DNI Metals Inc. Comments On Sudden Rise In Value And Trading Of Its Shares

TORONTO, May 27, 2011 /CNW/ - DNI Metals Inc. (DNI:TSX-Ven)(DG7:FSE) has been requested by regulatory authorities to comment on the sudden rise in trading volume and value of its shares on the TSX Venture Exchange. DNI announces that there are no material developments which can account for the foregoing activities.

DNI continues to focus all of its efforts to advance its polymetallic black shale Properties in Alberta. By way of a summary update in the foregoing regard, DNI is pleased to announce that analytical work, leaching tests and a mineral resource study have commenced on one of its six polymetallic black shale projects, Alberta. This work is relying on drill core samples collected from the recent winter drilling program over the Buckton Potential Mineral Deposit, which comprises one of six mineral systems identified by DNI on its 2,720 square kilometer land position, located approximately 120 kilometers north of Fort McMurray in the Athabasca region, Alberta. Analytical results are expected to be in hand by the end of June.

As previously announced (press March 7, 2011), five holes were cored over approximately 3 square kilometres of the Buckton Zone to enable preparation of a resource study to upgrade a portion of the Buckton Potential Mineral Deposit blocked over the Zone into a NI-43-101 compliant classified resource. APEX Geoscience Ltd., of Edmonton, has been retained to prepare the resource study which is scheduled for completion in August.

As outlined in the technical report for the Property (announced Nov10/2008), the Buckton Potential Mineral Deposit comprises 1.2-1.3 billion short tons of polymetallic mineralization extending over 26 square kilometers hosted in the Second White Speckled Shale. The foregoing potential deposit is open in three directions to at least 6km to its north and south. Together with historic drilling which was reviewed and re-analyzed by DNI in 2009, DNI's recent winter drilling is expected to provide sufficient information to capture approximately 10%-15% of the potential deposit into an inferred resource.

DNI is in the process of updating the above technical report for the Property to incorporate incremental information collected since 2008, notably leaching and bioleaching metals recoveries results previously announced in press along with additional corroborating results from broader testwork. The revision will also address upgrading the size of the two Potential Mineral Deposits outlined in the report in view of additional rock density measurements data collected during the past two years.

DNI continues to focus its efforts on its polymetallic black shale Properties in Alberta, and on its carried interest in the diamond discovery on its Attawapiskat Property, Ontario.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The Qualified Person in connection with DNI's Alberta polymetallic shale projects is Shahé F. Sabag PGeo, DNI's president/CEO.

DNI - TSX Venture
DG7 - Frankfurt
Issued: 59,811,884 (post financing)



For further information:

DNI Metals Inc. - Shahe Sabag, President & CEO or Denis Clement, Chairman - 416-595-1195
email ir@dnimetals.com. Also visit www.dnimetals.com