Beattie-Style Gold Mineralization Identified at 20-20 Zone

TORONTO, Jan. 7 /CNW Telbec/ - Xmet Inc. (TSXV-XME) is pleased to report that drilling recommenced on the Duquesne-Ottoman property on January 3rd of this week. Two drills are currently operating on the property, with one rig targeting the expansion of the current 43-101 resource, while the second rig is conducting further testing at the exciting 20-20 Zone, located 500 meters east of the resource area and 1km west of the Nip Zone drilling previously announced last September. Significant gold mineralization was recently reported in hole DO-10-05 at the 20-20 Zone, returning 6.41 g/t over 7.7 meters (website www.xmet.ca ). Recently obtained pulp and metallic analytical results have demonstrated that extremely fine visible gold is associated with pyrite mineralization, resulting in an increase in the previously reported gold grade for hole DO-10-05, returning 6.65 g/t over 7.7 meters, including 10.01 g/t over 4.3 meters.

A geological review has confirmed that the 20-20 Zone occurs along the sheared northern margin of a large quartz feldspar porphyry intrusion, in a geological and structural setting remarkably similar to both the Beattie and Donchester gold deposits, currently being developed by the Osisko-Clifton Star Duparquet JV on claims adjacent to the Duquesne-Ottoman property. The sheared margin of the intrusion at the 20-20 Zone has a coincident gold geochemistry soil anomaly defined over 1200 meters. The 20-20 Zone has potential to host high grade gold mineralization over significant widths, as well as Beattie - style bulk tonnage gold mineralization.

Bill Yeomans, V.P. Exploration at Xmet comments: "The mineralized porphyry at Zone 20-20 trends along the southern margin of a large Temiskaming-type conglomerate metasedimentary basin known as the Duparquet Formation just like in the case of the Beattie Syenite but on the opposite side of the Duparquet basin.  Very little drilling has been done along the eastern extension of the 20-20 Zone along the soil geochemical anomaly and we think the area is very prospective."

A second discovery made by drilling in 2010 is located further east at the Nip Zone parallel to and to the south of the 20-20 structure. This favourable target will also be further drill tested during the 2011 drilling campaign. During the month of December 2010, a down-hole 3D-IP survey tested the geophysical signature of gold bearing sulphide mineralization intersected in holes DQ-10-17 (17.0m @ 2.95 g/t Au), DQ-10-15 (2.5m @ 5.40 g/t Au), DQ-02-09 (3.0m @ 9.00 g/t), and DQ-10-18 (3.0m @ 5.60 g/t).

The airborne geophysical survey scheduled to be completed in December was delayed due to winter storms in the area. Only 30% of the survey was completed during that time. The survey is rescheduled to start on January 7th, 2011. 

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.

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. Bill Yeomans, P.Geo., Xmet's V.P.  Exploration, is the designated Qualified Person responsible for this release.

SOURCE XMET INC.

For further information:

Xmet Inc.
Charles Beaudry, President and COO
Phone (416) 644-6588
E-mail: cbeaudry@xmet.ca
or
Tim Gallagher, Director
Phone: (416) 925-0090
E-mail: tim@inflectioncapital.ca

Renmark Financial Communications Inc.
Maurice Dagenais: mdagenais@renmarkfinancial.com
Christine Stewart: cstewart@renmarkfinancial.com
Media-Guy Hurd: ghurd@renmarkfinancial.com
Tel.: (514) 939-3989 or (416) 644-2020
www.renmarkfinancial.com

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XMET INC.

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