Mr. Fiore Aliperti reports

METALLIS COMPLETES VTEM SURVEY & PROVIDES EXPLORATION UPDATE ON THE CENTRAL KIRKHAM AREA

Geotech Ltd. has completed the 2018 airborne versatile time-domain electromagnetic survey over Metallis Resources Inc.'s Thunder North, Thunder South and King areas within its 100-per-cent-owned Kirkham property.

The high-resolution VTEM survey (83.3-metre line-spacing), within the previous VTEM data set of 250-metre line spacing, covered a 13.3-square-kilometre block of the Central Kirkham area and included the King, King East, Cole and Etta prospects. The VTEM survey was designed to detect conductors related to volcanogenic massive sulphide (VMS), shear-vein hosted gold and porphyry copper-gold systems. Results will be integrated with historical data to prioritize targets for follow-up groundwork during the 2018 exploration season. Exploration activities are scheduled to commence as soon as weather conditions allow.

Targets within the Central Kirkham area

The Central Kirkham area is defined as between the King and Terwilligen creeks. This area contains the regionally significant "red-line" of Kyba (2014); the Hazelton-Stuhini contact spatially coincident with several prolific deposits (Eskay Creek, Brucejack, KSM, Red Chris, Snip and others) throughout northwest British Columbia.

The western domain is underlain by Jurassic Hazelton group rocks and contains shallow marine exhalative sulphide showings at the Etta, King and Natt prospects. The stratigraphic position is interpreted to be similar to the host rocks of the Mid-Jurassic Eskay Creek mine.

The eastern domain contains the Cole and King East porphyry prospects and is underlain by Triassic Stuhini group rocks which are intruded by the Hawilson monzonite. The Hawilson monzonite is an approximately six-kilometre north-south trending stock assigned to the Texas Creek intrusive suite which contains the Mitchell Intrusions responsible for Seabridge Gold's KSM copper-gold porphyry deposits.

King

A 2017 drill hole (KH17-10) revealed that the King geophysical conductor located about 200 metres west of the Hawilson monzonite is attributed to graphitic shale with five millimetres to eight mm wide pyrrhotite bands near the volcanic/sediment contact. The stratabound sulphides and several intervals of anomalous pathfinder elements including lead, zinc, silver, antimony, arsenic and mercury are interpreted to be a distal expression of a VMS system.

Etta and Natt

The Etta showing is located about 600 metres north of the King target. The showing is hosted in a sequence of sedimentary rocks including a 20 m thick argillite-siltstone unit with an underlying two to five m thick argillaceous chert unit. A 300 m long, south-trending soil anomaly (gold, silver, arsenic and zinc) extends from the outcropping chert. Historic grab samples included a pyritic argillaceous chert which returned 0.29 gram per tonne Au, and gossanous boxworks which returned 1.37 grams per tonne Au.

The Natt showing is located about 500 m south of the King target (outside the 2018 VTEM Central Kirkham block) and is hosted in a succession of volcanic flows, coarse pyroclastic rocks, mudstones, minor limestone and chert beds favourable for VMS style mineralization.

The host lithology and anomalous gold values in soil and rock samples of both the Etta and Natt prospects are being interpreted and tested as a vent proximal facies with a siliceous, shallow marine exhalative unit, comparable with the Eskay Creek host stratigraphy. Work during 2018 will integrate VTEM conductors to refine the targets and prospect model.

King East

The King East target is defined by coincident magnetic and resistivity anomalies. Previous work highlighted numerous narrow gold-bearing veins, small intrusive stocks and anomalous Au-Cu values in soil from subcrop exposed by trenches in the southern target area. The combined geology, geophysical and geochemical signature patterns identify this area as a copper-gold porphyry target similar to one of the KSM deposits. Results from the 2018 VTEM survey will assist to refine the deposit model and identify potential drill targets.

Cole

The Cole prospect is located at the northern extent of the six km long Hawilson monzonite. During 2017, exploration work outlined a 400 m by 200 m wide area of gossanous, quartz-sericite-pyrite altered porphyry outcrops. Alteration mapping indicates a zonation of an intense QSP assemblage surrounded by propylitic, chlorite-epidote-carbonate alteration. Rock grab samples returned values between 0.2 per cent to 0.9 per cent Cu while soil values returned 300 parts per million Cu to greater than 600 ppm Cu and 100 to 500 parts per billion Au. The Cole target area represents significant potential for porphyry copper-gold mineralization analogous to the Kerr porphyry Cu-Au deposit at KSM. The Kerr deposit is hosted by a suite of north-south-trending intrusive dikes and narrow stocks and contains a measured and indicated resource of 378.4 million tonnes averaging 0.41 per cent Cu, 0.22 g/t Au.

Moving forward -- 2018 exploration program

The 2018 work program is scheduled to include extensive groundwork of geological mapping and geochemical sampling following up known target areas discussed above as well as new priority targets identified in the VTEM survey results. Dr. Razique, chief geologist for Metallis, commented: "The Kirkham property remains highly prospective for VMS, shear-vein hosted gold and porphyry copper-gold deposits. The VTEM results combined with comprehensive geological understanding will further refine targets and focus exploration efforts toward discovery. We are also excited to continue exploring the Kirkham property for magmatic nickel-sulphide prospects similar to the adjoining Garibaldi Resources Nickel Mountain project."

Metallis president and chief executive officer Fiore Aliperti commented: "We are eagerly waiting to see the results from the expanded VTEM survey and its implications for the upcoming exploration and drilling program. With the focus to the north of the Kirkham property, it's easy to forget what a fantastic land package Metallis holds. We are well financed to conduct a comprehensive exploration program this year."

Qualified person

Technical aspects of this news release have been reviewed and approved by David Dupre, PGeo, designated as a qualified person under National Instrument 43-101.

About the Kirkham property

The 106-square-kilometre Kirkham property is located about 65 km 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 Kirkham is within 12 km of the Eskay Creek mine and the eastern border is within 15 to 20 km of Seabridge Gold's KSM deposits and Pretium Resources' Brucejack mine.

About Metallis Resources Inc.

Metallis is a Vancouver-based company focused on the exploration of gold, copper, nickel and silver at its 100-per-cent-owned Kirkham property situated in northwest British Columbia's Golden Triangle.

2018 Venture 50

Metallis Resources was recently included in the 2018 Venture 50. The V50 is a ranking of top performers on the TSX Venture Exchange last year. The ranking consists of 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.

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