Xmet Inc.

Xmet Inc.

September 14, 2011 09:41 ET

Xmet Inc. Targets Expansion of Current 853,000 Oz Au (Uncut) Inferred Resource With 7,000m Drill Campaign

TORONTO, ONTARIO--(Marketwire - Sept. 14, 2011) - Xmet Inc. (TSX VENTURE:XME) is pleased to announce that the second phase of diamond drilling has commenced on the Duquesne-Ottoman Property. The Phase 2, 7,000 metre drill program will target further resource expansion of the current Watts, Griffis McOuat Limited ("WGM") Mineral Resource estimate announced by Xmet on September 8, 2011 (www.xmet.ca). The current NI-43-101 resource estimate for the property now stands at 853,000 oz (uncut) or 727,000 oz Au using an average top cut of 30 g/t Au. Forages Rouillier, a local Abitibi diamond drill contractor, was awarded the contract.

One drill rig will target resource expansion at the Shaft Zone, where the 2011 summer trenching, mapping and channel sampling program provided a much better understanding of the structural controls on gold mineralization. Significant surface channel-sampling results received from this zone were reported in a press release dated September 6, 2011 and included 13.3 g/t Gold over 3.0 metres.

The second rig will target resource expansion on the Liz and Fox Zones. These two zones are proximal and sub-parallel to each other, containing 420,000 ounces Au (cut), representing 57% of the current global inferred resource of 727,000 ounces Au for the property. The reported average horizontal widths are good for both zones, with the Liz Zone averaging 7.26 metres, while the average horizontal width for the Fox Zone is 5.43 metres. The Fox Zone has reported a persistent average grade of 7.43 g/t Au (cut) over a strike length in excess of 400 metres. As a result, management considers these two zones to be top priority for the Phase 2 drill program.

Other excellent targets on the property include three new discovery areas where current resources have potential for further resource expansion. These target areas will be drilled during the winter months, which provides for improved access. Charles Beaudry, President and COO Xmet Inc. states that, "The Phase 1 drill program was extremely successful on the Duquesne-Ottoman property. With the commencement of the Phase 2 drilling program starting today, we are targeting expansion of the current NI-43-101 compliant inferred resource base of 727,000 ounces Au. Upon completion of the Phase 1 drill program, Xmet's management team has tripled the size of the previous historical Kinross resource after the first year through cost-effective exploration."

A rigorous quality control and assurance program (QA\QC) will be followed during the program, including the insertion of control samples, blanks and duplicates, under the supervision of Bill Yeomans, P.Geo. Xmet anticipates a relatively quick turn-over, with drill results being reported on a regular basis as they become available.

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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