Donner Metals Ltd.
TSX VENTURE : DON
FRANKFURT : D4M

Donner Metals Ltd.

September 10, 2014 13:00 ET

Donner Announces Shares for Debt Settlement

MONTREAL, QUEBEC--(Marketwired - Sept. 10, 2014) - Donner Metals Ltd. ("Donner" or the "Corporation") (TSX VENTURE:DON)(FRANKFURT:D4M), announces that it has entered into a shares for debt settlement agreement with each of Keats Consulting Inc. ("Keats"), Elysian Enterprises Inc. ("Elysian") and Zorayda Consulting Ltd. ("Zorayda") pursuant to which Donner will issue up to a maximum of 2,556,538 Common Shares of the Corporation (the "Shares for Debt") at price per share equal to the greater of (i) $0.13 and (ii) the applicable Market Price (as defined in the Corporate Finance Manual of the TSX Venture Exchange) on the date of the upcoming annual and special meeting of the Corporation (the "Meeting") in full and final satisfaction of an aggregate amount of $332,350 owing to Keats, Elysian and Zorayda with respect to services rendered by each of Keats, Elysian and Zorayda until December 10, 2013. The closing market price of the Corporation's shares on the TSX Venture Exchange on September 9, 2014 was $0.095.

Until December 10, 2013, Keats provided to the Corporation the services of Harvey Keats as Chief Executive Officer and director of the Corporation (Harvey Keats is the principal of Keats), Elysian provided to the Corporation the services of David Patterson as Executive Chairman and director of the Corporation (David Patterson is the principal of Elysian), and Zorayda provided to the Corporation the services of Robin Adair as Vice President of Exploration of the Corporation (Robin Adair is the principal of Zorayda). For these services rendered to the Corporation, Keats is owed $124,000, Elysian is owed $120,000 and Zorayda is owed $88,350. Assuming that the applicable price per share of the Shares for Debt will be $0.13 per share, the Corporation would issue up to a maximum of 953,846 Common Shares to Keats, up to a maximum of 923,077 common shares to Elysian and up to a maximum of 679,615 common shares to Zorayda. In the event the Market Price on the date of the Meeting is greater than $0.13 per share, the number of Common Shares issuable by the Corporation pursuant to the Shares for Debt will be reduced proportionately to reflect this greater price. The Common Shares to be issued in connection with the transaction shall be subject to a statutory hold period of four months and one day.

Assuming the Shareholders approve the Shares for Debt at the Meeting and the maximum number of 2,556,538 Common Shares is issued by the Corporation, Mr. Keats will hold directly or indirectly 957,547 Common Shares, or approximately 3.92% of the issued and outstanding Common Shares, Mr. Patterson will hold directly or indirectly 923,077 Common Shares, or approximately 3.78% of the issued and outstanding Common Shares, and Mr. Adair will hold directly or indirectly 829,965 Common Shares, or approximately 3.40% of the issued and outstanding Common Shares.

The Shares for Debt is subject to the approval of the TSX Venture Exchange and disinterested shareholder approval which will be sought by the Corporation at the Meeting.

About Donner Metals

Donner is an exploration company focused on the development of mineral exploration projects in Quebec and on executing a roll-up strategy that includes the acquisitions of operating mines. The Corporation is committed to a leading standard of practice with respect to health, safety, community relations and environmental management.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in Donner's periodic reports including the annual report or in the filings made by Donner from time to time with securities regulatory authorities.

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