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Feature Article July 9, 2008

Canada's newest, debt free, unhedged, gold producer

Metanor Resources Inc.

(MTO.V)

June 2008 Research Analyst Opinion on Metanor [PDF]

Note From the Editor on Featured Article:

With nearly 1,000,000 oz of Gold (NI-43-101 measured and indicated) available from their four properties, Metanor Resources has restarted their gold milling facility and is producing gold from their 100% owned Barry deposit. Metanor Resources gold milling facility is readily capable of producing a projected 60K oz gold per annum, has a replacement value of ~$140M and sits geographically as the only mill located within 200 km in a gold rich district that possesses additional resources exceeding 1.5M oz. Metanor is also amassing properties within this area, near their Bachelor Lake Gold Mine & Mill, and will play a central role mining the resources in this region for decades. With less than 73M shares outstanding, and currently trading under CDN$1.20/share, the present valuation appears to present exceptional opportunity.

Canada’s Newest Gold Producer appears extremely undervalued. The time to pay attention is now as Metanor Resources has commenced gold production. Metanor's 1,200 (upgradeable capacity) tonne/day mill is now being scaled into full production. Production in 2008/09 should conservatively come in at 25K - 35K oz and ramp up from there to 65k oz in 2009/10. The mill is configured to produce dore bars of gold, with a small component of silver.

Video of Metanor in Operation

footage from ground to furnace
[Format: Flash - Medium bandwidth 400 kbs streaming]

select format to view =>

Running Time 3 min. 26 sec.
[Format: WMV - High bandwidth 900 kbs streaming]

Content found herein is not investment advise see Terms of Use, Disclosure & Disclaimer

Click to View Interview of MTO Management with Jay Taylor & Al Korelin

Special Advisory/Update: Metanor Resources Now Producing Gold at Bachelor Lake Mill

Now is the time to pay attention to MTO.V shares as the current valuation is making upward adjustments to reflect forward discounted future revenues of Metanor as a gold producer with a solid expandable resource base in a mining friendly region.

The newly refurbished mill is being scaled into production, they are currently producing at 725 TPD and will increase capacity over time. The initial production for year one according to the company will comfortably be 25K - 35K ounces, but Mining MarketWatch notes that Metanor is able to readily upgrade and tweak up to 1200 TPD when appropriate (generating well in excess of 60K ounces/yr).

Management has been impressive in its ability to execute upon plans to achieve this milestone and Metanor now sits with a large cash balance (approximately $6.5M as of January 08) and entering a cashflow positive production mode. With less than 73M shares outstanding and trading under CDN$1.20/share, the market cap of MTO relative to its resource base/production expansion plans and future revenues make MTO.V among one of the most attractive vehicles for gold investors in 2008.

Figure 1. Metanor's refurbished Batchelor Lake Gold Mill - now in production

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Recent Selected News Updates:

Metanor Pours More Gold and Commences 15,000m Drilling Program [See Apr 24/08 Release]

Acquisition of New Properties near Barry Deposit [See Mar 12/08 Release]

Metanor Resources Inc.

TSXV-MTO

Metanor Resources Inc. is an advanced stage development and exploration mining company listed on the TSX Venture Exchange (ticker symbol MTO.V). Metanor has come to our attention due, in part, to the extraordinary opportunity afforded investors as a gold producer utilizing their 100% owned Bachelor Lake Gold Mill in the prolific Abitibi Mining District of Quebec.

Metanor now has the Bachelor Lake Gold Mill functioning and processing the ore extract from the open pit operation on their Barry gold deposit (located approximately 65 km southeast of the mill). The Barry deposit has NI 43-101 indicated resources of 52,300 oz Au and 126,600 oz Au of Inferred Resources. Primary crushing is done on-site, with secondary crushing and refining at the Bachelor Lake facility. The Barry property boasts a highly efficient ore-to-waste ratio of only 1:1.

Initial cash flow from production will be used to expand the resource base at the Barry Deposit [See June 2008 news Release of expansion success at Barry] and further develop the enormous potential at the Bachelor Lake Gold Mine which produced over 131,000 oz of gold during the 1980's, it currently has resources of 300,000 oz Au and is open in all directions at depth with plans to upgrade to 1,000,000 oz.

According to Metanor's President, Ghislain Morin, current depth of the shaft at the Bachelor Lake Gold Mine is 1,700 feet, the shaft will be sunk an additional 600 feet to a depth of 2,300 feet and a 20,000 meter drill program is expected to add an additional 700,000 ounces of resources. Mr. Morin has many years of mining experience with an expertise in both underground development and shaft sinking. Prior to joining Metanor Resources, Mr. Morin built mills for several area miners including Cambior (now owned by Breakwater), Aur Resources and BHP Billiton. The two main veins at the Bachelor Lake Gold Mine run parallel and are 75 feet apart at an 80 degree angle. Metanor expects to drop shaft an additional 700 feet in the near future and the potential is in place to identify 1.5 million ounces going forward. Area miners such as Aur Resources (now Teck Cominco), Agnico-Eagle and Sigma are currently mining at depths of between 5,000 and 8,000 feet. The gold grade at the Bachelor Lake property increases at depth and the strike is open in all directions at the 2,300 foot mark.

Metanor will also acquire advanced projects near the Bachelor Lake Mine and capitalize on their good fortune of being the sole mill within a 100 km radius in an area that contains in excess of 1.5M oz of gold from various entities. MTO has an additional 100,000 oz (historic non NI43-101 compliant) gold on their Hewfran extension (click here for recent drill results of significance on Hewfran extension) and recently acquired gold properties (63 adjacent claims) contiguous to Bachelor Lake which hosts the once producing (until 1967) Coniagas Mine.

Proceeds from recent private placement will mainly be used to fund the work program to develop the Barry gold project through an open pit operation and to develop and explore the underground extensions of the Bachelor gold deposit. These efforts will ensure enhanced production capabilities and enable Metanor to achieve its readily achievable target of US$35,000,000 in revenue/year (based on US$600 per oz gold) from milling operations producing 65,000 oz/year by year 3.

Metanor also has several other properties of significance including their Dubuisson property which precipitated MTO becoming a publicly traded entity in 2003. The Dubuisson property lies within the city limits of Val-d'Or, Quebec, where 9,000 m of exploratory drilling has confirmed a measured, indicated, and inferred resource of over 450,000 ounces of NI 43-101 compliant gold. This property alone is a significant plum, however it is important to note that Metanor's flagship and main focus is their 100% owned Bachelor Lake Property; the exceptional revenue generation from the mill and vast resource base of the gold mine.

MarketWatch Undervalued Opinion: MTO.V appears to be an exceptional buy. Production in 2008/09 should conservatively come in at 25K - 35K oz and ramp up from there to 65k oz in 2009/10. The mill is configured to produce dore bars of gold, with a small component of silver. Additionally MTO currently trades under CDN$1.20 per share and has a current market cap that equals value of their Bachelor Lake Gold Mill structure alone (with a replacement value of $140M including headframe, roads, and all surface equipment). Metanor possesses known gold resources between the Barry Deposit and Bachelor Lake of over 470,000 oz + over 100,000 oz historic at the Hewfran extension but more importantly the Bachelor Lake Gold Mine has a proven geological model that is open in all directions at depth with plans to upgrade to 1,000,000 oz. They also currently have ~450,000 oz at the Dubuisson property. ...With gold production now underway MTO.V appears to offer exceptional opportunity, their forward looking EPS will likely be very significant as a debt free unhedged gold producer. The current market cap relative to expected revenues is disproportionate; according to a recent (June 2008) analyst report MTO is in line for a serious upside price change.

Metanor’s tax credit incentives found in mining friendly Quebec : Because of incentives offered by the government of Quebec, for every $1 that Metanor invests in underground development and exploration, they will receive $0.46 in the form of a tax credit. Tax incentives will benefit the company greatly, as 2008 plans include additional underground development and a 15,000 meter exploration drill program.

Metanor's Technical Leadership and Management:

Mr. Serge Roy, Chairman CEO, is a licensed professional who has held key positions for such companies as Stabell Resources Inc. and Ovaltex Consultant inc. (mining consultants and geological engineers), has made has made key strategic decisions that have maneuvered Metanor to a position of great strength in the region and is well qualified to maximize shareholder value as Metanor transitions from explorer to gold produce.
Mr. Ghislain Morin is President & COO. Mr. Morin participated in many feasibility studies with a view to implementation of mines, mining projects and mining product installation companies. Between 1981 and 1989, he founded Équipement Minier GRM Inc. for which he is now vice president. Mr. Morin has been involved in planning, management, monitoring, construction and evaluation of various mining projects since 1974.
Andre Tremblay, Director of Exploration, holds a bachelor's degree in geological engineering and a masters' degree in earth sciences (structure) from the Universite du Quebec in Chicoutimi . He's acted as a director of exploration and/or various senior geologist positions with companies (as Ressources minieres Coleraine, GeoNova Explorations, Gestion S.R.C. Inc., Groupe Minier O, Mines Camchib, Campbell Resources Inc.).

For a full review of Metanor Resources Inc.'s

properties see the related URL's:

Bachelor Lake

Gold Mine & Mill

The Bachelor Lake property is Metanor's main focus.

Barry Gold

Deposit

The open pit operation on MTO's Barry gold deposit will be processed at Bachelor Lake.

Dubuisson (Val-d'or)

The Dubuisson Property is 432 hectars within the city limits of Val-d'Or, Quebec, where 9,000 m of exploratory drilling has confirmed a measured, indicated, and inferred resource of over 450,000 oz gold.

Whahnapitei (Sudbury)

The Wahnapititei Property is 130 hectares in which diamond drilling performed demonstrates the area is prospective to high grade gold (7-15 g/t), along with significant amounts of cobalt and nickel. Mineralized zones identified are located less than 5 km north-east of the Nickel Rim South deposit, where Falconbridge is investing over $368 million in underground development of its deposit and it is already understood that mineralization from Falconbridge's property extends into Metanor's.

Opinaca (Northern Quebec)

Holding Property;

4,827 hectares that lie about 30 km south-southwest of Goldcorp's Eleonore gold property. Values on nearby properties have gold values ranging from 6.02 g/t Au to 12.03 g/t Au over a 75 m strike length.

Vassan (Val-d'or)

Holding Property;

The property is located in a favorable geological context for different types of mineralization, such as auriferous in the veins inside the Vassan intrusive, volcanogenic sulphides in the intermediate to mafic volcanic sequences and of the platinoids type mineralization in the ultramafic sequences of the Dubuisson Formation.

Note: This list is not intended to be a complete overview of Metanor or a complete listing of Metanor's projects.

To have a complimentary investor package on

Metanor Resources Inc. sent to you CLICK HERE

For more information contact Metanor Resources Inc.'s head office: Ph (819).825.8678

E-mail: info@metanor.ca Company's web site: www.metanor.ca

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