High-Grade Silver Potential At Greyhound Property

VANCOUVER - Metallis Resources Inc. reported that work on the historic Greyhound Mine has increased the understanding of silver distribution, enabled the modelling of mineralization, and improved the Company's confidence in the historic silver grades. This critical information will help guide the geological team with their upcoming field program and provide potential near-term drill targets as they add to the inventory of mineralized shoots on the Greyhound Property.

VP of Exploration, Dave Dupre, said, "What attracted us to the Greyhound Property, other than the impressive historic silver grades, is the fact that none of the previous operators tested above or below the high-grade shoots that were encountered in the historic mining. This recent compilation work and resulting geological modeling indicates that, within the consistently mineralized shear, there are high-grade shoots that have a near-vertical orientation and provide significant room for discovery above and below the strong untested showings that already exist across the property. We are extremely excited to get boots on the ground in the coming months and test these concepts with modern exploration techniques."

Recent modeling has identified a vertical orientation to the mineralization which is untested to date and provides the Company its first potential near-term drill targets across several established showings. Preliminary metallurgical testing, carried out by a previous operator in 1988, resulted in very high silver recoveries of 95%. Historical grades taken from the mineralized shoots compare favorably against developed silver deposits globally.

Continued examination of historic geological reports has determined that the mineralized shoots encountered in the Lower Rufus Adit are controlled by dilatational zones in the left lateral Greyhound shear. These zones occur as flexures or intersections of the shear with northeast striking cross faults that likely predate the mineralization. This provides the framework for the vertically oriented shoots encountered to date. Shoot 1350' (36.9m of 1.85 g/t Au and 785 g/t Ag), has been described as correlating 170 m to surface where high-grade mineralization is identified, and has never been drill tested.

In the upcoming field program, the team is excited to test the vertical continuity at the historic showings as they provide immediate drill targets. These targets include, the Lower Rufus, Upper Rufus, Birdie, General Grant, Bulldog, and the Buckhorn. The large vertical scale of the system has already been demonstrated with over 500 m of elevation difference between mineralized surface samples taken at Greyhound Ridge and the Lower Rufus Adit. The analogous Lucky Friday Mine in northern Idaho shows a vertical orientation and is one of the deepest mines in North America with underground workings as low as 3000 meters below surface.

Other compilation work has revealed strong silver recoveries in metallurgical testing reports from 1988 and demonstrates the viability of this prospect in producing excellent concentrates. Basic flotation tests were completed on two 50-pound bulk samples taken from the Lower Rufus Adit and, although the tests were preliminary and basic in nature, the reports are encouraging and demonstrated that up to 95% of the silver can be recovered from the sulfide ore.