Metallis Resources Inc. announced that it has entered into an option agreement (the "Agreement") with Greyhound Mining & Milling Inc., (the "Optionor"), to acquire a 100% interest in the Greyhound Property (the "Property"), located in the mining friendly state of Idaho, USA. The Property encompasses the past producing, Greyhound and Bulldog high-grade silver/gold mines along with multiple historic workings. The Agreement is subject to customary regulatory approvals.

The 124 hectare Greyhound Property encompasses two past producing silver/gold mines (Greyhound and Bulldog) in central Idaho. The claims outlined in the Agreement comprise 12 patented mining claims and 3 patented mill site claims with 1 patented pending mining claim and 8 patented pending mill site claims. The Property is road accessible via paved and gravel road and is located 41 km from Stanley and 225 km from Boise, the state capital. The Property is hosted in granites and granodiorites of the Idaho batholith and contains a 3.6 km long mineralized shear zone highlighted by two past producing mines as well as multiple historic surface workings.

This shear zone, measuring up to 12 m across, contains multiple quartz-sulphide veins. Other parallel mineralized shears have been identified on the Property, but sill require evaluation. Ongoing compilation of historic assays by the Metallis geological team has suggested a robust system that demonstrates consistent mineralization at multiple historic workings including the two most developed underground operations at the Greyhound and the Bulldog mine.

In 1979 a 2,663kg bulk sample was taken from the lower Rufus Adit at the Greyhound Mine. This sample returned a grade* of: 2.39g/t Au, 1953 g/t Ag, 3% Pb and 2% Zn and exemplifies the high-grade nature of this target. In 1991, channel sampling across the mineralized vein in the Rufus Adit, taken at systematic intervals, returned an arithmetic average grade* for "ore-shoot 1350" of: 1.85 g/t Au, 785 g/t Ag over a length of 36.88m.

In 1999 a grade summary was prepared by Robert Longe to assess grade potential along the Greyhound shear. His work on the Rufus Adit demonstrated average grades* for well documented "ore-shoots" to be 684 g/t Ag and 0.85 g/t Au including 3% Zn and 1% Pb. The Agreement requires staged payments of $670,000, which commence on the date of signing the Agreement being February 26, 2024 (the "Effective Date"), and exploration expenditures of $10 million over a ten-year period.

At any time during the option period, the Company may exercise the option to acquire a 100% interest in the Property by paying $7.5 million, plus the balance remaining of the $670,000 at the time of exercise. In addition, the Company will issue a share purchase warrant to the Optionor for the purchase of up to 1,000,000 common shares of Metallis at a price of CAD 0.34 per share for a three-year period. Any reference to the term "anniversary" in the above schedule or anywhere in this news release refers to the anniversary of the Effective Date for paying by the Company of balance of the staged payments of $670,000 and exploration expenditures of $10 million.

The Optionor retains a 2% Net Smelter Returns Royalty, which may be reduced to 1% by the payment of $5 million during the term of the Agreement.