DNI concludes financing to resume drilling on its Alberta polymetallic black shale projects, Athabasca region, Alberta

    




 DNI METALS INC.  

 TORONTO, May 29, 2012 /CNW/ - DNI Metals Inc.   is pleased to announce that it has concluded the financing announced on  May 22, 2012, with a final non-brokered private placement of 300,000  flow-through shares with arm's length parties for gross proceeds of  $135,000. The securities issued under the private placements are  subject to a four-month hold period expiring on September 25, 2012. A  commission was paid in connection with the placement, consisting of an  aggregate of $9,450 and issuance of 21,000 warrants, each warrant  entitling the holder to purchase an additional common share of the  company at a price of 45 cents for a period of twelve months from  closing. Shares underlying the broker warrants are subject to a  four-month hold period expiring on September 25, 2012. 

 Proceeds of the financing, together with funds in treasury from prior  financings, will be applied toward resuming drilling at DNI's  polymetallic shale properties, Alberta, to complete two drill programs  during early fall. The planned drilling consists of exploratory  drilling over the Buckton South mineralized target with the objective  of delineating an initial resource, and will also include other  strategic holes over the Buckton initial inferred resource (announced  October 24, 2011) to expand and upgrade the resource. The drilling  program is fully funded and permitting has commenced in anticipation of  mobilization in July. 

 Considerable other work is also in progress, including a resource study  related to mineralized black shales overlying the Buckton resource,  which had previously been regarded as waste cover rocks but which hold  potential for hosting additional mineralized tonnages from which Base  Metals, Specialty Metals and Rare Earth Elements (REEs) are recoverable  by leaching (announced March 1, 2012). 

 Other work in progress includes bioleaching testwork testing additional  samples from black shales above and beneath the Buckton inferred  resource, and separate collaborative work being carried out at CANMET  Mining and Minerals Science Laboratories entailing testwork toward the  commercialization of a heap leaching process for DNI's polymetallic  black shales, specifically focusing on formulating refining procedures  for separation of the various Rare Earth Elements (REEs) from the  leaching solution into saleable end-products, relying on process  technologies from Chinese ionic clay adsorbed REE ores as a guide. 

 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 release. 

 DNI - TSX Venture DG7 - Frankfurt Issued: 69,546,689 post financing 

DNI Metals Inc.


CONTACT:  DNI Metals Inc. - Shahe Sabag, President & CEO (416-595-1195) orDenisClement, Chairman (416-364-1909) email [e-mail]. Alsovisit www.dnimetals.com. 


    

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