DNI acquires additional ground to expand its asphalt polymetallic zone,
Athabasca region, Alberta

TORONTO, July 7 /CNW/ - DNI Metals Inc. (DNI:TSX-Ven, DG7:FSE) is pleased to announce that it has made the necessary applications to acquire additional ground adjoining its Alberta polymetallic black shale Property in the Athabasca region.

The additional permits will expand the Property by approximately 180 square kilometers and will secure the westerly projected extension of the Asphalt Polymetallic Zone for an additional six kilometres over strategic areas with minimal overburden cover.

The Asphalt Zone hosts one of two Potential Mineral Deposits previously identified at the Property by DNI announced in press on November 10, 2008.

A field sampling program was completed over the property in June to collect additional sample material for expanded leaching testwork. Preparations are also well underway for a winter drilling program to upgrade and classify the Asphalt and Buckton Potential Mineral Deposits into Resources.

DNI continues to focus its efforts on its polymetallic black shale Properties in Alberta, and on its carried interest in the diamond discovery on its Attawapiskat Property, Ontario.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

DNI - TSX Venture

DG7 - Frankfurt

Issued: 23,236,001

%SEDAR: 00010711E

SOURCE DNI Metals Inc.

For further information: For further information: DNI Metals Inc. - Shahe Sabag, President & CEO or Denis Clement, Chairman - 416-595-1195, email ir@dnimetals.com. Also visit www.dnimetals.com

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DNI Metals Inc.

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