Knight Signs Letter of Intent

Mr. David Patterson, Chairman of Knight Metals Ltd. (TSX
VENTURE:KNP)(FRANKFURT:KRL) ("Knight Metals" or the "Company") reports that it
has entered into a letter of intent (the "LOI") dated November 8, 2011 with
Watutatu Inc. ("Watutatu"), a private Ontario company, with regards to a
proposed transaction between the Company and Watutatu (the "Transaction"), a
company with an option to acquire a 47.5% interest in certain oil and gas
exploration assets in Northern Africa.


Pursuant to the LOI, it is contemplated that all of the common shares of
Watutatu will be exchanged for an aggregate of 16,000,000 common shares of
Knight Metals and C$300,000. The closing of the Transaction remains subject to
the negotiation of a definitive agreement and other related documentation, and
is subject to due diligence review by all parties, all of which is expected to
be completed by November 30, 2011. In addition, the parties reserve the right to
pay a finders fee to qualified arm's length finders in connection with the
Transaction. The transaction qualifies as a "Reviewable Transaction" under the
policies of the TSX Venture Exchange and remains subject to regulatory approval.


Prior to and as a condition to the completion of the Transaction, the Company
will complete a private placement financing ("Concurrent Financing") brokered by
BayFront Capital Partners Ltd. ("BayFront") of subscription receipts for gross
proceeds of a minimum of C$2 million and a maximum of C$3 million, at a price of
C$0.15 per subscription receipt. Each subscription receipt will be convertible
into one Knight Metals Share on closing of the Transaction. BayFront will
receive compensation of 7% commission as well as broker warrants convertible
into that number of shares equal to 7% of the subscription receipts placed.


ON BEHALF OF THE BOARD OF KNIGHT METALS LTD.

David Patterson, Chairman

Forward-Looking Statements:

This news release contains forward-looking statements and forward-looking
information within the meaning of applicable securities laws. The use of any of
the words "expect", "anticipate", "continue", "estimate", "objective",
"ongoing", "may", "will", "project", "should", "schedule", "believe", "plans",
"intends" and similar expressions are intended to identify forward-looking
information or statements. More particularly and without limitation, this news
release contains forward-looking statements and information concerning Knight
Metals' future operations and prospects. The forward-looking statements and
information are based on certain key expectations and assumptions made by Knight
Metals, including expectations and assumptions concerning equipment and crew
availability, and joint venture partner financial capability. Although Knight
Metals believes that the expectations and assumptions on which such
forward-looking statements and information are based are reasonable, undue
reliance should not be placed on the forward looking statements and information
because Knight Metals can give no assurance that they will prove to be correct.
By its nature, such forward-looking information is subject to various risks and
uncertainties, which could cause Knight Metals' actual results and experience to
differ materially from the anticipated results or expectations expressed. These
risks and uncertainties include, but are not limited to, reservoir performance,
labour, equipment and material costs, access to capital markets, interest and
currency exchange rates, and political and economic conditions. Additional
information on these and other factors is available in continuous disclosure
materials filed by Knight Metals with Canadian securities regulators. Readers
are cautioned not to place undue reliance on this forward-looking information,
which is given as of the date it is expressed in this news release or otherwise,
and to not use future-oriented information or financial outlooks for anything
other than their intended purpose. Knight Metals undertakes no obligation to
update publicly or revise any forward-looking information, whether as a result
of new information, future events or otherwise, except as required by law.
Knight Metals Ltd. (TSXV:KNP)
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