Metallis Announces Completion of Joint VTEM Survey with Eskay Mining

VANCOUVER, Aug. 9, 2018 -  Metallis Resources Inc. (TSXV: MTS) (OTCQB: MTLFF) ("Metallis" or the "Company") announces that Geotech Ltd. has now completed the versatile time-domain electromagnetic survey ("VTEM" or the "Survey") covering the eastern border (the "Border") of its 100%-owned Kirkham Property (the "Kirkham" or the "Property"). The Survey was an expansion of the Company's initial VTEM completed earlier in the year which covered the Thunder North, Thunder South and Central Kirkham areas (See News Release dated March 28, 2018). The work was completed in co-operation with the Company's neighbor, Eskay Mining Corp. ("Eskay") who holds 52,000 hectares of mineral tenures directly to the east of Kirkham.

The high resolution VTEM survey (100m line-spacing) covered a total area of 173km², within this block 232 total line km were covered for Metallis and 1573 total line km for Eskay and was inclusive of the area along the Border between both companies (Click here to see VTEM area map). The VTEM survey will provide a mutually beneficial technical understanding of this newly surveyed area along the Border and will help with the detection of anomalies related to volcanogenic massive sulphide (VMS), shear-vein hosted gold, porphyry copper-gold systems and nickel targets.

The costs relating to the Survey were shared pro-rata between both companies, which agreed to share the technical information relevant to the Border area once the survey results are made available.

Fiore Aliperti, Metallis Resources President and CEO, commented: "We believe in taking a strategic and collaborative approach to assessing the potential of our property and the region as a whole. This Survey with Eskay, our neighbor to the east, is a cost-effective means of collecting data that will provide all with a better understanding of the area covered."

Investor Relations

Metallis also announces it has engaged Nicosia Capital Corp. ("Nicosia") to provide Investor Relations and shareholder communications services for an initial period of six months commencing August 1, 2018. Compensation is $3,500 per month over the term of the agreement. Nicosia is a Vancouver-based marketing and communications firm that will introduce Metallis Resources Inc. to their network of investors.

Grant of Options

The Company also announces that, pursuant to the terms of the Company's Stock Option Plan, the Company has granted an aggregate of 100,000 incentive stock options ("Options") to its consultants at an exercise price of $1.05 per share, (as per the market closing price of August 08, 2018) exercisable for a period of five years, expiring August 09, 2023. These Options along with previously granted stock options that remain outstanding and exercisable, total 3,085,000 outstanding stock options. The total outstanding stock options including this grant represent approximately 9.4% of the 32,871,129 outstanding shares of the Company.

Qualified Person

Technical aspects of this news release have been reviewed and approved by Metallis Resources' V.P. of Exploration 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 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 32,871,129 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.