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DNI Sponsors Clean Water Day in Madagascar, and DNI Update

TORONTO, ONTARIO / ACCESSWIRE / May 15, 2018 / DNI Metals Inc. (DNI:CSE) ("DNI" or the "Company"), is pleased to announce that it was an invited participant of a government-affiliated clean water event held on May 03rd 2018 north of Brickaville, Madagascar. The event, related to the UN-sponsored World Water Day, held on the 22nd March annually, is part of USAID’s $30 million, RANO WASH project announced February 23, 2018 < https://www.usaid.gov/rano-wash >. From the USAID website:

"RANO WASH will increase access to clean water for vulnerable populations, including girls, women and people with disabilities. In total, over 600,000 people will benefit from the project. This includes 300,000 people who will get access to clean drinking water through 140 water supply systems. These systems will be managed by local businesses with training from the project. A further 375,000 people will have better sanitation options thanks to improvements and rehabilitation work to existing toilets and cleaning stations. 190 public facilities, including health centers and schools, are among the locations destined to receive improved sanitation facilities."

Hosting Banner for Rano-Wash Event of 03rd May 2018

The sponsoring entity, RANO-WASH, which stands for 'Rural Access to New Opportunities in Water, Sanitation, and Hygiene', will be implemented by a CARE-led consortium in conjunction with the Malagasy Ministry of Water, Energy and Hydrocarbons and Ministry of Public Health.

The event was held in the community of Sahavalaina, approximately 30km north of the District capital of Brickaville. Sahavalaina is located within DNI’s 100%-owned Marofody mining licence and 8km south of the main entrance to its 100%-owned Vohitsara Project.

It was well attended, with in excess of 100 locals present together with representatives of national, regional and local government and members of the Malagasy media.

DNI’s Stand at the RANO-WASH event

DNI Personnel Presenting the Company’s Programme to Locals & Officials

As part of the drilling program at the Vohitsara project a mandatory CSR program was implemented. This is an integral part of maintaining operational viability and community engagement. The program was comprised of training, health and medical support, as well as steps to improve access to clean water for residents. In doing so, the program:

  1. Installed and commissioned a water well and pump at Ambatolampy village
  2. Expanded and upgraded the local soccer field for the Ambatolampy and Vohitsara communities
  3. Installed a road connecting Ambatolampy village to the national highway at Vohitsara village
  4. Sourced and planted various fruit trees and soil stabilisation vegetation at strategic locations throughout the project area.

Drilling & Commissioning of the Water Well & Pump at Ambatolampy

Upgraded Soccer Field at Ambatolampy (L) Kids Playing on Soccer during site visit Apr.19 (R)

Above are pictures taken at an event commissioning a roadside nursery at the main entrance to the Vohitsara Project site. This event took place on the 11th April 2018. The plant nursery will be operated on a commercial basis by the local women's cooperative.

According to WaterAid: “11.7 million people in Madagascar don’t have access to safe water, 88% of the population of Madagascar don’t have access to improved sanitation, almost 4,000 children under five die every year from diarrheal diseases caused by unsafe water and poor sanitation.

USAID backs up these claims by stating: “more than 58 percent Madagascar's people lack access to safe drinking water and nearly half of all households live without sanitation facilities.”

Dan Weir, CEO, commented: “ It is significant that, as part of the CSR for the 2017 Vohitsara drilling program, the Project was able to improve access to fresh potable water to local residents in the Project area.

The people of Madagascar are amazing, and as we develop our projects, we look forward to doing what we can to improve their lives.

Update on bulk sample shipped to India

Through October and into November of 2017, DNI completed a 40 tonne bulk sample program from the main zone and the southwest zones of its Vohitsara graphite project. 26 tonnes total - 13 tonnes from each zone - were shipped to India and processed by the leading Indian graphite producer. The Indian group has informed DNI that they are quite impressed with the material and DNI is currently in final negotiations with them regarding the planned purchase of material from DNI's pilot plant.

Collected Samples ready for Shipment (L) – Close-Up of the material, showing coarse flake graphite (R)

Update on the Pilot Plant

The engineering is complete, subject to minor changes. DNI has obtained quotes from three China-based and one Canadian-based manufacturer. Once DNI obtains the environmental license(s) preparation will begin at the designated location for the pilot plant. The plant will be containerized and according to the Chinese quotes, can be ready for shipping in about 60 days. Transhipment from China to Madagascar is estimated at about 30 days. In consequence and allowing for potential delays, (e.g. customs clearance, plant construction etc.), DNI believes the plant will be operational in 2018. Note: DNI has identified suitable sites on both the Vohitsara and Marofody properties for the installation of processing facilities.

Update on Environmental License for Vohitsara and Marofody

As previously reported by DNI, commercial production was subject to completion / fulfillment of the requisite environmental impact and social responsibility ("EIE" & "CSR") studies and obligations. This 500-page study was filed with the Malagasy government in November 2017, for the Vohitsara Project. All fees have been paid and we expect to have the license shortly. For the Marofody project, the study and all fees have also been filed and paid, and we also expect to have this license shortly.

Dan Weir, CEO, commented, "We are currently completing all of the required steps to obtain the environmental licenses. This has been a 6 month process, but when compared to North America, which can take several years, we are impressed with the Malagasy efficiency."

According to SNL Metals, "In the U.S., the process can take more than seven years. When accounting for the other permits major mining projects require, the timeframe for obtaining all necessary permits to operate can easily exceed 10 years."


Update on the Arbitration with Cougar Metals

An arbitrator has been appointed to review all the information, and a schedule has been set. If the Arbitration continues to its full extent, the final evidentiary hearing will take place during the week of September 24, 2018. The arbitrator's final decision is expected to be rendered after that hearing.

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 of which were shut down in the 1990,'s due to increased Chinese competition. Keith Minty, a director, previously 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 two saprolite-hosted graphite deposits in Madagascar; located 50kms from the country's main seaport. The deposits are 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, through which it buys and sells high quality graphite.

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

DNI – Canadian Securities Exchange


Issued: 100,732,580

For further information, contact:

DNI Metals Inc. – Dan Weir, CEO 416-595-1195


Also visit www.dnimetals.com

Forward-looking Statements

This press release contains forward-looking statements, including statements that relate to, among other things, the following: (i) the geological characteristics of the projects; (ii) the potential to discover additional mineralization and to extend the area of mineralization; (iii) the potential to raise additional financing; and (iv) the potential to expand and upgrade the resource estimate of the projects. Forward-looking information is subject to the risks, uncertainties and other important factors that could cause the Company's actual performance to differ materially from that expressed in or implied by such statements. Such factors include, but are not limited to volatility and sensitivity to market metal prices, impact of change in foreign exchange rates, interest rates, imprecision in resource estimates, imprecision in opinions on geology, environmental risks including increased regulatory burdens, unexpected geological conditions, adverse mining conditions, changes in government regulations and policies, including laws and policies; and failure to obtain necessary permits and approvals from government authorities, and other development and operating risks, and can generally be identified by the use of words such as "may", "will", "could", "should", "would", "likely", "possible", "expect", "intend", "estimate", "anticipate", "believe", "plan", "objective", "hope" and "continue" (or the negative thereof) and words and expressions of similar import. Although DNI believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Additional information about material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the Company's most recent annual and interim Management's Discussion and Analysis under "Risk and Uncertainties" as well as in other public disclosure documents filed with Canadian securities regulatory authorities. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. The Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE: DNI Metals Inc.