Mr. Ghislain Morin reports

METANOR INCREASES TOTAL OUNCES IN NEW GOLD RESOURCE ESTIMATE AT BARRY PIT

Metanor Resources Inc. has received an updated mineral resource estimate on its Barry property located 116 kilometres from the Bachelor mill. The independent mineral resource estimate was prepared by GoldMinds Geoservices Inc. (GMG) and updates the previous resource estimate of 2010. A technical report (National Instrument 43-101 compliant) will be available on SEDAR within 45 days.

The new estimate is based on a total database of 1,100 diamond drill holes and rock saw channel samples for 79,055 metres with 51,524 assays.

This update takes the one-gram-per-tonne-range base-case resource to 209,400 ounces of gold in the measured category grading 1.21 g/t at 5,383,000 tonnes, 96,000 ounces of gold in the indicated category grading 0.98 g/t at 3,037,000 tonnes and 1,046,000 ounces grading 1.02 g/t gold in 31.92 million tonnes in inferred resources using a cut-off grade of 0.50 g/t.

A total in-pit resources of 347,350 ounces at 2.07 g/t in 5.24 million tonnes are calculated using parameters for direct shipping of mineralized material to Bachelor Lake mill where 45 per cent is in the measured and indicated category and 55 per cent is in the inferred category.

Highlights

• Important increase in confidence level of the mineralization at Barry;
• 209,400 ounces in the measured category in the base-case resource estimate above 0.5 g/t;
• 96,000 ounces in indicated category in the base-case resource estimate above 0.5 g/t;
• 1,046,000 ounces in the inferred category in the base-case resource estimate above 0.5 g/t;
• 347,350 ounces of in-pit resources at 2.07 g/t in 5.24 million tonnes with a strip ratio of 2.29 to one;
• Deposit open in all directions;
• Drill hole results of the 2013 campaign outside the Barry pit perimeters not taken into account in the current inferred mineral resources;
• Screen metallic samples for one mineralized zone showing 11-per-cent-more gold than standard fire assay;
• Higher-gold-grade mineralization occurs in basalt on edges of diorite as well as feldspar porphyry.

Cautionary statement

Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The associated tables show two global resource estimate scenarios, each with a different cut-off grade with capping at 35 g/t on assays, density to convert volume to tonne is 2.8. The numbers are rounded, and the total may not add up.

                   BASE-CASE MINERAL RESOURCES ABOVE 0.5 G/T

Classification                    Au (g/t)           Tonnes           Ounces

Measured                              1.21        5,383,000          209,400
Indicated                             0.98        3,037,000           96,000
Indicated and measured                1.13        8,420,000          305,000
Inferred                              1.02       31,919,500        1,046,000


                        MINERAL RESOURCES ABOVE ONE G/T

Classification                    Au (g/t)           Tonnes           Ounces

Measured                              1.82        2,421,000          141,900
Indicated                             1.55        1,022,000           51,000
Indicated and measured                1.74        3,443,000          193,000
Inferred                              1.69       10,325,000          560,000

Estimation and classification

These upgraded resource estimates encompass data from surface to a depth of 250 m within the mineralized envelope. Three-dimensional envelopes of barren rocks (diorite and FP) have been done to avoid smearing and maintain integrity of estimates with the domains.

The estimation of three m by three m by three m blocks was made with capped to 35 g/t assays and composites of three metres.

Inverse square of the distance is used with three different search ellipsoids as well as different parameters in each pass. The first ellipsoid has a long axis of 50 m intermediate 10 metres and small of five metres; the second is 75 m, 15 m and 10 metres while the third has 150 m long axis, 50 m intermediate and 25 m short axis.

Direction of the long axis is universal transverse mercator 84 degrees north with an inclination of 19 degrees and 45 degrees. In clear: the long axis plunges down 19 degrees at 84 degrees north, intermediate 45 degrees southwest and the short axis plunges 354 degrees north at 71 degrees.

The estimation was done in three passes where for the first pass: a minimum of six composites and maximum of 12 composites limited with three from the same hole, a minimum of six composites and maximum of 12 composites limited with three from the same hole in the second pass, and a minimum of one composite and maximum of 12 composites limited with three from the same hole for the third pass.

The estimation ellipsoid is the same for the classification where a minimum of two holes in the ellipsoid is required for measured and indicated and one for the inferred. Search ellipsoid was validated with geostatistics and visually where mineralized zones showing up to 300 m strike length.

Finally, the 2016 drilling of the western extension has brought a new zone in the resource model. This zone deserves additional drilling to define its size and increase its level of confidence as well as extension of mineralization around the existing pit and other targets on the property.

The significant change from the 2010 resource model is the fact that high-grade gold mineralization is east-west-oriented gently dipping eastward along the regional northeast trend. The high-grade zone is associated with intrusive rocks.

Ghislain Morin, president and chief executive officer, declared: "This updated resource, namely with the in-pit resources, is a game changer for Metanor as it now demonstrates the important value of Barry for our company. We will immediately take all required steps to increase its value by bringing the mineralized material to our Bachelor mill and increasing capacity. With such positive numbers, Metanor is moving forward with the development of Barry with production targets of 30,000 to 35,000 ounces of gold per year in a near future."

Cautionary statement

The potential quantity and grade are conceptual in nature as there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Quality assurance/quality control

A rigorous, industry-standard, QA/QC program is in place. The samples were assayed by fire assay at the Metanor assay lab. Blanks, duplicates and certified reference standards are inserted into the sample stream to monitor laboratory performance. The independent quality control program of the assay results (QA/QC) adopted by GoldMinds includes a minimum of 5 per cent of controlled core and assays being conducted by an independent ALS-certified assay laboratory in Val d'Or, Que., as well as a third laboratory with SGS Lakefield in Ontario. Actual QA/QC results demonstrate results can be disclosed and relied upon.

Qualified persons

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

Claude Duplessis, PEng, from GoldMinds Geoservices Inc., is the independent qualified person under NI 43-101 who has prepared and reviewed the technical information contained in this news release.

We seek Safe Harbor.