Donner Metals Ltd.
TSX VENTURE : DON
FRANKFURT : D4M

Donner Metals Ltd.

June 01, 2009 23:47 ET

Donner Metals Ltd.: Private Placement Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 1, 2009) - David Patterson, Chairman of Donner Metals Ltd. (TSX VENTURE:DON)(FRANKFURT:D4M), reports that the Company has closed an initial $537,400 under the recently announced non-brokered private placements. There are additional closings pending under these private placements. The funds were raised by the Company issuing a total of 1,527,333 non flow-through ("NFT") Units, at a price of $0.15 per NFT Unit, where each NFT Unit is comprised of one common share and one share purchase warrant, exercisable into one common share at a price of $0.25 for two years; 1,570,000 flow-through ("FT") Units, at a price of $0.19 per FT Unit, where each FT Unit is comprised of one common share and one half of one share purchase warrant, where each whole warrant is exercisable into one common share at a price of $0.25 for two years; and 52,631 FT common shares, at a price of $0.19 per FT common share.

These portions of the private placements closed in stages, accordingly of the 3,149,964 shares issued, 1,300,000 are subject to a hold period expiring September 22, 2009, and 1,849,964 are subject to a hold period expiring September 27, 2009. Of the 2,312,333 warrants issued, 650,000 will expire May 21, 2011, and 1,662,333 will expire May 26, 2011. Any shares issued on exercise of the warrants will be subject to a four month hold period from the closing date of that portion of the private placement.

The Company has also paid finder fees of $19,224 and issued 109,120 finder warrants, which expire May 26, 2010. The finder warrants are exercisable into one common share at a price of $0.25. Any shares issued on exercise of the finder warrants will be subject to a four month hold period from the closing date of that portion of the private placement.

In addition, the Company has engaged Doyle Investments Inc. ("Doyle") of Vancouver, British Columbia to provide investor relation services to the Company. The Company has agreed to pay Doyle $4,000 per month. The Company has granted 600,000 incentive stock options to Doyle exercisable at a price of $0.18 per common share for a period of two years. The principal of Doyle is Paul Lathigee.

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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