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Metallis Expands Gold-Rich Mineralization at the Cliff Porphyry Target

Drill Results

Metallis Expands Gold-Rich Mineralization at

the Cliff Porphyry Target

VANCOUVER

,

Oct. 29, 2018

/CNW/ -

Metallis Resources Inc.

(TSX-V: MTS; OTCQB: MTLFF)

(the "Company" or "Metallis") is pleased to announce the first set of results of its 2018 drilling

program. These results cover the 6 holes drilled on the Cliff Porphyry system within its 100%-owned

Kirkham Property in

British Columbia's

prolific Golden Triangle. The Kirkham Property is well-

positioned along the "Red Line" on the western margin of the Eskay rift, where the trans-tensional

tectonic environment formed a fertile corridor of sub-parallel, strike-slip faults with porphyry copper-

gold deposits.

Cliff Target - Longitudinal Map (CNW Group/Metallis Resources Inc.)

Exploration and Drilling Highlights

The 2018 exploration program at the Cliff target comprised 6 deep diamond drill holes totaling 3,062

meters, yielding intervals of significant gold-rich mineralization. The drilling assays confirmed the

continuity of copper-gold grades associated with multiple porphyry intrusions and hydrothermal

events in the Cliff target, extending over a strike-length of 3 km, at the southern end of the 7.5 km

long Hawilson monzonite.

(See Map of Hawilson Monzonite)

The Cliff target is identified as a unique

porphyry system with three distinct styles of copper-gold mineralization given below in chronological

order.

1

.

Extensive gold-copper intervals (ie:

141

meters

of 0.4 g/t Au

and

0.23% Cu

in hole KH18-16)

are associated with a swarm of potassically altered Hawilson Monzonite dikes.

2

.

Broad intercepts of gold-rich mineralization such as

37 meters

of 1.54 g/t Au

and

0.05% Cu

in

drill hole KH18-14 are linked to secondary hydrothermal event of intense quartz-carbonate veins

and highly silicified hydrothermal breccias along the contacts with the Hawilson Monzonite dikes.

3

.

Localized 1-3 meter intercepts with gold grades up to

3.0 g/t Au

are associated with late-stage

quartz-carbonate and massive sulphide veins of pyrite-pyrrhotite-chalcopyrite mineralization.

Cliff Porphyry System

The geological mapping, drill core logging and assays have revealed that the Hawilson monzonite

was intruded as NS-trending stocks and dikes with porphyry copper-gold systems preserved at

shallow levels, similar to some of the gold-rich porphyry deposits of the Maricunga belt in northern

Chile

. Drilling at the southern portion of the Hawilson Monzonite referred to as the Cliff porphyry

system intersected multiple porphyry intrusions, and igneous and hydrothermal breccias followed by

intense potassic and sericitic alteration. All 6 holes in Cliff zone intersected extensive intervals of

well-mineralized alteration zones, multi-generational veins, and Cu-sulphides. A summary of the 2018

assays is tabulated below (Table-1). The location and orientation of the drill holes are presented in

the longitudinal section

(Fig -1).

Additional information, including field and core photographs will be

available for viewing on Company's website at

www.metallisresources.com

.

Table-1

Hole ID

Depth

(m)

From

(m)

To

(m)

Interval

(m)

Cu

(ppm)

Au

(g/t)

AuEq

KH18-11

493.8

136

385

249

1018

0.13

0.29

incl

201.5

210

9

755

0.63

0.74

incl

228

280

52

1572

0.18

0.42

KH18-12

490.7

86

153

67

516

0.20

0.28

372

434

62

90

0.45

0.46

incl

372

381

9

131

1.56

1.58

KH18-13

568.5

222

248

26

438

0.51

0.58

340

569

229

1308

0.21

0.41

incl

356

398

42

1709

0.36

0.62

KH18-14

606.6

9

560

551

256

0.28

0.32

incl

36

418

382

262

0.36

0.40

incl

36

73

37

454

1.54

1.61

KH18-15

503.0

61

96

35

497

0.28

0.36

214

264

50

590

0.38

0.47

321

339

18

85

0.50

0.51

494

503

9

74

0.49

0.50

KH18-16

399.6

7

148

141

2294

0.40

0.75

incl

78

114

36

2972

0.64

1.09

273

294

21

247

0.28

0.32

*AuEq based on $1,200/oz gold, $2.70/lb Cu and 100% recovery

The geological characteristics, metallogeny and copper-gold grades of the Cliff porphyry systems

are similar to the Kerr Deposit of Seabridge Gold's KSM project, which has an inferred resource of

1.92 billion tonnes grading 0.41% copper and 0.31 g/t gold, containing 19.0 million ounces of gold

and 17.3 billion pounds of copper (Seabridge New Release

Feb 16, 2017

).

Metallis' Chief Geologist – Abdul Razique, PhD., P.Geo. – a porphyry expert, commented: "The

interplay between porphyry intrusions, breccias and episodic hydrothermal events are responsible

for the gold-rich mineralization in the Cliff zone which is open in all directions. The structural setting

and distribution of copper-gold assays provided systematic vectors to target stockwork potassic

zones and silicified hydrothermal breccias carrying substantially higher gold-grades in a porphyry

system."

Metallis President and CEO

Fiore Aliperti

commented, "We're very encouraged by the initial assay

results from our 2018 drilling program. These results have expanded the Cliff zone and enhanced our

model of gold-rich porphyry targets on the Kirkham Property. A comprehensive exploration program

will be planned for 2019 to drill the extensions of Cliff and other untested porphyry targets along the

Hawilson monzonite complex. We will be providing our investors with further news as results from

Nina, Cole and Thunder North are received and analyzed by our technical team."

The analytical results of the drill core and rock samples from the Nina, Cole and Thunder North

Targets are still pending and will be disclosed when those results have been received and reviewed.

QAQC and Analytical Procedures

Metallis Resources Inc. employed a rigorous QA/QC program to ensure best practices in sampling

diamond drill core. A combination of 1-3 meter intervals of HQ and NQ drill core were delivered to

ALS Global prep facility in

Terrace BC

, where the samples were crushed to 70% pass 2mm

fraction, and then a 250g split was pulverized to better than 85% passed a 75-micros screen. The

geochemical analyses were performed by ALS Global in

Vancouver

using multi-element 4-Acid

digest ICP-MS package (ME-MS61). Gold was analyzed by fire assay technique Au-ICP21. Higher

gold grades (>10 g/t) were analyzed by fire assay and gravimetric finish. In addition to the internal

QAQC program by ALS, Metallis inserted 10% lab certified standards, field blanks and duplicates

into the overall sampling stream. ALS laboratories are independent of the Company.

Qualified Person

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.

About the Kirkham Property

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

Stewart, B.C.

, in the heart of the

Golden Triangle's prolific

Eskay Camp

. The northern border of Kirkham is contiguous to Garibaldi

Resources' E&L Nickel Mountain Project. The northeast corner of Kirkham is within 12 km of the

Eskay Creek mine while the eastern border is within 15 – 20 km 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 currently

has 32,986,079 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 each year and is published early in each following year.

The ranking comprises 10 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.

2018 Exploration Map on Hawilson Monzonite Complex (CNW Group/Metallis Resources Inc.)

SOURCE

Metallis Resources Inc.

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/October2018/29/c8085.html

%SEDAR: 00025829E

For further information:

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

www.metallisresources.com

CO: Metallis Resources Inc.

CNW 09:30e 29-OCT-18