DNI Metals Inc Signs LOI to Vend it's Alberta Project for $1 Million in Cash and Securities

Toronto, Ontario--(Newsfile Corp. - December 23, 2016) - DNI Metals Inc. (DNI: CSE) ("DNI" or the "Company") completes a Letter Of Intent "LOI", with BullRun Capital, whereas BullRun plans to purchase DNI's, Alberta Mining project known as the SBH or Buckton project.

BullRun Capital plans to complete an IPO or RTO into a public company "Pubco" with DNI's SBH project and other projects.

Terms of the Deal

1. $150,000 cash paid to DNI, upon signing of Definitive Agreement "DA"

2. $250,000 cash paid to DNI, between 90 and 120 days after signing the "DA".

3. Bullrun will complete the Sale to PubCo on or before March 31, 2017. In consideration for the Acquisition, at closing, PubCo shall issue to DNI $600,000.00 of units of PubCo consisting of shares and a wts.

4. Regardless of the presence of any escrow restrictions imposed by the Exchange or under applicable securities laws, DNI and PubCo shall enter into a voluntary pooling agreement, pursuant to which the Units will be pooled and released in accordance with the following schedule:

a. 1/3 of Units shall be released to DNI on closing of the Acquisition ("First Release");

b. 1/3 of Units shall be released six months after the First Release; and

c. 1/3 of Units shall be released twelve months after the First Release.

5. DNI as the right to a nominate one person to the board of the new Pubco.

6. Pubco must be listed on a Canadian recognized/regulated exchange.

7. Non-Binding until Definitive agreement is completed on or before January 15, 2017

8. The agreements are subject board and regulatory approvals.

Details about BullRun can be found on their website at www.bullruncapital.ca

DNI — Canadian Securities Exchange
DG7N — Frankfurt
DMNKF - OTC
Issued: 39,724,204

For further information, contact:
DNI Metals Inc. — Dan Weir, CEO 416-595-1195
DanWeir@dnimetals.com
Also visit www.dnimetals.com

We seek Safe Harbour. This announcement may include forward looking statements. While these statements represent DNI's best current judgment, they are subject to risks and uncertainties that could cause actual results to vary, including risk factors listed in DNI's Annual Information Form and its MD&As, all of which are available from SEDAR and on its website.