Donner Metals Ltd.: New Drilling Continues to Demonstrate Potential of Matagami 4.46% Zinc, 3.27% Copper, 29.80g/t Silver, 0.14g/t Gold Over 6.20 Metres at New Hosco

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 21, 2012) - Mr. Harvey Keats, Chief Executive Officer of Donner Metals Ltd. (TSX VENTURE:DON)(FRANKFURT:D4M), reports on regional exploration results for drilling conducted within the 4,737 square kilometre Matagami Project as reported to the Company by partner and project operator Xstrata Canada Corporation-Xstrata Zinc Canada Division ("Xstrata Zinc"). Drilling conducted between October and February encountered massive and semi-massive sulphides at the New Hosco and Garon Lake Areas. Favourable Pipe alteration typically associated with massive sulphide deposits in the Matagami camp was encountered approximately 700 metres southwest of the former Isle Dieu Mine and in proximity to the PD1 Deposit. Drilling north of the Persévérance Mine intersected the Key Tuffite horizon, host to most of the Matagami VMS deposits, in an area that opens approximately 7 kilometres of favourable exploration territory.

Robin Adair, Vice President of Exploration, states: "The ongoing exploration program, guided by a very successful exploration team, continues to return exploration results that demonstrate our ability to target and discover mineralizing systems within the Matagami mining camp." Mr. Adair goes on to say, "Our geological understanding of the camp is continually evolving and this has led to the discovery of new areas of favourable geology on which to expand the hunt for the next deposit."

Results from each area are described below and assay results are listed in the attached Table 1 (to view Table 1 click on: http://media3.marketwire.com/docs/don.pdf).

New Hosco Area:

Six diamond drillholes, at an approximate separation of 50 metres, were completed to investigate mineralization previously encountered up to 300 metres west of the former New Hosco Mine and also to test the Key Tuffite horizon that is interpreted to occur stratigraphically below the mine sequence. Mineralization to the west of New Hosco was previously investigated by drilling conducted between 1956 and 1968. Historical production from the New Hosco Mine (open pit and underground) has been reported at 1.83 million tonnes grading 1.73% zinc and 1.73% copper, 10.29g/t silver and 0.34g/t gold. Mining was conducted between 1959 and 1970.

Drilling completed during the current program confirmed and resampled mineralization west of the New Hosco Mine and identified a much more extensive alteration system than expected, encompassing both the Mine sequence and the Key Tuffite horizon. Drilling also confirmed that mineralization also occurs at the Key Tuffite Horizon and within an underlying Pipe alteration zone.

Diamond drillhole NH-11-01 intersected extensive Pipe alteration between 347.70 to 420.20 that returned anomalous base metal assays from disseminated and stringer sulphides.

Drillhole NH-11-02 intersected massive/semi-massive sulphides from 484.70 to 498.25 and from 503.35 to 509.30 metres which returned 4.19% zinc, 0.44% copper, 89.48g/t silver, 0.11g/t gold over 2.00 metres from 485.20 to 487.20 metres; 2.73% zinc, 0.31% copper, 30.87g/t silver, 0.22g/t gold over 7.55 metres from 490.70 to 498.25 metres and 3.10% zinc, 0.79% copper, 10.00g/t silver, 0.11g/t gold over 4.95 metres from 504.35 to 509.30 metres.

Drillhole NH-11-03 intersected Pipe alteration and altered felsic lapilli tuff from 540.75 to 555.20 metres.

Drillhole NH-11-04 returned 14.65% zinc over 0.70 metres from 348.65 to 349.35 metres.

NH-11-05 intersected 4.46% zinc, 3.27% copper, 29.80g/t silver, 0.14g/t gold over 6.20 metres from 444.30 to 450.50 metres within a broad mineralised sequence that returned 3.09% zinc, 1.19% copper, 12.71g/t silver, 0.09g/t gold over 20.10 metres from 434.4 to 454.50 metres.

Drillhole NH-11-06 intersected gabbro at the targeted horizon.

Drillhole NH-11-03 also intersected the Key Tuffite 130 metres stratigraphically below the New Hosco horizon. The Key Tuffite was intersected from 737.00 to 739.20 metres and it was underlain by highly altered rhyolite with a significant interval of Pipe alteration from 811.70 to 886.20 metres containing 10 to 25% sulphide stringers comprised of pyrite with traces of chalcopyrite and magnetite. NH-11-01 and NH-11-02, drilled to the west, crossed a fault and did not intersect the Key Tuffite.

Isle Dieu South:

One hole was drilled approximately 680 metres southwest of the former Isle Dieu Mine (reported production: 3.05MT 17.85% zinc, 1.01% copper, 76.63g/t silver, 0.46g/t gold). OR-11-41 intersected mineralized Key Tuffite, from 1166.35 to 1168.22 metres, directly underlain by a 70 metre sequence of strongly altered rhyolite containing a 13 metre interval of disseminated and stringer sulphides that returned intervals of anomalous zinc. Continuous disseminated and stringer mineralization was also encountered in the hanging wall up to 25 metres above the Key Tuffite where it was capped by a silicified andesite.

DJV Area:

One hole was completed and one hole was deepened in the DJV area north of Xstrata's currently producing Persévérance Mine (5.12 million tonnes grading 15.82% zinc and 1.24% copper, 29.00g/t silver and 0.38g/t gold - 100% Xstrata). Drillhole DJV-12-89, drilled 2.7 kilometres north of the mine, intersected the Key Tuffite from 204.75 to 205.03 metres at a stratigraphic position similar to that in the Persévérance Mine sequence where the Key Tuffite occurs at a rhyolite to rhyolite contact. This intercept opens a possible 7.5 kilometre strike length of favorable Key Tuffite stratigraphy for focused exploration. DJV-10-86E was an extension of a drillhole completed in 2010. Rhyolite typical of the hanging wall to the Key Tuffite was intersected.

Diamond drillhole DJV-11-88 (initially described in a news release dated October 25, 2011) returned strongly anomalous zinc values from the Key Tuffite horizon that graded 1.74% zinc over 5 metres, from 846.00 to 851.00 metres. The drillhole also returned 2.86g/t gold over 1.5 metres from 745.50 to 747.00 metres within a major fault comprised of hematized andesite breccia with quartz, carbonate, sericite and fuchsite.

Garon Lake Area (11.8 kilometres northeast of Bracemac-McLeod):

Five drillholes were completed in the Garon Lake area to follow up sulphide mineralization encountered in drillholes GL-11-15 and GL-11-15W1 (see news release October 25, 2011) and to test both geophysical responses and stratigraphy elsewhere in the area.

GL-11-16 tested a surface geophysical target at 200 metres vertical depth and intersected a fault at the targeted interval.

Diamond drillholes GL-11-18 and GL-11-19 were drilled as 100 metre step-outs from mineralization encountered in GL-11-15 and 15W1 respectively. GL-11-18 was drilled 100 metres west of GL-11-15 and intersected altered rhyolite with well-developed stringer sulphides comprised of pyrrhotite and pyrite with traces of sphalerite and chalcopyrite, from 1018.90 to 1040.70 metres. Drillhole GL-11-19 was drilled 100 metres east of GL-11-15W1 and intersected massive and semi-massive sulphides from 880.45 to 883.60 metres that graded 5.21% zinc and 0.27% copper over 3.15 metres. The drillhole also intersected sporadic stringer and disseminated sulphide mineralization from 724.00 to 811.60 metres and from 898.50 and 959.80 metres that returned locally anomalous base metal values.

A stratigraphic drill program consisting of two diamond drillholes tested a favourable rhyolite trend running south of the historical Garon Lake Mine, approximately 700 metres east of mineralization encountered in GL-11-15 and 15W1. Both holes targeted a vertical depth of 430 metres. Drillhole GL-11-17 intersected semi-massive pyrite and magnetite from 630.55 to 633.15 metres. GL-11-20 was drilled 300 metres east of GL-11-17 and intersected unmineralized rhyolite and gabbro at the targeted interval.

Central Camp:

Diamond drillhole WNH-11-02 was drilled as a stratigraphic test in the northern portion of the central camp, 5.6 kilometres west of the New Hosco. The hole interested basalts with no significant mineralization.

Bracemac:

Drillhole BRA-11-08 was drilled 300 metres down-dip from the Bracemac KT zone to follow the structure responsible for mineralization in the Bracemac KT zone. The hole successfully intersected the Bracemac KT fault; however the targeted Key Tuffite interval was occupied by a gabbro intrusion. The intrusion was followed by chlorite-altered rhyolite with stringer pyrite and chalcopyrite.

PD1 Area:

One hole was drilled 150 metres northeast of the PD-1 Deposit (NI43-101 compliant resources: 1.7 million tonnes grading 4.22% zinc, 1.16% copper, 19.88g/t silver - current ownership: 50% Xstrata-50% Donner). PD-12-44 intersected Pipe alteration from 640.25 to 653.70 metres and from 687.20 to 727.15 metres. This alteration zone has opened up the potential of the PD1 deposit at depth and the potential for stacked mineralization stratigraphically below PD1.

Radiore Area:

One hole was drilled 1.3 kilometres northwest of the Historical Radiore Mine. DR-11-10 extended the stratigraphic drill program in the Radiore area. The drillhole intersected a continuation of the altered rhyolites and felsic tuffs.

Regional Exploration:

A total of 1,086 line kilometres of VTEM was flown in December over four target regions within the global project area.

Additional information is available at www.donnermetals.com.

PROJECT OVERVIEW

The Company is a fully-vested partner with Xstrata Canada Corporation in the extensive Matagami base metal camp located in the Abitibi region of central Québec. This joint venture partnership covers six joint venture areas governing 4,737 square kilometres of prime stratigraphy which has yielded high-grade base metal production since 1961. The joint venture areas currently contain 2895 mineral claims covering 667 square kilometres. Each joint venture area is defined by an area of interest which expires on June 1, 2013. Following this term, the joint ventures will apply only to the surviving mineral claims and other mineral interests. The specific joint venture areas (singular, "JVA") and their relative interests are:

1. South Flank JVA: Donner 35% - Xstrata 65%
2. Bracemac-McLeod JVA: Donner 35% - Xstrata 65% (includes the Bracemac-McLeod Mine - under development)
3. North Flank JVA: Donner 50% - Xstrata 50%
4. Central Camp JVA: Donner 50% - Xstrata 50%
5. West Camp JVA: Donner 50% - Xstrata 50% (includes the PD1 deposit: under feasibility study)
6. East JVA: Donner 50% - Xstrata 50%

Xstrata Canada Corporation holds a separate right to increase its interest to 65% in each of the North Flank, Central Camp, West Camp and East JVA's by completing a bankable feasibility study. Both parties will be responsible for their share of costs on the basis of the relative joint venture interests.

The partners are currently developing the Bracemac-McLeod Mine which is scheduled for production in early 2013.

The Matagami Project covers the Matagami Mining Camp, a world-class mining district, with 18 known Volcanogenic Massive Sulphide (VMS) deposits including 10 past producers of varying sizes, including the giant Matagami Lake Deposit (25.64 million tonnes of 8.2% zinc, 0.56% copper, 20.91g/t silver and 0.41g/t gold) discovered in 1957 and mined from 1963 to 1988. The area is host to historical production of 8,600 million pounds of zinc and 853 million pounds of copper. The Matagami area is well serviced by established infrastructure including the town of Matagami, power, a permitted tailings facility, railway, airport and well-developed road and highway networks. Xstrata Zinc is currently producing from its low-cost and wholly-owned Perseverance Deposit which feeds its refurbished 2,950 tonnes per day Matagami mill complex. Any future development under the Donner-Xstrata agreement will support the established infrastructure and facilities. Zinc concentrates produced at Matagami are refined at the Noranda Income Fund zinc refinery in Valleyfield, Québec. Copper concentrates are smelted at Xstrata's Horne smelter in Rouyn-Noranda and refined at Xstrata's Canadian Copper Refinery in Montréal, Québec.

The Company's strategy is to explore for and develop zinc-copper deposits in the Matagami Camp and to leverage the general infrastructure and existing processing facilities within a known and well-established cost structure for developing VMS deposits. Donner's exploration objective is to investigate multiple stratigraphic horizons with potential for VMS mineralization including the prolific Key Tuffite horizon throughout the Matagami Camp. To date, the joint venture partners have discovered new mineralization at Bracemac-McLeod, Daniel1, Garon Lake, Bell Channel, McLeod Deep and down-dip from Radiore. Within the extensive project area there are numerous exploration targets with excellent potential for additional discoveries.

SUPPLEMENTARY INFORMATION

Xstrata Zinc is the project operator for the Matagami Project and all of the respective joint ventures. As operator, Xstrata Zinc is responsible for the execution of all development, production and exploration programs on the property. This includes 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, Québec (zinc, copper and silver by atomic absorption, and gold by standard fire assay procedures).

Robin Adair (VP of Exploration) 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 "is scheduled for production in early 2013". Such statements are applicable specifically to the possible future completion of the development of and production from the Bracemac-McLeod Deposit as well as future planned exploration activities. With respect to future production, and the commencement thereof, from the Bracemac-McLeod deposit, the forward looking statements are in the context of the feasibility study completed by Xstrata Canada Corporation - Xstrata Zinc Canada Division and Genivar Limited Partnership in 2010 as posted under the Company's profile at www.sedar.com. "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 also refers to information about historical production from land covered by, or adjacent to, 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 or future discovery potential. Further discussion of "forward looking statements" and "future oriented financial information" 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.