Mr. Saf Dhillon reports

IMETAL RESOURCES CONFIRMS PRIVATE PLACEMENT IS FULLY SUBSCRIBED

iMetal Resources Inc.'s previously announced non-brokered private placement is now fully subscribed. The offering consists of 30 million units, at a price of 10 cents per unit, for gross proceeds of $3-million.

Each unit consists of one common share in the capital of the company and one transferable share purchase warrant of the company. Each warrant entitles the holder thereof to purchase one additional share of the company at a price of 17.5 cents for a period of 36 months after the closing of the offering. The warrants will be subject to an accelerated expiry if, any time after the date that is four months and one day after the closing date of the offering, the volume-weighted average trading price of the shares on the TSX Venture Exchange exceeds 40 cents for 20 consecutive trading days, in which event the holders of the warrants may, at the company's election, be given notice and the company will issue a news release announcing the warrants will expire 30 days following the date of such news release.

McFarlane Lake Mining Ltd. (MLM) has agreed to participate in the offering in the amount of 14,200,852 units. This will result in MLM holding 19.9 per cent of the outstanding common shares of the company upon completion of the offering. In connection with the investment, the company and MLM have entered into an investor rights agreement, to be effective upon closing of the offering, pursuant to which MLM will be entitled to nominate one member of the board of directors of the company and to advise the company on exploration activities at the company's Gowganda West property. This will allow the company to draw upon MLM's technical expertise and regional experience in support of exploration planning and execution.

"MLM's investment is a strong endorsement of Gowganda West and of the strategy we have been executing," said Saf Dhillon, president and chief executive officer of iMetal. "Beyond the capital, this strategic investment brings us a partner with substantial Abitibi exploration experience and technical capability that can be applied directly to our flagship project. We are pleased to welcome MLM as a significant shareholder and we look forward to having their support as we advance our exploration programs."

The company intends to use the net proceeds of the offering toward further exploration at the company's properties, as well as for general working capital.

Integrity Capital Group Inc. is acting as financial adviser, and Cassels Brock & Blackwell LLP is acting as legal adviser, to the company in connection with the offering. Wildeboer Dellelce LLP is acting as legal adviser to MLM in connection with the investment.

For further information concerning the offering, please contact Integrity at ecm@integritycapitalgrp.com. The company has agreed to pay Integrity a fee on any subscribers introduced by Integrity to the offering, consisting of: (i) a cash commission equal to 8 per cent of the gross proceeds from subscribers introduced by Integrity to the offering; and (ii) non-transferable broker warrants equal to 8 per cent of the number of units sold to subscribers introduced by Integrity to the offering. Each broker warrant will entitle the holder to acquire one unit at an exercise price of 10 cents for a period of 36 months after the closing of the offering.

In connection with the offering, the company may also pay finders' fees to additional eligible third parties who have assisted in introducing subscribers. Completion of the offering remains subject to receipt of all necessary regulatory approvals and acceptance of the TSX-V. All securities issued under the offering will be subject to a statutory hold period of four months and one day from the date of issue, in accordance with applicable Canadian securities laws.

About iMetal Resources Inc.

iMetal is a Canadian-based junior exploration company focused on the exploration and development of its portfolio of resource properties in Ontario and Quebec. The flagship property, Gowganda West, is an exploration-stage gold project with a recent discovery hole of 48.5 metres at 0.85 gram per tonne (g/t) gold that borders the Juby deposit and is located within the Shining Tree camp area in the southern part of the Abitibi greenstone gold belt about 100 kilometres south-southeast of the Timmins gold camp. The 220-hectare Ghost Mountain property, 42 kilometres northeast of Kirkland Lake, lies five kilometres west of Agnico Eagle's Holt and Holloway mine. Carheil is an exploration-stage project with multimetal potential and previous graphite results. The project is about 170 kilometres north of Rouyn-Noranda in the northern Abitibi greenstone belt.

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