Mr. Dan Weir reports

DNI CLOSES THE FIRST TRANCHE OF A PRIVATE PLACEMENT FOR A TOTAL OF $387,465.91

DNI Metals Inc. has completed the first tranche of a non-brokered private placement by issuing 2,980,507 units at a price of 13 cents per unit, for gross proceeds of $387,465.91. The securities issued in the first tranche of the private placement are subject to a four-month-and-one-day hold period expiring on Sept. 30, 2015, pursuant to applicable securities legislation and the policies of the TSX Venture Exchange. A finder's fee of $27,551.68 will be paid in connection with this financing.

Insiders of the corporation subscribe to 1.8 million units offered under the private placement. The insider participation is exempt from the formal valuation and shareholder approval requirements provided under Regulation 61-101 respecting protection of minorityholders in special transactions in accordance with sections 5.5 (a) and 5.7 (a) of said Regulation 61-101. The exemption is based on the fact that the market value of the insider participation or the consideration paid by such insider does not exceed 25 per cent of the market value of the corporation. The corporation did not file a material change report at least 21 days prior to the completion of the private placement since the insider participation was not determined at that moment.

Private placement

The corporation's board of directors has approved a private placement, allowing it to complete a non-brokered private placement of up to 3,846,153 units at a price of 13 cents per unit for gross proceeds of $500,000, subject to TSX Venture Exchange approval.

Each unit consists of one common share and one warrant. Each warrant entitles the bearer to purchase one common share of the corporation at an exercise price of 20 cents per share for a period of 18 months from the closing date.

The use of the proceeds of the private placement will be for corporate cash flow purposes.

We seek Safe Harbor.