TSX-V:MMG     US OTC:MMNGF

2017

October 23, 2017, Vancouver, B.C., Metallic Minerals Corp. (TSX-V: MMG; US OTC: MMNGF)(“Metallic Minerals” or the “Company") is pleased to announce results from field exploration programs conducted at its 100% owned McKay Hill silver and gold project, located 50 kilometers (“km”) north of the historic Keno Hill silver district, adjacent to ATAC Resources Ltd.’s Rackla Gold project in Canada's Yukon Territory (see Figure 1 below).

The McKay Hill project occurs within a belt of silver-lead-zinc related deposits that stretch from the Alaska border to the southern part of the Yukon and includes the famous Keno Hill silver district. McKay Hill is an historic high-grade producer that shows potential to host a significant district scale vein system similar to Keno Hill, with at least 16 identified vein structures that have seen very limited modern exploration. McKay Hill was discovered in the 1920s and worked on between 1926-29, including a shallow drill program by Consolidated Mining and Smelting Company of Canada (now Teck Resources Limited). Between 1948 and 1949, East Bay Gold produced 143 tonnes of high-grade material from the No. 6 vein at McKay Hill, grading 390.8 g/t Ag and 74.1% Pb.1

Historic surface sampling at McKay Hill returned high-grade silver, lead and zinc mineralization associated with vein structures. More recent field work conducted by Metallic Minerals, and its predecessor, confirmed these historic high grades of silver, lead and zinc and also demonstrated the presence of significant associated gold and copper values. Exploration work in 2017 included follow up rock and soil sampling, reconnaissance and detailed mapping of veins in the Central Zone and Independence Ridge areas. In addition, high resolution satellite photography was collected over the entire property to provide mapping and topographic ground control for use in future programs. Soil sampling extended the existing soil grid in the Central Zone to cover open anomalies and a new soil grid was established at the Independence Ridge area. Mapping and prospecting noted some distinctive hydrothermal and structural characteristics to the mineralization, which suggests the potential for a large mineralized system.

Most of the exploration at McKay Hill to date has been conducted on the Central Zone where veins No. 1 to 9, Bella, Blackhawk and Snowdrift occur near the area of historic production. Much of the claim block remains under-explored, including in the Independence Ridge area to the east of the Central Zone, where at least four vein zones are exposed. Additional vein targets occur to the north and west of the Central Zone near the Falls, Red, and White Hill targets. Highlights from sampling to date at McKay Hill are shown below in Table 1, with 2017 samples denoted by an asterisk. Tables 2 and 3 provide a comprehensive summary of all significant rock sample results collected to date on the property. The locations of these samples are shown on Figure 2.

Table 1 - Highlight Rock Sample Values to Date from McKay Hill:

Sample

Vein

Type

Ag g/t

Au g/t

Pb %

Zn %

Cu %

29887

No. 1 W

Grab

502

0.77

46.4

0.47

2.40

526147

No. 2

Grab

608

0.22

35.2

3.50

3.22

526238

No. 6

1.1m Chip

683

0.83

40.5

0.40

0.78

1907517*

No. 6

Grab

988

24.4

37.7

3.71

7.97

1907519*

No. 6

Grab

742

2.36

40.0

14.72

2.92

MK002

No. 8

Grab

646

16.8

27.0

0.14

0.64

29889

Blackhawk

Grab

484

0.9

54.7

3.33

0.53

526243

Central

Grab

360

3.3

21.8

10.30

4.10

MK006

Snowdrift

Grab

668

15.6

2.4

0.94

3.90

29886

Snowdrift

Grab

534

2.49

47.0

0.46

2.16

113852*

Independence

Grab

706

0.18

77.8

0.38

1.63

526245

Falls Vein

1.1m Chip

1.1

10

0.1

0.02

0.01

526241

North

Grab

372

1.84

22.7

7.01

1.96

1Geological and Geochemical Evaluation Report on the McKay Hill Project, Jean Pautler, P.Geo. JP Exploration Services Inc., 2009

Greg Johnson, CEO & Chairman stated, "We are very encouraged by the results we have seen thus far from McKay Hill with 23 samples from 12 of the 16 known vein structures running greater than 300 g/t silver, which is the average reserve grade of global primary silver producers2. The assay results from rock sampling and soil grid work have verified the potential for high-grade silver, lead, and zinc mineralization, as well as demonstrated very significant gold and copper in this emerging district scale property. Two distinct soil anomalies remain open to further expansion covering more than 1.5 kms of total length with elevatedsilver, gold, lead, zinc and copper values. Results from the SkyTEM EM survey in Figure 3 show several additional areas on the property with similar geophysical characteristics to the Central Zone. Based on our initial results, additional field work has been conducted this month to extend soil sampling over mineralized areas that remain open to expansion and further staking was undertaken to expand the property by another 20% to 35.4 km2. The results from McKay Hill support continued work on the project in 2018 and we are excited to have a second property in our portfolio that is advancing to the drill testing stage, substantiating the potential to develop numerous high-grade drill targets.”

Figure 1 - McKay Hill Location and Claims


McKay Hill Project Next Steps

The information provided by the 2017 field program, and a comprehensive review of historic data, has enabled theMetallic Minerals technical team to begin developing future programs which are expected to commence in 2018 and consist of:

  1. Additional prospecting and surface geochemical sampling on areas of the property not covered to date, particularly over the identified geophysical targets (see Figure 3);
  2. Mapping over the expanded soil grids and chip sampling of newly identified vein occurrences;
  3. Expansion of the existing soil grids of the Central Zone and Independence Ridge areas where the anomalous trends remain open;
  4. Trenching and geophysical surveys to define and prioritize potential drill targets on the most advanced prospects including the No. 1, 6, and 8 veins, and the Snowdrift, Blackhawk and Independence veins; and
  5. Potential drilling on the most advanced targets identified through preliminary surface work.

2 “New Explorer for High-Grade Silver Resources in the Prolific Keno Hill Silver District of Yukon, Canada”; September 5, 2017 - Michael Fowler, Loewen, Ondaatje, McCutcheon Limited.

Figure 2 - Rock Sample Geochemistry and Soil Sample Location Map

Figure 3 - McKay Hill SkyTEM EM Survey

Circles indicate priority exploration targets.

Comprehensive Summary Tables of All Rock Sampling to Date at McKay Hill Project

Table 2 - Central Zone Rock Samples with Most Significant Results Highlighted in Grey

Sample

Vein

Type

Ag g/t

Au g/t

Pb %

Zn %

Cu %

29887

No. 1 W

Grab

502

0.765

46.4

0.47

2.40

MK007

No. 2

Grab

342

0.02

28.0

0.26

0.03

526195

No. 2

Grab

342

0.11

29.3

1.29

0.32

526147

No. 2

Grab

608

0.22

35.2

3.50

3.22

526148

No. 2

Grab

366

0.02

46.8

0.03

0.02

MK004/5

No. 4

Grab

70

0.05

23.0

10.10

0.18

526197

No. 4

0.4m Chip

9.7

0.035

3.3

11.30

0.09

MK008

No. 6

Grab

324

0.065

32.0

3.20

0.04

526194

No. 6

Grab

516

0.07

30.2

1.28

0.19

526238

No. 6

1.1m Chip

683

0.83

40.5

0.40

0.78

526239

No. 6

Grab

528

0.565

50.6

8.66

1.52

56813

No. 6

Grab

32.4

0.005

9.0

1.93

0.01

56814

No. 6

Grab

156

0.03

58.3

6.30

0.09

1907517

No. 6

Grab

988

24.4

37.7

3.71

7.97

1907518

No. 6

Grab

442

0.618

43.9

0.51

0.48

1907519

No. 6

Grab

742

2.355

40.0

14.72

2.92

MK001

No. 8

Grab

234

0.06

26.0

0.11

0.28

MK002

No. 8

Grab

646

16.8

27.0

0.14

0.64

MK003

No. 8

Grab

710

0.39

33.0

0.50

0.49

526198

No. 8

Grab

125

0.09

14.9

6.75

0.26

MK009

No. 9

Grab

366

0.36

25.0

6.90

0.72

526199

No. 9

Grab

18

0.02

2.0

0.43

0.09

526200

No. 9

0.3m Chip

51.8

0.025

2.1

0.30

0.45

29896

No. 9

Grab

132

0.59

5.1

2.31

2.24

29889

Blackhawk

Grab

484

0.9

54.7

3.33

0.53

29890

Blackhawk

Grab

551

0.51

47.3

1.16

0.51

29891

Blackhawk

1.2m Chip

112

0.34

16.5

4.13

0.29

56815

Blackhawk

Grab

139

1.29

9.9

3.18

0.90

526247

Blackhawk E

Grab

27.9

0.015

5.1

19.10

0.002

29888

Blackhawk W

Grab

26.1

0.025

4.3

21.60

0.02

526244

Blackhawk W

Grab

100

1.14

0.3

0.17

1.46

526243

Central

Grab

360

3.3

21.8

10.30

4.10

1907516

Central

Grab

297

0.271

34.1

30.84

0.81

MK006

Snowdrift

Grab

668

15.6

2.4

0.94

3.90

526196

Snowdrift

1.5m Chip

57.2

1.37

1.5

4.70

0.63

29885

Snowdrift

Grab

470

0.085

46.5

0.29

0.60

29886

Snowdrift

Grab

534

2.49

47.0

0.46

2.16

526150

Snowdrift

Grab

174

2.61

0.4

0.13

0.69

Table 3. Independence Ridge and Northern Zone Rock Samples with Most Significant Results Highlighted in Grey

Sample

Vein

Type

Ag g/t

Au g/t

Pb %

Zn %

Cu %

580077

Independence

Grab

16.1

0.074

1.3

0.83

0.09

580078

Independence

Grab

23.2

0.018

12.4

4.48

0.03

580079

Independence

1.1m Chip

59.7

0.024

10.7

9.04

0.04

580080

Independence

Grab

20.7

0.033

9.8

18.86

0.05

580081

Independence

Grab

9.2

0.015

4.9

11.03

0.03

580082

Independence

Grab

288.8

0.031

10.9

0.15

0.03

580083

Independence

Grab

55.9

0.054

10.2

19.70

0.004

113852

Independence

Grab

706

0.178

77.8

0.38

1.63

113351

Snowdrift E

Grab

80

0.28

0.1

0.93

3.40

580076

Snowdrift E

Grab

98.5

0.336

0.1

0.95

3.01

113851

Snowdrift E

Grab

3

0.007

0.04

5.20

0.01

526241

North

Grab

372

1.84

22.7

7.01

1.96

526245

Falls Vein

1.1m Chip

1.1

10

0.1

0.02

0.01

29897

Falls Vein

Grab

42.3

0.2

1.0

0.04

1.33

29895

Bella

Grab

84

0.445

15.2

1.00

1.06

29892

Red 1

Grab

29

0.48

3.7

0.01

0.004

56853

White Hill

Grab

0.2

0.005

0.03

0.01

0.50

Grab samples are selective and are may not be representative of the mineralization hosted on the property.

Keno Silver Project Update

The 2017 field exploration program at the Company’s flagship high-grade Keno Silver Project, adjacent to Alexco Resource Corp., in the Keno Hill silver district was completed in September. All materials from surface sampling, trenching and drilling have been sent for analysis. Assay results are anticipated in the coming weeks, following one of the busiest Yukon exploration seasons in years.

About Metallic Minerals Corp.

Metallic Minerals Corp. is a growth stage exploration company focused on the acquisition and development of high-grade silver and gold in the Yukon within under explored districts proven to produce top-tier assets. Our objective is to create value through a disciplined, systematic approach to exploration, reducing investment risk and maximizing probability of long-term success. Our core Keno Silver Project is located in the historic Keno Hill silver district of Canada's Yukon Territory, a region which has produced over 200 million ounces of silver and currently hosts one of the world’s highest-grade silver resources. The Company’s McKay Hill project, northeast of Keno Hill, is a high-grade historic silver-gold producer. Metallic Minerals is also building a portfolio of gold royalties in the historic Klondike gold district. Metallic Minerals is led by a team with a track record of discovery and exploration success, including large scale development, permitting and project financing.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Website: www.metallic-minerals.com

Email: chris.ackerman@metallic-minerals.com
Phone: 604-629-7800

Toll Free: 1-888-570-4420

Quality Assurance / Quality Control

Analytical work in 2017 was done by Bureau Veritas Commodities Canada Ltd. with sample preparation in Whitehorse, Yukon and geochemical analysis in Vancouver, British Columbia. Each rock (grab) sample was analyzed for 36 elements using an Aqua Regia digestion with inductively coupled plasma-atomic emission spectroscopy (ICP-AES) and inductively coupled Plasma-mass spectrometry (ICP-MS) (AQ202). Samples with over limit silver and gold were re-analyzed using a 30-gram fire assay fusion with a gravimetric finish (FA530-Ag, Au). Over-limit lead and zinc samples were analyzed by multi-acid digestion and atomic absorption spectrometry (MA404) or titration (GC516, GC8917). All results have passed the QAQC screening by the lab.

Qualified Person

Scott Petsel, P.Geo, Vice President, Exploration and an Officer of Metallic Minerals Corp., is a Qualified Person as defined by National Instrument 43-101. Mr. Petsel has reviewed the scientific and technical information in this news release and approves the disclosure contained herein. Mr. Petsel has reviewed the results of the sampling programs and confirmed that all procedures, protocols and methodologies used conform to industry standards.

Forward-Looking Statements

Forward Looking Statements: This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Metallic Minerals believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Metallic Minerals and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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