Comstock Makes 2017 Exploration Plans for QV Gold Project as White Gold District Activity Heats Up

VANCOUVER, BC—(Marketwired – June 19, 2017) – Comstock Metals Ltd. (TSX VENTURE: CSL) (“Comstock” or the “Company“) is pleased to provide an update on 2017 exploration plans for its +16,000 hectare wholly–owned QV gold project located in the heart of the prolific White Gold district of the Yukon Territory (the “QV Property”). The Company is finalizing plans to carry out a multi–pronged exploration program that will include detailed soil grids, geological mapping and sampling on a number of high–potential targets, follow–up on reconnaissance gold anomalies, and up to 2,000 m of diamond drilling focussed on testing the along–strike potential to the west and east of the VG deposit following up on positive results from the 2016 Rotary Air Blast (RAB) drilling program.

Activity in the White Gold district is heating up with the recent acquisition by White Gold Corp. of Kinross Gold Corporation's holdings in the area, which totaled approximately 86,000 ha and includes the Golden Saddle gold deposit, located 11 km south of the Company's VG deposit on its QV property. Both Kinross and Agnico Eagle Mines Limited hold approximately 19.9% interests in White Gold Corp. This follows last year's $CDN 520 million acquisition by Goldcorp Inc. of Kaminak Gold Corporation and its Coffee gold project, located 44 km south of the QV project.

Elsewhere in Yukon, Barrick Gold Corporation invested $8.3 million into ATAC Resources Ltd. and entered into a two–staged $55 million exploration earn–in agreement to acquire up to a 70% interest in ATAC's Orion gold project. Newmont Mining Corporation has also recently entered the Yukon through a deal with Goldstrike Resources Ltd. involving up to $53 million of equity investment, option payments and expenditures to earn up to a 75% interest in the Plateau gold project.

At the VG deposit, located on the southern part of the QV project, gold mineralization is hosted within units of massive silicified gneiss cut by swarms of 30° north–dipping quartz vein stockwork and breccia with disseminated and vein controlled pyrite, and more rarely visible gold. The VG zone has similar geology and style of mineralization to Kinross's Golden Saddle deposit, located 11 kilometres to the south. The Company's 2016 RAB drilling program focussed on identifying along strike extensions to the VG deposit. RAB hole 16QVRAB017 demonstrated the deposit is open to the west with high–grades; it intersected 12.19 m averaging 5.53 g/t gold starting at 83.82 m below surface, within a wider interval of 57.91 m averaging 1.89 g/t gold, a 45 m west and 100 m down–dip step–out (November 8, 2016 news release).

Qualified Persons

David A. Terry, Ph.D., P.Geo., a Qualified Person as defined by National Instrument 43–101, and an Officer and Director of Comstock, has reviewed and approved the scientific and technical disclosure in this news release.

About Comstock Metals Ltd.

Comstock Metals Ltd. is a Canadian–focussed mineral exploration company with two 100% owned resource–stage gold projects.

  1. Preview SW Gold Project, Saskatchewan: The Company's road accessible Preview SW gold project is located 40 km north of La Ronge, Saskatchewan and 80 km southwest of Silver Standard Resources Inc.'s Seabee gold mine. The main Preview SW deposit hosts a NI 43–101 Resource Estimate (see Comstock's news release dated September 14, 2016) which includes Indicated resources containing 158,300 ounces of gold (2.61 million tonnes grading 1.89 g/t Au) and Inferred resources containing 270,800 ounces of gold (5.70 million tonnes grading 1.48 g/t Au), both based on a 0.50 g/t Au cut–off grade. The main Preview SW deposit is comprised of several sub–parallel northeast–trending gold–bearing quartz–sulphide mineralized structural zones, 550 m in strike length and totalling 150 m in width. Preliminary metallurgical test work indicates total gold recovery in concentrates ranged from 90% to 93%. In addition, there are six additional known gold zones on the 853 ha property with only limited drilling. At the Preview North zone, located 2.6 km northeast of the Preview SW deposit, drill hole PR13–163 intersected: 17.98 g/t Au over 5.71 m starting at 10 m below surface, 5.96 g/t Au over 5.66 m starting at 19 m below surface and, 1.88 g/t Au over 21.26 m starting at 29 m below surface. Based on 2017 drilling with oriented drill core true thickness is interpreted to be approximately 85% of drilled width.
  2. QV Gold Project, Yukon: The +16,335 hectare QV Property is located in the White Gold district of the Yukon Territory, approximately 70 kilometres south of Dawson City and 44 kilometres north of the Coffee project of Goldcorp Inc., which it acquired through an acquisition of Kaminak Gold Corporation. To date, the Company has completed 3,400 m of core drilling in 17 drill holes which formed the basis for a maiden Inferred mineral resource totalling 4.4 million tonnes grading 1.65 g/t gold containing 230,000 ounces of gold at a 0.5 g/t gold cut–off (See Comstock's news release dated July 8, 2014). The VG deposit remains open to expansion and is proximal to other untested sub–parallel structures. The VG zone has similar geology and style of mineralization to Kinross's Golden Saddle deposit, located 11 kilometres to the south. Additional promising targets exist on the QV Project, with potential for the discovery of significant intrusion related and/or orogenic gold mineralization. The infrastructure associated with the development of the Coffee project, including upgrading and completion of the mine access road, will benefit all projects in the district, including the QV Property.
  3. Additional Assets: Comstock also owns the early stage Old Cabin gold project in Ontario and uranium claims in the Patterson Lake area of Saskatchewan and has optioned out its Corona property in Mexico (see Comstock's news release dated January 28, 2016).

Forward Looking Statements

This news release includes forward–looking information and statements, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of the Company. Such statements include statements regarding the prospects, targets and future exploration on the Company's properties and the continued development of the Coffee project and the associated upgrading and completion of the mine access road. Information and statements which are not purely historical fact are forward–looking statements. Forward–looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward–looking information and statements herein. Although the Company believes that any forward–looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward–looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward–looking information and statements. Any forward–looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward–looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.

Neither 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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