Donner Metals Ltd.

Donner Metals Ltd.

December 17, 2007 14:12 ET

Donner Metals Ltd.: Private Placement Increased to $3.2 Million

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 17, 2007) - Further to the Company's news release dated December 7, 2007, Mr. David Patterson, Chairman of Donner Metals Ltd. (TSX VENTURE:DON)(FRANKFURT:D4M), announces that the previously announced private placement in the amount of $2,000,000 has been amended. The Company will now issue a total of 5,048,460 flow-through units at a price of $0.65 per unit for gross proceeds of $3,281,499. Each flow-through unit will be comprised of one flow-through common share and one-half of one common share purchase warrant (the "Warrant"). Each whole share purchase Warrant entitles the holder to acquire one additional non flow-through common share of the Company for a period of two years, at a price of $0.90. However, if over a period of 20 consecutive trading days between the date that is 4 months following the closing date and the expiry of the Warrant, the daily close price of the common shares on the TSX-V exceeds $1.30 on each of those 20 consecutive days, the Company will give written notice to the holders of the Warrants that the Warrants will expire at 4:00 p.m. (Vancouver time) on the 30th day following the giving of notice unless exercised by the holders prior to such date.

The funds raised by way of the private placement will be used for exploration of the Matagami Zinc/Copper Project, located in Quebec, which is subject to the Option and Joint Venture Agreement with Xstrata Canada Corporation - Xstrata Zinc Canada Division (Xstrata Zinc), as well as general working capital.

Fees and commissions will be payable in connection with the private placement. The private placement is subject to the approval of the TSX Venture Exchange.


David Patterson, Chairman

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

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