Arizona Metals Corp Announces Drilling Underway at Its Kay Mine Project in Arizona, Outlines Balance of Phase 1 Drill Program

Toronto, May 26, 2020 - Arizona Metals Corp. (TSXV: AMC) (the "Company" or "Arizona Metals") is pleased to announce that drilling is currently underway at its Kay Mine Project, located near Black Canyon City, Arizona (Figure 1). The first drill was delivered to site on Thursday, May 21, 2020, and began turning on Friday, May 22, 2020. The second drill is scheduled to be delivered on Thursday, May 28, 2020.

Prior to the temporary suspension of the Phase 1 drill program due to the Covid-19 pandemic, seven holes were drilled into the shallowest part of the North Zone, of which six intersected copper-gold massive sulphide mineralization (see April 15th, 2020 press release, and Tables 2 and 3 below). A single hole was drilled into the South Zone and intersected gold-zinc massive sulphide mineralization at a vertical depth of 575 m.

Figure 1: Drill number 1 at the Kay Mine Project, currently drilling hole KM-20-10 in the South Zone

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/5988/56579_47667ef7143819ae_001full.jpg

Continuation of Phase 1 Drill Program - Targeting New Gold-Zinc Rich South Zone Intersected by KM-20-09

Hole KM-20-09 intersected 6.1 m at a grade of 4.2 g/t gold and 8.0% zinc, at a vertical depth of 570 m in the South Zone. Hole KM-20-10 is currently underway and is targeting the 1500-foot level of the South Zone, at a vertical depth of 500 m (Figure 2). On completion of hole KM-20-10, the Company intends to use it as a trunk hole, from which at least two branch holes will be wedged; holes KM-20-10A and KM-20-10B. The Company is targeting hole KM-20-14 to test the extensions of this gold-zinc rich intersection in the South Zone. This hole is intended to be a trunk hole, from which at least two branch holes will be wedged, holes KM-20-14A and KM-20-14B.

Expanding Confidence in North Zone Targets at Depth

It is expected that hole KM-20-11 will start on Friday, May 29, 2020, once the second drill has been delivered to site. This hole will target the 1500-foot level of the North Zone, at a vertical depth of 500 m, expanding confidence in the zone at depth as the first 6 holes targeted only to a depth of 170 m. On completion, the Company intends to use this hole as a trunk hole, from which at least two branch holes will be wedged, holes KM-20-11A and KM-20-11B. The use of branch holes, combined with directional drilling, has the potential to significantly reduce the cost and time to reach individual drill targets, while also improving the accuracy of targeting. Hole KM-20-12 is targeted at historic gold- and copper-rich samples on the 1350-foot level of the South Zone. Hole KM-20-13 is targeted at historic gold- and copper-rich samples on the 1000-foot level of the North Zone. The proposed hole locations for the completion of the Phase 1 program can be found in Table 1 and Figure 2 below.

Table 1. Proposed Hole Locations for Completion of Phase 1 Program at Kay Mine, Arizona

To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/5988/56579_47667ef7143819ae_002full.jpg

Figure 2: Section looking northeast at the Kay Mine Project, Yavapai County, Arizona.
See Tables 1 and 2 for constituent elements and grades of CuEq% and AuEq g/t.

To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/5988/56579_47667ef7143819ae_003full.jpg

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 Corp. 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 (for detail, see April 15th, 2020 press release):

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 m in the North Zone, to a vertical depth between 120-170 m. Historic underground exploration by Exxon Minerals reported mineralization at depths in the North Zone of up to 300 m below recent drilling by Arizona Metals.

Highlights of the first six holes in the North Zone include:

KM-20-03: 2.7 m grading 5.41% CuEq (incl. 0.9 m of 10.32% CuEq), from a depth of 120 m

KM-20-03A: 4.6 m grading 6.85% CuEq (incl. 0.8 m of 18.19% CuEq) from a depth of 122 m

KM-20-05: 2.4 m grading 9.19% CuEq (incl. 1.2 m of 13.89% CuEq) from a depth of 150 m

KM-20-06: 13.5 m grading 2.92% CuEq (incl. 4.9 m of 4.54% CuEq) from a depth of 158 m

Table 2. Results of Initial Drill Program at Kay Mine North Zone, Yavapai County, Arizona

(1) True widths of the reported mineral intervals have not been determined; additional drilling is required.

(2) Assumptions used in USD for the copper equivalent calculation were metal prices of $2.28/lb Copper, $1650/oz Gold, $15/oz Silver, $0.86/lb Zinc, $0.77/lb Pb and recovery is assumed to be 100% as no metallurgical test data is available. The following equation was used to calculate copper equivalence: CuEq = Copper (%) + (Gold (g/t) x 1.06) + (Silver (g/t) x 0.0096) + (Zinc (%) x 0.3772) +(Lead (%) x 0.3377).

To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/5988/56579_47667ef7143819ae_004full.jpg

Summary of South Zone Drill Results (for detail, see April 28th, 2020 press release):

Prior to the temporary suspension of the Phase 1 drill program due to the Covid-19 pandemic, a single hole was drilled into the South Zone and intersected gold-zinc massive sulphide mineralization at a vertical depth of 575m, with the following highlighted interval:

KM-20-09: 6.1 m grading 7.8g/t AuEq, including 4.4 m grading 9.3g/t AuEq, and also including 1.1 m grading 16.0 g/t AuEq (Table 1).

This intersection is approximately 160 m vertically above and 100 m to the south of hole KM-8, drilled by Exxon Minerals in 1977, which returned a true width intersection of 10.3 m at a grade of 3.9% Cu and 1.7 g/t Au (6.5% CuEq). Exxon Minerals also reported significant historic intersections located approximately 150 m vertically above hole KM-20-09 in the South Zone. The primary zinc mineralization observed in hole KM-20-09 is in sphalerite, with minor amounts of copper in chalcopyrite (Figure 2).

Table 3. Results of Initial Drill Program at Kay Mine South Zone, Yavapai County, Arizona

(1) True widths of the reported mineral intervals have not been determined; additional drilling is required

(2) Assumptions used in USD for the gold equivalent calculation were metal prices of $2.28/lb Copper, $1650/oz Gold, $15/oz Silver, $0.86/lb Zinc, $0.77/lb Pb and recovery is assumed to be 100% as no metallurgical test data is available. The following equation was used to calculate gold equivalence: AuEq = Gold (g/t) + (Copper (%) x 94.72) + (Silver (g/t) x 0.009) + (Zinc (%) x 35.73) +(Lead (%) x 31.99).

To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/5988/56579_47667ef7143819ae_005full.jpg

Historic data by Exxon Minerals and previous operators showed gold and zinc increasing at depth and to the south, with copper decreasing. Exxon Minerals also reported that, "isoclinal folding of the massive sulphide horizon at Kay Mine could have resulted in the formation of a number of en-echelon cigar-shaped massive sulphide boudins with the longest axes parallel to the plunge of the fold axes. The North and South Mineralized Zone could represent two of these lenses, but several more may occur to the south along strike of the Kay Mine horizon" (Westra, 1977).

Financing Update

On May 13th, 2020, Arizona Metals announced that Stifel GMP and Canaccord Genuity Corp, the "Underwriters," had agreed to increase the Underwriter's Option to 4,650,000 units, which if exercised in full will results in gross proceeds to the Company of $6,045,000. The completion of the Offering shall be subject to, among other things, the receipt of all necessary regulatory and stock exchange approvals relating to the Offering as are appropriate in the circumstances, including the approval of the TSX Venture Exchange (the "TSXV") prior to the Closing Date, on or about May 29, 2020.

Sugarloaf Peak Project Update

Arizona Metals owns 100% of the Sugarloaf Peak Property, in La Paz County, which is located on 4,400 acres of BLM claims. Sugarloaf is a heap-leach, open-pit target and has a historic estimate of "100 million tons containing 1.5 million ounces gold" at a grade of 0.5 g/t (Dausinger, 1983, Westworld Resources). The historic estimate has not been verified as a current mineral resource. None of the key assumptions, parameters, and methods used to prepare the historic estimate were reported, and no resource categories were used. Significant data compilation, re-drilling and data verification may be required by a Qualified Person before the historic estimate can be verified and upgraded to be compliant with current NI 43-101 standards. A Qualified Person has not done sufficient work to classify it as a current mineral resource, and Arizona Metals is not treating the historic estimate as a current mineral resource.

The Company has received approval of its drill permit at Sugarloaf, and has submitted a reclamation bond with the Bureau of Land Management. The 5,000 m core and RC drill program is intended to test the strike extensions of the Sugarloaf deposit, and test geophysical anomalies. Preparations are underway for drilling of the first three holes, intended to test deep geophysical anomalies and potentially provide material for metallurgical testing, planned to consist of bottle-roll and column leach recovery tests.

About Arizona Metals Corp

Arizona Metals Corp. owns 100% of the Kay Mine Property in Yavapai County, which is located on a combination of patented and BLM claims totaling 1,300 acres that are not subject to any royalties. An historic estimate by Exxon Minerals in 1982 reported a "proven and probable reserve of 6.4 million short tons at a grade of 2.2% copper, 2.8 g/t gold, 3.03% zinc, and 55 g/t silver." The historic estimate at the Kay Mine was reported by Exxon Minerals in 1982. The historic estimate has not been verified as a current mineral resource. None of the key assumptions, parameters, and methods used to prepare the historic estimate were reported, and no resource categories were used. Significant data compilation, re-drilling and data verification may be required by a Qualified Person before the historic estimate can be verified and upgraded to be a current mineral resource. A Qualified Person has not done sufficient work to classify it as a current mineral resource, and Arizona Metals is not treating the historic estimate as a current mineral resource.

The Kay Mine is a steeply dipping VMS deposit that has been defined from a depth of 60 m to at least 900 m. It is open for expansion on strike and at depth.

The Company also owns 100% of the Sugarloaf Peak Property, in La Paz County, which is located on 4,400 acres of BLM claims. Sugarloaf is a heap-leach, open-pit target and has a historic estimate of "100 million tons containing 1.5 million ounces gold" at a grade of 0.5 g/t (Dausinger, 1983, Westworld Resources).

The historic estimate at the Sugarloaf Peak Property was reported by Westworld Resources in 1983. The historic estimate has not been verified as a current mineral resource. None of the key assumptions, parameters, and methods used to prepare the historic estimate were reported, and no resource categories were used. Significant data compilation, re-drilling and data verification may be required by a Qualified Person before the historic estimate can be verified and upgraded to a current mineral resource. A Qualified Person has not done sufficient work to classify it as a current mineral resource, and Arizona Metals is not treating the historic estimate as a current mineral resource.

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 ("QA/QC") 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, Arizona. Drill core was diamond sawn on site and half drill-core samples were securely transported to ALS Laboratories' ("ALS") sample preparation facility in Tucson, Arizona. 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). Over-limit samples for Ag, Cu, and Zn were determined by ore-grade analyses Ag-OG62, Cu-OG62, and Zn-OG62, respectively.

ALS Laboratories is independent of Arizona Metals Corp. and its Vancouver facility is ISO 17025 accredited. ALS also performed its own internal QA/QC procedures to assure the accuracy and integrity of results. Parameters for ALS' 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.

This press release contains statements that constitute "forward-looking information" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation, All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements contained in this press release include, without limitation, statements regarding the resumption of drilling and the effects of the COVID-19 pandemic on the business and operations of the Company. In making the forward- looking statements contained in this press release, the Company has made certain assumptions. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurance that the expectations of any forward-looking statements will prove to be correct. Known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: availability of financing; delay or failure to receive required permits or regulatory approvals; and general business, economic, competitive, political and social uncertainties. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward- looking statements or otherwise.

NEITHER THE TSX VENTURE EXCHANGE (NOR ITS REGULATORY SERVICE PROVIDER) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

For further information, please contact:

Marc Pais

President and CEO Arizona Metals Corp.

(416) 565-7689

mpais@arizonametalscorp.com

www.arizonametalscorp.com

https://twitter.com/ArizonaCorp

Not for distribution to US newswire services or for release, publication, distribution or dissemination directly, or indirectly, in whole or in part, in or into the united states

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/56579