November 24, 2014

Vancouver, BC: Metallis Resources Inc. (TSX-V: MTS) (the “Company” or “Metallis”) Metallis is pleased to announce it has entered into an Option Agreement with Karsten Energy Corp (“Karsten”) whereby by Karsten can acquire an undivided 100-per-cent interest in and to 34 claims known as the Mackenzie Mountains Iron-Copper Project, located in the Northwest Territories, Canada.

 Karsten may exercise the option by:

  • Paying a total of $296,456 in cash as follows:
    • $25,000 on signing the agreement (paid);
    • $21,456 on regulatory acceptance (paid); and
    • $250,000 on or before the fifth anniversary date of the acceptance date;
  • Incurring a total of $200,000 of exploration expenditures on or before the fifth anniversary date of the acceptance date;
  • Paying the annual assessment fees due to the government of the Northwest Territories or incurring eligible exploration expenses in respect of the property in order to keep the property concessions in good standing;
  • Issuing 250,000 shares of Karsten to the Company on or before the fifth anniversary date of the acceptance date.

If the option is exercised, the Company will retain a 2% Net Smelter Return (“NSR”) royalty, and Karsten would issue an additional 750,000 shares to the Company at the time the property goes into commercial production. Karsten may elect to purchase all or a part of the NSR for a purchase price of $500,000 for each one-half of 1% of the royalty interest, up to a total purchase price of $2 million.

TSX approval of the Option Agreement was received on November 19, 2014.

 Mr. Aliperti, President and CEO states: “Metallis Resources is pleased to have finalized the terms of this agreement as it puts this exciting asset in the hands of a good partner. As well, this transaction affords Metallis the opportunity to focus our efforts on other key assets within our portfolio of projects.”

 /s/ “Fiore Aliperti”

President and Chief Executive Officer

 For further information, please visit www.metallisresources.com

Telephone: 604-688-5077

Email: info@metallisresources.com

 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.