DNI Metals - Announces C$2.5 Million Financing

Toronto, Ontario--(Newsfile Corp. - April 5, 2017) - DNI Metals Inc. (CSE: DNI) ("DNI" or the "Company") The Corporation's Board of Directors has approved a Private Placement allowing it to complete a non-brokered private placement of up to 38,461,538 Units at a price of $0.065 per Unit for gross proceeds of $2,500,000.00 (the "Private Placement").

Each unit consists of one Common share and a half purchase Warrant. Each warrant entitles the bearer to purchase one Common Share of the company at an exercise price of C$.10 per share for a period of 18 months from the closing Date. The use of Proceeds of the Private Placement will be for corporate cash flow purposes.

In addition to any other exemptions available, participation in the financing is also open to existing shareholders of DNI who as of the close of business on April 4, 2017 ("Record Date"), held common shares of DNI (and who continue to hold common shares of DNI at the time of closing). The Subscriber is eligible to purchase the Units pursuant to the prospectus exemption for distribution to existing security holders ("Existing Security Holder Exemption") set out in National Instrument 45-513 — Prospectus Exemptions for Distribution to Existing Security Holders, as well as the amendments to Rule 45-501 — Ontario Prospectus and Registration Exemptions (Ontario). Any existing shareholder who wishes to participate in the Private Placement is asked to please contact Dan Weir, CEO of the Company at (416) 720-0754 or by email to: danweir@dnimetals.com in order to receive subscription documentation and instructions. The Offering will remain open to existing shareholders until April 14, 2017.

About DNI Metals

Certain advisors and directors of DNI have significant operational experience at historical hard rock graphite mines in Canada (e.g. Ontario and Quebec) and Australia. Between them, they have built three (3) processing plants and designed two (2) others; all, which were shut down in the 1990,'s due to increased Chinese competition. Keith Minty, director, worked at Cal Graphite near Kearny, Ontario.

It was our team's understanding of the high production and capital expenditure costs associated with so-called "hard rock" graphite mining that inspired DNI to search for saprolite-hosted graphite deposits.

Certain parts Madagascar and Brazil, produce graphite from weathered material called saprolite.

According to Dictionary.com, saprolite is described as:

"Soft, thoroughly decomposed and porous rock, often rich in clay, formed by the in place chemical weathering of igneous, metamorphic, or sedimentary rocks. Saprolite is especially common in humid and tropical climates. It is usually reddish brown or grayish white and contains those structures (such as cross-stratification) that were present in the original rock from which it formed."

DNI owns a commercially permitted, saprolite-hosted graphite deposit in Madagascar; located 50kms from the country's main seaport. The deposit is located less than two (2) kms from the paved national highway. DNI intends to develop the Vohitsara project, should the economic viability and technical feasibility be established. DNI has not yet established mineral resources or mineral reserves supported by a PEA or mining study (PFS or FS).

DNI has a graphite wholesale business, in which it buys and sells high quality graphite. This business has shown a steady increase in volume over the past year.

Steven Goertz (MAusIMM, MAIG), who is a qualified person, approved the technical disclosure in this news release.

DNI — Canadian Securities Exchange
DG7N — Frankfurt
Issued: 40,558,775

For further information, contact:
DNI Metals Inc. — Dan Weir, CEO 416-595-1195
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&A's, all of which are available from SEDAR and on its website.