METANOR RESOURCES INC.
TSX VENTURE : MTO

METANOR RESOURCES INC.

January 17, 2011 08:30 ET

Metanor Resources Inc.: US$20M Gold Sale Agreement With Sandstorm Resources

VAL-D'OR, QUEBEC--(Marketwire - Jan. 17, 2011) - Metanor Resources Inc. ("Metanor") (TSX VENTURE:MTO) is pleased to announce that it has entered into a gold sale agreement with Sandstorm Resources Ltd. ("Sandstorm") (TSX VENTURE:SSL) to sell a portion of the gold production from its Bachelor Lake Gold Mine ("Bachelor Lake"), located in Desmaraisville, Quebec. This financing to bring Bachelor Lake into production was due to the very positive results obtained from our recent Pre-Feasibility Study on the Project.

Sandstorm has agreed to purchase 20% of the life of mine gold produced from Bachelor Lake Gold Mine located in Quebec, Canada for US$20 million plus ongoing per ounce payments equal to the lesser of US$500 (the "Per Ounce Payments") and at the then prevailing market price per ounce of gold. Sandstorm will be making staged payments to Metanor as follows: (i) US$5 million upon signing of the agreement, (ii) US$9 million, once Metanor has achieved certain funding conditions, expected to be completed in the first half of 2011, and (iii) US$6 million, on September 1, 2011. Metanor has provided a guarantee that Sandstorm will receive a minimum of US$20 million in pre-tax cash flow over the next six years.

The Bachelor Lake Mine is projected to produce an average of 60,000 ounces of gold per year and will be utilizing the low cost, long hole mining method along with an existing, and fully functional, operating mill and surface infrastructure. Metanor also recently announced that it will be investing $1.4 million in definition drilling to increase the known measured and indicated mineral resources at Bachelor Lake. 

Serge Roy, Chairman and CEO and Ghislain Morin, President and COO both stated "We are extremely pleased to have entered into this agreement with Sandstorm as it represents an attractive source of financing for Metanor allowing us to put Bachelor Lake Mine into production while providing Metanor shareholders full upside exposure to 100% of its other properties, including the very promising Barry Open Pit, as well as the majority of the gold production at the Bachelor Lake Mine".

About Metanor

Metanor is a Canadian based gold mining company with a focus on adding value per share through efficient exploration, and development of it properties. Maintaining a low risk profile through a strong operating team, sound financial management, and operating in secure jurisdictions like Quebec are key priorities for Metanor's management team. 

Cautionary Language and Forward-Looking Statements

This press release includes certain statements that may be deemed "forward-looking statements". All statements in this discussion, other than statements of historical facts, that address future exploration drilling, exploration activities, anticipated metal production, internal rate of return, estimated ore grades, commencement of production estimates and projected exploration and capital expenditures (including costs and other estimates upon which such projections are based) and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include, metal prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Accordingly, readers should not place undue reliance on forward-looking statements.

152 058 355 outstanding shares

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

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