MTS.V · 2024-09-04 12:00:00

Metallis Announces Significant Antimony Results at Greyhound as China Limits Critical Mineral Exports

Drill Results

METALLIS ANNOUNCES SIGNIFICANT

ANTIMONY RESULTS AT GREYHOUND AS

CHINA LIMITS CRITICAL MINERAL EXPORTS

VANCOUVER, BC

Sept. 4, 2024

/CNW/ -

Metallis Resources Inc.

(TSXV: MTS) (OTCQB:

MTLFF) (the "Company" or "Metallis") is pleased to announce antimony assay results from the

inaugural field exploration program (the "Program") on the Company's Greyhound property ("the

Property"), a high-grade silver/gold/antimony project within a historic stibnite mining camp, located in

Idaho, USA

. Initial results have returned multiple rock samples greater than 1% antimony at a time

when significant attention is being paid to this critical mineral. Recent curbs by the Chinese

government have increased urgency for domestic sources of antimony, demonstrated by the US

federal government's funding of nearby Perpetua Resources with a

US$1.8 billion

loan facility to

develop an antimony/gold mine, and the Pentagon's commitment of

US$60 million

to fund the mine's

permitting.

Fiore Aliperti

, Metallis' President and CEO, commented, "With no active antimony mines currently

operating in

North America

and

China's

recent export restrictions which tighten the global supply, the

need for an antimony discovery has never been more urgent. The significance of these early-stage

high-grade antimony assays from the Greyhound Property cannot be understated and could not have

come at a better time for the Company." He went on to add, "The U.S. federal government's policy

is to eliminate

China's

stranglehold on global antimony, and their substantial financial backing of

nearby Perpetua Resources underscores the strategic importance of this mineral. The ongoing

exploration work at Greyhound has the potential to position us as a key name within the junior

resource sector, recognized for the exploration of this critical mineral."

Program Results

The Program, which began in early July, was designed to outline high-grade mineralized shoots at

several historic showings along the 3.6 km Greyhound shear zone. A total of 559 soil samples and

133 rock samples were collected along with geological mapping and structural data. Roadwork was

also completed to maintain safe and efficient access to the property and to several historic showings

on site.

Initial assay results have confirmed that the Greyhound shear hosts highly anomalous antimony

("Sb") with 12% of the rocks returning >1% Sb. The most elevated antimony assay was returned

from a rock sample taken at the Bulldog Showing that delivered a significant 4.54% Sb from semi-

massive sulfide containing galena, sphalerite, arsenopyrite and stibnite. Three contiguous rock

samples taken as 'continuous chips' near the Bulldog returned 0.61% Sb over a

3 m

length, further

validating the strong mineralization at surface. Although consistent antimony mineralization was

identified along the entire length of the Greyhound shear, the best antimony results occur in the

northwestern portion of the property at showings that include Bulldog, Republican, and

Idaho

, none

of which have ever been drilled (See map). Assay results for gold and silver are pending as "over-

limit" analyses are still being completed.

Map of antimony results in rock samples from Metallis' Greyhound property (CNW Group/Metallis

Resources Inc.)

By comparison, Perpetua's Stibnite Project has an estimated total measured and indicated resource

(43-101 Feasibility Study Technical Report –

January 2021

) of 132,269,000 tonnes at a grade of

1.42 g/t gold, 2.07 g/t silver and 0.07% antimony. The

Yellow Pine

and Hangar Flats sub-domains

exhibit substantially elevated antimony-silver mineralization, defined as containing greater than 0.1%

antimony, the total measured and indicated resources are 18,477,000 tonnes grading 2.07 g/t gold,

5.91 g/t silver and 0.48% antimony.

China's

Export Restrictions

China

recently announced plans to impose new export restrictions on antimony and related elements,

citing national security concerns as the primary motivation. Effective

September 15, 2024

, the

restrictions will cover six antimony-related products, including antimony ore and metals. Additionally,

the export of gold-antimony smelting, and separation technology will require government approval.

China

seeks to restrict exports and protect its strategic resources, these measures are part of a

broader effort to maintain control over critical minerals essential for military applications, such as

ammunition and infrared missiles.

China

currently dominates the global antimony market, accounting

for 48% of global output in 2023 with

Tajikistan

and

Russia

controlling another 30%.

These restrictions are likely to exacerbate global supply shortages, particularly in

the United States

and

Europe

, where military demand for antimony is rising due to increasing geopolitical tensions.

Perpetua Resources, which is advancing its Pentagon-backed antimony-gold project located 38 km

north of the Greyhound Property, is exploring ways to accelerate production in response to these

urgent strategic needs.

China's

announcement has already triggered a notable market response,

with Perpetua's shares soaring by 25% and antimony prices hitting record highs in 2024. This latest

move by

China

follows similar export controls on other critical materials like rare earths and graphite,

further heightening concerns over the stability of critical mineral supply chains (

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