Bracemac-McLeod Mine Development Tracking On Budget and On Schedule

Donner Metals reported on the progress of development activities at the Bracemac-McLeod mine and results from the ongoing regional exploration program as reported to the Company by partner and project operator Xstrata Canada Corporation-Xstrata Zinc Canada Division. The Bracemac-McLeod ramp is currently advancing through 2,070 metres and most of the surface infrastructure (roads, power, and support facilities) is now complete. Regional exploration drilling within the 4,737 square kilometre Matagami property which surrounds the Bracemac-McLeod mine has resulted in the discovery of massive sulphides in the Garon Lake area and an extensive VMS alteration system in the Bell Channel area. In addition, drilling has discovered the occurrence of shallow stratigraphy that potentially extends the prolific South Flank mine stratigraphy 14 kilometres to the west of the Bracemac-McLeod deposit which is currently being developed for production in early 2013.

Bracemac-McLeod Development Update

The Bracemac-McLeod ramp is currently passing 2,070 metres and is progressing extremely well with an average advancement rate of 5.7 metres per day (6.45 metres per day since May, 2011) compared to 4.5 metres per day estimated in the feasibility study. Multiple face development of the Bracemac zones and the construction of ventilation raises will commence when the ramp reaches 2,300 metres. Ramping will also continue to the McLeod zone. Construction of access and haulage roads, mine support infrastructure and electrical supply has been mostly completed. Xstrata Zinc has realized a number of efficiencies to date to ensure the project remains within budget and they continue to target other areas of the project to realize further timing and cost efficiencies. Initial production from the mine is scheduled to start in early 2013.

"I am extremely confident that Xstrata Zinc's world-class development team will bring Bracemac-McLeod into production on time and on budget. I anticipate a smooth transition from production at Xstrata's Perseverance mine to production at the new Bracemac-McLeod mine, virtually eliminating issues such as hiring, training, and the ramp up of milling processes that are normally required for a new mine," states Ron Tessier, Vice President of Engineering for Donner Metals.

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