Mr. Pascal Hamelin reports

METANOR REPORTS ITS FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED JUNE 30, 2017

Metanor Resources Inc. has released its financial results for the quarter and year ended June 30, 2017. This press release should be read in conjunction with Metanor's financial statements for the year ended June 30, 2017, and the related management's discussion and analysis (MD&A), which can be found on the company's website or on SEDAR. All amounts are in Canadian dollars unless otherwise stated.

Q4 2017 highlights for the quarter:

• Gold production of 7,248 ounces for the quarter;
• Gold sales of 7,416 ounces for the quarter;
• $12,462,203 in gross gold sales for the quarter at an average realized price of $1,681 per ounce sold ($1,250 (U.S.) per ounce using an exchange rate of 74 U.S. cents to $1 (Canadian));
• $11,450,316 in net revenues from gold sales for the quarter after sales of ounces to the stream agreement;
• Cash cost (1) of $1,134 (Canadian) per ounce sold for the quarter ($843 (U.S.) per ounce using an exchange rate of 74 U.S. cents to $1 (Canadian));
• 10,260 metres drilled in the quarter.

Highlights for the year ended June 30, 2017:

• Gold production of 34,853 ounces of gold for the year;
• Gold sales of 36,620 ounces for the year;
• $60,682,905 in gross gold sales for the year at an average realized price of $1,657 per ounces sold ($1,159 (U.S.) per ounce using an exchange rate of 75 U.S. cents to $1 ((Canadian));
• $56,292,643 in net revenues from gold sales for the year after sales of ounces to the stream agreement (compared with $48,313,864 for the year ended June 30, 2016 (2));
• Cash cost (1) of $1,021 (Canadian) per ounce sold for the year ($770 (U.S.) per ounce using an exchange rate of 75 U.S. cents to $1 (Canadian)) (compared with $1,212 (Canadian) and $929 (U.S.) for year ended June 30, 2016);
• Net loss and comprehensive loss of $404,245 for the year (compared with $7,319,624 for the year ended June 30, 2016) with gross profit of $11,366,984 (compared with $1,154,950 for the year ended June 30, 2016);
• Cash and cash equivalents of $19,392,815 as at June 30, 2017, pursuant to the closing of three private placements in the aggregate of $26,282,006 ($6,680,475 from the issuance of flow-through shares) with working capital of $13,872,583 (compared with cash of $1,888,938 for the year ended June 30, 2016, and a working capital deficit of $1,322,083 for the year ended June 30, 2016);
• Common share consolidation on a 1:10 basis, April 13, 2017;
• Repayment of principal amount outstanding of $9-million on secured convertible debentures;
• Appointments of Greg Gibson, Akiba Leisman, Pascal Hamelin and Christina Ouellette to the board of directors. Mr. Gibson was appointed chief executive officer and Mr. Hamelin was appointed chief operating officer.

Notes:

1. The cash cost is composed of all costs related to the mineral extraction and processing including royalties associated to the property and byproduct credits;
2. As restated pursuant to the change in accounting policy for exploration and evaluation expenditures (E&E) to recognize such expenditures in the statement of comprehensive income for the period incurred.

Operation summary

Bachelor mine overview

                                          Three months ended               12 months ended         
Operation results               June 30, 2017  June 30, 2016  June 30, 2017  June 30, 2016

Tonnes milled (tonnes)                 53,372         61,002        239,237        232,603       
Feed grade (g/t)                          4.4            4.5            4.7            4.6           
Mill recovery rate (%)                  96.6%          96.1%          96.4%          96.4%         
Ounces produced                         7,248          8,502         34,853         33,450        
Ounces sold                             7,416          9,887         36,620         33,890        
Underground development (metres)        1,292          1,559          4,638          6,492         
Diamond drilling (metres)              21,544         24,557         74,217         66,748        

Exploration overview

During the year ended June 30, 2017, the exploration and evaluation expenditures net of credit on duties and tax credits were of $5,590,125, compared with $4,051,739 for the same period in the prior year. This increase of $1,538,386 represents exploration work performed mainly on the Moroy and Barry properties. Exploration and evaluation expenditures for the three-month period ended June 30, 2017, were $1,748,809.

Bachelor mine

In the last year, the exploration drilling continued in the Hewfran sector to verify the extension of the Hewfran stopes below level 14 and farther west on level 8. An additional drill was mobilized in May, 2017, to further explore below level 16 in the main vein. In the coming months, the underground exploration drilling will be on the Moroy structure south of Bachelor.

During the last quarter of 2017, a compilation of historical geological data on all properties in the Bachelor block was undertaken. The objective of this exercise is to identify areas for future exploration work.

Barry project

17,815 metres drilled for the year, 9,688 metres for the quarter:

• Presence of a series of high-grade gold subvertical shears below the three small pits;
• Presence of a gold-bearing contact zone against intrusive dike.

The company increased to two drills in May focusing on the shear type structures below and laterally from the pits.

Barry United -- Pits sector

During the last quarter, 9,955 metres from 22 holes were drilled around the pits. These holes have intersected several gold zones associated with shear zones, located in the southeast sector of the pits. The average thickness of all intersected shears was 2.5 metres, ranging from a half metre to over nine metres. Gold grades ranged from 1.5 grams to 14.8 grams of gold. Occasionally, gold grades were greater than 30 grams; then they are associated with visible gold. These holes were published in the press release dated June 8, 2017. The possibility of underground extraction of the new auriferous gold-bearing lenses is excellent. The next phase of work involves infill drilling.

Barry United -- Moss sector

A surface exploration campaign began in June, 2017, and 1,593 metres (10 holes) were drilled. The purpose of the surface exploration campaign began in June, 2017, and 1,593 metres (10 holes) were drilled. The purpose of these holes is to extend gold-bearing known zones in the Moss sector and to test some of the geophysical conductors present along the northeast regional fault, which controls the gold mineralization of the area. Gold zones were intersected by these drill holes on a few locations on the property. A follow-up is currently under way in the prospective sectors.

Update on Barry

On Aug. 28, 2017, Metanor announced that it had intersected 7.1 grams per tonne (g/t) gold (Au) over 8.2 metres in a shear zone at Barry and the outlining the high-grade gold-bearing shear zones. Since June 8, 2017, 21 holes have been drilled and assayed, and they have all intersected multiple shears at various depth. The shears are now showing continuity over 600 metres along strike and 400 metres vertically. A minimum of five parallel shear zones have been identified so far while remaining open along strike and at depth

On Oct. 16, 2017, Metanor announced the extension of existing shear zones down to 400 metres toward the east and intercepted 27.8 g/t Au over three metres. Pursuant to the results released Aug. 28, 2017, an additional 24 holes have been drilled for a total of 11,163 metres.

Subsequent to year-end

On Sept. 29, 2017, the company completed the transactions relating to the amending agreement with Sandstorm Gold Ltd., effectively reducing the existing gold stream on the Bachelor mine (which required the company to sell 20 per cent of its gold production at the fixed price of $500 (U.S.)), and replacing it with a 3.9-per-cent net smelter return royalty (NSR) on all minerals produced from the Bachelor and Barry properties (includes the surrounding exploration properties held by the company), of which 2.1 per cent of the royalty can be repurchased upon payment of $2-million (U.S.) for each property, thereby reducing the NSR to 1.8 per cent. These new terms will become effective once the company has delivered to Sandstorm 12,000 ounces of gold at the fixed price of $500 (U.S.). As part of the consideration, the company issued 3,164,156 common shares to Sandstorm, at the deemed price of 77 cents per common share, for an aggregate value of $2,436,400.

On Oct. 10, 2017, the company filed a notice pursuant to National Instrument 51-102 (available under the company's profile on SEDAR) advising of a change to its year-end from June 30 to Dec. 31.

Qualified persons

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

We seek Safe Harbor.