Discovery Metals : Boseto August 2014 - Another record month of production

4 September 2014

BOSETO AUGUST 2014 - ANOTHER RECORD MONTH OF PRODUCTION

Discovery Metals Limited (ASX/BSE:DML) (Discovery Metals, DML or the Company) is pleased to announce that another record monthly copper production level was achieved in August 2014.

2,283 tonnes of copper was produced which is 27.6% higher than the monthly average for Q4 FY14.

"This is another important production milestone. The recent announcement of our intention to conduct a rights issue to commence underground mining at Zeta will importantly deliver consistent higher grade sulphide ore to the concentrator, which will reduce operating costs per pound of metal produced and further lift overall copper production." Discovery Metals Mr Bob Fulker said.

DML has a Copper Concentrate Sales Agreement (Off-take Agreement) with Transamine Trading S.A (Transamine). Under the Off-Take Agreement, 100 percent of the copper concentrate produced from the Boseto Mine is sold to Transamine.

FORWARD LOOKING STATEMENTS

4 September 2014

This release includes certain statements that may be deemed "forward-looking statements". All statements in this discussion, other than statements of historical facts, that address future activities and events or developments that Discovery Metals expects, are forward-looking statements. Although Discovery Metals believes the expectations expressed in such forward- looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in forward-looking statements.

DISCOVERY METALS BACKGROUND

Discovery Metals is an ASX/BSE listed copper exploration and production company focused on the emerging Kalahari
Copperbelt in north-west Botswana. The Company is a copper producer at its 100% owned Boseto Copper Project.
The Kalahari Copperbelt sediment-hosted mineralisation of the Boseto Copper Project is similar in style to the well-known and large deposits of the Central African Copperbelt of Zambia and the Democratic Republic of the Congo.
Discovery Metals has prospecting licences covering approximately 26,150 km2 in Botswana.

Further information on the Company including Mineral Resources and Ore Reserves is available on our website:

www.discoverymetals.com

For further information on this release and Discovery Metals Limited, please contact:

Bob Fulker - CEO (interim)

Phone: [phone] / Email: [e-mail]

Kerry Parker - CFO and Company Secretary

Phone: [phone] / Email: [e-mail]