Xmet Commences Sampling of Santa Fe Drill Core on Duquesne-Ottoman Property

TORONTO, Aug. 18 /CNW Telbec/ - Xmet Inc. (TSXV:XME) ("Xmet) is pleased to announce the commencement of a drill core re-sampling program on historical drill core drilled by Santa Fe Canadian Mining Ltd. ("Santa Fe") on the Duquesne Ottoman property. During the period from 1994 - 1997, Santa Fe completed 26,429 meters of drilling in 58 holes. The Santa Fe drilling was conducted prior to implementation of NI-43-101 protocols, and as a result, Xmet geologists must resample the core and insert control samples, blanks and duplicates into the sampling stream to upgrade the Santa Fe drill results to meet current NI-43-101 requirements for the new resource estimate that is currently underway (see previous news release) for the project. The historical Santa Fe drill core database reported numerous significant intercepts of gold mineralization that will be retested in a recognized analytical laboratory.

Xmet geologists will also extend the sampling surrounding all high grade intercepts to evaluate the potential for broad zones of low grade bulk tonnage mineralization. This approach was successful in identifying bulk tonnage mineralization on the Beattie Donchester property by Clifton Star. During the period from 1994 - 1997 when the Santa Fe drilling occurred, the average yearly gold price ranged between US $331.02 - $387.81 per ounce. At today's gold prices, low grade bulk tonnage mineralization is recognized as having potential economic significance, particularly in areas with excellent infrastructure such as the Duquense Ottoman property (http://files.newswire.ca/357/Duquense_Ottoman.doc).

About Xmet Inc.

Xmet Inc., through its wholly-owned subsidiary Duquesne-Ottoman Mines Inc. ("Duquesne-Ottoman Mines"), carries out gold and 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.

For further information:

Xmet Inc.
Alexander Stewart, Chief Executive Officer
Phone [phone]
E-mail: [email protected]

or

Tim Gallagher, Director
Phone: [phone]
E-mail: [email protected]

Renmark Financial Communications Inc.
Maurice Dagenais: [email protected]
Christine Stewart: [email protected]
Media - Guy Hurd: [email protected]
Tel.: [phone] or [phone]
www.renmarkfinancial.com