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Airborne Geophysical Survey Identifies 4 Additional Anomalies on the Kirkham Property

Exploration Programs Sampling & Geoscience Results

Airborne Geophysical Survey Identifies 4 Additional Anomalies on the Kirkham Property

January 24, 2017

Vancouver, BC: Metallis Resources Inc. (TSX-V: MTS) (the “Company”) is pleased to

announce the results of a second airborne survey conducted in August and September of 2016

on the Company’s Kirkham Property (the “Property”) located within northern British Columbia’s

Golden Triangle.

In 2016, the Company engaged Geotech Ltd to conduct a VTEM/magnetic/radiometric survey

over a 6000 hectare portion of the property, which was not surveyed in 2013. The VTEM

component of the survey is useful for delineating conductors (veins, massive sulphide lenses)

down to ~400m below surface. Magnetics are useful for delineating structures and intrusions

which are associated with porphyry copper-gold deposits of the Golden Triangle. Radiometrics

may show potassic alteration which is associated with some mineralized occurrences.

The 2016 survey identified four anomalies, which continue several hundred meters below the

surface:

Fewright Creek: features an arcuate resistivity and magnetic anomaly surrounding a magnetic

low. A small felsic plug has been mapped within this target. A large gossan occurs on the

western side of the target. These features are interpreted to represent a classic alkaline

porphyry copper-gold system that has experienced magnetite destruction in the center and

propyllitic alteration around the rim. The geophysical results indicate that this anomaly increases

in size with depth.

King East: comprises large coincident magnetic and resistivity anomalies. Numerous gold-

bearing veins and several small felsic stocks have been mapped on the southern part of this

target.

North and South Terwilligen: Are also characteri zed by coincident magnetic and resistivity

anomalies. The propyllitic alteration minerals suggest that this target is high in the porphyry

system. The geophysical modelling indicates the intrusion is quite near the surface.

The 2016 survey confirmed a fifth anomaly, a li near, very strong coincident resistivity and

magnetic anomaly (King), originally identified by the 2013 survey, which is outboard from the

mineralized Hawlison Porphyry (see map on t he next page). This feature is similar to the

geological setting and geophysical response associated with the Snip Mine, located 40

kilometers to the northwest. The presence of a pyroclastic dome, limestone units and

mineralized chert layers also could be indicative of an Eskay Creek – type VMS deposit.

All four of the coincident magnetic and resistivity anomalies fit Metallis’ model of the geophysical

response from porphyry copper/gold deposits in the Golden Triangle. King East and Fewright

Creek also have strong potassium anomalies. These anomalies are at least 2 kilometers in

diameter, are near the surface and display proxim al features such as small diorite stocks,

propyllitic alteration and local mineralized veins.

KING

Airborne Survey – Resistivity Results

Hawlison Monzonite

FEWRIGHT CREEK

TERWILLIGEN

SOUTH

KING EAST

RESISTIVITY

ANOMALIES

Hawlison

Monzonite

17

TERWILLIGEN

NORTH

KING

All five anomalies are concentrated near the Stuhini-Hazelton contact (also known as the Red-

Line). Kyba and Nelson (2012) have shown that many of the mineralized systems in the Golden

Triangle are clustered near this contact. The large porphyry-style anomalies also display

coincident potassium spectral highs. This is likely due to the presence of potassic alteration –

again a classic feature of alkaline porphyry systems in the Golden Triangle. Taken together, the

geophysical, geochemical, geological setting and altera tion are strikingly similar to producing

mines in the Golden Triangle.

Mr. Fiore Aliperti, President of Metallis states: “We are extremely pleased with results of this

year’s airborne survey. We have now merged da ta and results from the 2013 airborne survey

with the 2016 airborne survey to give us a better understanding of the property’s potential. We

will be using these survey results, along with a desktop compilation of historical data collected

on the property, to identify targets for a summer 2017 drilling program.”

About Metallis

Metallis Resources Inc is a Vancouver based company focused on the on the exploration of

gold, silver and copper on the Kirkham Property sit uated in the heart of the prolific Golden

Triangle in Northern British Columbia. Metallis Resources Inc. currently trades under the

symbol MTS on the TSX Venture Exchange.

About the Kirkham Property

The 10,600 hectare Kirkham Property is located about 65 km north of Stewart, 20 km southwest

of Barrick’s Gold Corp’s past-producing Eskay Creek Mine and 40 km southeast from their past

producing Snip Mine; 40 km from Pretium Resources’ Brucejack deposit and 30 km from

Seabridge’s KSM deposits.

About Geotech

Geotech is a global leader in technological innovation for airborne geophysical survey mapping,

interpretation and analysis. The company has conducted airborne electromagnetic geophysical

surveys, over six continents, for more than three decades using proprietary technology and has

a long history of notable innovations. In the last decade, Geotech introduced to the world the

first helicopter-borne time domain EM system. The VTEM system, with its superior S/N ratio, is

still the industry standard, able to detect deep conductors that are "lost" in the noise of other

TEM systems.

Technical aspects of this news release have been reviewed and approved by David Dupre

P.Geo. designated as a qualified person under National Instrument 43-101.

On behalf of the Board of Directors:

/s/ “Fiore Aliperti”

Chief Executive Officer, President and Director

For further information:

Tel: 604-688-5077

Email: [email protected]

Web: www.metallisresources.com

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This Press Release may contain statements which constitute ‘forward-looking’ statements,

including statements regarding the plans, intentions, beliefs and current expectations of the

Company, its directors, or its officers with respect to the future business activities and operating

performance of the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”,

“anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the

Company, or its management, are intended to identify such forward-looking

statements. Investors are cautioned that any such forward-looking statements are not

guarantees of future business activities or performance and involve risks and uncertainties, and

that the Company’s future business activities ma y differ materially from those in the forward-

looking statements as a result of various factors. Such risks, uncertainties and factors are

described in the periodic filings with the Canadian securities regulatory authorities, including

quarterly and annual Management’s Discussion and Analysis, which may be viewed on SEDAR

at www.sedar.com Should one or more of these risks or uncertainties materialize, or should

assumptions underlying the forward-looking statements prove incorrect, actual results may vary

materially from those described herein as intended, planned, anticipated, believed, estimated or

expected. Although the Company has attempted to identify important risks, uncertainties and

factors which could cause actual results to differ materially, there may be others that cause

results not to be as anticipated, estimated or intended. The Company does not intend, and does

not assume any obligation, to update these forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in

policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of

this release. The TSX-V Stock Exchange has neither approved nor disapproved the contents of

this news release.