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Xmet Intersects 10.01 G/T Gold over 4.3 Meters at 20-20 Zone

Xmet Inc. (TSXV-XME) has reported that additional drilling has extended the known plunge of gold mineralization to 420m below surface at the 20-20 Zone.

Hole DO-10-14 returned 4.05 g/t Au over 3.45 meters hosted within brecciated and altered quartz feldspar porphyry, 150m vertically below hole DO-10-05, which returned 6.65 g/t Au over 7.7 meters, including 10.01 g/t Au over 4.3 meters. The 20-20 Zone occurs along the sheared northern margin of a large quartz feldspar porphyry intrusion known as the North Porphyry sill. The sill remains untested for 1.2 kilometers to the east of the current drilling at 20-20.

The North Porphyry sill also trends for 2.2 kilometers west from the 20-20 Zone to Brionor Resources Inc.'s Pitt gold deposit, located immediately adjacent to the western claim boundary of the Duquesne-Ottoman property. Historical drill results by Santa Fe Canadian Mining Limited on the Brionor Pitt gold deposit reported high grade gold mineralization in sheared, brecciated quartz feldspar porphyry, including 18.98 g/t Au over 3.84m in hole DQ95-30, 16.91 g/t Au over 6.25m in hole DQ95-32 and 13.0 g/t Au over 2.52 m in DQ-95-37. The Pitt gold deposit has been defined by drilling over a strike length of 500 meters to a depth in excess of 800 meters. This deposit is oriented east-west and trends directly onto the Duquesne-Ottoman property along the sheared northern margin of the North Porphyry sill.

The northern contact of the North Porphyry sill was subjected to very limited exploration on the Duquesne Ottoman property between the Brionor Pitt gold deposit and the 20-20 Zone. During the period from 1994-1996, Santa Fe tested this contact in a limited number of drill holes, including DQ94-12A which returned 4.11 g/t Au over 6.5 meters, hole DQ96-56 which returned 5.46 g/t Au over 6.24 meters, and hole DQ96-65W which returned 3.85 g/t Au over 12.00 meters within a broad, low grade gold zone which averaged 1.35 g/t Au over 35.90 meters. These historical drill holes are located on the Duquesne-Ottoman property 1,200 meters west of the current drilling at the 20-20 Zone.

Drilling commenced in early September with 16 holes totalling 6,929m completed to date. Drill holes DO-10-09, 10 and 11 targeted potential extensions of mineralization surrounding the current NI-43-101 resource areas for the Shaft, North Shaft and Fox Zones. Hole DO-10-09 intersected 3.89 g/t Au over 2.0 meters from a depth of 180.5m to 184.9m. Holes DO-10 and 11 did not return any significant grades. True widths for all reported intervals are estimated to be 80% of reported core lengths.

Assays are pending for an additional 9 holes. Drilling continues with one drill rig targeting resource expansion while the second rig will be conducting further exploration drilling on the Nip, 20-20 and East Stinger Zones over the next 10 weeks.

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 Brulé, Quebec.

Source:

Xmet Inc.

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