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Metallis Intersects Significant, Near Surface, Porphyry Copper/Gold Mineralization at the Cliff Zone on the Kirkham Property

Drill Results

Metallis Intersects Significant, Near Surface,

Porphyry Copper/Gold Mineralization at the

Cliff Zone on the Kirkham Property

VANCOUVER

,

Jan. 17, 2020

/CNW/ -

Metallis Resources Inc.

(TSX-V: MTS; OTCQB: MTLFF)

(the "Company" or "Metallis") is pleased to announce the first set of assay results from the

Company's 2019 drilling campaign (the "Program") which targeted the Cliff Zone

of the 7.5km

Hawilson Monzonite. The 100%-owned Kirkham Property (the "Property") is in the prolific

Eskay

Camp

of the Golden Triangle, northwestern

British Columbia

.

The Program was designed to better understand the controls on mineralization and infilling some

substantial gaps in the geologic model. Building on the success of the 2018 drilling campaign at the

Cliff Zone, the exploration team has successfully confirmed and extended shallow bulk-tonnage-style

copper/gold mineralization. Rarely, does this advantageous configuration exist in B.C. which could

yield greatly improved mine economics.

2019 Drilling Highlights – Cliff Zone

The 2019 drilling assays combined with previous results have confirmed a

1,800m

-long zone of

near surface gold-rich mineralization (

Click here to view map

).

Extensive intervals of gold-rich mineralization such as

126m

of 0.52 g/t AuEq

in KH19-30 are

associated with potassic altered Monzodiorite porphyry intrusions, to be targeted at deeper

levels.

Higher grade gold intercepts, as in KH19-28, correlates with intense silicification and massive

sulphide veins along syn-mineral tensional faults, identified as future exploration targets

The 2019 drill program at the Cliff Zone comprised three deep holes totaling 1,464 meters. These

drill holes formed part of a larger comprehensive 11-hole (

4,460m

) drilling program designed to

evaluate the porphyry copper/gold and epithermal gold targets throughout the 7.5 kilometer-long

Hawilson Monzonite Intrusive Complex. Results from the other eight holes will be released upon

further assaying, verification and data analysis.

All three holes intersected significant mineralization, highlighted by KH19-30, which returned

126.5m

@ 0.52 g/t gold equivalent* associated with the core potassic altered porphyry. Higher grade gold

intercepts, as in KH19-28, correlates with intense silicification and massive sulphide veins along syn-

mineral tensional faults, identified as future exploration targets (

Click here to view long section

).

The intensity of alteration, veins and chalcopyrite-pyrite ratios increases with depth. This pattern

vectors towards a deeper, high temperature potassic core to be tested in future exploration

programs.

The 2019 results, together with previous results, are tabulated below.

Summary of the Assay Results from the Cliff Porphyry Zone

2019 Drill Results

Hole ID

From (m)

To (m)

Length (m)

AuEq (g/t)*

Au(g/t)

Cu(%)

Mo(g/t)

KH19-28

2.4

59.9

57.5

0.51

0.31

0.14

39

KH19-28

109

170

61

0.3

0.27

0.02

16.6

KH19-29

2.75

151.25

148.5

0.34

0.18

0.11

35.4

Incl

2.75

74

71.25

0.48

0.22

0.19

37.9

KH19-30

34.5

200

165.5

0.43

0.21

0.16

36.7

Incl

34.5

161

126.5

0.51

0.24

0.19

38

Previous Drilling Results

Hole ID

From (m)

To (m)

Length (m)

AuEq (g/t)*

Au(g/t)

Cu(%)

Mo(g/t)

MD09-01

3.04

334.67

331.63

0.35

0.18

0.13

15.4

Incl

3.04

54.05

51

0.39

0.21

0.14

7.8

Incl

154

334.67

180.67

0.53

0.26

0.2

26.1

MD09-02

70

147.44

77.44

0.62

0.24

0.28

51.8

KH17-06

174

176.9

6.9

0.48

0.21

0.2

40.9

KH17-07

88

168.3

80.3

0.4

0.17

0.17

27.9

KH17-08

3.9

439.4

435.5

0.41

0.25

0.11

37.5

Incl

3.9

176

172.1

0.57

0.3

0.2

32.4

Incl

86

166

90

0.8

0.44

0.27

33.7

Incl

310

356

46

0.52

0.32

0.1

135.6

Incl

380

394

14

0.78

0.65

0.07

89.5

KH18-11

203.5

276

74.5

0.37

0.12

0.19

17.6

KH18-12

335

381

46

0.48

0.42

0.04

16.2

KH18-13

222

248

26

0.54

0.49

0.04

5.4

KH18-13

323

568.5

245.5

0.40

0.21

0.12

21.2

KH18-14

36

95

59

0.51

0.44

0.03

63.2

KH18-14

306

404.8

98.8

0.65

0.62

0.02

11.3

KH18-15

61

155

94

0.31

0.23

0.05

40.6

Incl

61

96

35

0.38

0.29

0.04

74.3

KH18-15

214

264

50

0.49

0.39

0.06

50.8

KH18-15

321

339

18

0.52

0.5

0.01

4.6

KH18-15

494

502.9

8.9

0.51

0.5

0.01

2

KH18-16

6.7

315

308.3

0.42

0.26

0.12

20.6

Incl

6.7

148

141.3

0.71

0.4

0.23

25.3

*Gold Equivalent Formula: Au g/t+(Cu%*1.27) +(Mo g/t*0.0005)

Metal Prices Used: Gold - US$ 1470/oz, Copper - US$ 2.75/lb, Molybdenum - US$10/lb

The Cliff results demonstrate the continuity of Cu-Au Porphyry mineralization for at least 1.8km. The

mineralization remains open in most directions, with potential along strike to the north. Two

mineralized holes drilled by a previous operator, extend the Cliff Zone a further

500m

to the north. Of

significance is the tabular distribution of mineralization down the topographic slope representing an

ideal open-pit extraction scenario.

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

like several porphyry copper-gold deposits in

British Columbia

, including the Kerr Deposit of

Seabridge Gold's KSM project.

Metallis Resources' Vice President of Exploration,

David Dupre

stated "This season's drilling has

been very successful. We have shown that the copper-gold mineralization occurs close to the

surface slope and have linked these zones with copper-gold mineralization intersected in previous

drilling." Mr. Dupre added "We are excited about these results and plan to further define the higher

grade mineralization as well as test the northern continuation of the Cliff Zone."

Metallis' Chief Geologist, Dr. Razique added "The structural traps with focused fluid flow along syn-

mineral tensional faults host some of the unusually high-grade gold mineralization in the Cliff zone,

this will be targeted in future exploration programs."

Dr.

Eric Grunsky

has been engaged to carry out a geostatistical study which utilizes porphyry

vectoring and fertility tools ("PVFTs"). These use the chemical compositions of hydrothermal

alteration zones to predict the likely direction and distance to mineralized centers. Our existing

hyperspectral surveys will augment this work – particularly, to discover higher grade, core zones

which can be masked by distal propylitic blankets.

In 2020, Metallis plans to expand the known higher-grade zones at Cliff and to evaluate targets

generated by our PVFT studies.

QAQC Procedure

Metallis Resources has implemented a rigorous quality assurance / quality control (QA/QC) program

to ensure best practices in sampling and analysis of diamond drill core. All assays are performed by

ALS Canada Ltd., with sample preparation carried out at the ALS facility in

Terrace, BC

, and assays

at the

North Vancouver

laboratory. Assay values are uncut. For gold, fire assays are performed as

per ALS method Au-AA26 (0.01- 10.00 g/t Au) using 50 grams of sample measured by atomic

absorption (AA). Assays equal to or greater than 10 g/t Au are reanalyzed gravimetrically by method

Au-GRA22. Silver and copper are analyzed by ALS method ME-MS61 with a 4-acid digestion

followed by ICP-MS analysis.

Qualified Person

David G. Dupre

, P.Geo., Vice President, Exploration for Metallis Resources Inc. and a Qualified

Person as defined by NI 43-101, has reviewed and approved the technical information in this press

release.

About the Kirkham Property

The 106 sq. km Kirkham Property totals 10,610 Hectares and is located about 65 km north of

Stewart, B.C.

, in the heart of the Golden Triangle's prolific

Eskay Camp

.

The Property is 100%

owned by the Company and is prospective for multiple deposit types and is in the prolific

Eskay Camp

of the Golden Triangle, northwestern

British Columbia

.

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 36,155,767 shares issued and outstanding.

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 Venture Exchange has neither approved nor disapproved the contents of this news

release.

SOURCE

Metallis Resources Inc.

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/January2020/17/c3248.html

%SEDAR: 00025829E

For further information:

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

www.metallisresources.com

CO: Metallis Resources Inc.

CNW 09:00e 17-JAN-20