New Discovery Hole Confirms Substantial Extension to Gold Zone at Kirkham Property; Drills 1.13 g/t AuEq Over 54 Meters

VANCOUVER, March 23, 2021 - Metallis Resources Inc. (TSX-V: MTS) (OTCQB: MTLFF) (FSE: 0CVM) (the "Company" or "Metallis") has substantially extended the gold-bearing zone within the 4 km-long Cliff Porphyry System, which forms part of the larger 7.5 km long Hawilson Monzonite Complex (or "HM") at its 100%-owned Kirkham Property (the "Property"). The Property is situated in the prolific Eskay Camp of the Golden Triangle in northwestern British Columbia, a region known worldwide for the past producing Eskay Creek and Snip gold mines, Seabridge's KSM porphyry deposits and Pretium's producing Brucejack gold mine, amongst others.

Highlights and Summary

• KH20-34 confirms the southern extension of the gold zone, approximately 1.2 km south of discovery Hole KH20-37. (See News Release February 10^th, 2021). The new discovery hole KH20-34 intersected one of the best intervals on the project to date, highlighted by 1.13 g/t AuEq.* over 54 meters ("m") within a broader interval of 0.64 g/t AuEq. over 141 m (Click to View Cross Section).
  
  
• KH20-35 intersected a broad interval of 0.33 g/t AuEq. over 254 m in a sericitic alteration zone defining the northwestern edge of the porphyry system at higher elevation. The lowermost 33 m of this interval returned 0.66 g/t AuEq. confirming that the gold-grades improve with depth and are correlated with gold-rich mineralization in holes MD09-01 and KH18-11 (Click to View Cross Section); and
  
  
• KH20-36 confirmed that the Cliff Porphyry System ("Cliff") maintains its tabular shape and returned 490.8 m of 0.33 g/t AuEq, including 253 m of 0.34 g/t AuEq. and a 56 m sub-zone of 0.50 g/t AuEq. It provided a true test of the Cliff at higher elevation (Click to View Cross Section).

Metallis' President and CEO Fiore Aliperti stated, "Metallis has now established that gold grades increase with depth in two separate discovery holes. Significantly, Holes 34 and 37 are approximately 1.2 kms apart which has expanded the gold-rich mineralized corridor to a strike-length of at least 2 km." He went on to add "We are now in a much-improved position to define bulk tonnage-style gold mineralization, as in the other world class Golden Triangle deposits such as Saddle North, KSM and Red Chris. Planning is now underway for an aggressive 2021 work program focused on further expanding the gold-rich corridor and targeting even deeper copper-rich potassic core zones of the Cliff Porphyry System."

Four holes, including the discovery holes KH20-37 (Miles) and KH20-34 (Cliff), were part of the Company's 3,820 m 2020 deep drill program (the "Program"). The Program utilized results from 3D modeling and surface mapping and was designed to test the Induced Polarization ("IP") response over the HM along with the depth potential at the 4 km long Cliff Porphyry system. (See News Release September 8, 2020). All drill holes tested the deeper IP resistivity anomalies whilst cutting across the HM and a succession of calcareous and siliceous rocks (Click to View 3D Long Section). These rocks are shown to carry high-grade gold which is unusual in a typical porphyry system. The assays from the 2020 drill holes confirm that gold grades improve with depth. A summary of the 2020 Cliff - Miles assays is provided in Table 1. The gold-rich mineralized corridor is highlighted in the plan view map and field photograph, below, as well as in a series of 3D cross sections provided in the links above.

Table 1: Summary of the 2020 Assay Highlights at the Cliff Porphyry System

Exploration Potential

The structural setting, supported by the 2020 assay results, have highlighted enormous upside potential for the expansion of the gold-bearing zone along strike and at depth. Most of the previous drill campaigns tested the upper 300 m - 400 m at Cliff. For the first time, the deep drill holes revealed the depth potential based on the improving gold grades and potassic alteration as seen in the Red Chris, Deep Kerr, and Saddle North porphyry deposits in the Golden Triangle. The remnant potassic alteration along with improving chalcopyrite to pyrite ratios and vein densities in the 2020 drill holes has indicated a transition to the deeper copper-gold core below the gold zone. The Company will continue to explore both the near-surface bulk-tonnage potential and deep high-grade underground-style copper-gold potential in the upcoming 2021 season.

Metallis' Chief Geologist - Abdul Razique, PhD., P.Geo. - commented: "The gold zones are typically telescoped over the Cliff Porphyry System - the widespread gold mineralization is hosted by highly silicified porphyry intrusions, calcareous sediments and hydrothermal breccias within a footwall block at Cliff, highlighted by strong IP resistivity anomalies". He also remarked that "The 2020 Program provided us with a new perspective on the morphology of the Cliff Porphyry System, where the gold-rich corridor can now be quantified (200 m - 300 m wide by 2000 m long and 600 m deep), which remain open in all directions. Discovering significant high grade gold at depth in two holes over 1 km apart really opens up the opportunity of further expanding the gold zone and testing the deeper potassic core of the Cliff Pophyry System. We are excited to get back out to the field in 2021 and build on what we consider a highly successful 2020 season."

QAQC and Analytical Protocols

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. Drill core samples were prepared at MSA LABS' Preparation Laboratory in Terrace, BC and assayed at MSA LABS' Geochemical Laboratory in Langley, BC. Analytical accuracy and precision are monitored by the insertion of blanks, certified standards, and duplicate samples at regular intervals into the sample stream by Metallis Resources' personnel. MSA LABS quality system complies with the requirements for the International Standards ISO 17025 and ISO 9001. MSA LABS is independent of the Company.

Qualified Person

David Dupre, P.Geo, Vice President - Exploration and the Qualified Person, as defined by National Instrument 43-101, has reviewed, and approved the technical information contained in this release. Metallis believes historic results (MD09-01 to 5) referenced on the figures to be from reliable sources using industry standards at the time. However, the Company has not independently verified, or cannot guarantee, the accuracy of this historic information.

About the Kirkham Property

The wholly owned 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 Property is prospective for multiple mineral deposit types and is located along a strategic geological boundary - the "Red-line" exposed on the western margin of the Eskay Rift system in the Golden Triangle, northwestern British Columbia.

The Kirkham Property is contiguous to Garibaldi Resources' E&L Nickel Mountain Project in the north and Eskay Mining Corp. to the east. 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 symbols MTS on the TSX Venture Exchange, MTLFF on the OTCQB Exchange, and 0CVM on the Frankfurt Stock Exchange. The Company currently has 44,060,433 common 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 because 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.

View original content to download multimedia:http://www.prnewswire.com/news-releases/new-discovery-hole-confirms-substantial-extension-to-gold-zone-at-kirkham-property-drills-1-13-gt-aueq-over-54-meters-301253861.html

SOURCE Metallis Resources Inc.