Idaho is well underway.

About Institute of Diabetes "Gerhardt Katsch" Karlsburg ("IDK")

IDK has a long tradition and expertise in the medical treatment of diabetics, in experimental, animal and clinical research on diabetes mellitus, in the training of doctors in the field of diabetology and in the organization and coordination of care for diabetics at other hospitals. IDK was founded in 1930 it is named after the diabetologists Gerhardt Katsch, who worked as an internist at the University of Greifswald.

About DURTEC GmbH

DURTEC was founded in 1990 by Dr. Joachim Schomburg and operates a modern laboratory. It is a leader in mineral-based applications for Nanotechnology and Clean Technology and a developer of a related IPR-portfolio. Dr. Schomburg has more than 35 years' experience in Technical Mineralogy and has authored more than 80 scientific papers. Development and deliveries of selected value-added mineral products for Life Science- and nanotechnology-based applications are major issues of DURTEC's business. Durtec provides consulting services to a number of mineral companies including I-Minerals.

I-Minerals Inc.

Per: "Thomas M. Conway"

Thomas M. Conway, President & CEO

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.

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