Metanor Resources MEAOD

MD&A and Financials on Sedar

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FINANCIALS AND OPERATIONAL HIGHLIGHTS FOR THE QUARTER ENDED SEPTEMBER 30TH, 2017
Bachelor Mine Gold production of 7 293 ounces of gold in the quarter. Gold sales of 7 047 ounces in the quarter. $ 11 344 249 in gross revenues from gold sales for the quarter at an average realised price of $ 1 610 per ounce sold (US$ 1 285/oz using an exchange rate of US$ 0.80/C$ 1.00). $ 10 548 861 in net revenues from gold sales for the quarter after sales of ounces in the stream agreement. Cash cost1 of C$ 1 243 per ounce sold for the quarter (US$ 992/oz using an exchange rate of US$0.80/C$1.00). 10 965 metres drilled in the quarter confirmed the expansion of the Main vein below level 16 at the Bachelor Mine. Note 1. The cash cost is composed of all costs related to the mineral extraction and processing including royalties associated to the property and by-product credits.

4 Barry Project 19 407 m of drilling for the quarter confirmed: o Presence of a series of high grade gold sub-vertical shears below the three small pits, 900 metres along strike length, and a depth of 550 metres; o Presence of a gold bearing contact zone against intrusive dyke. The company increased to two drills in May focusing on the shear type structures below and laterally from the pits. Permitting for the construction of a larger construction camp was underway since April 2017. The construction permit was received in mid-October. A larger camp will allow more drilling activities and/or operation activities.

Administration The Company had a net loss and comprehensive loss of $ 5 204 076 for the quarter ended September 30, 2017. The Company had cash of $ 12 700 219. The closing of two private placements of $ 19 601 531 in fiscal 2017 were and are being used for mining development and exploration at the Barry project, repaying the debenture and for general working capital purposes. The Company repaid the debenture in the amount of $9 000 000 in May 2017, and the exercise of 1 725 056 of warrants for gross proceeds of $ 1 151 982.

Amended the streaming agreement with Sandstorm Gold Ltd. The closing of two flow-through private placements in fiscal 2017 of $ 6 680 475 are and will be used to incur exploration expenses. GOLD STREAM On September 29, 2017, the Company completed the transactions relating to the amending agreement with Sandstorm Gold Ltd., effectively reducing the existing gold stream on the Bachelor mine (which required the Company to sell 20% of its gold production at the fixed price of US$500) and replacing it with a 3.9% net smelter return royalty (NSR) on all minerals produced from the Bachelor and Barry properties (includes the surrounding exploration properties held by the Company), of which 2.1% of the royalty can be repurchased upon payment of US$2M for each property, thereby reducing the NSR to 1.8%. These new terms will become effective once the Company has delivered to Sandstorm, 12 000 ounces of gold at the fixed price of $US500. As part of the consideration, the Company issued 3 164 156 common shares to Sandstorm, at the deemed price of $ 0.77 per common share, for an aggregate value of $ 2 436 400. We have not placed a value on the NSR at September 30, 2017 but for the last day of September we continued to amortize the balance of the unearned revenue as we have done in the past. Fair valuing of the NSR is a non-cash transaction.