The decision by Xstrata should be the next news release.Since they are spending less in Australia(http://thechronicleherald.ca/Business/1185716.html) maybe that is more incentive to invest in Canada.

Donner Metals Ltd.: Feasibility Study on Bracemac-McLeod Nearing Completion

VANCOUVER, BRITISH COLUMBIA, Jun 03, 2010 (MARKETWIRE via COMTEX News Network) --

Mr. Harvey Keats, Chief Executive Officer of Donner Metals Ltd. (TSX VENTURE: DON)(FRANKFURT: D4M), reports that that the Company has received the outstanding assays from the definition drilling conducted on the McLeod Zone. Composite results are reported in the attached Table 1. The definition drilling program, conducted by Xstrata Zinc, was completed in April and tested the three Bracemac Zones and the upper portion of the McLeod Zone at approximately 25 metre centers. The lower portion of the McLeod Zone is drilled from surface at approximately a 50 metre spacing and would be drilled from underground should mine construction proceed. This drill program supported the feasibility study that is currently underway on Bracemac-McLeod and is being jointly conducted by Genivar Engineering and Xstrata Zinc.

Additional geological information, including maps and sections, is available at www.donnermetals.com.

PROJECT OVERVIEW

Donner has the option to earn a 50% participating joint venture interest in the Matagami Project by incurring a total of $25 million of expenditures on exploration and related work on or before May 31, 2011. Upon earn-in by Donner, five separate joint ventures will be formed, covering the property and the area of interest. In each of the five joint venture areas, Xstrata Zinc has the option to earn-back a 15% interest in each area by incurring up to $20 million on a bankable feasibility study. By electing to conduct a bankable feasibility study on Bracemac-McLeod, Xstrata Zinc has triggered its back-in right in the South Flank project area, subject to Donner completing its earn-in requirements by May 31, 2011.

SUPPLEMENTARY INFORMATION

Xstrata Zinc is the project operator for the Matagami Project and the Feasibility Study. Xstrata Zinc is responsible for both fieldwork and resource evaluation including, but not limited to, sampling, submittal of samples for assay, assay verification, metallurgical evaluation and QA/QC. Sample preparation and assaying of samples that form the basis of the resource calculation were carried out and certified by ALS Chemex-Chimitec, of Val D'Or, Quebec (zinc, copper and silver by atomic absorption, and gold by standard fire assay procedures).

Robin Adair, VP of Exploration for the Company, is the Qualified Person for Donner Metals Ltd. and is responsible for the technical information reported in this news release.

ON BEHALF OF THE BOARD OF DONNER METALS LTD.

Harvey Keats, Chief Executive Officer

Cautionary Statement:

Certain phrases in this news release are "forward-looking statements". Forward-looking statements are identified by wording such as "would" "will" and "should" (future sense), and apply specifically to the possible future completion of the Matagami Option, or decisions related to the Bracemac-McLeod Deposit and the feasibility study currently underway on this deposit. With respect to Donner earning an interest in the Matagami Project, Donner's ability to meet the requirements of the Option and Joint Venture Agreement can be negatively affected by financial markets and Donner's ability to raise financing, among others. With respect to the feasibility study underway on Bracemac-McLeod, there is no certainty that the study will be positive and there are numerous factors that may impact the outcome of the study either positively or negatively. These factors are being evaluated as part of the feasibility study. "Forward-looking statements" involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This press release refers to information about Xstrata's Perseverance mine and mine property on which the Company has no right to explore or mine. This press release also refers to information about historical production from land covered by the Matagami Project. Investors are cautioned that mineral deposits on other properties and/or historical production on lands under option are not necessarily indicative of characteristics of new mineral deposits discovered on the Matagami Project. Further discussion of "forward looking statements" and the risks inherent to mineral exploration and development, in relation to Donner's activities, can be found on the Company's website at www.donnermetals.com. The reader is cautioned not to place any undue reliance on any forward-looking statement, reference to other properties or historical production from the Matagami Project area.

To view Table 1 accompanying this press release, please click on the following link: http://media3.marketwire.com/docs/don63.pdf

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

SOURCE: Donner Metals Ltd.

mailto:donner@bed-rock.com http://www.donnermetals.com

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