TORONTO, June 30, 2011 /CNW/ -- DNI METALS INC. (DNI : TSX-Ven)(DG7 : Frankfurt) TORONTO, June 30, 2011 /CNW/ - DNI Metals Inc. (TSXV:DNI)(DG7:FSE) is pleased to announce that its Board of Directors has resolved to amend and continue DNI's existing shareholder rights plan (the "Plan") which is dated and effective as of July 15, 2008, and is due to expire in the coming months, by approving an amended and restated shareholder rights plan (the "Amended and Restated Plan"), subject to regulatory and shareholder approvals. The Amended and Restated Plan is identical to the Plan, save for minor revisions necessary to better harmonize it with various regulations enacted since 2008. The objective of the Amended and Restated Plan is to ensure, to the extent possible, that all DNI shareholders are treated equally and fairly in connection with any take-over bid, and to provide sufficient time for all shareholders to consider any such transaction. The Amended and Restated Plan also provides DNI's Board of Directors with additional time to consider any take-over bid and, if applicable, to explore alternative transactions in order to maximize shareholder value. The Amended and Restated Plan is not designed to prevent take-over bids that treat DNI shareholders fairly. DNI is not aware of any specific take-over bid for DNI that has been made or is contemplated. Under the Amended and Restated Plan, shareholders are issued one Right in respect of each DNI common share held, such Right being attached to the share. On the occurrence of certain triggering events, including the acquisition by a person or group of 20% or more of the outstanding common shares of DNI pursuant to a transaction that does not meet certain conditions, each Right will entitle its holder (other than the acquiring person or group) to purchase $40.00 worth of DNI common shares, at the then market price, for $20.00 (ie: at a 50% discount). The complete text of the Amended and Restated Plan will shortly be available from www.sedar.com. DNI will shortly execute the Amended and Restated Plan agreement with Equity Financial Trust Company, DNI's transfer agent. DNI will submit the Amended and Restated Plan to its shareholders for approval and reconfirmation at DNI's next annual and special meeting, scheduled for September 15, 2011. In the event that the Amended and Restated Plan is not approved and reconfirmed by DNI shareholders at this meeting, the Amended and Restated Plan shall terminate, and DNI will no longer have any form of shareholder rights plan. DNI also announces that it has granted 2,875,000 stock options, pursuant to the Company's Stock Option Plan, to its management, employees and advisors, to allow for the purchase of up to an aggregate of 2,875,000 common shares at a price of 30 cents per share for up to five years. Of the options granted, an aggregate of 2,725,000 were granted to officers and directors. 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: 60,100,284 To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/June2011/30/c2739.html p DNI Metals Inc. - Shahe Sabag, President & CEO or Denis Clement, Chairman - 416-595-1195br/ email a href="mailto:ir@dnimetals.com"ir@dnimetals.com/a. Also visit a href="http://www.dnimetals.com"www.dnimetals.com/a /p

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