Gold Producer Metanor Intersects 10.1 G/T Gold Over 26.2 M Near-Surface In New Discovery Zone South of Pluton At Bachelor, Drilling Continues With Aim of Defining High-Grade System in this Previously Underexplored Region

NEW YORK, NY / ACCESSWIRE / September 28, 2015 /
Metanor Resources Inc. (TSX VENTURE: MTO)
(PINKSHEETS: MEAOF) (Frankfurt: M3R) announced this last week it has intersected
10.1 g/T Gold over 26.2 meters near-surface (hole M0-15-14) in a new discovery
zone not linked to anything previously known, only ~900 meters south of the headframe at Bachelor. Mining MarketWatch Journal has published an overview of
the exploration efforts surrounding this exceptionally stellar high-grade
intercept which begins at only 6.4 meters depth.

The full Mining Journal review may be viewed at

http://miningmarketwatch.net/mto.htm online.

The new discovery is now being followed-up to investigate how, if at all, it is
connected to an earlier drill hole intercept (MO-15-08) at 605 m depth that
yielded 26.8 g/T Gold over 1 m, this is being accomplished by continuing
M0-15-14 to ~600 m. The exploration plan also will see Metanor drill a series of
short holes to locate the direction and thickness of the new discovery. If the
core angle is the same orientation as the rest of the mine then Metanor may have
hit the jackpot if the dots connect as is hoped. The implications for
shareholders of MTO.V will be profound as there appears potential to see a new
high-grade open pit mine from surface and also perhaps underground at depth via
drift from the existing Bachelor Mine. The caliber of the intercept is stunning
and dramatically increases the attractiveness of MTO.V for potential suitors
looking to acquire/buy-out.

This new discovery fits well into the future expansion plans for Metanor: It is
anticipated that for only few million in capex Metanor could increase the
milling capacity to accommodate a second front and facilitate output that could
possibly yield 80,000+ ounces Gold (possibly even 100,000 oz in the future
depending on variables) per annum from the Bachelor Mill, the increase in scale
would also translate toward lowering cash costs.

The new discovery is directly adjacent road access, almost in line with the
headframe (due south of), drilled towards the pluton (which is located under the
tailings area). Metanor should be able to make quick progress on defining the
near-surface deposit, its relatively flat in the area with only a little
overburden, we estimate 50 short holes could be drilled within a couple month,
and assuming favorable results a sketch of an open pit shell could develop. If
Metanor determines within the next few weeks that the new vein is near vertical
the Company could drive a drift from underground. This new discovery drill hole
stemmed from high-powered IP geophysics that Metanor had tested with the earlier
hole at depth to see it responded well with the type of ore it had, that earlier
anomaly was identified and drilled-off with the results geologists expected
(26.8 g/T Gold). Metanor has determined that there is a direct correlation
between the percentage of pyrite and the hole grade — the anomalies setting up
to be tested next are essentially more of the same and results could potentially
yield wildly phenomenal grades. Important to remember is that Bachelor, and
other mines in the Abitibi region, have been historically founded with little
gold yet continue to be mined yielding many multiples what was originally found,
adding as they go. However the difference with this new discovery is results
near-surface (10.1 g/T) are far better than anything before in the region and
grades typically improve with depth (26.8 g/T is known at 605 m below). If this
previously underexplored side of the pluton at Bachelor is as richly laden with
gold as early results indicate, the high-grade blue-sky-potential surrounding
this promising new discovery zone is a game-changer that takes Metanor to a
whole new level.

Metanor is a commercial gold producer at its 100%-owned Bachelor Gold Mill in
Quebec. With a current market capitalization of ~$21 million (356.6M shares
outstanding X ~6 cents) MTO.V presents a significant opportunity for investors
that understand the latent opportunity this gold producer presents as its
primary asset, the Bachelor Mill, has a replacement value several times the
Company’s current market cap and is increasingly being viewed as a coveted
strategic asset being the only mill within 200km in a gold-rich district.

Assets-wise:

1) Steady cash on hand ($4.4M in its bank account and 785 oz of gold stored at
the Royal Canadian Mint (as declared in June 1, 2015 news release));

2) Positive working capital, book value at $56 million (>$0.15 cents per share),
and infrastructure replacement value on all properties in excess of $100
million;

3) MTO.V also offers a significant latent tax savings windfall value for a
future acquirer with a loss-carry-forward on the books of ~$40 million, the
impact could generate $12 million to $15 million in tax credits; and

4) ~1.6 million ounces gold global resource in all categories (on all
properties, two of which are permitted mines (Bachelor and Barry)).

Liabilities-wise:

1) Metanor has completely repaid its loan to Investissement Québec (originally
$7M), final payment was made this August 2015 (freeing up an extra $525K/mo cash
flow (from at its peak)); &

2) Metanor’s remaining convertible debenture has been paid down to $9 million
outstanding and the term extended to August 2017.

Operationally: Metanor’s latest gold production figures reveal the Company is
profitable, operating cash flow positively, and successfully executing on
cost-cutting measures, delivering cash costs of ~US$850/oz gold with all-in
costs of ~US$950/oz. The Company produced nearly 12,000 ounces in the quarter
ending Sept. 2014, it then encountered a setback (stope collapse), and has since
evidenced an improving trend, producing 10,277 ounces during the quarter ended
June 30th 2015, and this improving trend is expected to continue as the Company
advances toward normalizing again, and eventually attaining a near-50,000 oz per
annum gold production run rate again. The Bachelor Lake mill has a capacity of
1,200 tpd but is currently running at a rate of ~800 tpd, with an effective rate
of ~700 tpd with periodic routine downtime for maintenance.

There exists opportunities to expand production beyond the current production
capacity of ~50,000 ounces of gold per year; the Bachelor mine sourced rock is
‘hard’, making it a limiting factor in-part, however this can overcome with a
nominal capital outlay to move to 1,200 tpd, also sourcing alternate sourced
material from a secondary front is another obvious option in this gold-rich
territory — the flexibility Metanor has on this front positions Metanor’s mill
as its primary asset and increasingly ‘in-play’. Hydro Quebec is planning an
area substation for this fall, thus then appears to be the optimum time for
Metanor to be positioned to focus on increasing the capacity (Metanor has been
waiting for that). The level of interest swirling around Metanor’s primary asset
appears high — shares of MTO.V are poised for upside revaluation as the
inherent value and accomplishments are appreciated by the market, and apt to
respond in multiples as gold retrenches and strengthens.

Metanor is ready to take advantage of three things; 1) improved grades and grade
control, 2) foreign exchange (MTO.V is protected to the downside by forex gain
from US to CDN, it is currently receiving a ~$365/oz price differential for gold
in Canadian dollars over US dollars), and 3) the price of gold.

Metanor currently has two permitted mines:
1) Bachelor Mine: Bachelor is a rich underground mine with grades upwards of 26
g/t gold with an average grade of 7.38 g/t gold (fully diluted using long hole).
Recent drilling results (e.g. September 22, 2015 “Metanor Intersects 10.1 g/t Au
Over 26.2 Meters Near Surface,” August 6, 2015 “Metanor Intersects 10.2 g/t Over
13.1 Meters at Bachelor Mine,” July 29, 2015 “Metanor Intersects 11.9 g/t Au
Over 11.85 Meters at Bachelor Mine,” July 2, 2015 “Metanor Intersects 6.82 g/t
Over 8.7 Meters at Bachelor Mine,”June 25, 2015 “Metanor Intersects 12.8 g/t
Over 10.8 Meters At Bachelor Mine,” June 22, 2015 “Metanor Intersects 22.85 g/T
Over 4.04 Meters at Bachelor Mine,” March 20, 2015 “Metanor Intersects 8.64 g/T
Over 5.8 Meters at Bachelor Mine,” and May 14, 2015 “Metanor Intersects 12.24
g/T Over 4 Meters in the Hewfran Sector of the Bachelor Mine”) continue to
demonstrate, in-part, Metanor’s ability to readily extend the mineable life of
Bachelor, similar to how other successful area miners have operated (and several
continue to this date) — typically lining up a couple years of initial quality
mineralized material but remaining operational for many decades, adding as they
go. MTO is able to sell 80% of its Bachelor Mine sourced gold at spot prices
with the balance sold to Sandstorm as per gold participation agreement (Note:
this arrangement is only on Bachelor-area sourced material, Metanor’s mill is a
separate asset that is 100%-owned by the Company and the mill may be used to
process material sourced from outside Bachelor without restriction (for
Metanor’s sole-benefit) as long as it meets minimum covenants to Sandstorm —
covenants Metanor has been more than able to satisfy to date).

2) Barry Gold Project, Quebec (located ~65 km from Bachelor): The 100% owned
Barry property is neighbor to Eagle Hill’s Windfall Lake Deposit. The resource
estimate at Barry now sits at 309,500 oz Gold of Indicated Resources (7,701,000
t at 1.25 g/t Au) and 471,950 oz gold of Inferred Resources (10,411,000 t at
1.41 g/t Au) and is wide open for large resource growth expansion. The current
1km strike at Barry is potentially 13km, there are in excess of 150 anomalies
outside the pit area. The Barry deposit is a potential multimillion ounce
target; the independent international professional geological firm SGS Geostat
has identified Metanor’s Barry deposit as comparable in potential to rival other
multi-million ounce deposits such as Canadian Malartic gold deposit (formerly
owned by Osisko, now owned by Yamana and Agnico-Eagle) & Detour Gold’s Detour
deposit. Metanor is not currently mining from Barry, however one option is to
put a concentrator on site and transport material to its Bachelor Mill. The
Barry deposit is open in all directions, and Metanor is currently looking at it
with consultants and will be doing a drilling campaign in the pit with the aim
of targeting 2+ g/T gold material for a new potential mining scenario. Important
to note is that Osisko Gold Royalties has recently orchestrated acquisitions
adjacent Metanor’s Barry deposit.

The full Mining Journal review may be viewed at

http://miningmarketwatch.net/mto.htm online.

This release may contain forward-looking statements regarding future
events that involve risk and uncertainties. Readers are cautioned
that these forward-looking statements are only predictions and may
differ materially from actual events or results. Articles, excerpts,
commentary and reviews herein are for information purposes and are
not solicitations to buy or sell any of the securities mentioned.
Readers are referred to the terms of use, disclaimer and disclosure
located at the above referenced URL(s).

Contact Information:
James O’Rourke, Editor
Mining MarketWatch Journal
editor@miningmarketwatch.net

SOURCE: Metanor Resources Inc.

ReleaseID: 432260