Mr. Ronald Perry reports

METANOR REPORTS ITS FINANCIAL AND OPERATIONAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30TH 2016

Metanor Resources Inc. has released its financial and operational results for the quarter ended Sept. 30, 2016 (Q1 2017). This press release should be read in conjunction with Metanor's financial statement for the quarter ended Sept. 30, 2016, and related management's discussion and analysis (MD&A), which can be found on the company website or on SEDAR.

Q1 2017 highlights

Bachelor property

• Gold production of 8,399 ounces during the quarter;
• Gold sales of 7,893 ounces during the quarter;
• Total of $12,663,044 in revenues from gold sales in Q1 at an average sale price of $1,604 per ounces sold ($1,230 (U.S.) per ounce at an exchange rate of 77 U.S. cents per $1 (Canadian));
• Cash cost (1) of $1,108 per ounce sold in Q1 ($850 (U.S.) per ounce at an exchange rate of 77 U.S. cents per $1 (Canadian));
• Sustaining cost (2) of $1,359 per ounce sold in Q1 ($1,042 (U.S.) per ounce using an exchange rate of 77 U.S. cents per $1 (Canadian));
• All-in cost (3) of $1,523 per ounce sold in Q1 ($1,168 (U.S.) per ounce at an exchange rate of 77 U.S. cents per $1 (Canadian)).

(1) The cash cost comprises all costs related to the mineral extraction and processing, including royalties associated to the property and byproduct credit.

(2) The sustaining cost comprises the cash cost and all costs related to sustain the existing operation, such as capital and exploration expenses at the existing mines and the corporate administration cost.

(3) The all-in cost comprises the sustaining cost and all costs related to corporate exploration and evaluation.

Barry property

On Sept. 22, a preliminary economic assessment completed by Goldmind Geoservices Inc., an independent firm, was published. This economic evaluation was based from the in-pit resources update of the Barry open pit published on June 22 and revised on Sept. 21, 2016.

• Net present value (NPV) before taxes (6-per-cent discounted rate) of $53.5-million;
• Internal rate of return (IRR) before taxes of 198 per cent;
• NPV after taxes (6-per-cent discounted rate) of $25.9-million;
• IRR after taxes of 94 per cent;
• For the life of mine, a gold production of 193,457 ounces over a production period of nine years;
• Waste-to-mineralized-material ratio of 2.17 to one.

Administration

• The company had a net loss of $202,389 for the quarter ended Sept. 30, 2016, after depreciation and depletion of $2,700,275.
• The company had a treasury of $1,830,512 on Sept. 30, 2016.

                    Q1 2017 OPERATING AND FINANCIAL RESULTS                 

                                                     Quarter ended Sept. 30,
                                                     2016              2015
Operational results
Tonnes milled                                      62,974            56,448
Feed grade (g/t)                                      4.3               4.6
Mill recovery rate                                  96.0%             96.6%
Ounces produced                                     8,399             8,060
Ounces sold                                         7,893             7,797
Underground development (metres)                    1,117             1,594
Diamond drilling (metres)                          19,036            17,325
Financial results (thousand of dollars)
Gold sales                                      $  12,663         $  10,741
Operating costs                                    (8,523)           (8,669)
Royalties                                            (224)             (216)
Depreciation and depletion                         (2,700)           (2,693)
Gross profit                                        1,216              (837)
Net results                                          (202)           (2,016)

For Q1, a higher sales price, combined with a reduction in the operating costs, provided a gross profit of $1.2-million. These funds were mainly used in exploration on the Bachelor, Moroy and Barry properties.

Outlook for the coming quarters

Metanor maintains its objective to produce between 28,000 and 33,000 ounces of gold during the next year coming entirely from the Bachelor mine. For the current quarter, the feed grade to the mill went up. This increase comes from ore extraction below level 14 in the Main vein, and from Hewfran between levels 6 and 8. Accordingly, the company plans to sell between 8,000 and 9,500 ounces for the quarter ended Dec. 31, 2016.

The company plans to publish a resource and reserve update for the Bachelor mine before Dec. 31, 2016. The underground drilling program will continue during the coming months to discover additional ounces of gold.

For the Barry property, Metanor will continue the drilling within the area of the Barry open pit to increase its mineral resources and to convert inferred resources into the indicated category.

Qualified persons

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.