Donner Minerals Ltd.
TSX VENTURE : DML
FRANKFURT : DNL

Donner Minerals Ltd.

August 11, 2005 17:10 ET

Donner Shareholders Approve Arrangement at Annual and Special Meeting

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 11, 2005) - Donner Minerals Ltd. (TSX VENTURE:DML)(FWB:DNL) -

The Company is pleased to report that all resolutions have been passed at the Company's Annual and Special General Meeting that was held on August 11, 2005. Shareholders passed all resolutions with an approval rate that ranged between 91% and 98%.

One of the key resolutions passed at the meeting was the approval of the Company's corporate reorganization by way of a Plan of Arrangement (the "Arrangement") to enable it to focus on two distinct business opportunities being its current business of metals exploration and secondly the development of an oil and natural gas exploration, production and marketing business to be carried on by the Company.

Upon implementation of the Arrangement, shareholders of the Company will hold:

(a) 100% of Donner Metals Ltd., ("MetalsCo") which will hold all of the Company's current exploration properties and will carry on substantially the same business that the Company carried on prior to the completion of the Arrangement, and

(b) approximately 55% of the voting shares of Donner Petroleum Ltd. ("PetroleumCo"), being the new name of the Company following completion of the Arrangement, and will have the opportunity to participate in a start-up oil and natural gas exploration, production and marketing enterprise.

The reorganization is subject to final TSX Venture Exchange ("TSXV") approval and the approval of the Supreme Court of British Columbia which will be sought on August 15, 2005. Upon completion of the reorganization, expected to be at the close of trading on August 16, 2005, holders of the Company's shares will receive, in place of their existing shares, one (1) new share in PetroleumCo for every (40) forty shares held in the Company and one (1) new share in MetalsCo for every 10 shares held in the Company. Holders of the Company's warrants will, receive in place of their existing warrants, one (1) new warrant in PetroleumCo for every (40) forty warrants held in the Company with an exercise price of $8.00 per share and one (1) new warrant in MetalsCo for every 10 warrants held in the Company with an exercise price of $2.00 per share.

The shares of MetalsCo have been conditionally approved for listing on the TSXV and it is expected that they will trade on the TSXV immediately following completion of the Arrangement. The Company's shares will be voluntarily delisted from the TSXV and reinstated once the Company meets applicable minimum listing standards.

Additionally, the Company is pleased to announce the election of Harry Knutson and Richard Wlodarczak to its Board of Directors and appreciate their willingness to serve on the Company's Board. Mr. Knutson has been the chair of Nova Bancorp Group (Canada) Ltd. since 1991. He serves on the board of directors of Bonavista Petroleum Ltd. Mr. Wlodarczak has been the President of Nova Bancorp Group (Canada) Ltd. since 1995. He serves on the board of directors of Devlan Exploration Inc. The Company's Board is now comprised of David Patterson, Ken Thorsen, Laurie Sadler, Harry Knutson and Richard Wlodarczak.

ON BEHALF OF THE BOARD OF DONNER MINERALS LTD.

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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