Mr. Jonathon Deluce reports

ABITIBI METALS ANNOUNCES CLOSING OF NON-BROKERED FINANCING FOR GROSS PROCEEDS OF $30.75 MILLION

Abitibi Metals Corp. has closed its non-brokered strategic private placement for aggregate gross proceeds of $30,752,228.

Discovery Silver Corp. subscribed for 23,704,790 common shares, which represent approximately 9.9 per cent of the issued and outstanding common shares of the company on a non-diluted basis following closing of the offering. In connection with closing of the offering, Abitibi Metals and Discovery have entered into a participation agreement, whereby, subject to certain conditions, the company will grant certain financing and other participation rights to enable Discovery to maintain its shareholding interest in the company and other customary investor rights.

Jonathon Deluce, president and chief executive officer of Abitibi Metals, commented: "The closing of this strategic financing marks a significant milestone for Abitibi Metals and further validates the quality and long-term potential of the B26 copper-gold project. We are pleased to welcome Discovery as a strategic investor as we continue to advance one of the most compelling high-grade copper-gold development stories in Quebec. With more than $45-million in treasury, a rapidly expanding resource base and a fully funded 80,000-metre drill program under way, the company is exceptionally well positioned to accelerate exploration and unlock further value across the B26 system. Supported by a strong balance sheet, an experienced technical team and a premier mining jurisdiction, we remain focused on building a leading critical minerals company within the prolific Abitibi greenstone belt."

The offering issued: (i) 11,764,706 charity flow-through common shares at a price of 85 cents per CFT share; and (ii) 35,779,704 hard-dollar common shares at a price of 58 cents per HD share for total aggregate gross proceeds of $30,752,228. All securities issued pursuant to the offering bear a statutory hold period of four months and one day from the closing date in accordance with applicable securities laws and policies of the Canadian Securities Exchange.

Following the closing of the offering, the company will complete its postclosing filing requirements with the CSE.

The gross proceeds from the issuance of the CFT Shares will be used by the company to incur eligible Canadian exploration expenses (as defined in Subsection 66.1(6) of the Income Tax Act (Canada)) that will qualify as flow-through mining expenditures (as defined in Subsection 127(9) of the Income Tax Act (Canada)) on the company's Quebec-based projects. The net proceeds from the issuance of the HD shares are expected to be used for exploration and development activities, as well as for general corporate purposes.

We seek Safe Harbor.