Barrow Float Proves Diamondiferous

IME: TSX-V 05-23

Vancouver, BC (27 September, 2005) - Indicator Minerals Inc. (IME) announced today that a macrodiamond has been recovered from kimberlite float collected on its 80% owned Barrow Project.

A macrodiamond was recovered from a 6.7kg sample of kimberlite float during the extraction of indicator minerals. The diamond is described as being a clear, colourless octahedron with good clarity. It has a mass of 0.2 mg (0.001 carats) and measures 0.55mm x 0.425mm in its two longest dimensions. The extraction process is not designed specifically for the recovery of mineral grains less than 0.300mm or more significantly the detection of diamonds.

Kimberlite float was discovered on the Barrow Project this season while following up high priority airborne geophysical targets identified from data acquired earlier this year. The 6.7kg sample of float was sent to Mineral Services Canada Ltd., an independent laboratory, for rock type classification and indicator mineral analysis. The rock was described as a medium to coarse grained macrocrystic phlogopite carbonate kimberlite of the hypabyssal facies with moderate to high diamond carrying capacity. Results from the analysis of the indicator minerals contained in the float sample are expected in the next few months.

Barrow is one of IME's key projects and is comprised of approximately 110,000 acres of mineral claims located 15km south of the community of Kugaaruk in the Kitikmeot Region of the Nunavut Territory. Kimberlite indicator minerals with diamond inclusion chemistry have been recovered in till samples on the property and the interpretation of airborne geophysical data has identified high priority targets up-ice from these mineral anomalies. Results from work in 2005 which included heavy mineral sampling, prospecting as well as airborne and ground geophysics, will be used to help identify the most prospective targets for drilling in early 2006.

"The fact that a diamond was recovered during the process of extracting the far more abundant suite of kimberlite indicator minerals is remarkable," commented Bruce Counts, President and CEO of Indicator Minerals Inc. "Diamond is the ultimate indicator mineral and its presence in this small sample reaffirms our belief that this may be a significant new diamond district."

Indicator Minerals Inc. (TSXV: IME) is a well financed, Canadian diamond exploration company focused on the discovery of economic diamond deposits. The company has one of the most experienced technical teams in Canada and is committed to the efficient and systematic evaluation of its projects. Indicator is currently exploring more than 11 million acres of targeted ground in the Canadian Eastern Arctic and Botswana. The Company also has an exclusive exploration agreement with Hunter Exploration.


On behalf of the Board
Indicator Minerals Inc.
/s/"Bruce Counts" P.Geoph.
President & CEO


For further information, please contact Bernie Kennedy, Investor Relations Manager at 1 888-331-2269 or 604-331-2269
www.indicatorminerals.com

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

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