Donner Metals Ltd.: Scoping Study Initiated as Latest Step-OutDelineation Drilling Continues to Expand Bracemac-Mcleod at Matagami,Quebec

VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 10/27/08 -- Mr.
Harvey Keats, Chief Executive Officer of Donner Metals Ltd. (TSX
VENTURE: DON)(FRANKFURT: D4M), reports that delineation drilling
continues to intersect high-grade massive sulphides at
Bracemac-McLeod. New drilling has expanded the high-grade massive
sulphides at both McLeod and Bracemac. Mineralization encountered
between the Old McLeod zone and the New McLeod zone indicates they
are a single connected deposit of sulphides that will now be called
the "McLeod Zone". In addition to these results, a laterally
continuous copper zone has been identified in the footwall to the
massive sulphides that define the McLeod Zone. With this continued
expansion of the zones, Bracemac-McLeod has entered the initial
stages of a scoping study to be funded and conducted by Xstrata
Canada Corporation - Xstrata Zinc Canada Division (Xstrata Zinc).
This is an important milestone and leverages Xstrata Zinc's expertise
gained from the successful development of their wholly owned and
operating Perseverance mine and Matagami mill complex, the latter
located six kilometers northwest of Bracemac-McLeod. Results for all
new drill holes are provided in Appendix 1.
 
Drilling Highlights
---------------------------------------------------------------------------
                                  Core
DDH                             Length
(Depth)        From       To   (metres)    % Zn    % Cu    g/t Ag    g/t Au
---------------------------------------------------------------------------
---------------------------------------------------------------------------
McLeod Zone
---------------------------------------------------------------------------
MC-08-57     655.50   666.00     10.50    12.18    1.99     47.07      0.41
---------------------------------------------------------------------------
MC-08-63     440.86   442.11      1.25     8.19    8.69    100.59      0.82
---------------------------------------------------------------------------
MC-08-66     701.30   707.35      8.05     7.95    2.34     66.47      0.29
---------------------------------------------------------------------------
MC-08-68     653.00   656.52      3.52    22.40    1.28     36.41      0.77
---------------------------------------------------------------------------
MC-08-69     571.85    572.6      0.75    Assays Pending(i): Massive
                                           sulphides - 20% Sph, 2% Cpy
---------------------------------------------------------------------------
 and         577.00   582.10      5.10    Assays Pending(i): Semi-massive
                                           sulphides - 15% Sph, 3-4% Cpy,
                                           5-6% Po,
---------------------------------------------------------------------------
MC-08-70     640.00   649.66      9.66   Assays Pending(i): Massive
                                          sulphides - 33% Sph and 8% Cpy
---------------------------------------------------------------------------
MC-08-71     670.45   677.50      7.05   Assays Pending(i): Massive
                                          Sulphides - 35% Sph, 4-5% Cpy,
                                          25% Py
---------------------------------------------------------------------------
West McLeod
---------------------------------------------------------------------------
MC-08-62     576.15   578.95      2.80    11.44    0.59     29.31      0.31
---------------------------------------------------------------------------
McLeod Copper Zone
---------------------------------------------------------------------------
MC-08-56     772.00   778.00      6.00     0.52    1.44      3.55      0.04
---------------------------------------------------------------------------
MC-08-57      695.5   700.00      4.50     0.04    1.20      5.17      0.08
---------------------------------------------------------------------------
MC-08-59     704.37   708.80      4.43     2.01    1.90     11.84      0.10
---------------------------------------------------------------------------
Bracemac Key Tuffite Zone
---------------------------------------------------------------------------
BRC-08-81    435.00   437.30      2.30    11.89    0.80     30.00      0.35
---------------------------------------------------------------------------
 
Sph equals Sphalerite, (1% Sph approximately equal to 0.5% Zn), Cpy
equals Chalcopyrite, (1% Cpy approximately equal to 0.3% Cu), Py
equals Pyrite, Po equals pyrrhotite, (i) Mineral content estimates.
 
MCLEOD AREA
 
Since the Company's news release dated July 30, 2008, a total of 17
diamond drill holes were completed to investigate the extension of
known sulphides. Massive sulphide intersections returned from
drilling between the Old McLeod and New McLeod zones has confirmed
that mineralization is continuous between the two zones and therefore
these two zones will be combined under "McLeod Zone". High-grade,
massive sulphide mineralization has also been extended up-dip and
along the west side of the McLeod Zone, towards mineralization
encountered in the West McLeod Zone. Strong alteration with
high-grade massive sulphides encountered in recent drilling points to
the down-dip potential of the West McLeod Zone.
 
An investigation of copper and zinc values related to both stringer
and semi-massive sulphide mineralization in the footwall to sulphides
at the Key Tuffite horizon in the McLeod Zone has identified a
horizon of copper-zinc mineralization (Copper Zone) running 10 to 20
metres below and roughly parallel to the Key Tuffite horizon.
Continuity is based on a reasonable degree of predictability in
recent drilling and drill intercepts in 14 drill holes.
 
Delineation drilling is in progress with the boundaries of the McLeod
Zone and the West McLeod Zone undefined and with good potential to
expand in many directions. Detailed material including maps and
sections are posted on www.donnermetals.com.
 
McLeod Zone:
 
Diamond drill hole MC-08-57 intersected 10.5 metres of high-grade
massive sulphides and extended the zone 80 metres down-dip from
MC-07-26. This intersection is also 55 metres up-dip from MC-08-66
and provides evidence the New McLeod Zone and Old McLeod Zone are a
connected plate of massive sulphides. Drill hole MC-08-66 intersected
8.05 metres of high-grade massive and semi-massive sulphides 60
metres up-dip from MC-08-43. The combined McLeod Zone was further
extended 55 metres west of MC-08-57 by MC-08-70 that intersected 7.7
metres of massive sulphides and 1.7 metres of semi-massive sulphides
(assays pending). Also on the west side of the zone, drill hole
MC-08-69 intersected semi-massive sulphides (assays pending) over 5.1
metres, 40 metres up-dip from MC-04-04, indicating a new extension of
sulphides in this area and allows for the incorporation of the
intercept returned in MC-08-53 within the McLeod Zone.
 
MC-08-68 intersected 3.52 metres of high-grade massive sulphides and
extended the eastern side of the McLeod Zone 50 metres down-dip and
to the west of MC-07-28. MC-08-71 further intersected 7.05 metres of
massive and semi-massive sulphides (assays pending) 50 metres
down-dip and to the west of MC-08-68, providing further strong
evidence the former Old McLeod and New McLeod zones are connected.
 
Drill hole MC-08-63 intersected 1.25 metres of copper-rich massive
sulphides 37 metres above the Key Tuffite within a sequence of
extensive Pipe/chlorite alteration, 50 metres up-dip from MC-08-55.
This hole extends the McLeod Zone with potential for additional
sulphides in the up-dip direction towards MC-08-45.
 
Drill hole MC-08-54 encountered semi-massive sulphides over 4 metres
at the Key Tuffite followed by 40 metres of Pipe alteration and
stringer mineralization on the east extension of the zone, 50 metres
east of MC-08-40. Diamond drill holes MC-08-56 and MC-08-59 were
drilled to investigate the extension of sulphide mineralization on
the east side of the McLeod Zone. Both holes intersected weak
mineralization at the Key Tuffite underlain by stringer
mineralization and alteration in the footwall to the Key Tuffite
(Copper Zone). Drill hole MC-08-61 intersected weakly mineralized Key
Tuffite followed by heavy stringer mineralization (Copper Zone) 50
metres down-dip and to the east of MC-08-57 and 40 metres up-dip from
MC-08-51.
 
West McLeod Zone:
 
Drill hole MC-08-60 intersected weakly mineralized Key Tuffite, 60
metres east and up-dip from MC-07-30. MC-08-62 intersected high-grade
massive and semi-massive sulphides over 2.8 meters at the Key Tuffite
followed by strong footwall alteration 60 metres down-dip from
MC-08-46. A further 70 metres down-dip, diamond drill hole MC-08-65
intersected 60 metres of intense alteration/Pipe alteration
immediately below mineralized Key Tuffite suggesting a well developed
system in this area that warrants further investigation.
 
Step-out Drilling - McLeod Area:
 
Diamond drill hole MC-08-64 intersected pyrrhotite-pyrite-rich,
semi-massive sulphides underlain by 18 metres of stringer
mineralization and by 30 metres of strong chlorite/Pipe alteration.
This hole was drilled 86 metres up-dip and to the east of MC-08-53.
Drill hole MC-08-67 was designed to test the Key Tuffite near
surface, at a vertical depth of 100 metres. In this hole, the
critical sequence was faulted off with the Key Tuffite interval
missing.
 
Copper Zone:
 
This zone is currently defined stringer mineralization in 17 diamond
drill holes, comprising historical drill results and intersections
returned from the current drill program at McLeod. A total of 14
drill holes contain intersections of interest and contain elevated
copper grades. The zone is being tested as part of the on-going
delineation program on the McLeod area. Of drilling reported herein,
drill holes MC-08-56, MC-08-57, MC-08-59 and MC-08-61 intersected
mineralization in the copper zone where mineralization was
anticipated. Assay for drill holes MC-08-66, MC-08-68, MC-08-70 and
MC-08-71 are pending for stringer mineralization encountered within
the copper zone. Drill intercepts that define this zone are at a
spacing of approximately 50 metres. Delineation of the Copper Zone
will continue as part of the drill program on the McLeod Zone.
 
BRACEMAC AREA
 
Drilling continued at Bracemac with the completion of 7 drill holes
(Appendix 1). Mineralization was extended in the upper portion of the
Bracemac Key Tuffite zone and on the east side of the Bracemac zone.
Delineation drilling is on-going with potential to expand the extent
of sulphide mineralization in the Key Tuffite Zone down-dip and
around the margins of known sulphide intercepts. Detailed material
including maps and sections are posted on www.donnermetals.com.
 
Key Tuffite Zone:
 
Drill hole BRC-08-76 was drilled 50 metres down-dip and 15 metres to
the west of BRC-08-74 and BRC-08-76W1 was drilled 20 meters due east
of BRC-08-76. Diamond drill hole BRC-08-83 was drilled a further 100
metres down-dip and slightly east of BRC-08-76W1. All three holes
intersected Pipe alteration. BRC-08-85 was drilled 50 metres down-dip
and to the east of BRC-08-74 and did not encounter mineralization.
 
BRC-08-84 was drilled on the eastern side of the upper portion of the
Key Tuffite Zone, 55 metres down-dip from BRC-07-56 and intersected
stringer mineralization in the immediate footwall to a weakly
mineralized Key Tuffite. BRC-08-81 was drilled on the upper west side
of the Key Tuffite Zone, 35 metres west of BRC-07-49 and intersected
high-grade massive sulphides, extending the zone to the west.
Delineation drilling is in progress.
 
Bracemac Zone:
 
Diamond Drill Hole BRC-08-76 intersected a narrow interval of
semi-massive sulphides in the Bracemac Zone, 55 metres east of
BRC-06-27.
 
SCOPING STUDY
 
The discovery and continued expansion of sulphide zones at
Bracemac-McLeod, located 6 kilometres southeast of the Matagami mill,
has resulted in the rapid advancement of the Donner/Xstrata Project
at Matagami. Under Xstrata, Bracemac-McLeod has entered the initial
steps of a scoping study that will be conducted by the Xstrata team
that successfully developed Perseverance. The initial step of this
study will provide the basis for a NI43-101 compliant resource
estimate following completion of the delineation drill program
presently underway.
 
SUMMARY
 
Complete assay results can be found in the attached Appendix 1. Four
drills are active on the Matagami Project at Bracemac-McLeod. A total
of 86,095 metres of diamond drilling in 173 drill holes has been
reported on since the project began in late 2006. Additional
geological information, including maps and sections, is available at
www.donnermetals.com.
 
PROJECT OVERVIEW
 
The Matagami Project has an area of mutual interest of 4,750 square
kilometres and presently includes 3,340 mineral claims covering 801
square kilometres. A pipeline of strong drill/exploration targets
remain to be investigated in addition to the efforts at
Bracemac-McLeod. Donner and Xstrata Canada Corporation - Xstrata Zinc
Canada Division (Xstrata Zinc) are using a combination of 3D data
integration, innovative advanced technologies, new concepts and
diamond drilling to explore for new deposits in this prolific mining
camp.
 
The Matagami Mining Camp is a world-class mining district, with 18
known VMS deposits, including 10 past producers of varying sizes,
including the giant Matagami Lake Deposit (25.64 million tonnes of
8.2% Zn, 0.56% Cu, 20.91 g/t Ag and 0.41 g/t Au) discovered in 1957
and mined from 1963 to 1988. The area is host to historical
production of 8600 million pounds of Zn and 853 million pounds of Cu
and has established infrastructure including the town of Matagami, a
railway, a paved road, and a 2,600 t/day mill owned by Xstrata Zinc.
 
Donner has the option to earn a 50% participating joint venture
interest in the Matagami Project by incurring a total of $20 to $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 feasibility study.
 
The Company's strategy is to explore for and discover 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, Donner has
discovered new mineralization at Bracemac-McLeod and at Bell Channel.
Within the extensive project area there are numerous exploration
targets with good potential for additional discoveries.
 
Supplementary Information
 
The field work on the Matagami Project is being carried out by
project operator Xstrata Zinc Canada Division who is responsible for
the sampling, submittal of samples for assay, assay verification and
QA/QC. Assaying of samples reported in this news release was 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). Sample preparation was done by ALS Chemex of Val
D'Or, Quebec. Robin Adair, VP of Exploration for the Company, is the
Qualified Person responsible for the technical information in this
news release.
 
ON BEHALF OF THE BOARD OF DONNER METALS LTD.
 
Harvey Keats, Chief Executive Officer
 
To view, Appendix 1 - New Results, please click on the following
link: http://media3.marketwire.com/docs/don1027.pdf
 
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
 
Contacts:
Donner Metals Ltd.
Harvey Keats
Chief Executive Officer
(604) 683-0564 or Toll Free: 1-800-909-8311
(604) 602-9311 (FAX)
Email: donner@bed-rock.com
Website: www.donnermetals.com
 
This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.