DNI Metals Inc. (DMNKF)

[Luke_McCain]

$DMNKF Signs LOI Valued up to $4.5 Million

Toronto, Ontario--(Newsfile Corp. - December 16, 2016) - DNI Metals Inc. (CSE: DNI) (FSE: DG7N) (OTC Pink: DMNKF) ("DNI" or the "Company").

DNI completes a Letter Of Intent "LOI", with Cougar Metals to develop DNI's Vohitsara, Madagascar Graphite Project.

Cougar owns 8 drill rigs, and has competence to complete a 3,000m drilling program, a 1,000m trenching program, a NI 43-101 resource study, and a NI 43-101 PEA for DNI's Vohitsara Project. As per the LOI, this work should be completed by June 30, 2017.

Summary of the $4.5 million potential.

1.Cougar pays DNI Cash payments of A$300,000

2.Cougar pays Cash payment of U$150,000 (approx. C$196,000) to previous owner of the Vohitsara project (last payment owed by DNI)

3.When Cougar completes the drilling/resource/PEA, (by June 30, 2017), Cougar will earn 49% of the Vohitsara project. DNI's board had set a budget of C$1.5 million to complete the drilling/resource/PEA.

4.If DNI opts out of its first right, Cougar can purchase DNI's remaining 51% for AUD$2.5 million.

The specific terms of the deal are below.

http://www.newsfilecorp.com/release/24136/DNI-Metals-Inc.-Signs-LOI-Valued-up-to-4.5-Million

#graphite