Donner Metals Ltd.
TSX VENTURE : DON
FRANKFURT : D4M

Donner Metals Ltd.

February 24, 2012 08:37 ET

Donner Metals Announces C$10,000,000 Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 24, 2012) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

Donner Metals Ltd. ("Donner" or the "Company") (TSX VENTURE:DON)(FRANKFURT:D4M) is pleased to announce that it has entered into an agreement with Haywood Securities Inc. ("Haywood") under which Haywood has agreed to act as agent for the private placement, on a best efforts agency basis, of up to C$2,000,000 of units in the capital of the Company (the "Units") at a price of C$0.25 per Unit (the "Unit Price"), and for up to C$8,000,000 of common shares of the Company designated as flow-through shares for purposes of the Income Tax Act (Canada) (the "Flow-Through Shares") at a price of C$0.28 per Flow-Through Share (the "Flow-Through Price"), for aggregate gross proceeds to the Company of C$10,000,000.

Each Unit will consist of one common share in the capital of the Company and one half of one transferable common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to acquire one Common Share at a price of C$0.32 per Common Share for a period of 24 months from the closing date.

The Company has also granted Haywood an option, exercisable in whole or in part by Haywood at any time up to the closing date, to sell up to an additional C$2,200,000 of Flow-Through Shares at the Flow-Through Price and up to an additional $2,800,000 of Units at the Unit Price.

The net proceeds from the sale of the units will be used by Donner to fund its portion of the capital expenditures required to complete construction of the Bracemac-McLeod zinc mine, for exploration expenditures at its projects in Quebec, and for other general corporate and working capital purposes. The gross proceeds from the sale of the Flow-Through Shares will be used by Donner to fund exploration and development expenditures which qualify as 100% Canadian Exploration Expense at its projects in Quebec.

The closing of the financing is subject to the completion of formal documentation, receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange, and other customary conditions.

The Units and the Flow-Through Shares will be subject to a four-month hold period.

This press release does not constitute an offer to sell, nor is it a solicitation of an offer to buy, securities.

These securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons unless an exemption from the registration requirements of the United States Securities Act of 1933, as amended, and all applicable state securities laws is available. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities in the United States or to, or for the account or benefit of, U.S. persons.

Donner Metals Ltd.

Donner Metals Ltd. is a Canadian development and exploration company focused on base and precious metal projects in Québec. Donner's flagship project is a partnership with Xstrata Canada Corporation in the Matagami Mining Camp covering both the current development of a new mine and on-going exploration activities. The project is located in the Abitibi region of central Québec and it is supported by Xstrata's existing mine infrastructure, a highly experienced workforce and an operating 2,950 tonne per day mill. As well, the area is serviced by highway, power, airport, railway and town site infrastructure.

ON BEHALF OF THE BOARD OF DONNER METALS LTD.

David Patterson, Chairman

NEITHER THE 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 NEWS RELEASE.

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