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Metallis Announces Expansion of Mineralized Hawilson Monzonite, Drill Targets Identified and 2% NSR Purchase

Royalties & Streams Exploration Programs

Metallis Announces Expansion of Mineralized

Hawilson Monzonite, Drill Targets Identified

and 2% NSR Purchase

VANCOUVER

,

July 20, 2018

/CNW/ -

Metallis Resources Inc.

(TSX-V: MTS)

("Metallis" or the

"Company") announces positive results from its 2018 Phase 1 exploration program (the "Program")

and has planned the first of two drilling campaigns on its 100%-owned Kirkham Property (the

"Property"), prospective for multiple deposit types in the prolific Eskay camp of northwest

British

Columbia

.

In addition, the Company confirms it has completed the purchase of a pre-existing 2% net smelter

return ("NSR") royalty, securing 100% unencumbered ownership over several critical target areas of

the Property, including the entire 7km length of the Hawilson Monzonite ("HM") which contains the

Cole, King, Nina, Natt and Cliff targets. The NSR was purchased under a Right of First Refusal for

US$300,000

.

Exploration Program Highlights:

Detailed mapping has extended the mineralized HM from ~6km to a strike-length of greater than

7km with an average width of ~350m, enhancing the volume potential of the porphyry copper-

gold mineralization along this NS-trending corridor

(click here to see map)

.

The Cole prospect is identified as a much wider (~450m), well preserved porphyry copper-gold

system with geological features (i.e. geometry, potassic alteration, veins and sulphides) similar

to Seabridge Gold's Kerr deposit located ~25km to the east of the Kirkham Property. The

historic geochemical sampling results in rocks range from 0.2% to 0.5% Cu and up to 20.7 g/t

Au at the Cole prospect - supporting the presence of a gold-rich system.

2018 exploration to the north of the Cole prospect discovered two angular blocks of monzonite

with pervasive phyllic alteration, silification and pyrite-bornite mineralization, a grab sample of

one assayed 1.39% Cu and 26.6 g/t Au.

Results from field mapping along with the interpretation of the new geophysical and

geochemical results has enabled the Metallis technical team to design the initial 2018 drilling

program which will focus on the Cliff, Nina and Cole porphyry centers clustered along the NS-

trending HM, located within the southern portion of the Kirkham Property.

The geological mapping, geochemical and prospecting program was focused on the continued

evaluation of the porphyry copper-gold potential of the HM. The HM is associated with the Early

Jurassic Texas Creek plutonic suite which hosts some of the well-known precious-metal rich ore

deposits in the Golden Triangle including Galore Creek,

Red Chris

, Kemess, Mt. Milligan and KSM.

Initial results from this program re-defined the geological framework, structural setting and

dimensions of the HM porphyry corridor, which is now greater than 7km in length, ~350m wide and

greater than

800m

deep.

Metallis' technical team has identified three key areas of interest based on the intensity and volume

of the alteration footprint, veins and strong geochemical responses: The Cliff, the Nina and the Cole

targets, for which the 2018 drilling locations have been selected.

(Click here for map)

The Nina and

Cole targets are especially significant because Dr. Abdul Razique (Metallis' Chief Geologist) has

identified several deeply overprinted zones of higher grade, gold-rich epithermal mineralization.

Jeff

Kyba

(former BCGS District geologist and member of the Company's Advisory Board) believes the

Cole prospect shares geological similarities with Seabridge Gold's nearby Kerr copper-gold deposit.

Mapping and sampling at the Nina prospect has shown that the mineralization and alteration

continues northward from the Cliff zone. Most of the rock grab samples in this area returned values

greater than 1500ppm copper and up to 0.67 g/t gold.

Fiore Aliperti

, Metallis Resources President and CEO, commented: "Having Jeff Kyba on the ground

supporting Dr. Razique this year was an excellent opportunity for our technical team to get a real

understanding of the structure of the Hawilson Monzonite which included expanding it by over a

kilometer. We have identified firm targets to drill and will start within the week. In addition, the recent

purchase of the 2% NSR demonstrates our full confidence in this area of the Kirkham Property." He

added, "Upon completion of this initial phase, we will commence Phase 2 of the 2018 exploration

program in the north of our property, where along with Dr.

Peter Lightfoot

, our geological team will

concentrate efforts on our nickel targets."

About the Kirkham Property

The 106 sq.km Kirkham Property is located about 65km north of

Stewart, B.C.

within the prolific

Golden Triangle. The northern border of Kirkham is contiguous to Garibaldi Resources' E&L Nickel

Mountain Project whereas the northeast corner of the property is within 12km of the Eskay Creek

mine and the eastern border is within 15 - 20km of Seabridge Gold's KSM deposits and Pretium

Resources' Brucejack mine.

About Metallis

Metallis Resources Inc. is a

Vancouver

-based company focused on the exploration of gold, copper,

nickel and silver at its 100% owned Kirkham Property situated in northwest

British Columbia's

Golden Triangle. Metallis trades under the symbol MTS on the TSX Venture Exchange and the

OTCQB Venture Market under the symbol MTLFF and currently has 32,431,129 shares issued and

outstanding.

2018 Venture 50

Metallis Resources Inc. was included in the 2018 Venture 50 (the "V50"). The V50 is a ranking of top

performers on the TSX Venture Exchange last year. The ranking is comprised of ten companies

from each of five industry sectors selected based on three equally weighted criteria: Market

capitalization growth, share price appreciation and trading volume amount.

To view the V50 video click here.

On behalf of the Board of Directors:

/s/ "Fiore Aliperti"

Chief Executive Officer, President and Director

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 may 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 intended, planned, anticipated, believed, estimated or expected. 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.

SOURCE

Metallis Resources Inc.

View original content with multimedia:

http://www.newswire.ca/en/releases/archive/July2018/20/c4590.html

%SEDAR: 00025829E

For further information:

Tel: 604-688-5077, Email: [email protected], Web:

www.metallisresources.com

CO: Metallis Resources Inc.

CNW 09:30e 20-JUL-18