Donner Metals Announces Closing of C$15,000,000 Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 6, 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 the closing of the brokered private placement financing (the "Offering") led by Haywood Securities Inc. ("Haywood") previously announced by news release on February 24, 2012. Pursuant to the Offering, the Company issued 14,750,000 units (the "Units") at a price of C$0.25 per Unit, including 6,750,000 Units issued upon the exercise of the agent's option, and 41,071,500 Flow-Through Shares at a price of C$0.28 per Flow-Through Share, including 12,500,071 Flow-Through Shares Issued upon the exercise of the agent's option for aggregate gross proceeds of C$15,187,520.

Each Unit consists 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 entitles 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 Units and the Flow-Through Shares issued in connection with the private placement are subject to a hold period expiring July 7, 2012.

The Company has paid Haywood a cash commission equal to 7.0% of the gross proceeds raised in connection with the Offering and has issued to Haywood compensation options entitling Haywood to purchase that number of Units ("Compensation Units") equal to 7.0% of the aggregate Units and Flow-Through Shares sold pursuant to the Offering, at an exercise price of C$0.25 per Compensation Unit for a period of 24 months following the closing of the Offering. Each Compensation Unit shall consist of one common share of the Company and one half of one Warrant.

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.

This News Release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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

Forward-Looking Statements

This News Release includes certain "forward-looking statements". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by terms such as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.