Comstock Discovers a New Zone of Porphyry-Style Gold Mineralization-Drill Hole Ended in Strong Gold Mineralization After Drilling 34.5 m of 0.36 g/t Gold

VANCOUVER, BRITISH COLUMBIA -- (Marketwire - May 8, 2012) - Comstock Metals Ltd. (TSX VENTURE: CSL) (the Company) is pleased to announce the discovery of porphyry-style gold mineralization from its core drilling programme at the Corona Project ("Corona") in the Uruachic-Ocampo District of western Chihuahua, Mexico. The Uruachic-Ocampo District is host to several multi million-ounce gold/silver deposits, including Fresnillo PLC's Orisyvo Deposit with a reported resource of 9.2 Million ounces (M Oz) of gold. At Corona, porphyry-style gold mineralization has been identified, and remains open to the north, east and at depth. The most recent eight drill holes completed by Comstock intersected favourable geology and strong alteration east and southeast of the Northeast Zone, stepping-out up to 350 m from holes drilled in 2002-2003. A new zone of porphyry-style gold mineralization was intersected beneath the previously reported vuggy silica lithocap (see CSL news release dated April 2, 2012 for results of holes CO-12-60 to 62). Individual assays and core photos are posted on the website at http://comstock-metals.com/projects/corona_gold_silver/.


Highlights:

Bulk-Tonnage-Gold-Target Drilling:

- New Porphyry-style gold mineralization intersected in a drill-hole CO-12-67. The mineralization is open at depth and the lithocap which led to its discovery has been traced on surface for over 800 metres Five drill holes (CO-12-64 to CO-12-66) were drilled in the periphery of the new zone intersected gold mineralization, and all five of them ended in the mineralization.


High-Grade Gold/Silver Target Drilling (Esperanza High grade gold silver vein)

- The Company is compiling data on the last hole drilled under a narrow, high-priority zone, the Esperanza vein.


Northeast High grade gold zone:

- Drillhole CO-12-60 intercepted 5.89 g/t Au over 3.5 metres including 21.9 g/t gold over 0.5 metres and the zone remains open along strike.

                   From-to          Interval        Gold
Hole number      (metres)           (metres)     (grams/tonne)
CO-12-63        147.0 - 148.5         1.5            0.36
and            150.54 - 151.2         0.66           0.17
CO-12-64           94 - 96            6.0            0.17
and             206.5 - 207.5         1.0            2.34
CO-12-65        216.5 - 217.5         1.0            0.25
C0-12-66           66 - 70            4.0            0.22
                  187 - 193.5         6.5            0.27
C0-12-67        121.5 - 156          34.5            0.36
CO-12-68          150 - 165          15.0            0.15
                  190 - 192           2.0            0.51
CO-12-69           75 - 78            3.0            0.43
CO-12-70           76 - 87           11.0            0.51

Mineralized intersections reported are for core lengths where gold grades are 0.1 g/t and higher over a minimum 1 metre length. Maximum gold grade is 4.57 g/t. Silver grades are not reported but are of potential economic interest, ranging from 0.5g/t to 15 g/t Ag. The attitude of mineralized intervals varies and reported mineralized intersections may not represent true widths. A drill hole plan map is available at http://comstock-metals.com/_resources/corona/drill_hole_May_8_2012.pdf.

Hole Number Azimuth/Dip Length (m) Comments
CO-12-63 205°/60° 198 Step-out 80 m down-dip of hole #62. Zone faulted out. Potential remains very good in this direction.
CO-12-64 250°/50° 219 Step-out 425 m east of #63 and 180 m from previous hole. Tests area between lithocap and possible extension of NE Zone. Hole intersected encouraging grades and alteration, particularly at depth.
CO-12-65 250°/60° 225 Step-out hole 360 m northeast of #63 testing small segment of area between lithocap and NE Zone. Strong alteration, locally favourable grades encountered. Ended in mineralization.
C0-12-66 250°/85° 222 Drilled from same collar as #64, testing area beneath lithocap. Strong alteration, marginal mineralization encountered. Ended in mineralization.
C0-12-67 070°/60° 156 Step-out hole situated 240 m from #63, drilled back towards holes #64 & 66 testing deeper on the flank of lithocap. Strong alteration, long interval of strong gold/silver enrichment encountered. Ended in mineralization.
CO-12-68 210°/65° 195 Step-out 600 m ESE of #63 and 220 m south of #64/66 collar testing easterly extension of NE Zone. Ended in strong alteration and mineralization.
CO-12-69 220°/60° 114 Short hole drilled 50 m south of #68. Encountered zone of alteration and mineralization before being stopped in intrusive.
CO-12-70 210°/65° 184 Step-out hole 430 m SE of #63 and 100 m SW of #68. Tests eastern extension of NE Zone. Encountered zone of alteration and mineralization before being stopped in intrusive.

Drilling during February and March 2012 was focused on the "Northeast Zone" and its eastern 800 m long potential extension to the "VG Zone". Here mineralization is focused along the contact between the Upper Volcanic (predominately rhyolite) and Lower Volcanic Groups (mostly andesite plus sedimentary rocks), extending up into the overlying rhyolite units as patchy zones of highly fractured and leached volcanic rock with vuggy silica and alunite alteration (a "lithocap"). Beneath the contact, the underlying "andesite" is highly fractured, brecciated and often well-mineralized. Drilling indicates that the "andesite" appears to grade into intrusive granodiorite porphyry that is strongly sericite-altered and cut by numerous thin units of hydrothermal breccia. Drilling beneath the lithocap and to the south indicates that this intrusive body forms a "cupola" or dome of highly fractured and brecciated porphyry that may extend well beyond the areas of current or historic drilling. Most of the intervals reported here are in weathered, oxidized material.

"We are very pleased with the discovery of porphyry style gold mineralization in drill hole CO-12-67 and the high-grade gold zones at the Northeast Zone we have intersected to date," commented the Company's President & CEO, Rasool Mohammad. "Given the strong similarity in the geologic setting at the 9.2 million ounce Orisyvo Deposit and Comstock's Corona Project, we feel there is excellent potential to discover a world class gold deposit at Corona."

Analyzed samples consisting of split drill core were analyzed by ALS Chemex Laboratories in Chihuahua, by gravimetric fire assay methods on 50 g pulp samples. Comstock Metals has an industry standard QA/QC program consisting of inserting standards, blanks and duplicates into the sample stream to monitor the reliability of assays.

The technical information in this release has been reviewed by J. Blackwell (P.Geo.), a Qualified Person as defined by National Instrument 43-101.


About Comstock Metals Ltd.

In addition to the Corona project, Comstock also has option agreements covering 10,374 hectares within the prolific White Gold District in the Yukon Territory about 70 kilometres south of Dawson City. The claims were optioned from Shawn Ryan, a Yukon-based prospector responsible for the discovery of two of the prominent gold discoveries in the White Gold district: Kinross Gold's 1.5 million-ounce Golden-Saddle deposit and Kaminak Gold's Coffee projects. The Company has completed two soil-sampling programs on the Yukon property with encouraging results.


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.



Contact

Comstock Metals Ltd.
Rasool Mohammad, B.Sc. (Mining)
President & CEO
604-639-4533

Comstock Metals Ltd.
Larry Johnson, CFO
604-639-4533
www.comstock-metals.com