DUMONT reports initial historic information and metal grades from its Alberta black shale properties

    DUMONT NICKEL INC. (DNI : TSX-Ven, DG7 : Frankfurt)

    TORONTO, May 5 /CNW/ - DUMONT NICKEL INC. (DNI:TSX-Ven, DG7:FSE) is
pleased to provide additional information in connection with its recent
acquisition (announced April 16, 2008) of a 2,444 square kilometer land
position in Alberta and Saskatchewan to pursue exploration and development of
metal enriched black shales.
    The information reported herein relates only to DUMONT's Alberta
Properties, and has been summarized from historic records all of which are
publicly available in the form of assessment work reports, from Alberta
Geological Survey (AGS) and Geological Survey of Canada (GSC) geological
reports, from third party press releases and other related material. Historic
work from the area predate enactment of NI-43-101. Some of the historic work
was carried out by, or under the supervision or direction, of S.F. Sabag,
DUMONT's president and the Qualified Person for its Alberta projects. This
information is being reported to provide an interim context to DUMONT's
acquisitions, while NI-43-101 compliant Property reports are being prepared.
References and links to the historic reports can be found on DUMONT's website.
    As announced, all of Dumont's Alberta land position overlies black shales
which are locally enriched in Molybdenum, Nickel, Uranium, Vanadium, Zinc,
Copper, Cadmium, Cobalt, Silver and Gold. The Properties are located 120 km to
the north of Fort McMurray in the Birch Mountains. The shales are nearly
flat-lying sedimentary beds, within the layer-cake arrangement of
sub-horizontal sedimentary formations of the Western Canada Sedimentary Basin
comprising geology across most of Alberta and southwest Saskatchewan.
    Of interest to Dumont, are two flat-lying near-surface shale units which
carry elevated organic carbon accompanied by various metals. These are, the
Second White Speckled Shale and the Shaftesbury Formation, both of which are
mid-Cretaceous Formations which outcrop in river valleys, but are otherwise
under overburden cover ranging from 1m to 150m.
    At DUMONT's Alberta land position, the Speckled Shale is typically a
20m-40m thick blanket, which consists primarily of black shale interbedded
with bentonitic seams. The Speckled Shale carries 3%-29% organic carbon,
accompanied by up to 20% fine sulfides. Historic work by third parties, and by
the AGS and GSC, completed over the past fifteen years has reported metal
contents from the shale ranging upward to 1.2 lb/t MoO(3) (Avg 0.1), 0.9 lb/t
Nickel (Avg 0.1), 0.7 lb/t U(3)O(8) (Avg 0.1), 5.2 lb/t V(2)O(5) (Avg 1.0),
1.9 lb/t Zinc (Avg 0.4), 0.4 lb/t Copper (Avg 0.1), 3.6 g/t Silver and 0.14
g/t Gold, in addition to Cadmium, Cobalt and traces of PGE. These results are
from extensive regional and outcrop scale surface sampling as well as sampling
of drill core, providing overall sample coverage over two-thirds of DUMONT's
land position.
    Historical work includes results from preliminary bottle roll cyanidation
tests of large samples to test gold recovery, and to determine optimum sample
size required for definitive determination of representative grades from the
shale. The tests reported gold grades ranging upward to several grams per ton
from carbon-in-leach cyanidation from some of the samples, though test results
were erratic and many test results could not be satisfactorily duplicated.
Further tests were not carried out to clarify these results.
    The Speckled Shale is typically a poorly consolidated, often pasty, unit
which flows when wet. Its exposures are often zones of extensive slump and
mudflows which contribute considerable debris to most of the drainages in the
area. The Speckled Shale has been identified as a source of sulfides and
alluvial gold which have been recovered from many of the drainages over
Dumont's land position. The Shale in the area also locally carries ejecta
material and kimberlite indicator minerals, and has from time to time been the
focus of exploration for diamonds.
    The Shaftesbury Formation is the second shale of interest to DUMONT, and
it is typically a 100m thick black shale beneath the Speckled Shale. The
Shaftesbury Shale typically carries lesser organic carbon (2%-10%), and also
lesser metals, although good grade sections have been locally reported.
Historic work by third parties, and by the AGS and GSC, completed over the
past fifteen years has reported metal contents from this shale ranging upward
to 0.2 lb/t MoO(3) (Avg 0.02), 0.5/t lb Nickel (Avg 0.1), 0.3 lb/t U(3)O(8)
(Avg 0.03), 3.7 lb/t V(2)O(5) (Avg 0.5), 1.7 lb/t Zinc (Avg 0.2), 0.3 lb/t
Copper (Avg 0.1), 2.7 g/t Silver and 0.06 g/t Gold, in addition to Cadmium and
Cobalt. These results are from extensive regional and outcrop scale surface
sampling, and from sampling of limited drill core.
    The above historic information represents summary of results averaged
from sampling over approximately a 4,000 square kilometer area and, as such,
do not convey lateral and vertical grade variations observed in both
formations on more local scales. The results indicate that the upper 5m-10m
section of the Speckled Shale carries the better grades, and that the better
grades are also laterally associated with a number of large (5kmx8km)
anomalous locations characterized by surface base metal and precious metal
diffusion anomalies. These locations are coincident with subsurface
stratigraphic abnormalities and other local structures. Several such metal
enrichment targets were previously identified on DUMONT's Properties, two of
which were tested by drilling in the late 1990's which confirmed the presence
of metal enriched shale beneath the anomalous areas. In addition, historic
leaching testwork of drill samples from the area confirm that the metals are
in most part not in organic forms but rather occur as sulfides, oxides and in
native forms. Results from historic drilling are being reviewed and will be
reported at a later date.
    The Speckled Shale is nearer surface and is exposed at many locations on
DUMONT's Asphalt and Buckton Properties, whereas exposures of the Shaftesbury
Shale are more sparse and confined to the deepest river valleys. Both
formations are preserved in the higher ground only in the region and are
otherwise elsewhere eroded away to the south, east, and southwest of DUMONT's
Properties. Extensive regional oil/gas drilling public databases from the area
confirm that all of DUMONT's 2,444 square kilometer land position is underlain
by both shale units.
    The Alberta black shales share many similarities with other well known
metal bearing black shales from elsewhere in the world, and have been
classified as "black shales" based on their elevated organic carbon content.
Recent studies by the AGS of mid-Cretaceous shales across northern Alberta,
however, conclude that there exists strong evidence of local volcanism
associated with the Speckled Shale underlying Dumont's land position,
evidenced by abundant bentonitic beds/seams and ejecta material incorporated
into the Formation. The studies further conclude a strong association of the
better metal grades with areas of increased bentonitic activity associated
also with abundant faulting and uplift. It is, accordingly, possible that the
Speckled Shale is not a "black shale" in the strict sense, but rather
represents fine metal enriched volcanic debris related to local development of
classic exhalative metallic mineralization, subsequently enriched in organic
carbon by hydrothermal overprinting by carbon-rich fluids.
    The collective historic work to date by all parties concludes that the
Shaftesbury and, especially, the Speckled shales hold excellent potential for
hosting base and precious metal mineralization. Historic work further
concludes that while none of the metals is present in the shales in
sufficiently high concentrations to be a "pay" metal by itself, the metals
collectively represent sufficient in-situ value on a combined basis to place
the two shales, especially the Second White Speckled Shale, within reach of
economic viability. This conclusion is reinforced by the low operating costs
afforded to bulk mining and treatment operations of similar unconsolidated
material within the region (eg. oil sands mining) and elsewhere in the world.
    Shahe F. Sabag, Dumont's President and CEO, stated, "we concur with the
historic conclusions made in the late 1990's, especially given current metal
prices which range fivefold to tenfold of metal prices prevailing at the time.
The sustained current strength in metal markets compel a re-evaluation of the
economic merits of the Alberta black shales as a potential source for immense
tonnages of base and precious metals in addition to Uranium".
    Additional historic information will be announced shortly from the
specific Properties.
    The Qualified Person in connection with the Alberta and Saskatchewan
Properties and this press release is Shahe F. Sabag, PGeo, President of
Dumont. lb/t=lb/tonne. Grades reported herein were converted from analytical
data originally reported as ppm, ppb, % or g/t. Grades reported as metal oxide
were converted from metal analytical data. References and links to reports
from historic work partly summarized herein are listed on DUMONT's website.
All of the foregoing reports are publicly available.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.

    DNI - TSX Venture
    DG7 - Frankfurt
    Issued: 104,798,010

    We seek Safe Harbour. This announcement includes forward looking
statements. While these statements represent DUMONT's best current judgment,
they are subject to risks and uncertainties that could cause actual results to
vary, including the risk factors listed in Dumont's Annual Information Form
available from SEDAR and on DUMONT's website.

    %SEDAR: 00010711E

For further information: Dumont Nickel Inc., Shahe Sabag, President &
CEO or Denis Clement, Chairman, (416) 595-1195, email ir@dumontnickel.com;
Also visit www.dumontnickel.com