Comstock Closes Second Tranche of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 18, 2013) - Comstock Metals Ltd. (TSX VENTURE:CSL) (the "Company") is pleased to announce a second closing of the private placement (the "Offering") following its announcement on July 15, 2013. Pursuant to the Offering, the Company has issued 175,000 flow-through common shares at a price of $0.17 per share for gross proceeds of $29,750.

In connection with the closing, the Company paid finder's fees consisting of cash in the amount of $1,785 and finder's warrants exercisable to acquire up to 6,000 common shares of the Company at a price of $0.27 per share for a period of 12 months.

The proceeds of the placement will be used by the Company to incur eligible Canadian Exploration Expenses, as defined by the Income Tax Act (Canada). The securities issued pursuant to the Offering are subject to a four month hold period, expiring on November 16, 2013.

The Company may complete additional closings pursuant to the Offering, as described in its July 15, 2013 news release.

The Company also announces that, subject to regulatory approval, it will undertake up to a $210,000 non-brokered private placement of up to 1,400,000 units (each a "Unit") at a price of $0.15 per Unit, each Unit consisting of one common share of the Company and one half common share purchase warrant (each two half common share warrants, a "Warrant").

In accordance with applicable laws and subject to regulatory approval, the Company will pay finder's fees in connection with the private placement.

Each Warrant will be exercisable to acquire one common share of the Company for a period of two years, at a price $0.30 per share.

The Company intends to use the net proceeds of the private placement to continue funding its current business operations.

All securities issued pursuant to the private placement will be subject to a four-month statutory hold period.

About Comstock Metals Ltd.

Comstock Metals' flagship project is the QV Property in the Yukon Territory, which covers 14,180 hectares (35,000 acres) within the prolific White Gold District in the Yukon Territory, about 70 kilometres south of Dawson City. Kinross Gold's Golden Saddle deposit is 10 km to the southeast, and Kaminak Gold's Coffee project is about 40 km to the south.

Comstock's Corona Gold-Silver Property is located in the prolific Sierra Madre Occidental in Chihuahua, Mexico. The Company completed a drill program in the spring of 2012, which discovered two new zones of gold and silver mineralization.

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.

FORWARD-LOOKING INFORMATION

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. 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 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.