Mr. Ronald Perry reports

METANOR REPORTS ITS FINANCIAL AND OPERATIONAL RESULTS FOR THE QUARTER ENDED MARCH 31ST, 2016

Metanor Resources Inc. has released its financial results for the quarter ended March 31, 2016 (the third quarter of 2016). This press release should be read in conjunction with Metanor's financial statement for the quarter ended March 31, 2016, and related management discussion and analysis, which can be found on the company's website or on SEDAR. All amounts are in Canadian dollars unless otherwise stated.

Third quarter 2016 highlights

• Gold sales of 8,730 ounces from gold production of 9,114 ounces;
• Milled 60,727 tonnes of ore at a feed grade of 4.9 grams per tonne and a recovery of 96.3 per cent;
• Total of $11,901,847 in revenues from gold sales in the quarter at an average realized price of $1,363 per ounce sold ($1,050 (U.S.) per ounce using an exchange rate of 77 U.S. cents per $1 (Canadian));
• Cash cost of $1,166 per ounce sold in the third quarter ($898 (U.S.) per ounce using an exchange rate of 77 U.S. cents per $1 (Canadian));
• Sustaining cost of $1,360 per ounce sold in the third quarter ($1,047 (U.S.) per ounce using an exchange rate of 77 U.S. cents per $1 (Canadian));
• All-in cost of $1,430 per ounce sold in the third quarter ($1,101 (U.S.) per ounce using an exchange rate of 77 U.S. cents per $1 (Canadian));
• Net loss and comprehensive loss of $1,979,975 for the quarter after depreciation and depletion of $2,965,770;
• The cash of the company totalled $1,737,854 as at March 31, 2016;
• The company has a gold inventory of dore bars of 2,029 ounces as at March 31, 2016.

                               OPERATING AND FINANCIAL RESULTS 
      
                                                     Quarter ended         Nine months ended 
                                             March 31,    March 31,    March 31,    March 31,
                                                 2016         2015         2016         2015
Operational results 
Tonnes milled (tonnes)                         60,727       60,365      171,601      176,327
Feed grade (g/t)                                  4.9          5.3          4.7          5.4
Mill recovery rate                              96.3%        96.1%        96.5%        96.5%
Ounces produced                                 9,113        9,860       24,948       29,790
Ounces sold                                     8,730        9,518       24,003       30,616
Underground development (metres)                1,571        1,920        4,933        5,256
Diamond drilling (metres)                       6,795        4,398       42,191       21,694
Financial results ($000s)
Gold sales                                   $ 11,902     $ 13,499     $ 32,822     $ 41,108
Operating costs                                (9,901)      (9,682)     (28,419)     (31,644)
Royalties                                        (275)        (279)        (707)        (697)
Depreciation and depletion                     (2,966)      (3,076)      (8,288)      (9,664)
Gross profit (loss)                            (1,240)         462       (4,592)        (897)
Net income (loss)                              (1,980)          17       (7,761)      (4,687)

During the quarter, a total of 60,727 tonnes of ore at a grade of 4.9 grams per tonne were processed at the mill at a recovery rate of 96.3 per cent, which resulted in a production of 9,113 ounces of gold. The mill feed rate went up during this last quarter compared with the last few quarters because the Hewfran sector began feeding the mill. A percentage still came from the A vein during this last quarter.

Outlook for the coming quarters

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