Mr. Ronald Perry reports

METANOR REPORTS ITS FINANCIAL AND OPERATIONAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30TH 2015

Metanor Resources Inc. has released its financial results for the fiscal 2016 first quarter ended Sept. 30, 2015. This press release should be read in conjunction with Metanor's financial statement for the year ended Sept. 30, 2015, and related management discussion and analysis, which can be found on the company website or on SEDAR. All amounts are in Canadian dollars unless otherwise stated.

2016 first quarter highlights

• Gold sales of 7,797 ounces from gold production of 8,060 ounces;
• Milled 56,448 tonnes of ore at a feed grade of 4.6 grams per tonne and a recovery of 96.6 per cent;
• Total of $10,741,352 in revenues from gold sales in the first quarter at an average sale price of $1,378 per ounces sold ($1,061 (U.S.) per ounce at an exchange rate of 77 U.S. cents per $1);
• Cash cost of $1,140 per ounce sold in the first quarter ($877 (U.S.) per ounce at an exchange rate of 77 U.S. cents per $1);
• Sustaining cost of $1,355 per ounce sold ($1,043 (U.S.) per ounce using an exchange rate of 77 U.S. cents per $1);
• All-in cost of $1,451 per ounce sold in the first quarter ($1,117 (U.S.) per ounce at an exchange rate of 77 U.S. cents per $1);
• Net loss and comprehensive loss of $2,016,166 for the quarter;
• Completion of the reimbursement of the debt with Investissement Quebec with capital instalments for a total of $323,810 during the quarter;
• The company had a treasury of $1,448,437 on Sept. 30, 2015.

 
                Q1 2016 OPERATING AND FINANCIAL RESULTS 
 
                                                       Quarter      Quarter 
                                                         ended        ended 
                                                      Sept. 30,    Sept. 30,
                                                          2015         2014 
Operational results                                                         
Tonnes milled (tonnes)                                  56,448       56,949 
Feed grade (g/t)                                           4.6          6.5 
Mill recovery rate                                       96.6%        97.0%
Ounces produced                                          8,060       11,598 
Ounces sold                                              7,797       12,043 
Underground development (metres)                         1,594        1,639 
Diamond drilling (metres)                               17,325       11,564 
Financial results (000s $)                                        
Gold sales                                            $ 10,741     $ 15,878 
Operating costs                                       $ (8,669)    $(11,240)
Royalties                                             $   (216)    $   (230)
Depreciation and depletion                            $ (2,693)    $ (3,637)
Gross profit                                          $   (837)    $    771 
Net results                                           $ (2,016)    $   (958)

For the quarter, a total of 56,448 tonnes of ore at a grade of 4.6 grams per tonne were processed at the mill at a recovery rate of 96.6 per cent, which resulted in a production of 8,060 ounces of gold. The ounces continued to come mainly from the A vein. The A vein is narrower compared with the other veins at Bachelor, causing higher dilution of the ore once blasted and finally lowering the feed grade to the mill. Moreover, the A vein in this sector near the O'Brien intrusive is intersected by a series of low-grade stringers that increase the ore dilution. These lower-grade ores resulted in lower ounces sold even if the tonnage is similar to the previous quarter, which increases the unit cost per ounce.

Outlook for the coming quarters

In the coming months, the production will gradually come from the Hewfran sector. The grade and thickness are generally higher in the Hewfran sector. Therefore, the feed grade will begin to increase as the production will come from the Hewfran sector.

Qualified person

Pascal Hamelin, PEng, vice-president of operations, is the qualified person under National Instrument 43-101 responsible for reviewing and approving the technical information contained in this news release.

We seek Safe Harbor.