Comstock Metals Ltd. Closes First Tranche of Private Placement

VANCOUVER, BRITISH COLUMBIA -- (Marketwire - July 6, 2012) - Comstock Metals Ltd. (TSX VENTURE:CSL) (the "Company") announces that it has closed the first tranche of its non-brokered private placement announced on June 29, 2012. The first tranche consisted of:

(a) 625,000 flow-through units ("FT Units") at a price of $0.20 per FT Unit, each FT Unit being comprised of one common share and one-half warrant (a whole such warrant being referred to as a "Warrant"); and

(b) 1,170,000 non flow-through units ("NFT Units") at a price of $0.15 per NFT Unit, each NFT Unit being comprised of one common share and one full Warrant.

Each Warrant will entitle the holder to purchase one non flow-through common share exercisable at a price of (i) $0.30 per share until July 5, 2014; (ii) $0.40 per share thereafter until July 5, 2015; (iii) $0.50 per share thereafter until July 5, 2016; and (iv) $0.60 per share thereafter until July 5, 2017, all subject to acceleration on the occurrence of certain events.

In connection with the closing of the first tranche, the Company paid finder's fees consisting of an aggregate of $4,200 in cash and warrants entitling the finder's to acquire up to 28,000 common shares until July 5, 2014 at a price of $0.15 per share.

All securities issued in connection with the first tranche will have a hold period expiring November 6, 2017.

The proceeds from the first tranche will be used to fund the exploration and development on the Company's mineral properties and for general working capital purposes.

The closing of further tranches and the payment of any finder's fees thereon remain subject to final acceptance by the TSX Venture Exchange.


About Comstock Metals Ltd.

Comstock has optioned 494 claims covering 10,374 hectares (25,634 acres) 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.

The Company is also earning a 75% interest on the Corona project by an option agreement from Golden Goliath Resources (GNG). Comstock's Corona Gold-Silver project is located in the prolific Uruachic Mining camp in Chihuahua, Mexico, and the Company completed a drill program in the spring of 2012. The drill program discovered two new zones of gold and silver mineralization. Please visit the Company's website for the details. Previous reverse circulation drilling identified both bulk tonnage and high-grade vein type gold/silver targets, some of which the Company plans to diamond-drill.

For the Corona Gold Silver Project details please visit the following link:
http://www.comstock-metals.com/projects/corona_gold_silver/

To learn more please visit the Company's website at: www.comstock-metals.com


COMSTOCK METALS LTD.

Rasool Mohammad, B.Sc. (Mining), President & CEO



This press release does not constitute an offer to sell or solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.


Disclaimer for Forward Looking Information

This news release includes forward looking statements that are subject to assumptions, risks and uncertainties. Statements in this news release which are not purely historical are forward looking statements, including without limitation any statements concerning the Company's intentions, plans, estimates, expectations or beliefs regarding the future. Although the Company believes that any forward looking statements in this news release are reasonable, there can be no assurance that any such forward looking statements will prove to be accurate. The Company cautions readers that all forward looking statements, including without limitation those relating to the Company's future operations and business prospects, are based on assumptions none of which can be assured, and are subject to certain risks and uncertainties that could cause actual events or results to differ materially from those indicated in the forward looking statements. Readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance on forward looking statements.

Any forward looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward looking statements, or to update the reasons why actual events or results could or do differ from those projected in the forward looking statements. The Company assumes no obligation to update any forward looking statements, whether as a result of new information, future events or otherwise.

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