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Gold/Mining/Energy : Daily News

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To: Clark Kent who wrote (732)7/7/1999 4:35:00 PM
From: Kent C.   of 746
 
INNU NATION POSITION ON DONNER SHUTDOWN OF SOUTH VOISEY'S BAY PROJECT

Innu Nation News Release, 7 July 1999

(Sheshatshiu) The Innu Nation regrets that Donner Mineral Resources (VSE:DML) has chosen to blame the Innu Nation for its decision to shut down the 1999 South Voisey's Bay exploration program. In its July 6 press release, Donner Minerals misrepresents the intentions of the Innu Nation with respect to reaching agreements with the company.

"The Innu Nation has reason to believe that Donner has manufactured this crisis for its own purposes. We were told yesterday by the company's senior geologist, Kerry Sparkes, that the company has not been able to reach agreements with its partners or secure the
necessary financing to fully fund its exploration program. Mr. Sparkes' further indicated that 'the Innu Nation might be doing the company a favour' by refusing to allow work to proceed without
negotiated agreements to protect our land and our rights.", stated David Nuke, President of the Innu Nation.

The Innu Nation has attempted to work constructively with Donner Minerals for the past two years. The Innu Nation had been given assurances by Donner president Harvey Keats that agreements on
environmental monitoring and archaeological protection would be in place for the 1999 program, and that the company was willing to enter into negotiations with the Innu Nation towards a Memorandum of Understanding on the conduct of future exploration or possible development of the site.

"We have demonstrated considerable patience and flexibility in trying to reach agreements with this company. However, we have found that time and time again, company officials have either lied to us or misrepresented their intentions.", said Mr. Nuke. "For two years now, we have been operating on the assurances of Mr. Keats that Donner was willing to enter into negotiations with the Innu Nation to ensure that environmental monitoring and proper archaeological assessments are carried out at the site. These are the minimum requirements for a respectful relationship between mineral exploration companies and the Innu Nation, and something that other companies have had no problem accepting."

"We also believed that we were in the process of exchanging views and drafts towards a Memorandum of Understanding on the further development of the Project. We believed that we were dealing with a progressive, responsible company that was prepared to recognize the
fact that the Innu must have a role in any proposed resource developments on our land.", continued Mr. Nuke. "Obviously, this is not the case."

"Yesterday, Donner Minerals presented the Innu Nation with several new positions. Donnner Minerals told the the Innu Nation that the company was not prepared to enter into MOU negotiations with the Innu Nation. The company also said that they were not prepared do any
archaeological assessments that may required. The only thing the company was prepared to do was to allow an environmental monitor to visit the camp," reported Mr. Nuke.

The Innu Nation was prepared to allow the exploration program to proceed in the context of negotiated agreements, but the company indicated that it was not prepared to continue discussions with the Innu Nation. Given the inflexibility of the company's position, the Innu Nation had no option but to deny Donner permission to continue operations on our land.

"Donner Mineral Resources has misled the Innu Nation for the last time. Mr. Keats and Mr. Sparkes have betrayed the good faith that is fundamental in building relationships between Aboriginal people and the mining industry. Our people have long memories, and we would like to inform the shareholders and directors of Donner that any future activities the company wishes to carry out in our territory will meet with intense Innu opposition," concluded Mr. Nuke.

FOR MORE INFORMATION:
David Nuke 709-497-8398
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