Mr. Serge Roy of Metanor reports

METANOR RECEIVES US$9M FROM SANDSTORM

Sandstorm Gold Ltd. has remitted $9-million (U.S.) to Metanor Resources Inc. in accordance with the gold purchase agreement announced in Stockwatch on Jan. 17, 2011. Under the terms of the agreement, Sandstorm is entitled to purchase, for the life of the mine, 20 per cent of the future gold produced from the Bachelor Lake gold mine located in Quebec, Canada, for $20-million (U.S.) plus continuing per ounce payments equal to the lesser of $500 (U.S.) and at the then prevailing market price per ounce of gold.

Sandstorm has made the following staged payments to Metanor: $5-million (U.S.) upon signing of the agreement on Jan. 17, 2011, and $9-million (U.S.), as Metanor has satisfied the required financing requirements with its recently announced oversubscribed $16.2-million private placement, for a total of $14-million (U.S.). The remaining $6-million (U.S.) is scheduled for Sept. 1, 2011.

As per the recent positive feasibility study, the Bachelor Lake mine is projected to produce an average of 60,000 ounces of gold per year and will be utilizing the low-cost, long hole mining method along with an existing, and fully functional, operating mill and surface infrastructure. Metanor also recently announced that it will be investing $1.4-million in definition drilling to increase the known measured and indicated mineral resources at Bachelor Lake.

Serge Roy, chairman and chief executive officer, and Ghislain Morin, president and chief operating officer, both stated: "This is a significant milestone for Metanor. With Sandstorm's $20-million (U.S.) commitment and our recently completed oversubscribed $16.2-million financing, Metanor is fully funded to bring the profitable Bachelor Lake project into production in 2012."

We seek Safe Harbor.