Mr. Simon Levinson of Madison Avenue Research Group reports

METANOR RESOURCES APPROACHES GOLD PRODUCTION AT BACHELOR LAKE, FEATURED IN REPORT ON GOLD MINING SECTOR VALUATIONS

Metanor Resources Inc. is the subject of a Madison Avenue Research report on mining sector stocks trading dramatically below fair market value, offering insight and opportunity to investors, as Metanor enters gold production at its Bachelor Lake mine and mill in Quebec. The report details how a large numbers of gold miners with serious intrinsic value are currently trading below fair market value, some dramatically so.

The full report may be found on Madison Avenue Research Group's website.

Gold has risen significantly in price over the last few years while costs have increased only nominally on a relative basis, thus dramatically increasing the intrinsic value of reasonably well-run gold producers, however the stocks of these gold miners are not reflecting the increased value. Many gold investors originally bought precious metals and the related mining companies as protection against exactly the type of financial crises unfolding/developing now. In a logical world, the price of precious metals and related companies should be soaring based upon current conditions and developments. Astute investors will recognize irrational moves and the divergence occurring now as opportunity.

Metanor is expected to prepare a bulk sample beginning in the fourth quarter of 2011, leading to a ramp-up in production that will see a run rate of 5,000 ounces gold per month (60,000 ounces per year) by the third quarter of 2012 at an estimated cash cost of $464 (U.S.) per ounce gold (prefeasibility by Stantec) using two-thirds capacity at its newly refurbished 1,200-tonne-per-day Bachelor Lake mine and mill in Quebec. Metanor is leveraged to the price of gold, able to sell 80 per cent of its Bachelor Lake mine-sourced gold at spot prices with the balance sold to Sandstorm as per gold participation agreement. Metanor presents investors with an exceptional opportunity as it enters gold production.

Metanor's Bachelor Lake is a very rich underground mine with grades upward of 26 grams per tonne gold with an average grade of 7.38 grams per tonne gold (fully diluted using longhole). Metanor is currently in the midst of a program aimed at building on the established resource and mine life. The Bachelor Lake mining camp is known for both its precious metals and polymetallic potential; Metanor has blue sky potential on both fronts. The Bachelor Lake property is located directly to the west of the former Coniagas mine, and the Bachelor Lake operation as it sits now shares similarities to a young Agnico-Eagle LaRonde mine. Since 1988, LaRonde has been Agnico-Eagle's flagship operation, producing more than four million ounces of gold as well as valuable byproducts. The mine still has 4.8 million ounces of gold in proven and probable reserves (35 million tonnes at 4.3 grams per tonne) -- among the largest gold reserves operating in Canada. However LaRonde started out too as a 1,200-tonne-per-day operation like Metanor's Bachelor Lake and just kept growing. The shaft at the Bachelor Lake gold mine has been sunk to 2,400 feet so as to access known resources at that level; however, it is believed the gold runs much deeper, and Metanor is in a position to identify 1.5 million plus ounces. The two main veins at the Bachelor Lake gold mine run parallel and are 75 feet apart at an 80-degree angle. Greenstone belts run deep, there are mines at 8,000 to 10,000 plus feet, such as area miners Aur Resources (now Teck Cominco), Agnico-Eagle and Sigma. The gold grade at the Bachelor Lake property increases at depth and the strike is open in all directions at the 2,400-foot mark.

Metanor's infrastructure is valued (estimated replacement value) between $150-million and $200-million, is fully paid, fully permitted, fully functional with proven production capabilities (having poured more than 40,000 ounces gold from interim-sourced ore with around 95-per-cent recovery). The intrinsic value of Metanor's known resources (around 1.6 million ounces gold in all categories on all its properties) and infrastructure are several times the company's current market capitalization. As Metanor enters gold production the reality of the infrastructure and resource value, cash flow growth and clear ability to add ounces should lead to share price appreciation.

Sprott Asset Management has taken an equity position in Metanor and for good reason: with two projects of significance that together many believe will take Metanor Resources to mid-tier producer status (between 150,000 ounces and 200,000 ounces gold per year) within 2.5 years, the time to pay attention is now while Metanor is trading at a fraction of its infrastructure value (close to book value) and entering gold production. With strong cash flow growth, strong organic resource growth and sitting geographically as the only mill located within 200 kilometres in a gold-rich district, and with 201.7 million shares outstanding (around 257 million fully diluted), the share price appears destined higher.

We seek Safe Harbor.