Donner Metals Ltd. (TSX.V-DON) and its joint venture partner, Xstrata Canada Corporation – Xstrata Zinc Canada Division (Xstrata Zinc) have received the "Development of the Year" award by the AEMQ (L'Association de l'exploration minière du Québec). This award was presented at the Quebec Exploration 2010 conference in recognition of the commencement of development of the Bracemac-McLeod Mine in July of this year. Under the feasibility study completed by Genivar Limited Partnership and Xstrata Zinc, the mine is scheduled for production in January 2013 and will produce at a rate of 2500 tonnes per day over an expected mine life of four years on current mining reserves of 3.73 million tonnes grading 9.60% zinc, 1.26% copper, and 28.25g/t silver and 0.43g/t gold (see news release September 2, 2010). The mine is expected to produce 606 million pounds zinc, 83 million pounds copper, 1,497,000 ounces silver and 13,090 ounces gold. Potential to expand the mine exists on the basis of inferred resources of 2.63 million tonnes grading 8.78% zinc, 1.31% copper, 38.83g/t silver and 1.06g/t gold that will be assessed when underground development is established.an base metals exploration and development company located in Vancouver

 

Mr. David Patterson, Chairman of Donner Metals Ltd. reports that further to the Company's news release dated July 13, 2011, the Company has received a total of US$20 million from Sandstorm Metals & Energy Ltd. (TSX VENTURE:SND) ("Sandstorm"). These funds are comprised of the following:


1. US$17.75 million in upfront cash payment, as outlined in the terms of
the Metal Purchase Agreement with Sandstorm; and

2. US$2.25 million private placement proceeds.


The Company issued to Sandstorm 6,428,571 common shares at a price of US$0.35 per share pursuant to the private placement. The private placement shares are subject to a hold period expiring November 19, 2011.

Funds raised by way of the private placement and the upfront purchase deposit are being used for the development of the Bracemac-McLeod mine of the Matagami Zinc/Copper Project, located in Quebec.

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.

Contacts:
Donner Metals Ltd.
Andrea Magee
(604) 683-0564 or Toll Free: 1-800-909-8311
(604) 602-9311 (FAX)
donner@bed-rock.com
www.donnermetals.com