Mr. Marc Pais reports

ARIZONA METALS CORP ANNOUNCES THAT KAY MINE DRILLING IN SOUTH ZONE FOLD HINGE INTERSECTS 43.1 M OF 3.9% CUEQ, (INCL. 15.2 M OF 6.7% CUEQ), AND 27.6 M OF 2.9% CUEQ (INCL. 3.5 M OF 6.7% CUEQ)

All four recently completed holes at Arizona Metals Corp.'s Kay mine project in Yavapai county, Arizona, have intersected massive sulphide mineralization, including 15.2 metres of 6.7 per cent copper equivalent in hole KM-20-13 and 6.8 metres of 7.3 grams per tonne gold equivalent in hole KM-20-10C.

In the South zone, hole KM-20-13 intersected a broad interval of 43.1 metres at a grade of 3.9 per cent copper equivalent, including 15.2 metres grading 6.7 per cent copper equivalent, located at a vertical depth of 341 metres.

Branch hole KM-20-10B, located 50 metres below KM-20-13, intersected 27.6 metres grading 2.9 per cent copper equivalent, including 3.5 metres at a grade of 6.7 per cent copper equivalent, 4.4 metres of 5.3 per cent copper equivalent and 6.6 metres at 4.8 per cent copper equivalent.

Branch hole KM-20-10C intersected an interval of 6.8 metres at a grade of 7.3 grams per tonne gold equivalent, including 4.3 metres grading 10.1 grams per tonne gold equivalent as well as 0.8 metre of 27.6 grams per tonne gold equivalent. This hole is located at the edge of the southern boundary of the historic estimate by Exxon Mineral (1982) in a newly defined gold-zinc-rich lens. It is located approximately 150 metres up dip from hole KM-20-09, which, in March, 2020, intersected 6.1 metres at a grade of 7.8 grams per tonne gold equivalent (including 4.4 metres at 9.3 grams per tonne gold equivalent as well as 1.1 metres grading 16.0 grams per tonne gold equivalent).

In the North zone, hole KM-20-12 intersected an interval of 4.9 metres at a grade of 4.8 per cent copper equivalent, including 1.9 metres grading 10.1 per cent copper equivalent, from a vertical depth of 318 metres. Approximately 5.8 metres farther down hole from this massive sulphide intersection, hole KM-20-12 also intersected 25.9 metres at a grade of 0.9 per cent copper equivalent.

Holes KM-20-14 and KM-20-15 have been completed and submitted to ALS Laboratories of Tucson, Ariz., for assaying. Holes KM-20-14A and KM-20-16 have been completed and are being sampled for submittal to ALS Laboratories.

Marc Pais, chief executive officer, commented: "Of the 20 holes drilled at the Kay mine to date, 18 have intersected massive sulphide mineralization. Because previous operators reported significantly better widths and grades in the fold hinges, the initial focus of the Kay mine phase 1 drilling in both the North and South zones has been to locate the fold hinges of the mineralized lenses. We have successfully done that, as shown by the thick intercept in hole KM-20-13 in the South zone of 43.1 metres grading 3.9 per cent copper equivalent, including 15.2 metres grading 6.7 per cent copper equivalent.

"In hole KM-20-12 in the North zone, we encountered a broad intersection (25.9 metres) of lower-grade mineralization (0.87 per cent copper equivalent) just below 4.9 metres of higher-grade (4.8 per cent copper equivalent) massive sulphide mineralization. We see this as an indication that we could be approaching a fold hinge in the North zone as well.

"Earlier this week, we started a downhole electromagnetic testing program in order to better define new targets for extension of the hinges. The geophysical results will be used in conjunction with today's results and the four holes currently at the lab to plan new holes.

"Now that we have located a hinge of significant thickness in the South zone, we will begin planning a phase 2 drill program to further define that hinge up and down plunge. Branch hole KM-20-10C has extended the gold-rich zinc lens, located outside of Exxon's historic estimate, by 150 metres up dip from hole KM-20-09, which intersected similar grades and width. We see excellent potential to extend this zone both up dip and down dip and also further to the south. Hole KM-20-15 is located 30 metres south of KM-20-10C and was drilled to test the strike extension of the gold-rich zinc lens. This hole is currently at the lab being assayed."

Kay mine downhole electromagnetic survey

On Aug. 3, 2020, Zonge International of Tucson, Ariz., commenced a downhole electromagnetic survey of seven recently completed Kay mine drill holes, including KM-20-10C, KM-20-11, KM-20-12, KM-20-13, KM-20-14A, KM-20-15 and KM-20-16. This geophysical survey is intended to identify the extensions of underground massive sulphide mineralization. The combined results of the drill hole assays and the downhole surveys will be used to design a phase 2 drill program at the Kay mine.

COVID-19 monitoring and mitigation procedures

The company's drill contractor, Boart Longyear, has instituted COVID-19 monitoring procedures for all drill crew members, including daily temperature and symptom checks. Arizona Metals will be provided with daily health tracking updates for the drill crews and has also instituted its own social distancing policies and provided a guidance manual for employees at site.

Summary of North zone drill results

Holes KM-20-01 through KM-20-06 all intersected massive sulphide mineralization. Hole KM-20-07 did not intersect significant mineralization and is believed to have passed between the North and South zones. Arizona Metals' drilling tested a vertical extent of approximately 50 metres in the North zone, to a vertical depth between 120 metres and 170 metres. Historic underground exploration by Exxon Minerals reported mineralization at depths in the North zone of up to 300 metres below recent drilling by Arizona Metals.

Highlights of the first eight holes in the North zone include:

• KM-20-03: 2.7 metres grading 5.4 per cent copper equivalent (including 0.9 metre of 10.3 per cent copper equivalent) from a depth of 120 metres;
• KM-20-03A: 4.6 metres grading 6.9 per cent copper equivalent (including 0.8 metre of 18.2 per cent copper equivalent) from a depth of 122 metres;
• KM-20-05: 2.4 metres grading 9.2 per cent copper equivalent (including 1.2 metres of 13.9 per cent copper equivalent) from a depth of 150 metres;
• KM-20-06: 13.5 metres grading 2.9 per cent copper equivalent (including 4.9 metres of 4.5 per cent copper equivalent) from a depth of 158 metres;
• KM-20-11: 2.7 metres grading 9.2 per cent copper equivalent from a depth of 490 metres;
• KM-20-12: 4.9 metres grading 4.8 per cent copper equivalent (including 1.9 metres of 10.1 per cent copper equivalent) from a depth of 318 metres;
• KM-20-12: 25.9 metres grading 0.9 per cent copper equivalent from a depth of 326 metres.

Summary of South zone drill results

Highlights of drilling to date in the South zone are as follows:

• KM-20-09: 6.1 metres grading 7.8 grams per tonne gold equivalent (including 4.4 metres grading 9.3 grams per tonne gold equivalent and also including 1.1 metres grading 16.0 grams per tonne gold equivalent) from a depth of 575 metres;
• KM-20-10A: 10.7 metres grading 4.4 per cent copper equivalent (including 1.5 metres grading 8.6 per cent copper equivalent, 3.1 metres grading 4.2 per cent copper equivalent and 1.4 metres grading 12.2 per cent copper equivalent) from a depth of 442 metres;
• KM-20-10B: 27.6 metres grading 2.9 per cent copper equivalent (including 6.6 metres at 4.8 per cent copper equivalent, 4.4 metres grading 5.3 per cent copper equivalent and 3.5 metres grading 6.7 per cent copper equivalent) from a depth of 423 metres;
• KM-20-10C: 6.8 metres grading 7.3 grams per tonne gold equivalent (including 4.3 metres grading 10.1 grams per tonne gold equivalent and 0.8 metre grading 27.6 grams per tonne gold equivalent) from a depth of 422 metres;
• KM-20-13: 43.1 metres grading 3.9 per cent copper equivalent (including 15.2 metres grading 6.7 per cent copper equivalent and 4.4 metres grading 10.3 per cent copper equivalent) from a depth of 341 metres.

Sugarloaf Peak project update

On July 6, 2020, Arizona Metals commenced a phase 1 drill program at its Sugarloaf Peak project in La Paz county, Arizona. Drill core from this program will be sent to Kappes Cassiday and Associates of Reno, Nev., to undergo bottle-roll and column testing of gold recoveries by leaching of oxide material. Samples will also be sent to ALS Minerals in Reno, Nev., for gold assay, multielement testing and spectral analysis to determine trace element levels and hydrothermal alteration variations.

The phase 1 program, comprising four drill holes, has been completed. The program was originally planned to total 1,300 metres but was increased to 1,700 metres. Two cored drill holes were extended to depths of approximately 550 metres each to test a large geophysical target that the company believes has the potential to host a higher-grade feeder zone that could be the source of the disseminated oxide mineralization identified by previous operators. The holes are currently being logged and will be submitted to the lab for assay during the month of August.

About Arizona Metals Corp.

Arizona Metals owns 100 per cent of the Kay mine property in Yavapai county, which is located on a combination of patented and Bureau of Land Management (BLM) claims totalling 1,300 acres that are not subject to any royalties.

The company also owns 100 per cent of the Sugarloaf Peak property in La Paz county, which is located on 4,400 acres of BLM claims.

The qualified person who reviewed and approved the technical disclosure in this release is David Smith, CPG.

Quality assurance/quality control

All of Arizona Metals' drill sample assay results have been independently monitored through a quality assurance/quality control protocol, which includes the insertion of blind standard reference materials and blanks at regular intervals. Logging and sampling were completed at Arizona Metals' core handling facilities located in Anthem and Black Canyon City, Ariz. Drill core was diamond sawn on site and half-drill-core samples were securely transported to ALS Laboratories' sample preparation facility in Tucson, Ariz. Sample pulps were sent to ALS's labs in Vancouver, Canada, for analysis.

Gold content was determined by fire assay of a 30-gram charge with ICP finish (ALS method Au-AA23). Silver and 32 other elements were analyzed by ICP methods with four-acid digestion (ALS method ME-ICP61a). Overlimit samples for gold, silver, copper and zinc were determined by ore-grade analyses Au-GRA21, Ag-OG62, Cu-OG62 and Zn-OG62, respectively.

ALS Laboratories is independent of Arizona Metals and its Vancouver facility is ISO 17025 accredited. ALS also performed its own internal quality assurance/quality control procedures to assure the accuracy and integrity of results. Parameters for ALS's internal and Arizona Metals' external blind quality control samples were acceptable for the samples analyzed. Arizona Metals is not aware of any drilling, sampling, recovery or other factors that could materially affect the accuracy or reliability of the data referred to herein.

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