October 04, 2010 09:53 ET

Metanor in Discussions with Financial Firms for the Financing of the Bachelor Project

VAL-D'OR, QUEBEC--(Marketwire - Oct. 4, 2010) - Metanor Resources Inc. ("Metanor") (TSX VENTURE:MTO) is currently in discussions with several financial firms to finance the advanced stage Bachelor Lake Mine project in the form of a gold loan.

In 2009-2010, Metanor invested close to $11 Million on infrastructure at the Bachelor Lake Mine. Included was the construction of a new head-frame, the installation of a 10 feet hoist, the installation of a new 5 km power line, the rehabilitation and re-alignment of the entire shaft from zero to 1,700 feet, modification of the ore passes and construction of a new 'dry' for the miners.

Metanor is now in the final phase at the Bachelor Mine, the sinking of the shaft.

Metanor is sinking the shaft another 600 feet to a total depth of 2,300 feet. Once the shaft sinking is complete, the development of the mine will follow which will then provide access to the high grade ore.

In 2005, Metanor carried out a 15,000 meter (m) drill campaign from the last level (1,700 ft. deep) at the Bachelor mine which provided very good results. It should be noted that the resource calculation (NI43-101 report) was performed when gold was about $485US/oz and the cut-off grade was 3.43 g/t. This 43-101 report was prepared by Innovexplo Inc and is summarized below (Press Release dated November 16, 2005):

    Au  Au
  Tonnes (g/t) (oz)
Measured 192,594 8.80 54,504
Indicated 648,997 7.49 156,352
Measured + Indicated 841,591 7.79 210,856
Inferred 426,148 6.52 89,366

The Bachelor mill, which is located just beside the mine shaft, has been completely rebuilt and modernized at a cost in excess of $12 Million. It is presently in operation and achieving 94-95% recoveries.

Metanor has currently scheduled a 25,000 m drilling program on the very promising Barry property which will begin during the week of October 14, 2010. This drill program's purpose is to significantly increase the present resources which are as follows (Press releases dated September 21 and 23, 2010):

Indicated Resources 2007**   2010   % Increase  
Tonnes 385,000   7, 701,000   1,900 %
Ounces Au 52,300 (4.23g/t ) 309,500 (1.25g/t ) 491 %
Inferred Resources            
Tonnes 966,000   10, 411,000   977 %
Ounces Au 126,600 (4.07g/t ) 471,950 (1.41g/t ) 272 %
** announced by Press Release May 8, 2007       

These indices demonstrate the potential to increase significantly and rapidly the resources at Barry due to our very good comprehension of the geological structure. Moreover, strong intensity anomalies other than those of the Barry pit  were discovered east and west of the pit by an induced polarization (IP) survey executed by Abitibi Geophysique of Val d'Or in 2009.(Press Release dated February 24, 2010).

This drilling campaign will target these strong anomalies to the East and West with the goal of extending the gold zone more than 5 km. Further, Metanor would drill around the present corridor (pit) and also below 125 m. The present gold corridor (pit) is nearly 1 km long with a width of approximately 140 m and up to depths ranging from 75m to 125m. The Barry pit is still open in all directions.

The Bachelor Lake mine is a very advanced project and with its very good resources can provide access to financing in the form of a gold loan.

Mr. André Tremblay, P Eng. is the qualified person pursuant to National Instrument 43-101 and supervised the technical information presented in the news release.

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