Donner Metals Ltd.: Update on Bracemac-McLeod Production

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:



----------------------------------------------------------------------------
   Above Expectations        Within Expectations       Below Expectations   
----------------------------------------------------------------------------
Mill and metallurgical    Mine production rate has  Ramp-up ore grades      
performance: recoveries   met Feasibility Study                             
and concentrate grade     target and is ramping up  2013 grade forecast     
                          to the 3,000 tonnes per                           
New grind circuit and     day mine plan                                     
mill capacity                                                               
----------------------------------------------------------------------------



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. 




Current inventories for Bracemac-McLeod are:       
                                                   
Tonnes ready to drill                       110,565
Tonnes drilled                              149,777
Tonnes ready to blast                        10,402
Stockpile                                     5,000



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 Perseverance ore (100%-owned solely by Glencore Xstrata) is
processed. 


Additional information is available at www.donnermetals.com.

Glencore Xstrata is the project operator for the Matagami Project and all of
Donner's joint ventures. As project operator, Glencore Xstrata is responsible
for the execution of all development, production, smelting and refining
activities related to the Bracemac-McLeod Mine and exploration programs
conducted on the Matagami Project, including resource evaluation, sampling,
submittal of samples for assay, assay verification, metallurgical evaluation and
QA/QC. Sample preparation and assaying are conducted 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) is a 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

Certain phrases in this news release are "forward-looking statements".
Forward-looking statements are identified by wording such as "anticipated",
"forecast" and "expected". Such statements are applicable specifically to the
future anticipated results and performance related to the Bracemac-McLeod Mine.
"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. 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.


To view Table 1, please visit the following link:
http://media3.marketwire.com/docs/712don_table1.pdf  


FOR FURTHER INFORMATION PLEASE CONTACT: 
Donner Metals Ltd.
Andrea Magee
604.683.0564
Toll Free: 1-800-909-8311
[e-mail]
www.donnermetals.com