Donner Minerals Ltd.

Donner Minerals Ltd.

August 15, 2005 19:30 ET

Donner Minerals Ltd.: Corporate Reorganization Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 15, 2005) - Donner Minerals Ltd. (TSX VENTURE:DML)(FWB:DNL) -

The Company is pleased to announce that all conditions to the Company's proposed reorganization, including Supreme Court of British Columbia and TSX Venture Exchange ("TSXV") approval, have been satisfied or waived. The reorganization is expected to become effective on August 16, 2005 (the "Effective Date") at which time the Company will be split into two companies: 1) Donner Metals Ltd., (TSX VENTURE:DON)("MetalsCo") which will hold all of the mineral exploration properties of the Company, 12,360,750 common shares of Knight Resources Ltd., together with net working capital of approximately $1,000,000; and 2) the Company, under its new name Donner Petroleum Ltd. ("PetroleumCo"), an oil and gas exploration, production and marketing company.

The common shares of Donner Metals Ltd. will commence trading on Tier 2 of the TSXV on August 17, 2005. PetroleumCo's common shares will be voluntarily delisted from the TSXV. PetroleumCo will make application to the TSXV or other exchange to list its common shares once it meets the applicable minimum listing standards of that exchange.

On the Effective Date, shareholders of the Company will receive, in place of their existing shares, one (1) new share in PetroleumCo for every forty (40) shares and one (1) new share in MetalsCo for every ten (10) shares. Holders of the Company's warrants will receive in place of their existing warrants, one (1) new warrant in PetroleumCo for every forty (40) warrants with an exercise price of $8.00 per share and one (1) new warrant in MetalsCo for every ten (10) warrants with an exercise price of $2.00 per share.

Registered shareholders must submit the Letter of Transmittal that accompanied the Company's Management Information Circular to Pacific Corporate Trust Company together with their share certificates in order to receive their MetalsCo and PetroleumCo share certificates. Non-registered shareholders, being those whose shares are held on their behalf by a nominee (i.e. broker, trust company, bank or other registered holder) are advised to contact their nominee to arrange for their exchange. A copy of the Letter of Transmittal can be downloaded from the Company's website (


David Patterson, Director

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

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