SMG Indium Resources Ltd. Marks One Year Anniversary

             SMG Indium Resources Ltd. Marks One Year Anniversary

PR Newswire

NEW YORK, May 8, 2012

NEW YORK, May 8, 2012 /PRNewswire/ -- SMG Indium Resources Ltd. (the
"Company") (OTCBB: SMGI, SMGIW, SMGIU), is pleased to mark the one year
anniversary of its Initial Public Offering ("IPO"). Over the past year, the
Company has amassed, without disrupting the market, what it believes to be the
world's largest known strategic stockpile of indium held outside of the
People's Republic of China. The Company now holds, in a secure vault located
in New York City, approximately 42.5 metric tons ("mt") of this critical
metal. This is equal to approximately 6.6% of the world's estimated annual
primary production* of indium.

The Indium market has been volatile over the past year, trading between $510
and $870 per kilogram. The Company's average cost basis for its 42.5 mt is
approximately $623 per kilogram. As of May 4, 2012, indium was quoted at $535
per kilogram and the Company's Net Market Value ("NMV")** was approximately
$3.58 per share. The Company's business plan is based upon its belief that
indium prices are poised to appreciate considerably over the longer term as a
result of favorable supply-demand fundamentals within the indium market. The
intention of the Company has always been to position itself with an important
stockpile of indium at a reasonable cost basis in anticipation of long-term
price appreciation. The Company has fully expended the proceeds from the IPO
set aside to purchase indium and retains approximately 3 years of cash to
cover future operating expenses.

The Company is continuing to accumulate additional metal in today's
marketplace, utilizing proceeds from the $7.5 million private placement that
it closed in January 2012. This investor was Raging Capital Management LLC, an
entity controlled by William C. Martin, a director of the Company and a member
of its Manager through RCM Indium, LLC. Insiders now own approximately 48% of
the Company's common stock.

There were other important developments during the year. In July 2011, the
Company proudly hired Mary E. Paetzold, a highly qualified and seasoned
executive as its new Chief Financial Officer. Shortly thereafter, the Company
retained KPMG LLP as its independent registered public accounting firm.

In March 2012, the Company profitably closed the industry's first known
unconditional sale and purchase transaction, as it lent 1,000 kilograms of
indium for one month for a return of $20 per kilogram. "We believe this is a
line of business that is ripe for development, and for which the Company is
uniquely positioned to benefit," said Alan C. Benjamin, chief executive
officer.

The Company's management welcomes the opportunity to meet and speak with
investors. Please email Richard A. Biele at rbiele@smg-indium.com for further
information. We wish to thank all of our existing investors for their
continued support.

Indium Market Update

Indium is strongly linked to the burgeoning digital economy and plays a
critical role in the development of flat panel displays, high-speed
semiconductors, and light emitting diodes ("LEDs") that together shape our
ever-expanding electronic experience.The largest end user for indium, the
Liquid Crystal Display ("LCD") industry, continues to expand. The LCD market
is increasing both in terms of units sold and total display area. Falling
retail prices areboosting global demand within every major category of
display - TVs, monitors, notebooks, tablets and smartphones. Corning Inc., one
of the world's largest LCD glass manufacturers, projects LCD glass demand will
grow from 3.2 billion square feet in 2011 to approximately 3.6 billion square
feet in 2012***. The bulk of this glass will be coated with a thin layer of
indium-tin-oxide ("ITO"). Traditionally, ITO was primarily used as the
transparent conductive oxidelayer in LCDs. In recent years, LCDs utilizing
additional indium-based technologies such as LED backlighting and touchscreens
with multiple layers of ITO has served to increase the average indium content
per unit. A fourth indium-based application within LCD screens is now just
beginning to emerge. In April 2012, Sharp Corp. announced that it started
fabrication of LCD panels employing a new oxide-material-based thin-film
transistor known as indium-gallium-zinc-oxide ("IGZO")****. Recently, IGZO
screens have gained notoriety in the press in relation to the much anticipated
AppleTV and the new iPad. IGZO is a highly efficient semiconducting material
that can be used as the channel for a transparent thin-film transistor. It
has significantly greater electron mobility (20 - 30 times higher) than that
of the amorphous silicon substrate it replaces. The end result is an LCD panel
with a brighter picture, a thinner screen, improved power conservation and
more indium consumption.

Many of the other industries with applications requiring indium continue to
grow in size as well. Despite a difficult year for the solar power industry,
the copper indium gallium selenide ("CIGS") thin-film photovoltaic ("PV")
market, a relatively new user of indium,expanded considerably in 2011. In
January 2012, GTM Research, a Greentech Media company that provides market
research and strategic consulting, estimated that CIGS manufacturers produced
in excess of 800 megawatts in 2011*****. Earlier this year, analysts at
Raymond James predicted CIGS shipments could reach about 1300 megawatts in
2012. In the longer-term, CIGS thin-film PV still represents a potentially
very large indium demand driver.The LED market, of which indium is an
essential raw material, is still experiencing a very rapid compound annual
growth rate. New indium-based applications continue to be found in other
compound semiconductors. Last year, semiconductor behemoth Intel Corp., in
their bid to extend Moore's Law, displayed a revolutionary three-dimensional
transistor dubbed the "Tri-Gate" which is significantly smaller and more
powerful than regular chips. Intel's Ivy Bridge is the first Tri-Gate
semiconductor chip to be released. Intel has indicated that it intends to
further improve the functionality of its first generation 3D semiconductor by
such methods as shifting away from silicon and into indium-based compound
semiconductors******. It is believed that future Tri-Gate chips may use an
indium-phosphide substrate and an indium-gallium-arsenide gate. Finally,
indium not only plays an environmentally green role as a key material in
thin-film PV cells,but also in low melting point solders and alloys where it
increasingly serves as a non-toxic alternative to lead and mercury.

* Based on 2012 U.S. Geological Survey estimates

** We use the term NMV per share when we discuss the value of the Company. We
define the term NMV, as used in this release, as the product of multiplying
the number of kilograms of indium held by the Company at any given point by
the spot price for indium as published by Metal Bulletin PLC and posted on
Bloomberg L.P., plus cash and other Company assets, less any liabilities
divided by the common shares outstanding. The use of the term NMV is a
non-GAAP financial measurement. The Company's GAAP net book value per common
share was approximately $3.60 on March 31, 2012.

*** Corning Inc., press release; January 25, 2012
(http://www.corning.com/news_center/news_releases/2012/2012012501.aspx)

**** Sharp Corporation, press release; April 13, 2012
(http://sharp-world.com/corporate/news/120413.html)

***** "Who is the World Leader in CIGS Solar Shipments"?, by Eric Wesoff;
January 17, 2012
(http://www.greentechmedia.com/articles/read/who-is-the-world-leader-in-cigs-solar-shipments/)

****** "Enabling Breakthroughs In Technology", by Mike Mayberry; June, 2011
http://download.intel.com/newsroom/kits/research/2011/pdfs/Components-Research_Enabling_Breakthroughs_Technology.pdf

About SMG Indium Resources Ltd.

SMG Indium Resources Ltd. purchases and stockpiles the metal indium and
believes it maintains the largest strategic stockpile of indium held outside
of the People's Republic of China. Our strategy is to achieve long-term
appreciation in the value of our indium stockpile, and not to actively
speculate with regard to short-term fluctuations in indium prices. Our indium
is insured and physically stored at a Brink's Global USA facility located in
the United States. Our shareholders have the ability to effectively purchase
an interest in indium in a manner that does not directly include the risks
associated with ownership of companies that explore for, mine or process
indium. For more information please contact: info@smg-indium.com

Disclosure Notice

This press release may contain forward-looking statements regarding SMG Indium
Resources Ltd. current expectations of future events that involve risks and
uncertainties, including, without limitation, and not limited to indium price
volatility from supply and demand factors, international export quotas that
could affect the availability of indium and our ability to purchase indium,
lack of any internationally recognized exchanges for indium, limited number of
potential suppliers of indium and potential customers who purchase indium,
disruption of mining operations, technological obsolescence, substitution of
other materials decreasing the demand for indium, regulatory requirements
regarding indium, risks associated with international economic and political
events, lack of operational liquidity, lack of investment liquidity, factors
affecting our NMV, and changes in interest rates. Such statements are based on
management's current expectations and are subject to a number of substantial
risks and uncertainties that could cause actual results or timeliness to
differ materially from those addressed in the forward-looking statements.
Factors that may cause such a difference are listed from time to time in
reports filed by the Company with the U.S. Securities and Exchange Commission
(SEC), including but not limited to risks described in our 2011 Annual Report
on Form 10-K as filed with the Securities and Exchange Commission under the
caption "Risk Factors." We undertake no obligation to publicly update any
forward-looking statements.

SOURCE SMG Indium Resources Ltd.
 
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