Comstock Metals Ltd.: Step-Out Drilling to the East Intersects VG Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 22, 2013) - Comstock Metals Ltd. (TSX VENTURE:CSL) -

Highlights:

• Hole QV13-013, a 150 m step out from the VG Zone discovery trench along strike to the east, intersected the zone starting at surface
  
  
• Results confirm the footprint of the VG zone to 350 m by 350 m and the zone remains open in all directions
  
  
• A sub-parallel 'VG-like' structure 2200 m to the north returned 2.14 g/t Au in a felsic gneiss rock co-incident with a magnetic-break and a broader zone of pathfinder elements similar to the VG zone
  
  
• Members of the Financial and Mining industry will be touring the project during the first week of August
  

Comstock Metals Ltd. (TSX VENTURE:CSL) (the "Company") is pleased to advise shareholders that recent drilling has intersected the VG Zone east of the area tested previously in 2012. Drill hole QV13-13 intersected the basal portion of the mineralized structure, returning 3.23 g/t gold over 1.60 m; 5.24 g/t gold over 1.50 m surrounded by low grade from 0.34 g/t to 1.06 g/t gold. It is anticipated that further drilling will likely intersect the entire thickness of VG Zone along strike to the east as well as down-dip.

The overall interval in QV13-13 is 1.90 g/t over 10.95 m which includes 2.59 g/t Au over 7.33m. The drill hole didn't sample the entire VG Zone as the drill hole was collared in the mineralized zone. QV 13-013 also intersected a second anomalous zone staring at 30 m below surface cutting 0.32 g/t Au over 17.0m.

Drill hole QV 13-013 is important as it establishes the eastern continuation of the VG Zone. With the success of QV13-13 the VG Zone remains open to the east, to the west and down-dip to the north. With drill-defined dimensions of 350 by 350 metres the VG Zone is becoming one of the largest individual gold-systems in the White Gold District.

New Targets

The Company is receiving results from other segments of its 2013 programme including pneumatic hammer sampling (GeoProbe) designed to sample bedrock beneath soil anomalies with minimum surface disturbance. One such sampling line on a VG-like structure, 2200 m north of the VG Zone has returned 2.14 g/t Au along a magnetic-break and a broad zone of pathfinders elements (As, Hg, Sb, Te, Ag, Mo) in felsic gneiss (the host rock at VG zone). The company is very encouraged by these results. Similarly the Shadow and Stewart targets are being sampled and results are being compiled. The company plans to drill-test these targets.

The 2013 Phase 1 drill program completed 2,088 metres in nine drill holes including one significant step-out drill hole 650 m along strike. A follow up Phase 2 drill program is planned for this summer. In September of 2012, the Company completed an initial eight drill holes at the VG Zone targeting gold mineralization discovered in trenches completed earlier in the summer. Results from last year's drilling intersected broad zones of gold mineralization. The most recent drill results have extended the VG Zone down-dip and along strike. With results from four holes still pending, this expansion program has doubled the size of the deposit defined in 2012. The widths and grade of the recent 2013 drilling are consistent with that returned in 2012. The zone of mineralization remains open in all directions.

The VG Zone is a new discovery in the White Gold District, located south of Dawson City, Yukon, with geology and mineralization remarkably similar to Kinross's Golden Saddle deposit except the VG Zone mineralization dips at a shallow angle (30°) beneath a low-rising hill. Gold mineralization is hosted within units of massive, silicified gneiss cut by swarms of quartz vein stockworks and breccia, with disseminated and vein controlled pyrite, and more rarely visible gold.

"The near surface plus 35 m wide zone, and high-grade intervals surrounded by lower-grade, make the VG Zone a promising bulk- tonnage gold occurrence" commented the Company's President & CEO, Rasool Mohammad. "The VG Zone strike lengths keep on increasing as we drill east, to west, and to depth."

A drill collar map and updated cross section are also available at: http://www.comstock-metals.com/projects/yukon/qv_project/.

Results of the ongoing expansive exploration program which include geological mapping, geochemistry, and IP geophysics are still being received, compiled, and reviewed by field staff. Detailed maps of the property and exploration results as well as photographs may be found on the Company's website at: www.comstock-metals.com.

The 2013 drilling program is supervised by Duncan McBean, P.Geo., a Qualified Persons as defined by NI 43-101. Drill core was cut in half using a diamond saw, with one half placed in sealed bag and delivered to Acme Analytical Laboratories Ltd. in Whitehorse, Yukon. Gold grades for all samples are determined by conventional fire assay techniques and the Company used an industry standard QA/QC program consisting of standards and blanks inserted into the sample stream to ensure assay accuracy and repeatability. The technical information in this Release has been reviewed by Duncan McBean.

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.