Feature Article March 6, 2012:

Donner Metals Poised for Upside

Revaluation as it Nears Production

In less than 11 months Donner Metals will be in production at its Québec zinc-copper-silver-gold deposit in partnership with Xstrata

Five factors for rerating DON.V now and in the near-term;

1) Fully leveraged to price of zinc and expert consensus is for prices to rise.

2) Higher production throughput optimized near 3,000 TPD (rather than the 2,500 TPD used in feasibility).

3) Longer mine life than the initial 4 years used in feasibility; additional years should be factored into share price from 2.63 million tonnes inferred that may be readily converted, plus the fact the main deposit is open, and the fact Donner also has zones of historic resources to tap and a pipeline of drill-ready targets with the objective of having 15 years mill feed lined up for Xstrata.

4) Mitigated production risk -- Xstrata's proven 3000 TPD mill is replacing its depleted ore source with similar ore from Donner only 2 km from portal to mill.

5) Significant inherent resource value, related large growth potential, completed infrastructure value, along with NPV of nearing production is not even close to being reflected in the market cap of Donner Metals at its current share price.

• Stable, mining friendly region.

• Exceptional management & skilled technical leadership.

• Bracemac-McLeod mine to commence production in Q1 2013 -- mine development is on schedule and on budget.

Notes from the Editor:

Valuation Commentary: Donner Metals Ltd. (TSX-V: DON) (OTC: DONFF) (Frankfurt: D4M) is expected to commence production in Q1 2013 at its new zinc/copper Bracemac-McLeod mine in Matagami Québec. DON.V has a market cap under $45M and appears undervalued relative to the inherent value of their project. DON.V is fully leveraged to the price of zinc and expert consensus is for prices to rise soon as global supply contracts over the next couple years. DON.V is due for upside rerating on several key metrics and the bottom line as it sits now, before considering improved metrics, is that Donner's revenue portion of only the initial four years production after cash costs will be more than twice its current market cap; factoring in all splits for production debits and revenue credits at current commodity (Zn, Cu, Ag, Au) prices will translate to ~$25+ million revenue (free cash flow) per year to the Company.

The Bracemac-McLeod zinc/copper deposit was discovered by DON.V in 2007 and has been rapidly advanced via a unique joint venture partnership with Xstrata Zinc. Xstrata has a 3,000 tonne per day (TPD) mill that is receiving feed from its Perseverance mine which will be mined out by the end of 2012, at that time the new Donner (35%)/Xstrata (65%) Bracemac-McLeod mine will kick into operation. The new mine is less than 2 km trucking distance from portal to mill. The mine development is on schedule and on budget; a 2,500 metre access ramp been constructed to the main proven and probable mining reserves of 3.73 million tonnes grading 9.60% zinc, 1.26% copper, 28.25g/t silver and 0.43g/t gold that support an initial 4 year mine plan. In close proximity to these reserves is the McLeod Deep inferred resources of 2.63 million tonnes grading 8.78% zinc, 1.31% copper, 38.83g/t silver and 1.06g/t gold which appear readily convertible to add an additional 2 years mine life (the mining camp has a 50 year history of 95% conversion rate of inferred to a minable resource). The deposit has the potential to expand to 8+ years of mine life, and is open with no limiting holes around large sections of it. Donner's property is very large, ~4750 square km (about 1/3 the size of PEI), and ripe with large resource growth potential. DON.V also has zones of historic resources to tap and a pipeline of drill-ready targets with the objective of having 15 years mill feed lined up -- it is for this reason Xstrata has done what it typically does not do and fostered a unique junior-senior relationship with Donner instead of simply buying them out.

Shares outstanding: 161.4 million (173.6 million fully diluted); The current share price is only attributing minimal value to the initial 4 years production used in the feasibility and ignoring everything else. Donner has covered its development requirements for a 35% interest in the new mine and once production starts future dilution should be a thing of the past as DON.V is expected to advance on a pay-as-you-go basis; a planned capital raise of ~$10M in Q1 2012 to cover working capital and nominal expenditures will cover interim obligations. For investors in DON.V it comes down to appreciating the numbers coming Donner's way, the count down to production is quickly nearing and the reality of these numbers translating to NPV beyond just the initial 4 years mine life with improved metrics should drive the share price substantially higher. The average direct operating costs for the Bracemac-McLeod Mine are estimated at $72.27/t milled, DON.V will be throwing off excellent free cash flow with zinc here around $0.80/lb, however sensitivity analysis shows that the effect on NPV using $1.50 zinc & $3.50 copper would exponentially raise the value. The risk-reward characteristics are highly advantageous for investors establishing a long position in DON.V here.