Metallis Announces Significant Antimony Results At Greyhound As China Limits Critical Mineral Exports

VANCOUVER, Sept. 4, 2024 - Metallis Resources Inc. (TSXV: MTS) (OTCQB: MTLFF) (the "Company" or "Metallis") is pleased to announce antimony assay results from the inaugural field exploration program (the "Program") on the Company's Greyhound property ("the Property"), a high-grade silver/gold/antimony project within a historic stibnite mining camp, located in Idaho, USA. Initial results have returned multiple rock samples greater than 1% antimony at a time when significant attention is being paid to this critical mineral. Recent curbs by the Chinese government have increased urgency for domestic sources of antimony, demonstrated by the US federal government's funding of nearby Perpetua Resources with a US$1.8 billion loan facility to develop an antimony/gold mine, and the Pentagon's commitment of US$60 million to fund the mine's permitting.

Fiore Aliperti, Metallis' President and CEO, commented, "With no active antimony mines currently operating in North America and China's recent export restrictions which tighten the global supply, the need for an antimony discovery has never been more urgent. The significance of these early-stage high-grade antimony assays from the Greyhound Property cannot be understated and could not have come at a better time for the Company." He went on to add, "The U.S. federal government's policy is to eliminate China's stranglehold on global antimony, and their substantial financial backing of nearby Perpetua Resources underscores the strategic importance of this mineral. The ongoing exploration work at Greyhound has the potential to position us as a key name within the junior resource sector, recognized for the exploration of this critical mineral."

Program Results

The Program, which began in early July, was designed to outline high-grade mineralized shoots at several historic showings along the 3.6 km Greyhound shear zone. A total of 559 soil samples and 133 rock samples were collected along with geological mapping and structural data. Roadwork was also completed to maintain safe and efficient access to the property and to several historic showings on site.

Initial assay results have confirmed that the Greyhound shear hosts highly anomalous antimony ("Sb") with 12% of the rocks returning >1% Sb. The most elevated antimony assay was returned from a rock sample taken at the Bulldog Showing that delivered a significant 4.54% Sb from semi-massive sulfide containing galena, sphalerite, arsenopyrite and stibnite. Three contiguous rock samples taken as 'continuous chips' near the Bulldog returned 0.61% Sb over a 3 m length, further validating the strong mineralization at surface. Although consistent antimony mineralization was identified along the entire length of the Greyhound shear, the best antimony results occur in the northwestern portion of the property at showings that include Bulldog, Republican, and Idaho, none of which have ever been drilled (See map). Assay results for gold and silver are pending as "over-limit" analyses are still being completed.

By comparison, Perpetua's Stibnite Project has an estimated total measured and indicated resource (43-101 Feasibility Study Technical Report - January 2021) of 132,269,000 tonnes at a grade of 1.42 g/t gold, 2.07 g/t silver and 0.07% antimony. The Yellow Pine and Hangar Flats sub-domains exhibit substantially elevated antimony-silver mineralization, defined as containing greater than 0.1% antimony, the total measured and indicated resources are 18,477,000 tonnes grading 2.07 g/t gold, 5.91 g/t silver and 0.48% antimony.

China's Export Restrictions

China recently announced plans to impose new export restrictions on antimony and related elements, citing national security concerns as the primary motivation. Effective September 15, 2024, the restrictions will cover six antimony-related products, including antimony ore and metals. Additionally, the export of gold-antimony smelting, and separation technology will require government approval. As China seeks to restrict exports and protect its strategic resources, these measures are part of a broader effort to maintain control over critical minerals essential for military applications, such as ammunition and infrared missiles. China currently dominates the global antimony market, accounting for 48% of global output in 2023 with Tajikistan and Russia controlling another 30%.

These restrictions are likely to exacerbate global supply shortages, particularly in the United States and Europe, where military demand for antimony is rising due to increasing geopolitical tensions. Perpetua Resources, which is advancing its Pentagon-backed antimony-gold project located 38 km north of the Greyhound Property, is exploring ways to accelerate production in response to these urgent strategic needs. China's announcement has already triggered a notable market response, with Perpetua's shares soaring by 25% and antimony prices hitting record highs in 2024. This latest move by China follows similar export controls on other critical materials like rare earths and graphite, further heightening concerns over the stability of critical mineral supply chains (Click Here to view a recent article on Mining.com covering China's recent antimony restrictions).

Qualified Person

David Dupre, P.Geo, Vice President - Exploration and the Qualified Person, as defined by National Instrument 43-101, has reviewed and approved the technical information contained in this release.

Analyses have been completed by ALS Laboratories Ltd., an independent certified laboratory. Banks and standards have been added to the samples stream by ALS at a rate of 1 every 10 samples and have returned acceptable results.

About the Greyhound Property

The recently acquired Greyhound Property is in Custer County, Idaho, approximately 42 km northwest of the town of Stanley. The Company has an option to earn a 100% interest in Greyhound with staged payments and exploration expenditures over a ten year period of US $670,000 and US $10,000,000, respectively. Full terms are disclosed in the annual and quarterly financial statements filed in 2024 and in press release from the signing of the agreement on February 27, 2024. This property was the center of an active silver mining camp in the early 1900's and at one point contained a smelter and two active mines situated along a 3.6 km mineralized shear zone. Since 1910, the property has seen limited exploration and only minor development when the Greyhound Mine was reactivated and mined from 1980-1991. The last remaining ore from this period was shipped to a smelter in 2000 and the property remains substantially underexplored.

About Metallis

Metallis Resources Inc. is a Vancouver-based company focused on the exploration for gold, copper and silver on its flagship 100%-owned Kirkham Property in Canada, situated in northwest British Columbia's Golden Triangle, and on its recently acquired Greyhound Property, a gold/silver/antimony target in Idaho, USA.

Metallis trades under the symbols MTS on the TSX Venture Exchange, MTLFF on the OTCQB Exchange, and 0CVM on the Frankfurt Stock Exchange.

On behalf of the Board of Directors:

/s/ "Fiore Aliperti"
Chief Executive Officer, President, and Director

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SOURCE Metallis Resources Inc.