Xmet Inc.

Xmet Inc.

October 28, 2011 09:00 ET

Xmet Drills Near Surface High Grade Mineralization at Shaft Zone With 11.66 g/t Au (8.77 g/t Au cut) Over 5.10 Meters

TORONTO, ONTARIO--(Marketwire - Oct. 28, 2011) - Xmet Inc. (TSX VENTURE:XME) is pleased to report positive drill results obtained for the first seven drill holes from the ongoing Phase 2 drilling program at the Duquesne Ottoman project. Phase 2 drilling commenced in early September with two drill rigs targeting expansion of Xmet's current inferred resource of 727,000 ounces of gold (853,000 ounces uncut), recently published on SEDAR (www.sedar.com). Drill intersections demonstrate good continuity of previously reported high grade gold mineralization identified by surface trenching during the 2011 summer exploration program. Highlights include drill-hole DO-11-38 which intersected 11.66 g/t (8.77 g/t Au cut) over 5.10 meters, while hole DO-11-41 intersected 7.84 g/t Au over 2.75 meters, true widths considered to be 80% of reported core lengths. Results are presented in Table 1.

Mr. Bill Yeomans, Senior V.P. Exploration, reports, "These latest results demonstrate excellent continuity of mineralization down dip from high grade gold mineralization exposed on surface during the 2011 trenching program. Current drilling is targeting potential extensions of shallow mineralization below and to the southwest of exposed Shaft Zone mineralization, which trends at N070 degrees and dips 75 degrees southeast. A second drill rig is currently testing potential extensions of mineralization on the Fox zone, considered to be another high priority target."

Table 1. Drill Results from Shaft Zone
Hole Number Zone From (m) To (m) Length (m) Au (g/t)
DO-11-35 Shaft 52.75 54.66 1.91 0.34
DO-11-36 Shaft no significant assays
DO-11-37 Shaft 16.40 19.40 3.00 3.80
DO-11-38 Shaft 16.90 22.00 5.10 8.77
DO-11-39 Shaft 33.65 36.95 3.30 3.27
DO-11-40 Shaft 43.50 50.40 6.9 4.13
DO-11-41 Shaft 72.00 74.75 2.75 7.84

Drill holes DO-11-35 and 36 not return any significant values and are interpreted to be beneath the gentle southwest plunge of the mineralization. Xmet has completed 2,900 meters of Phase 2's 7,000 meter drilling program, and additional results will be reported as they become available.

Quality Assurance and Quality Control

Mr. Bill Yeomans, P. Geo., is a qualified person under National Instrument 43-101 and was responsible for this news release. Material samples for analysis and assay have been obtained from drill core which was cut in half using a diamond saw. Half of the core was sent to the lab for analysis and the remaining half preserved for future reference. A strict QA/QC program is followed which includes the use of certified pulp standards, blanks and verification analyses in a second laboratory. Analyses were performed by Activation Laboratory Limited of Ste-Germaine Boulé, Quebec.

About Xmet Inc

Xmet Inc., through its wholly-owned subsidiary Duquesne-Ottoman Mines Inc. ("Duquesne-Ottoman Mines"), carries out gold resource exploration and development. Pursuant to the terms of a mining option agreement between Duquesne-Ottoman Mines and Duparquet Assets Ltd., Duquesne-Ottoman Mines can earn an option to purchase 75% of the common shares in the capital of Duparquet Assets Ltd, which legally and beneficially owns 20 claims (commonly referred to as Duquesne West) and 40 claims (commonly referred to as Ottoman) covering an area of 928.6 hectares located approximately 30 kilometres north of the city of Rouyn-Noranda and 10 kilometres east of the village of Duparquet within the townships of Duparquet and Destor in the Province of Quebec.

Mr. Bill Yeomans, P.Geo., Xmet's Senior Vice-President Exploration, Director, is the designated Qualified Person responsible for this release.

Neither 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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