Xmet Receives Results of Geomet Study on Duquesne-Ottoman; High Metallurgical Recoveries Expected

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TORONTO, ONTARIO--(Marketwire - Nov 7, 2012) - Xmet Inc. ("Xmet" or the "Company") (TSX VENTURE:XME)(XMTTF) is pleased to report the results of a mineralogical study (Geomet Study) carried out by Terra Mineralogical Services Inc. on samples collected from the mineralized zones on the Duquesne-Ottoman Property.

"We are very pleased with the results of this study because it indicates that the gold mineralization at Duquesne-Ottoman occurs as free gold and is not associated with arsenic, nor is it refractory", commented Charles Beaudry, the President and CEO of Xmet, adding that "the gold occurs mainly at grain boundaries so it may be easily liberated by a moderate fine primary grind. We also have the option of floating and regrinding the sulphides to increase our overall recoveries. The great thing about these conclusions is that they come from the study of 35 polished sections made from samples collected throughout the mineralized zones. Conventional metallurgical testing will be done as the project advances but already we have some idea of our expected gold recoveries and where we could get improvements. Our next goal is to bring the Duquesne District project to a Preliminary Economic Assessment, and this Geomet Study assists us in the conceptualization of the resource processing methodology."

According to the study, the main gold carrier in samples is native gold with silver also present and occurs mainly in electrum and in silver-telluride minerals. Locally the silver-telluride minerals occur as coarse grains ("nuggets") but otherwise the gold as well as the silver is fine grained (between 2.6 to 4.6 microns). Although generally fine grained, the gold occurs at grain boundaries over 90% of the time which suggest that metallurgical recoveries should be excellent provided sufficient grinding is applied to the ore. The study also found a small amount of mercury telluride mineral grains. This will be the subject of more study as the project develops.

Two process routes are suggested by the results. Whole ore cyanide leach after grinding to 55 to 60 microns or alternatively a coarser grind followed by flotation of sulphides and regrinding of sulphides to 8 to 10 microns and cyanidation of the sulphides to liberate some of the gold that occur encapsulated within sulphides mineral grains followed by cyanidation of the sulphides.

Quality Assurance and Quality Control

Sampling of drill cores was carried out on site by Terra Mineralogical Services Inc. with the assistance of Xmet geologists. Approximately two inch drill core samples were collected from each of 35 selected intervals from 13 diamond drill holes that intersected one or another of the Fox, Liz, Shaft or South Shaft Zones. Polished thin sections were prepared, and the entire surface of each section was scanned to identify gold-bearing minerals and associated gangue phases.

These results are based on solid data but remain predictions that need to be followed and confirmed by metallurgical testing. More test work is planned for the coming year that will investigate some of the questions raised by this study.

About Xmet Inc.

Xmet is gold exploration company focused on consolidating the Duquesne Mining District located along the Porcupine-Destor fault in the Abitibi region of Quebec. Building on its successful exploration on the Duquesne-Ottoman Property where Xmet took a small historic resource and in 18 months expanded that into a NI43-101 compliant 853,000 inferred gold ounces in 4.1 million tonnes grading 6.36 g/t Au, the company has signed agreements with its adjacent neighbors that will add 355,000 ounces of indicated gold resource in 2.0 million tonnes at 5.9 g/t Au and a further 380,000 gold ounces of inferred resources in 2.6 million tonnes at 4.4 g/t Au. This transaction will allow Xmet to take control of over 8 kilometres of strike on the Porcupine-Destor fault and open the immediate exploration potential to significantly add ounces by exploring the boundary zones between the properties and the extensions around the old shaft on the Duquesne mine property.

Mr. Giovanni Di Prisco, Ph.D., P.Geo., Principal of Terra Mineralogical Services Inc. and consulting geologist, is the designated Qualified Person responsible for this release.

Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Xmet assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Xmet. Additional information identifying risks and uncertainties is contained in filings by Xmet with Canadian securities regulators, which filings are available under Xmet''s profile at www.sedar.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

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Contact:
Xmet Inc.
Charles Beaudry
President and COO
(416) 644-6588
cbeaudry@xmet.ca
Xmet Inc.
Stephen Stewart
VP Corporate Development
(416) 644-6588
sstewart@xmet

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