Mr. Pascal Hamelin reports

METANOR REPORTS ITS FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2017

Metanor Resources Inc. has released its financial results for the quarter and year ended Dec. 31, 2017. This press release should be read in conjunction with Metanor's financial statements for the year ended Dec. 31, 2017, and the related management discussion and analysis, which can be found on the company's website and on SEDAR.

Key developments:

• Corporate refocusing -- simultaneously increasing production and exploration programs by leveraging Metanor's infrastructure: The company is currently developing new mining areas with the intent of mining greater tonnages in the near future. Management firmly believes that the company is in the strongest position within the Urban-Barry camp as Metanor has the only permitted mill and most advanced infrastructure in the camp. This competitive advantage, along with the company's robust organic exploration and development opportunities, puts Metanor in the prime position to reap the rewards of what is likely to be significant consolidation within the Urban-Barry district.
• Metanor has begun a public consultation as part of the permitting process to increase the daily capacity of its mill from 800 tonnes per day to 2,400 tonnes per day. This increased capacity at Bachelor would allow feed from the Barry project, the Bachelor mine and Moroy sector.
• Metanor is also focusing on developing Moroy (one kilometre south from Bachelor mine), which, if successful, could generate enough ore, in the short term to increase the tonnes milled per day to 800 tonnes (the quantity the mill is currently permitted for) from the current milling rate of approximately 525 tonnes per day. Increasing the milling to 800 tonnes per day would have a significant positive impact.
• The development on level 11 of the Bachelor mine toward the Moroy deposit (one kilometre south of the Bachelor mine) continued in the period. A second diamond drill on level 11 was commissioned in the period to define the Moroy structures from underground and 5,566 metres were drilled in the period.
• The company restructured its streaming contract with Sandstorm Gold Ltd. as it believes it to be in the best interest of the company to end the requirement to sell 20 per cent of the gold produced from its Bachelor mine (which includes the Moroy sector) to Sandstorm, at $500 (U.S.) per ounce of gold, in exchange of a 3.9-per-cent net smelter return royalty on the company's properties (of which 2.1 per cent can be repurchased).
• The company began the construction of a new camp at the Barry project to accommodate the additional workers required to proceed with an underground bulk sample scheduled for this year (2018).
• Using two drills, 32,271 metres were drilled at the Barry project in the period, focusing on the shear-type structures below and laterally from the pits. These drill results have led to:
  • Presence of a series of high-grade-gold subvertical shears below the three small pits, 1,500 metres along strike length and a depth of 440 metres;
  • Presence of a series of gold-bearing tension veins associated with the shears;
  • Since then, a third drill was added to the Barry project to accelerate the definition of the veins.
• A total of 16,709 metres of surface drilling were completed on gold targets mainly in the Urban-Barry and Bachelor camps.

Highlights for the transitional year ended Dec. 31, 2017

The company has changed its fiscal year-end from June 30 to Dec. 31 to better align its reporting requirements with its industry peers. Therefore, the reader should consider that the amounts presented in the financial statements are not entirely comparable as the transitional fiscal year ended Dec. 31, 2017, is a six-month period and the comparative information is for the full 12-month fiscal year ended June 30, 2017.

Highlights:

• Gold production of 13,651 ounces of gold leading to gold sales of 12,895 ounces from Bachelor mine;
• $20,800,441 in gross revenues from gold sales at an average realized price of $1,613 per ounce sold ($1,278 (U.S.) per ounce using an exchange rate of 79.26 U.S. cents per $1);
• $18,647,281 in net revenues from gold sales for the quarter after sales of ounces in the stream agreement.

                                                 SUMMARY OF OPERATIONS  
 
                                     Three months         Three months           Six months            12 months 
                                            ended                ended                ended                ended
                                    Dec. 31, 2017        Dec. 31, 2016        Dec. 31, 2017        June 30, 2017
Operational summary
Drilling -- metres
Underground development                     1,263                  999                2,589                4,638
Diamond drilling -- Bachelor               10,239                7,748               21,204               35,796
Diamond drilling -- Barry                  12,864                7,843               32,271               17,815
Diamond drilling -- Moroy                   4,961                2,832                5,566               10,969
Diamond drilling -- other                  10,113                    0               16,709               10,401
Tonnes milled                              44,979               61,790               97,261              239,238
Feed grade (g/t)                             4.54                  5.1                 4.51                  4.7
Mill recovery rate (%)                       96.8                 96.5                 96.8                 96.4
Ounces produced                             6,358                9,764               13,651               34,853
Ounces sold                                 5,848               10,430               12,895               36,620
Financial results
Gross sales                           $ 9,456,192          $16,917,461          $20,800,441          $60,682,905
Net sales (net streaming)             $ 8,098,420          $15,874,919          $18,647,281          $56,292,643
average realized price                $     1,617          $     1,522          $     1,613          $     1,657
average realized price (US$)          $     1,272          $     1,141          $     1,278          $     1,159
Exchange rate US$/CDN$                     0.7867               0.7500               0.7926               0.7500
Cost of sales                         $ 9,747,406          $12,565,028          $19,865,998          $44,925,659

Qualified person

Pascal Hamelin, PEng, president, 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.