DNI Metals Inc. Responds to Misinformed Statements of MiningWatch Canada Regarding Vohitsara Graphite Project in Madagascar

Toronto, Ontario--(Newsfile Corp. - September 14, 2017) - DNI (CSE: DNI) (OTC
Pink: DMNKF) is urging MiningWatch Canada to retract misleading statements
made with respect to DNI's operations in its Vohitsara graphite property in

We respect MiningWatch Canada's work around the world and the need to fight
global threats to public health, environment, and community interests. In the
case of the Vohitsara Graphite Project, however, MiningWatch Canada has made
significant errors in fact and judgment that will impact negatively on the
Company, the workers and the communities within which we operate in

The facts are as follows:

 1. DNI works with communities, not against them. We are proud of our
    successful partnerships. We do not, nor have we ever, practiced harassment
    or intimidation.

 2. DNI's wholly owned subsidiary in Madagascar, DNI Metals Madagascar
    S.A.R.L. is the registered and beneficial holder of Mining Permit 38642
    with respect to the Vohitsara property. DNI is at present conducting the
    requisite Environmental Impact Study, which is well advanced and will be
    completed shortly.

 3. DNI holds all of the requisite statutory approvals and permits to support
    its operations in Madagascar and the Company is operating fully in
    compliance with local and national laws and regulations.

 4. All exploration activities on the Vohitsara property have been conducted
    in active consultation and cooperation with affected landowners and
    operators. These consultations also set out the mechanics for compensation
    for any adverse effects on the landowners' operations. This process is
    ongoing, in conjunction with the Company's active exploration operations
    at site.

 5. There are no disputes between DNI and resident / affected landowners in
    respect of its operations in Madagascar.

 6. Prior to commencing exploration activities, DNI, in conjunction with local
    landowners, and coordinated by an independent consultant, conducted an
    inventory of crops which could be affected by their exploration activities
    on the land. This process also remains ongoing; with multiple meetings
    held by the Company with local residents on-site each month. DNI has
    previously formalised a system of protocols in consultation with local
    residents, whereby landowners / operators in planned operational areas are
    identified with the assistance of a designated committee of local elders,
    who then actively participate with the Company in discussions with
    affected landowners / operators to negotiate appropriate compensation.

 7. From the inception of its activities, DNI has maintained a commitment to a
    strong community and social engagement. DNI consistently employs local
    indigenous personnel from its direct operational areas for project
    support. The number of employees engaged under this policy currently
    numbers in excess of 100. DNI also provides relevant on-site training, as
    well as emergency medical and general community support. Recently, DNI
    personnel and local contractors have been finalizing a major expansion and
    upgrade of the soccer field in the local village of Ambatolampy and will
    shortly be completing the first of two water wells in the same village.

Given the facts as specified above, DNI calls on MiningWatch Canada to correct
the record and promptly retract its accusations against DNI's operations on
the Vohitsara graphite property in Madagascar.

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, 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 of 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

DNI owns a saprolite-hosted graphite deposit in Madagascar; located
approximately 50kms from the country's main seaport. Additionally, 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

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

DNI — Canadian Securities Exchange
Issued: 63,273,355

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.

(c) Copyright Newsfile Corp. 2017
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