METALLIS ADVANCES GEOLOGICAL INTERPRETATION OF GREYHOUND SHEAR AND REFINES TARGETING MODEL FOR 2026 DRILL PROGRAM

Executive Summary

• Metallis Resources has completed a technical review and reinterpretation of the Greyhound Silver-Gold-Antimony Project in Idaho using 3D modeling.
• The updated model identifies new high-grade target areas along a 3.5 km trend and reveals a significant new geochemical anomaly north of the Republican zone.
• A 3,000-meter drilling program is planned for the 2026 field season, focusing on the Rufus Zone and targets including Bulldog, Birdie, and Idaho.

Key Details

• Refined Geological Model: The Greyhound shear system is now interpreted as comprising multiple southwest-dipping shear veins with ore shoots associated with dilation zones.
• Historical Corrections: Corrected spatial inaccuracies; the main Rufus shear zone dips steeply to the southwest rather than northeast.
• 2025 Drilling Results Context: Holes GH-25-05, -06, and -07 intersected the shear zone revealing a broader 30-40 m wide mineralized system. Hole GH-25-07 returned 94.76 g/t Ag over 15.45 m.
• Geochemistry: Zinc used as a pathfinder element showing strong correlation (r = 0.75) with silver in rock samples north of the Republican zone.
• 2026 Exploration Program: Planned drilling is approximately 3,000 meters, focusing on high-grade shoots within the Rufus Zone (500, 1000, and 1350 zones).

Notable Quotes

• Dave Nuttall, VP of Exploration: "The updated geological interpretation represents an important step forward in understanding how mineralization is distributed at Greyhound... This improved understanding allows us to more precisely target the high-grade portions of the system."

News Context and Expectations

• The news confirms the execution of the 2026 drilling program previously funded by the March 2026 private placement ($1.262M).
• It refines targeting based on 2025 drill results, which were released in December 2025 (NewsId 122412) and caused a significant price spike followed by a sharp decline.
• The market has already priced in the existence of high-grade mineralization from the Dec 2025 announcement; this news is an operational refinement rather than a new discovery event.

Impact on Stock Price

• Positive but Incremental: The news validates the company's exploration strategy and reduces geological risk for the upcoming drill program, which is positive for long-term value. However, it does not announce a new resource estimate or immediate production potential.
• Market Skepticism: Following the December 2025 high-grade discovery (which saw price jump to $0.55 then crash to $0.19), investors appear cautious about exploration-stage volatility. This update is expected by the market given the financing timeline and previous announcements.
• No Immediate Catalyst: There are no immediate financial results or resource estimates attached to this release, limiting short-term upside potential compared to a discovery announcement.

Corporate Profile

• Company Name: Metallis Resources Inc. (TSX-V: MTS, OTCQB: MTLFF).
• Strategy: Focus on exploration of high-grade gold-copper targets in the Golden Triangle (Kirkham) and polymetallic silver-gold-antimony targets in Idaho (Greyhound).
• Management: Fiore Aliperti (CEO), Dave Nuttall (VP Exploration - appointed March 2026).

Flagship Project: Greyhound Property

• Location: Central Idaho, ~42 km NW of Stanley.
• Status: Exploration stage; inaugural drilling completed in late 2025.
• Geology: Polymetallic quartz-sulphide veins containing gold, silver, antimony (critical mineral), lead, and zinc within a 3.5 km shear zone.
• Historic Data: Historic channel samples returned up to 1.85 g/t Au and 785 g/t Ag over 36.9 m. Recent drilling confirmed high-grade shoots.

Secondary Project: Kirkham Property

• Location: Golden Triangle, British Columbia.
• Status: Exploration stage; advanced target pipeline (Cliff, Miles, Cole).
• Focus: Gold-copper targets with extensive regional endowment data.