DNI Metals Inc. (DMNKF)

[Luke_McCain]

$DMNKF PR: Drilling Has Commenced/New Graphite Zones Discovered

http://www.newsfilecorp.com/release/26359/DNI-Metals-Drilling-has-Commenced-New-Graphite-Zones-Discovered

Toronto, Ontario--(Newsfile Corp. - April 26, 2017) - DNI Metals Inc. (CSE: DNI) ("DNI" or the "Company") is pleased to announce the following:

• Drilling has commenced on DNI's Vohitsara graphite project in Madagascar.

• As the road and drill pads were/are being constructed, new graphitic zones were uncovered by the bulldozer.

• Drilling to focus on the main zone, but a few test holes will be drilled on secondary zones.

• The Main zone is over 2.5 kms long, drilling will start on the central 1 km portion of graphite mineralization where previous trenching returned grades up to 25% Cgr. See trenching press release dated September 24, 2015.

• Second payment of A$200,000 was received from Cougar Metals ("Cougar").

Dan Weir, CEO, of DNI commented, "We very excited to see the project move forward, and especially pleased to see new zones uncovered, on the 63 km2, Vohitsara project. We always thought this project would have multiple zones. Having a partner like Cougar and their experienced drill crew will help make the project move forward in a timely manner."

As per the Definitive agreement signed March 24, 2017 with Cougar:

1.Cougar can earn into 50% of DNI's Madagascar Graphite Project.

2.NI 43-101 Resource Report must be completed by June 30, 2017.

3.NI 43-101 PEA (Preliminary Economic Assessment) must be completed by October 31, 2017.

4.Cougar must drill a minimum of 3,000m to a maximum depth of 50m, and additionally complete 1,000m of trenching.

5.The Saprolitic advantage of DNI's graphite project, will simplify drilling for Cougar's experienced team. Cougar completed a drill program of a Saprolitic graphite deposit in Brazil, in 2015/2016.

6.Since Cougar did not withdraw from the project by April 12, 2017, Cougar is now obligated to pay DNI U$150,000 by June 7, 2017.