January 24, 2017

Vancouver, BC: Metallis Resources Inc. (TSX-V: MTS) (the “Company”) is pleased to announce the results of a second airborne survey conducted in August and September of 2016 on the Company’s Kirkham Property (the “Property”) located within northern British Columbia’s Golden Triangle.

In 2016, the Company engaged Geotech Ltd to conduct a VTEM/magnetic/radiometric survey over a 6000 hectare portion of the property, which was not surveyed in 2013. The VTEM component of the survey is useful for delineating conductors (veins, massive sulphide lenses) down to ~400m below surface. Magnetics are useful for delineating structures and intrusions which are associated with porphyry copper-gold deposits of the Golden Triangle. Radiometrics may show potassic alteration which is associated with some mineralized occurrences.

The 2016 survey identified four anomalies, which continue several hundred meters below the surface:

Fewright Creek: features an arcuate resistivity and magnetic anomaly surrounding a magnetic low. A small felsic plug has been mapped within this target. A large gossan occurs on the western side of the target. These features are interpreted to represent a classic alkaline porphyry copper-gold system that has experienced magnetite destruction in the center and propyllitic alteration around the rim. The geophysical results indicate that this anomaly increases in size with depth.

King East: comprises large coincident magnetic and resistivity anomalies. Numerous gold-bearing veins and several small felsic stocks have been mapped on the southern part of this target.

North and South Terwilligen: Are also characterized by coincident magnetic and resistivity anomalies. The propyllitic alteration minerals suggest that this target is high in the porphyry system. The geophysical modelling indicates the intrusion is quite near the surface.

The 2016 survey confirmed a fifth anomaly, a linear, very strong coincident resistivity and magnetic anomaly (King), originally identified by the 2013 survey, which is outboard from the mineralized Hawlison Porphyry (see map on the next page). This feature is similar to the geological setting and geophysical response associated with the Snip Mine, located 40 kilometers to the northwest. The presence of a pyroclastic dome, limestone units and mineralized chert layers also could be indicative of an Eskay Creek – type VMS deposit.

All four of the coincident magnetic and resistivity anomalies fit Metallis’ model of the geophysical response from porphyry copper/gold deposits in the Golden Triangle. King East and Fewright Creek also have strong potassium anomalies. These anomalies are at least 2 kilometers in diameter, are near the surface and display proximal features such as small diorite stocks, propyllitic alteration and local mineralized veins.

Metallis – Resistivity Anomalies Map – January 24 2017 New Release

All five anomalies are concentrated near the Stuhini-Hazelton contact (also known as the Red-Line). Kyba and Nelson (2012) have shown that many of the mineralized systems in the Golden Triangle are clustered near this contact. The large porphyry-style anomalies also display coincident potassium spectral highs. This is likely due to the presence of potassic alteration – again a classic feature of alkaline porphyry systems in the Golden Triangle. Taken together, the geophysical, geochemical, geological setting and alteration are strikingly similar to producing mines in the Golden Triangle.

Mr. Fiore Aliperti, President of Metallis states: “We are extremely pleased with results of this year’s airborne survey. We have now merged data and results from the 2013 airborne survey with the 2016 airborne survey to give us a better understanding of the property’s potential. We will be using these survey results, along with a desktop compilation of historical data collected on the property, to identify targets for a summer 2017 drilling program.”

About Metallis

Metallis Resources Inc is a Vancouver based company focused on the on the exploration of gold, silver and copper on the Kirkham Property situated in the heart of the prolific Golden Triangle in Northern British Columbia. Metallis Resources Inc. currently trades under the symbol MTS on the TSX Venture Exchange.

About the Kirkham Property

The 10,600 hectare Kirkham Property is located about 65 km north of Stewart, 20 km southwest of Barrick’s Gold Corp’s past-producing Eskay Creek Mine and 40 km southeast from their past producing Snip Mine; 40 km from Pretium Resources’ Brucejack deposit and 30 km from Seabridge’s KSM deposits.

About Geotech

Geotech is a global leader in technological innovation for airborne geophysical survey mapping, interpretation and analysis. The company has conducted airborne electromagnetic geophysical surveys, over six continents, for more than three decades using proprietary technology and has a long history of notable innovations. In the last decade, Geotech introduced to the world the first helicopter-borne time domain EM system. The VTEM system, with its superior S/N ratio, is still the industry standard, able to detect deep conductors that are “lost” in the noise of other TEM systems.

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

On behalf of the Board of Directors:

/s/ “Fiore Aliperti”
Chief Executive Officer, President and Director

For further information:
Tel: 604-688-5077
Email: info@metallisresources.com
Web: www.metallisresources.com

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 anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements.

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