Mr. Ronald Perry reports

METANOR INCREASES ITS PRODUCTION GUIDANCE AND REPORTS ITS OPERATIONAL RESULTS FOR THE QUARTER ENDED DECEMBER 31ST 2016

Metanor Resources Inc. has released its operational results for the quarter ended Dec. 31, 2016 (second quarter of fiscal 2017).

Fiscal 2017 second quarter highlights:

• Gold production of 9,763 ounces during the quarter;
• Gold sales of 10,431 ounces during the quarter;
• Gold production of 18,163 ounces year to date;
• Gold sales of 18,323 ounces year to date.

Fiscal 2017 second quarter operating results

                                 OPERATING RESULTS 

                                                                      Quarter ended
                            Dec. 31,   Sept. 30,    June 30,   March 31,    Dec. 31,
                               2016        2016        2016        2016        2015

Tonnes milled                61,790      62,974      61,002      60,727      54,426
Feed grade (g/t)                5.1         4.3         4.5         4.9         4.6
Mill recovery rate            96.5%       96.0%       96.1%       96.3%       96.7%
Ounces produced               9,764       8,399       8,502       9,114       7,774
Ounces sold                  10,431       7,893       9,887       8,730       7,476

For this fiscal second quarter, a higher feed grade coming from the Bachelor mine allowed a higher gold production. This grade increase is mainly caused by the beginning of the extraction of ore below level 14 in the main vein.

Outlook for the coming quarters

Metanor revised its objective to produce between 30,000 ounces and 36,000 ounces of gold during this current year. The ore extraction below level 14 in the main vein will continue in the upcoming quarters. Also, the main vein below level 14 is open at depth. The resource and reserve update of the Bachelor mine continues, and it is planned to be published early this quarter. 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, to convert inferred resources into the indicated category and proceed with the prefeasibility study after.

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.