Xmet Reviews 2011 Exploration Results and Presents Plan for 2012

met Xmet Inc. 120 Adelaide St. W., Suite 2500 Toronto, ON, M5H 1T1 Xmet Reviews 2011 Exploration Results and Presents Plan for 2012 Toronto ON - January 11, 2012 - Xmet Inc. ("Xmet" or the "Company") (TSXV-XME) is pleased to provide an overview of 2011 exploration results and to present its plans for the coming year. The highlights of the past year include a new NI43-101 resource published for the Duquesne-Ottoman Property which provides for a 56% increase over the estimate published in

2010 and with an inferred resource of 727,000 ounces of gold (853,000 ounces Au uncut) the
Company is well on its way to realizing its business plan.
In addition to the increase in resource, some near surface mineralization was highlighted on the Shaft Zone through a combination of trench sampling and shallow drilling. This is a discovery made possible by the reinterpretation that the mineralized shear at Shaft is actually ENE-WSW trending in this part of the property and not E-W as previously interpreted on the previous longitudinal section for the Shaft Zone. This opens up the potential to define resource ounces at less than 100 metres depth, something that could improve the economics of the project.
New projects were acquired by staking, including the Grasset property, staked on the interpreted eastern extension of the Detour-Sunday Lake deformation zone, over some old gold and copper showing discovered the south shore of Grasset Lake in the 1950's.
The year ended with an additional 8,592.3 metres of diamond drilling on the Duquesne-Ottoman Property beyond the original 13,206.5 metres drilled for the current resource estimate and some of the drilling has confirmed the near surface continuity of gold mineralization on the Shaft Zone.
The exploration objectives for 2012 if realized, will see an expansion of the total ounces on the Duquesne-Ottoman Project through step-out drilling, some of which has already been completed in the fall of 2011, and the start of infill drilling on the Liz Zone above 320 metres depth, on the Fox Zone between 320 and 470 metres depth (in this case mainly extensions of holes targeted on Liz) and additional shallow drilling on the Shaft Zone above 150 metres depth. A total of 5,850 metres of diamond drilling has been budgeted for the phase 1 drilling on the Duquesne-Ottoman Project in 2012; drilling starts this week with one drill rig.
Xmet will also initiate metallurgical studies on the different mineralized zones on the property including gold metallurgical recovery estimates. Positive metallurgical results could lead to Xmet commissioning a Preliminary Economic Assessment (PEA) for the project later on in the year.

Duquesne-Ottoman Project

This flagship project continued to return excellent results for the investments in exploration undertaken by Xmet. Management estimates that every metre of core drilled in 2011 added approximately 25 inferred ounces of gold, an excellent performance by any measure.
In September 2011, Xmet announced the results of an updated NI43-101 compliant resource estimate completed by Watts, Griffis McOuat Limited ("WGM") Consulting Geologists and Engineers of Toronto, Canada on the Duquesne-Ottoman Property. WGM reported an inferred resource of 727,000 ounces of gold (853,000 ounces uncut) in eight (8) zones hosting gold mineralization, including three new zones discovered during the course of the Phase 1 drill program at Nip-Nord and Sud, and the 20-20 zone (Table 1). More significantly a good part of
the resources occur in only two zones, the Fox and the Liz, which are parallel and only 80m apart, with the bulk of these ounces located between 225 and 425 metres depth.

Table 1: NI43-101 compliant current resource estimate for the Duquesne-Ottoman Property.

ZONE	TONNES	Au g/t (Cut to 30 g/t Au)	Au g/t (Uncut)	Ounces (Cut)	Ounces (Uncut)	Average Horizontal Width (m)
Liz	1,343,000	4.64	4.64	200,000	200,000	7.26
Fox	921,000	7.43	9.54	220,000	282,000	5.43
Nip-Nord	361,000	5.92	6.13	69,000	71,000	5.79
Nip-Sud	129,000	6.51	21.13	27,000	88,000	2.86
South Shaft	162,000	6.08	6.29	32,000	33,000	3.14
Shaft	468,000	4.51	4.51	68,000	68,000	2.82
Stinger	365,000	3.90	3.90	46,000	46,000	5.87
20-20	422,000	4.80	4.80	65,000	65,000	6.23
TOTAL	4,171,000	5.42	6.36	727,000	853,000	5.71

Following the important increase to the current resource reported by WGM, Xmet made a significant discovery at the Shaft Zone during the 2011 exploration program. A two-phased trenching program followed by mapping and sampling clearly demonstrated that the shear hosting the gold mineralization at the Shaft Zone trends 070 degrees in this part of the property (Table 2 and Figure 1). This resulted in the re-interpretation of the longitudinal section and demonstrates that the mineralization has better continuity than previously interpreted.
A 3,000 metre shallow diamond drilling program was undertaken on the Shaft Zone to confirm continuity of the zone at close spacing (25x25 metres) in the vertical dimension down to at least
100 metres depth. Highlights from this drilling program are presented in Table 3. These results
demonstrate that the Shaft Zone shows good continuity of mineralization in the near surface environment and could prove to be an important factor in the economics of the Duquesne- Ottoman project.

Table 2: Results from channel sampling of trenches on Shaft Zone.

Trench No.	Zone	Length (m)	Au g/t
Tr-4	Shaft	3.1	4.88
Tr-4	Shaft	1.8	2.21
Tr-4	Shaft	2.8	5.58
Tr-4	Shaft	3	13.38
Tr-4	Shaft	2.9	4.61
Tr-4	Shaft	1.6	3.08
Tr-4	Shaft	1.8	2.11
Tr-3	Shaft	3.1	1.24
Tr-2	Shaft	1.9	6.31
Tr-2	Shaft	4.2	3.18
Tr-2	Shaft	1.3	12.25
Tr-2	Shaft	3.8	4.73

Tr-2	Shaft	1.9	3.09
Tr-2	Shaft	1.7	1.75
Tr-2	Shaft	1.4	1.42
Tr-2	Shaft	1.9	1.25
Tr-2	Shaft	1.4	1.94
Tr-1	Shaft	1.8	1.38

Figure 1: Channel sampling results from Shaft Zone stripping program.

Table 3: Selected results from shallow drilling on Shaft Zone.

Hole	From (m)	To (m)	Length (m)	Au g/t (cut 30g/t)
DO-11-37	16.4	19.4	3	3.80
DO-11-38	16.9	22	5.1	8.77
DO-11-39	33.65	36.95	3.3	3.27
DO-11-40	43.5	50.4	6.9	4.13
DO-11-41	70.8	74.75	3.95	5.60
DO-11-43	76.4	80.55	4.15	1.55
DO-11-44	89.3	92.9	3.6	2.02
DO-11-45	39	42.2	3.2	1.94
DO-11-46	52.75	57.3	4.55	5.18
DO-11-47	100	101.5	1.5	2.11
DO-11-48	105.5	110.3	4.8	2.59

DO-11-49	39.5	42.3	2.8	3.63
DO-11-50	88.25	108.8	20.55	0.75
DO-11-51	65.6	77.3	11.7	4.00
DO-11-52	102.5	104.8	2.3	2.45

Drilling on Other Properties

In the past year Xmet drill tested two additional projects. The Roy Property located in the Chibougamau mining district in Quebec and the Buchans-Junction Property located in the Buchans Mining District in Newfoundland and Labrador. Both projects were options and in both cases the drilling was targeting specific targets on the lateral extensions of known mineralization and had the potential for immediate mineral discoveries.
On the Roy Property the Company was targeting porphyry-style copper and gold mineralization similar to the Grand Roy deposit located on the adjacent property to the east and less than 1 kilometre distance. Historic drilling on a well-defined magnetic anomaly indicated the presence of chalcopyrite stringers in a late intrusive phase of the Chibougamau Pluton and drilling of 2 holes totalling nearly 800 metres confirmed the presence of alteration and mineralization but with only low grades with a best intersection of 59.2 metres grading 0.13% copper and only anomalous gold. As a result the option was terminated and the claims returned to the vendor.
At Buchans-Junction one interpretation of the regional geology indicated the possibility of finding the same stratigraphy as found at the VMS-type Mary-March discovery (10.33% Zn, 1.62% Pb,
0.66% Cu, 118 g/t Ag and 4.11 g/t Au over 9.23 metres) and the interpretation of historic geophysical and geochemical surveys indicated the presence of untested targets. Two holes
totalling nearly 800 metres were drilled to test the anomalies but neither returned significant results and, more importantly, the Mary-March stratigraphy was not identified in these holes. In view of this the option was terminated and the claims returned to the vendor.

Property Acquisitions

Xmet is a company with considerable in-house geological talent and we are continuously generating exploration ideas that can lead to staking, the least expensive way to acquire mineral properties. We are constantly looking to identify advanced properties that have the potential to quickly add ounces to the company's beneficial account, particularly any situation that could be synergistic with Duquesne-Ottoman. A total of 8 properties were staked in the past year, six in the Abitibi Region of Quebec and two in western Newfoundland. All the projects are located on the stratigraphic or structural extensions of known mineral deposits and all have the potential for similar discoveries. Figure 2 shows the location of the six properties staked in Quebec along with the Duquesne-Ottoman Property.

Figure 2: Location of Xmet properties in the Abitibi Region of Quebec (stars).

Notable highlights of this initiative has been the staking of the Grasset Property along the eastern extension of the Detour-Sunday Lake deformation zone immediately east of Balmoral Resources new discovery announced in July on its Grasset Property (6.15 g/t gold over 4.04 metres and 4.18 g/t gold over 5.00 metres in drill holes) (figure 3). Xmet's Grasset property is underlain by historic mineral occurrences discovered in the 1950's and the Detour-Sunday Lake deformation zone appears to intersect the northern limit of an interpreted syn-volcanic intrusion and follows the south shore of the lake. Significant historic drilling results on the Grasset Property include 0.93 g/t Au over 1.83m and 0.5% Cu over 1.0m. Ground geophysical surveys are planned for the coming months and, depending on results, Xmet may seek a JV partner to undertake the drilling of any targets identified.

Figure 3: Northern Abitibi Region, Quebec with outline of Grasset and Livaudière properties along eastern extension of Detour- Sunday Lake deformation zone.

Plans for 2012

The exploration plan that has been developed by Xmet management will be focused primarily on Duquesne-Ottoman project but with about 15 to 20% of budgets allocated to other projects. At Duquesne-Ottoman the objective of the program is to significantly expand the total resource and to initiate in-fill drilling of those inferred ounces on the Fox and Liz nearest to surface and to continue tight drilling on the Shaft Zone beneath the trenches to delineate some near surface ounces. Concurrently with the planned drilling program some metallurgical studies will be initiated to better understand the metallurgical recovery characteristics of the mineralization as well as any potential deleterious elements that may affect the project. Positive results generated from these activities could lead to a mid-year resource estimate and a Preliminary Economic Analysis later in the year.
The Phase 1 drilling program totalling a minimum of 5,850 metres will begin this week and will continue until the spring.
A line cutting and geophysical budget has been approved for Grasset to survey the interpreted corridor of the Detour-Sunday Lake deformation zone with induced polarization in order to identify zones of sulfide enrichment or zones of silicification that could represent mineralized zones.
Elsewhere the Company will conduct compilation work and summer field programs to better understand the geology and potential mineralized environments on each property.
Management wishes to thank all the shareholders of Xmet for their support and we look to 2012 with considerable optimism given the exploration plan and the potential of the properties being developed by the Company.

About Xmet Inc

Xmet Inc., through its wholly-owned subsidiary Duquesne-Ottoman Mines Inc. ("Duquesne- Ottoman Mines"), carries out gold resource exploration and development. Pursuant to the terms of a mining option agreement between Duquesne-Ottoman Mines and Duparquet Assets Ltd., Duquesne-Ottoman Mines

can earn an option to purchase 75% of the common shares in the capital of Duparquet Assets Ltd, which
legally and beneficially owns 20 claims (commonly referred to as Duquesne West) and 40 claims (commonly referred to as Ottoman) covering an area of 928.6 hectares located approximately 30 kilometres north of the city of Rouyn-Noranda and 10 kilometres east of the village of Duparquet within the townships of Duparquet and Destor in the Province of Quebec.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Mr. Charles Beaudry, P.Geo., Xmet's President, COO and Director, is the designated Qualified Person responsible for this release.

For further information, please contact:

Xmet Inc.

Charles Beaudry, President and COO Phone [phone]

E-mail: [e-mail]

or

Stephen Stewart, V.P. Corporate Development

Phone: [phone]

E-mail: [e-mail]