Donner Metals Ltd.: Update on Bracemac-McLeod Production (ccnm)

MONTREAL, QUÉBEC--(Marketwired - July 12, 2013) - Mr. Harvey Keats, Chief Executive Officer of Donner Metals Ltd. ("Donner" or the "Company") (TSX VENTURE:DON)(FRANKFURT:D4M), reports on both the recent operation and anticipated operation at the Bracemac-McLeod Mine.

The Bracemac-McLeod Mine has reached commercial production and is processing ore at a rate of approximately 3,000 tonnes per day as expected under the revised mine plan (see press release dated July 5, 2012) since commencement of operations in mid-May of this year. Ore grades to date are below the average grades defined in the feasibility study prepared for the Bracemac-McLeod Mine in 2010 (the "Feasibility Study") due to lower stope grades as a result of preliminary resource modelling from underground drilling and processing of lower-grade development ore from the Bracemac-McLeod stockpile. The Matagami mill is performing above expectations as defined in the Feasibility Study with higher than anticipated recoveries and concentrate grades for both zinc and copper. Preliminary underground resource drilling has provided a new production and grade forecast for 2013 that anticipates lower grades for the remainder of the year.

Bracemac-McLeod Mine and Matagami Mill snapshot:

Performance to date is as follows (Table 1):

Bracemac-McLeod Mine: Production is within the Feasibility Study plan and is ramping up to an average of approximately 3,000 tonnes per day. Ore grades for both copper and zinc have been below those forecast in the Feasibility Study during the first two months of production as noted in Table 1. This is due in part to the sequencing of stopes and processing of the stockpiled lower grade development ore. Based on preliminary results from the underground resource drilling the grade forecast for 2013 reduces the anticipated ore grade for 2013 to an average of 6.79% zinc, 1.11% copper 32.98g/t silver and 0.3g/t gold.

Matagami Mill: The Matagami mill performance related to Bracemac-McLeod ores is above expectations as described in the Feasibility Study in relation to recoveries and concentrate grades for both zinc and copper (see Table 1). It remains too early to understand for what period of time these improved results can be expected. The new ball mill is performing well and was successfully commissioned in early June. The addition of this grind capacity has added flexibility to the grinding process and added mill capacity in excess of that needed for the 3,000 tonnes per day production rate planned from Bracemac-McLeod.

Production from Bracemac-McLeod will be reduced in the months of July and August while the remaining Persévérance ore (100%-owned solely by Glencore Xstrata) is processed.