Mr. Ronald Perry reports

METANOR REPORTS ITS FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED JUNE 30TH 2016

Metanor Resources Inc. has released its financial results for the quarter (fourth quarter) and year ended June 30, 2016. This press release should be read in conjunction with Metanor's financial statements for the year ended June 30, 2016, and related management's discussion and analysis, which can be found on the company website or on SEDAR.

Fourth quarter 2016 highlights:

• Net income and comprehensive income of $5,236,417;
• Gold sales of 9,887 ounces from gold production of 8,502 ounces;
• Total of $15,492,036 in revenues from gold sales in fourth quarter at an average sale price of $1,567 per ounce sold ($1,216 (U.S.) per ounce at an exchange rate of 78 U.S. cents per $1 (Canadian));
• Milled 61,002 tonnes of ore at a feed grade of 4.5 grams per tonne and a recovery of 96.1 per cent;
• Cash cost of $1,207 per ounce sold in fourth quarter ($937 (U.S.) per ounce at an exchange rate of 78 U.S. cents per $1 (Canadian));
• Sustaining cost of $1,448 per ounce sold ($1,123 (U.S.) per ounce using an exchange rate of 78 U.S. cents per $1 (Canadian));
• All-in cost of $1,608 per ounce sold in fourth quarter ($1,248 (U.S.) per ounce at an exchange rate of 78 U.S. cents per $1 (Canadian));
• Impairment of property, plant and equipment of $3.05-million on the Bachelor assets as at June 30, 2016;
• Reversal of impairment of $11,127,169 as at June 30, 2016.

Full year 2016 highlights:

• Net loss and comprehensive loss of $2,525,011 for the year ended June 30, 2016, after depreciation and depletion of $11,992,775;
• Total of $48,313,864 in revenues from gold sales;
• Cash cost of $1,212 per ounce sold in 2016 ($929 (U.S.) per ounce at an exchange rate of 77 U.S. cents per $1 (Canadian));
• Sustaining cost of $1,419 per ounce sold in 2016 ($1,089 (U.S.) per ounce using an exchange rate of 77 U.S. cents per $1 (Canadian));
• All-in cost of $1,539 per ounce sold in 2016 ($1,181 (U.S.) per ounce at an exchange rate of 77 U.S. cents per $1 (Canadian));
• Impairment of property, plant and equipment of $3.05-million on the Bachelor assets as at June 30, 2016;
• Reversal of impairment of $11,127,169 as at June 30, 2016.

                             OPERATING AND FINANCIAL RESULTS

                          Quarter       Quarter       Quarter       Quarter
                            ended         ended         ended         ended
                          June 30,     March 31,          Dec.         Sept.
                             2016          2016      31, 2015      30, 2015      Year total
Operational
results

Tonnes milled
(tonnes)                   61,002        60,727        54,426        56,448         232,603
Feed grade (g/t)              4.5           4.9           4.6           4.6             4.6
Mill recovery
rate                         96.1%         96.3%         96.7%          96.6           96.4%
Ounces produced             8,502         9,113         7,774         8,060          33,450
Ounces sold                 9,887         8,730         7,476         7,797          33,890
Underground
development
(metres)                    1,559         1,571         1,768         1,594           6,492
Diamond drilling
(metres)                   24,557         6,795        18,062        17,334          66,748
                          =======       =======       =======       =======         =======
Financial
results
(thousand
dollars)

Gold sales                $15,492       $11,902       $10,179       $10,741         $48,314
Operating costs           (11,651)       (9,902)       (9,848)       (8,669)        (40,070)
Royalties                    (280)         (275)         (216)         (216)           (987)
Depreciation and
depletion                  (3,705)       (2,966)       (2,629)       (2,693)        (11,993)
Gross profit                 (144)       (1,241)       (2,514)         (837)         (4,736)
Net results                 5,236        (1,980)       (3,765)       (2,016)         (2,525)
                          -------       -------       -------       -------         -------

Outlook for the coming quarters

Metanor plans to produce between 28,000 and 33,000 ounces of gold during the coming year coming entirely from the Bachelor mine. The company plans to publish a resource and reserve update for the Bachelor mine before Dec. 31, 2016. For the Barry property, the company will publish an independent preliminary economic assessment (PEA) before Nov. 4, 2016. Afterward, the company will continue to increase the value of the Barry property following the recommendations from the PEA.

Metanor will continue the underground drilling program during the coming months to increase the resources and reserves at Bachelor mine. Drillings are planned within the area of the Barry open pit to increase its mineral resources.

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.

We seek Safe Harbor.