Donner Metals Ltd.
TSX VENTURE : DON
FRANKFURT : D4M

Donner Metals Ltd.

May 25, 2009 17:24 ET

Donner Metals Ltd.: Drilling to Resume at Matagami; Scoping Study Nears Completion

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 25, 2009) - Mr. Harvey Keats, Chief Executive Officer of Donner Metals Ltd. (TSX VENTURE:DON)(FRANKFURT:D4M), reports that diamond drilling is scheduled to resume on or about June 1, 2009 on the Matagami Project in central Quebec. This drilling campaign will initially focus on high priority targets between Xstrata's Perseverance Mine and the Matagami Mill, a distance of 7 kilometres, and will expand to other areas within the South Flank later in the year. Drilling will initially evaluate the following target areas:

Isle Dieu West: multiple off-hole EM targets detected in historical drilling at or near the Key-Tuffite stratigraphic level, 800 metres west of the former producing Isle Dieu mine (3.05 million tonnes grading 17.85% zinc, 1.01% copper, 76.63 g/t silver, 0.46 g/t gold).

Perseverance-East: large untested Key Tuffite located 1.3 kilometres along strike from Xstrata's operating Perseverance mine (5.12 million tonnes grading 15.82% zinc, 1.24% copper, 12 g/t silver, 0.38 g/t gold). MegaTEM (airborne) and numerous off-hole EM targets are unexplained in this area which also exhibits strong chloritization in the Key Tuffite footwall (Watson Lake Formation).

Orchan West: un-delineated, high-grade drill intercepts (see attached Table 1) with unexplained down-hole EM responses at the Key Tuffite marker horizon and in the hanging wall stratigraphy, similar to the Donner-Xstrata discovery at Bracemac-McLeod.

Bracemac-McLeod Scoping Study Update:

Xstrata is nearing completion of the scoping study on Bracemac-McLeod. Based on the Indicated Resource of 3,623,000 tonnes grading 11.52% zinc, 1.60% copper, 31.55 g/t silver and 0.49 g/t gold at Bracemac-McLeod, bench-scale metallurgical testing, preliminary engineering studies using a ramp access and preliminary capital and operating cost assessment is being carried out as part of the scoping study. Upon completion of the scoping study, Xstrata Zinc Canada may elect to take Bracemac-McLeod to feasibility and may also elect to fund the feasibility study up to a total of $20 million to increase its interest in the South Flank Project Area from 50% to 65%.

Quebec Support of Mining:

Donner wishes to acknowledge the support of the Quebec Government through their exploration incentive programs. Donner has consistently used the rebates to advance the Matagami Project which in turn supports the regional community and employment. Through this support, additional opportunity for new discoveries is made possible with potential for long-term impact on the Abitibi region.

SUMMARY

A total of 93,113 metres of diamond drilling in 190 drill holes has been completed on the Matagami Project since the activity under the Option and Joint Venture Agreement began in late 2006, with most of the drilling focused at Bracemac-McLeod. Geological information, including maps and sections, is available at www.donnermetals.com.

PROJECT OVERVIEW

Donner has the option to earn a 50% participating joint venture interest in the Matagami Project by incurring a total of $25 million of expenditures on exploration and related work on or before May 31, 2011. Expenditures to date total $17 million. Upon earn-in by Donner, five separate joint ventures will be formed, covering the property and the area of interest. In each of the five joint venture areas, Xstrata Zinc has the option to earn-back a 15% interest by incurring up to $20 million on a bankable feasibility study.

The Matagami Project has an area of mutual interest of 4,750 square kilometres and presently includes 3,340 mineral claims covering 801 square kilometres. The project covers the Matagami Mining Camp which is a world-class mining district, with 18 known VMS deposits, including 10 past producers of varying sizes, including the giant Matagami Lake Deposit (25.64 million tonnes of 8.2% Zn, 0.56% Cu, 20.91 g/t Ag and 0.41 g/t Au) discovered in 1957 and mined from 1963 to 1988. The area is host to historical production of 8,600 million pounds of Zn and 853 million pounds of Cu. The Matagami area is well serviced by established infrastructure including the town of Matagami, power, a permitted tailings facility, railway, and airport and well developed road and highway networks. Xstrata Zinc is currently producing from its low-cost and wholly-owned Perseverance Deposit which feeds its refurbished 2,600 t/day Matagami mill complex. Any future development under the Donner-Xstrata agreement will benefit from the established infrastructure and facilities. Zinc concentrates produced at Matagami are refined at the Noranda Income Fund zinc refinery in Valleyfield Quebec. Copper concentrates are smelted at Xstrata's Horne smelter in Rouyn-Noranda and refined at Xstrata's Canadian Copper Refinery in Montreal.

The Company's strategy is to explore for and discover zinc-copper deposits in the Matagami Camp and to leverage the general infrastructure and existing processing facilities within a known and well-established cost structure for developing VMS deposits. Donner's exploration objective is to investigate multiple stratigraphic horizons with potential for VMS mineralization including the prolific Key Tuffite horizon throughout the Matagami Camp. To date, Donner has discovered new mineralization at Bracemac-McLeod, Bell Channel, and Daniel 1. Within the extensive project area there are numerous exploration targets with excellent potential for additional discoveries.

SUPPLEMENTARY INFORMATION

Xstrata Zinc is the project operator for the Matagami Project and is responsible for both fieldwork and resource evaluation including, but not limited to, sampling, submittal of samples for assay, assay verification, metallurgical evaluation and QA/QC. Robin Adair, VP of Exploration for the Company, is the Qualified Person for Donner Metals Ltd. and is responsible for the technical information reported in this news release.

ON BEHALF OF THE BOARD OF DONNER METALS LTD.

Harvey Keats, Chief Executive Officer



Table 1: Orchan West Historical Intercepts
----------------------------------------------------------------------------
Horizon
name - Core Minimum
DDH Mineral Length ETW g/t g/t
(Depth) Type From To (metres) (metres) % Zn % Cu Ag Au
----------------------------------------------------------------------------
OR-91-13D KT 1123.61 1131.11 7.50 4.25? 4.42 0.05 3.14 0.07
----------------------------------------------------------------------------
KT 1143.18 1146.69 3.51 2.00 9.62 0.33 5.86 0.11
----------------------------------------------------------------------------
FW 1146.69 1151.96 5.27 3.01 1.61 1.31 22.76 0.25
----------------------------------------------------------------------------
OR-90-13 HW 719.85 724.27 4.42 1.80 12.22 1.93 14.33 0.17
----------------------------------------------------------------------------
HW 726.06 729.87 3.81 1.58 7.62 1.57 13.67 0.07
----------------------------------------------------------------------------
KT 1181.56 1193.60 12.04 5.0 14.34 1.02 18.11 0.37
----------------------------------------------------------------------------
OR-91-13C HW 1128.61 1130.41 1.8 1.7? 9.05 0.70 9.41 0.10
----------------------------------------------------------------------------
KT 1179.91 1211.49 31.58 7.5 20.77 1.34 27.75 0.31
----------------------------------------------------------------------------
FW 1211.49 1236.73 25.24 5.99 0.71 2.98 41.01 0.47
----------------------------------------------------------------------------
OR-91-15B KT 1198.26 1207.98 9.72 5.0 9.12 2.53 24.66 0.42
----------------------------------------------------------------------------
FW 1289.12 1304.85 15.73 7.0 10.82 1.36 11.32 0.86
----------------------------------------------------------------------------
OR-91-15E KT 1157.90 1164.18 6.28 4.0 14.34 3.22 59.15 0.67
----------------------------------------------------------------------------
OR-91-15F KT 1184.09 1189.66 5.57 4.0 18.85 1.00 17.64 0.28
----------------------------------------------------------------------------
OR-91-15G KT 1191.07 1204.23 13.16 5.0 15.66 0.88 11.56 0.43
----------------------------------------------------------------------------
OR-96-26A KT 1141.87 1149.55 7.68 6.0 14.00 2.64 17.59 0.31
----------------------------------------------------------------------------
OR-91-17 HW/KT 1056.99 1070.52 13.53 11.23 1.50 2.46 30.91 0.41
----------------------------------------------------------------------------
KT 1102.40 1107.70 5.30 4.40 7.01 4.05 84.42 0.81
----------------------------------------------------------------------------
KT 1140.01 1147.24 7.23 6.0 22.16 1.89 22.88 0.48
----------------------------------------------------------------------------
OR-96-22D KT 1172.47 1197.19 24.72 17.0 23.48 1.02 22.76 0.49
----------------------------------------------------------------------------
OR-96-22E KT 1151.66 1180.09 28.43 22.0 20.35 2.66 49.94 0.73
----------------------------------------------------------------------------
OR-96-22B KT 1167.11 1173.24 6.13 5.0 14.17 1.63 37.70 0.62
----------------------------------------------------------------------------
Horizon: HW equals Hanging wall, KT equals Key Tuffite, FW equals Footwall
(to Key Tuffite)
Minimum ETW equals Sulphide geometries and true thicknesses are poorly
defined, quoted values are minimum estimates

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