Mr. Harvey Keats, Chief Executive Officer of Donner Metals Ltd. reports that the Company has received a positive feasibility study on the Bracemac-McLeod deposit from Xstrata Canada Corporation - Xstrata Zinc Canada Division ('Xstrata Zinc'). 

The study by Genivar Limited Partnership ('Genivar') was commissioned by Xstrata Zinc and prepared on the basis of a 65% Xstrata, 35% Donner joint venture. The scope of the feasibility study is focused on a threshold analysis of previously defined indicated resources and it does not assess the extension of this mineralization, potential of near-by inferred resources or resources defined in the new McLeod Deep discovery. Construction of the mine is underway and Donner has initiated its efforts to finance. 

By providing this feasibility study, Xstrata Zinc has met its obligations under the Matagami Lake Option and Joint Venture Agreement towards its back-in right on the South Flank area which includes the Bracemac-McLeod mine. This area will become a 65%/35% joint venture while the remaining four project areas will become 50/50 joint ventures once Donner has exercised its option by spending CDN$25 million. Donner has currently provided CDN$24.1 million to Xstrata Zinc towards this requirement and has the remaining funds in its treasury. Donner may decide to vest in the project anytime up to May 31, 2011 and it is not required to contribute any capital until May 31, 2011. Donner will share in the project costs and revenue on a 35% interest basis in the joint venture and has until May 31, 2011 to arrange for its share of project financing.

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