Metallis Commences Drilling at Kirkham Property IN Eskay CAMP

METALLIS COMMENCES DRILLING AT KIRKHAM PROPERTY IN ESKAY CAMP

August 23, 2017

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

following update as its 2017 exploration program intensifies at its 100% owned Kirkham Property in the Golden

Triangle’s prolific Eskay Camp.

Highlights are as follows:

 Drilling has commenced at the Cliff target in the south ern part of the property where surface

mineralization at the Hawilson monzonite porphyry has been traced for at least 1.4 km along strike;

 The first two drill holes at Cliff are designed to intersect gold -rich Copper porphyry mineralized zones

below and south of historical drill hole MD -09-01 that featured increasing go ld and copper grades with

depth;

 Approximately 2 km north of current drill hole KH-17-01, crews continue to make preparations for drilling

the King high-grade gold target adjacent to the Hawilson porphyry.

Structures contributing to the potential format ion of multiple deposit types are interpreted to extend from the

Kirkham Property northward onto Garibaldi Resources’ E&L Nickel Mountain Project in a highly pr ospective and

under explored 28 km long north-south corridor.

Mr. Fiore Aliperti, Metallis President and CEO, stated: “We are very excited to begin our 2017 drill program and

we’re thrilled at the prospect of adding Metallis to the list of companies that have made important discoveries

within the exceptional district.”

Swiftsure to Provide Diamond Drilling Services

Diamond drilling services for Metallis are being provided by Swiftsure Diamond Drilling Ltd. (“Swiftsure”) and shall

be paid in common shares of the Company in accordance with the shares for services rules of the TSX Venture

Exchange. As such, Metallis shall have taken a further step in preserving its cash reserves for other necessary

exploration budget items i n anticipation of positive drill results. Swiftsure has 7 years of diamond drilling and

consulting experience in a range of geological environments from the high Arctic to South America.

Technical aspects of this news release have been reviewed and appro ved by David Dupre P.Geo., designated as

a qualified person under National Instrument 43-101.

About the Kirkham Property

The 10,600 hectare Kirkham Property is located about 65 km north of Stewart within the prolific Golden Triangle.

The northeast corner of Kirkham is within 12 km of the Eskay Creek mine while the eastern border is within 15 to

20 km of both Seabridge Gold’s KSM deposit and Pretium Resources’ Brucejack mine which is now in

commercial production.

About Metallis

Metallis Resources Inc . is a Vancouver based company focused on the exploration of gold, copper and silver at

its 100% owned Kirkham Property situated in north west British Columbia’s Golden Triangle. Metallis trades under

the symbol MTS on the TSX Venture Exchange and currently has 23,368,617 shares issued and outstanding.

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

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uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including

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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 ident ify 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.

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