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Xmet Uses Private Placement Proceedings for Potential Acquisitions

Xmet Inc. (TSXV-XME) has announced a proposed non-brokered private placement offering of up to 6 million units at a price of $0.25 per Unit, for aggregate gross proceeds of $1.5 million

Each Unit will consist of one common share (a "Common Share") and one half of a common share purchase warrant (each whole purchase warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one additional common share at a price of $0.35 for a period of one year following the closing of the Offering.

The proceeds of the Offering will be used by Xmet for potential acquisitions and for general working capital purposes.

At the closing of the Offering, any agents or finders will receive compensation paid in cash equal to 7% of the gross proceeds raised by them under the Offering and will receive non-transferable compensation warrants exercisable at $0.35 per compensation warrant for a period of one (1) year from the date of closing of the Offering to acquire such number of Units of Xmet as is equal to 7% of the aggregate number of Units attributable to them.

The Offering is anticipated to close on or about February 28, 2011 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. All securities issued pursuant to the Offering will be subject to a four month hold period from the date of closing of the Offering.

Source:

Xmet Inc.

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