Donner Metals Ltd.
TSX VENTURE : DON
FRANKFURT : D4M

Donner Metals Ltd.

December 16, 2008 16:00 ET

Donner Metals Ltd.: Mineralization at McLeod Extended by High-Grade Intersections

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2008) - Mr. Harvey Keats, Chief Executive Officer of Donner Metals Ltd. (TSX VENTURE:DON)(FRANKFURT:D4M), reports that step-out drilling has continued to intersect high-grade, copper and zinc-bearing massive sulphides at McLeod. Drilling has expanded the McLeod Zone and further potential exists to discover additional high-grade sulphides in the vicinity of both the McLeod and West McLeod zones.

The scoping study on Bracemac-McLeod being conducted by Xstrata Canada Corporation - Xstrata Zinc Canada Division (Xstrata Zinc) continues with resource assessment and metallurgical testing of sulphide mineralization. The objective of the study is to provide a resource based on current drilling and to provide an initial evaluation of the viability of mine development. Mineralization found at Bracemac-McLeod is typical of the Matagami Camp which has operating infrastructure and has consistently been a low-cost producer of zinc, copper, silver and gold since the first discovery in 1957.



Drilling Highlights

--------------------------------------------------------------------------
DDH Core Length
(Depth) From To (metres) % Zn % Cu g/t Ag g/t Au
--------------------------------------------------------------------------
--------------------------------------------------------------------------
McLeod Zone
--------------------------------------------------------------------------
MC-08-72 676.22 677.54 1.32 9.86 0.12 13.48 1.19
--------------------------------------------------------------------------
MC-08-73 623.43 624.23 0.80 24.20 5.60 91.00 2.28
--------------------------------------------------------------------------
and 631.10 631.55 0.45 32.10 0.41 14.40 0.14
--------------------------------------------------------------------------
MC-08-74 645.88 646.58 0.70 20.90 0.21 5.20 0.38
--------------------------------------------------------------------------
MC-08-75 581.55 583.15 1.60 26.23 5.22 179.00 1.38
--------------------------------------------------------------------------
McLeod Copper Zone
--------------------------------------------------------------------------
MC-08-65 664.60 667.70 3.10 0.03 1.35 15.22 0.16
--------------------------------------------------------------------------
MC-08-72 727.80 728.40 0.60 0.05 3.53 14.80 0.44
--------------------------------------------------------------------------


MCLEOD AREA

Since the Company's news release dated October 27, 2008, a total of 4 diamond drill holes were completed to investigate the extension of known sulphides in the McLeod Zone. High-grade massive sulphides were returned from all four drill holes with high grades of copper and strongly elevated gold values returned from drilling on the west side of the McLeod Zone.

McLeod Zone:

Diamond drill hole MC-08-72 intersected 1.32 metres of high-grade massive sulphides to the west of the McLeod Zone, 50 metres down-dip and to the west of MC-08-70. MC-08-73 intersected two intervals (0.8 metres and 0.45 metres) of high-grade massive sulphides between the McLeod Zone and the West McLeod Zone, 50 metres up-dip and to the west of MC-08-70. Drill hole MC-08-75 intersected 1.60 metres of high-grade sulphides 35 metres down dip and to the west of MC-08-73 and 50 metres west and up-dip from MC-08-70. All three drill holes returned strong chlorite/Pipe alteration below mineralization with MC-08-72 also intersecting the Copper Zone.

Investigating the eastern extension of the McLeod Zone, drill hole MC-08-74 intersected 0.70 metres of high-grade massive sulphides 60 metres east and down-dip from MC-08-71 and 50 metres east and up-dip from MC-08-59.

Copper Zone:

This zone was intersected by drill hole MC-08-72 and returned 0.60 metres of high-grade copper. Assays were also returned for previously reported drill hole MC-08-65 where 3.1 metres of copper stringers were intersected within the Copper Zone.

BRACEMAC AREA

Drilling continued at Bracemac with the completion of 2 step-out drill holes.

Key Tuffite Zone:

Drill hole BRC-08-86 was drilled on the west side of the zone, 50 metres down-dip from BRC-08-81. The hole encountered gabbro at the Key Tuffite level with no Key Tuffite present and footwall rhyolite below the gabbro. BRC-08-87 was drilled on the east side of the zone, 70 meters up-dip from BRC-08-80 and 50 metres east and down-dip from BRC-08-62. This drill hole encountered weakly mineralized Key Tuffite underlain by localized Pipe alteration.

SUMMARY

Drilling has been completed for 2008 as Xstrata Zinc moves further into the scoping study process. Drill spacing within the Bracemac Zones and the McLeod Zones is at approximately 50 metre centres. A total of 90,185 metres of diamond drilling in 180 drill holes has been completed on the Matagami Project since the activity under the Option and Joint Venture Agreement began in late 2006.

Additional 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. 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 in each area by incurring up to $20 million on a 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. A pipeline of strong drill/exploration targets remain to be investigated in addition to the efforts at Bracemac-McLeod. Donner and Xstrata Canada Corporation - Xstrata Zinc Canada Division (Xstrata Zinc) are using a combination of 3D data integration, innovative advanced technologies, new concepts and diamond drilling to explore for new deposits in this prolific mining camp.

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, airport and well developed road and highway networks. Xstrata Zinc Canada 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 and at Bell Channel. Within the extensive project area there are numerous exploration targets with good potential for additional discoveries.

Supplementary Information

The field work on the Matagami Project is being carried out by project operator Xstrata Zinc Canada Division who is responsible for the sampling, submittal of samples for assay, assay verification and QA/QC. Assaying of samples reported in this news release was carried out and certified by ALS Chemex-Chimitec, of Val D'Or, Quebec (zinc, copper and silver by atomic absorption, and gold by standard fire assay procedures). Sample preparation was done by ALS Chemex of Val D'Or, Quebec. Robin Adair, VP of Exploration for the Company, is the Qualified Person responsible for the technical information in this news release.

Supplementary Information

The field work on the Matagami Project is being carried out by project operator Xstrata Zinc Canada Division who is responsible for the sampling, submittal of samples for assay, assay verification and QA/QC. Assaying of samples reported in this news release was carried out and certified by ALS Chemex-Chimitec, of Val D'Or, Quebec (zinc, copper and silver by atomic absorption, and gold by standard fire assay procedures). Sample preparation was done by ALS Chemex of Val D'Or, Quebec. Robin Adair, VP of Exploration for the Company, is the Qualified Person responsible for the technical information in this news release.

ON BEHALF OF THE BOARD OF DONNER METALS LTD.

Harvey Keats, Chief Executive Officer



APPENDIX 1 - New Results

1) McLeod Zone (Key Tuffite Horizon):

---------------------------------------------------------------------------
UTM
Loca- Angle/ Mine- Core
tion direc- ral length ETW
DDH NAD 83 tion Ty- (met-(met- Zn Cu Ag Au
(depth) Zone 18 (True N) pe From To res) res) % % g/t g/t
---------------------------------------------------------------------------
---------------------------------------------------------------------------
-68 deg-
rees/
MC-08-72 308143E, 032
(790m) 5504977N degrees MS 676.22 677.54 1.32 1.05 9.86 0.12 13.48 1.19
---------------------------------------------------------------------------
-59 deg-
rees/
MC-08-73 308151E, 032
(724m) 5504963N degrees MS 623.43 624.23 0.80 0.70 24.20 5.60 91.00 2.28
---------------------------------------------------------------------------
And MS 631.10 631.55 0.45 0.40 32.10 0.41 14.4 0.14
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-70 deg-
rees/
MC-08-74 308366E, 032
(795m) 5504930N degrees MS 645.88 646.58 0.70 0.61 20.90 0.21 5.20 0.38
---------------------------------------------------------------------------
-70 deg-
rees/
MC-08-75 308181E, 027
(678m) 5505065N degrees MS 581.55 583.15 1.60 1.30 26.23 5.22 179.00 1.38
---------------------------------------------------------------------------

Step-out (Key Tuffite Horizon):

---------------------------------------------------------------------------
UTM
Loca- Angle/ Mine- Core
tion direc- ral length ETW
DDH NAD 83 tion Ty- (met-(met- Zn Cu Ag Au
(depth) Zone 18 (True N) pe From To res) res) % % g/t g/t
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Major fault zone -
-45 deg- Key Tuffite is
MC-08-67 rees/ missing. Extensive
(i) 308536E, 027 strong chlorite
(258m) 5505263N degrees alteration. No
significant assays
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(i) Previously reported October 27 - Corrected location data

Copper Zone (Below Key Tuffite Horizon):

---------------------------------------------------------------------------
UTM
Loca- Angle/ Mine- Core
tion direc- ral length ETW
DDH NAD 83 tion Ty- (met-(met- Zn Cu Ag Au
(depth) Zone 18 (True N) pe From To res) res) % % g/t g/t
---------------------------------------------------------------------------
---------------------------------------------------------------------------
-78 deg-
rees/
MC-08-65 308137E, 024
(740m) 5505121N degrees S 664.60 667.70 3.10 2.40 0.03 1.35 15.22 0.16
---------------------------------------------------------------------------
-68 deg-
rees/
MC-08-72 308143E, 032
(790m) 5504977N degrees S 727.80 728.40 0.60 0.44 0.05 3.53 14.80 0.44
---------------------------------------------------------------------------

2) Bracemac Area

Bracemac Key Tuffite Zone (Key Tuffite Horizon):

---------------------------------------------------------------------------
UTM
Loca- Angle/ Mine- Core
tion direc- ral length ETW
DDH NAD 83 tion Ty- (met-(met- Zn Cu Ag Au
(depth) Zone 18 (True N) pe From To res) res) % % g/t g/t
---------------------------------------------------------------------------
---------------------------------------------------------------------------
-53 deg-
rees/ Gabbro sill present at the Key
BRC-08-86 307313E, 030 Tuffite level. No Significant
(620m) 5506023N degrees Assays Expected
---------------------------------------------------------------------------
-63 deg-
rees/
BRC-08-87 307499E, 027
(511m) 5505978N degrees No Significant Assays Expected
---------------------------------------------------------------------------


Table Legend:

Mineral Type: MS equals massive sulphides, SMS equals semi-massive sulphides, DS equals disseminated sulphides, S equals stringer sulphides in "Pipe" alteration

"Pipe" alteration is defined as intense chlorite alteration typically underlying or surrounding zones of massive sulphide development and it is indicative of a hydrothermal vent system associated with mineralization in the Matagami Camp. Magnetite, chalcopyrite, pyrite, sphalerite, silica and talc may occur with chlorite. Deposits in the Matagami camp occur as mounds (Matagami, Isle Dieu), pinnacles (Orchan West/Isle Dieu Deposits) and/or roots entirely within the "Pipe" (Perseverance Deposit). Many deposits have aspects of all three.

ETW equals Estimated True Width

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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