News Release

Discovery Metals Announces High-Grade Sampling Results at La Kika Project

November 8, 2017

Including values of 618 g/t Ag, 35.7% Zn, 37.9% Pb

Drilling starting this quarter

November 8, 2017, Toronto, Ontario - Discovery Metals Corp. (TSX-V: DSV) ("Discovery" or the "Company") is pleased to announce panel and channel sampling results from its La Kika Project (“La Kika”) in northern Coahuila, Mexico. La Kika was mined historically, although the timing of past mining is unknown. The project has not seen any modern exploration or drilling. La Kika hosts near-surface, high-grade silver-lead-zinc carbonate replacement mineralization hosted in limestone. Numerous prospect pits are scattered over a 200m by 200m area and there are also historic workings 600m northeast of these primary workings. Mineralization in the underground is hosted in subhorizontal mantos and subvertical chimney-like structures consisting of massive oxides of Zn, Pb, Ag and Cu, lying within a prominent, north-south-trending envelop of limestone clast breccia, cemented by oxides of Zn, Pb, Ag and Cu. The breccia zone is open to the north, south and between the workings.

Sampling results lie within an area of the property that has a surface extent of approximately 50m by 150m where the host limestone shows evidence of strong recrystallization in surface exposures. All of the samples released herein are located in shallow, underground artisanal mine workings. All of the samples occur less than 20m below surface and all of the samples were taken from artisanal tunnels (“drifts”) and are panel or chip-channel samples that, where known, are taken perpendicular to mineralization. Highlights include:

  • 618 g/t silver (Ag), 37.9% lead (Pb), 7.3% zinc (Zn), and 1.04% copper (Cu) over a 0.7m wide channel, in LK-05
  • 600 g/t Ag, 30.1% Pb, 8.3% Zn, and 0.44% Cu over a 0.7m wide channel, in LK-10
  • 35.5% Zn and 1.2% Cu in a 1.0m by 0.5m panel, in LK-06
  • 160 g/t Ag, 10.0% Pb, 16.7% Zn, and 0.24% Cu in a 1.0m by 0.5m panel, in LK-03
  • 258 g/t Ag, 11.2% Pb, and 12.4% Zn over a 0.6m wide channel, in LK-07
  • 420 g/t Ag, 18.9% Pb, and 1.2% Zn in a 1.0m by 0.5m panel, in LK-08
  • 168 g/t Ag, 9.1% Pb, and 11.3% Zn in a 1.0m by 0.5m panel, in LK-04
  • 43 g/t Ag, 2.0% Pb, and 14.6% Zn in a 1.0m by 1.0m panel, in LK-02

Results & Discussion:
Table 1 below shows a summary of the sampling results.

Table 1 - Summary of La Kika Q4-2017 sampling results

Length or
length x
Structure Dip Mineral
(m) from
LK-01 Panel 1x1m 83 7.9 1.0 0.09 Breccia n/a FeZnPbOx 1.28 13
LK-02 Panel 1x1m 43 2.0 14.6 0.06 Calcite-Breccia n/a PbZnOx 0.75 15
LK-03 Panel 1x0.5m 160 10.0 16.7 0.24 Breccia n/a ZnPbOx 1.01 15
LK-04 Panel 1x05m 168 9.1 11.3 0.12 Breccia n/a ZnPbOx 1.11 15
LK-05 Channel 0.7m 618 37.9 7.3 1.04 Chimney 75SW ZnPbCuOx 1.54 15
LK-06 Panel 1x0.5m 12 0.5 35.5 1.20 Breccia n/a ZnCuOx 0.91 10
LK-07 Channel 0.6m 258 11.2 12.4 0.07 Chimney 75SW PbZnOx 0.88 8
LK-08 Panel 1x0.5m 420 18.9 1.2 0.05 Breccia n/a PbOx 1.13 8
LK-09 Panel 1x1m 54 2.8 1.1 0.03 Breccia n/a PbZnOx 0.91 6
LK-10 Channel 0.7m 600 30.1 8.3 0.44 Chimney 50SW FeZnPbOx 0.84 3
LK-11 Channel 0.5m 5 1.0 10.7 0.01 Manto 10NW FeZnPbOx 0.93 3

Figures 1-3 show schematic plan views of La Kika, the artisanal workings, the Company's initial interpretation of the main mineralized areas, and the locations of the current sampling program. La Kika has characteristics typical of carbonate-replacement deposits elsewhere in Mexico, including the presence of chimneys, mantos and breccias that have had limestone replaced with high-grade Ag-Zn-Pb-Cu mineralization. The mineralization visible in the small artisanal workings is primarily a brown-orange-beige coloured, friable and oxidized material.

Discovery's President and CEO Taj Singh comments: “These results are the first-ever documented samples from La Kika. With combined lead + zinc values that frequently exceed 20%, high silver values and, at times, high copper values as well, we are seeing consistently high in-situ rock values. We are looking forward to the start of drilling, as we look to test the extent of this high-grade, potentially direct shipping mineralized material.”

Planned Work Program:
As recently announced the Company has received permits to drill La Kika. The access road to site has been completed. Discovery anticipates being able to commence drilling La Kika during this quarter.

Qualified Person & QA/QC: This news release was reviewed and approved by Taj Singh, M.Eng, P.Eng, President and CEO of the Company, who is recognized as a Qualified Person (“QP”) under the guidelines of National Instrument 43-101. Discovery Metals has a QA/QC program in place, including assurances that samples are sealed on the project site, and transported to the laboratory in company vehicles or insured courier. The Company maintains a policy of regularly inserting registered control reference materials and blank samples to assure that laboratory results are reliable, and this policy was used for the samples in this press release. The channel samples presented in this press release were were taken with hammer and chisel across intervals. Samples were prepared at ALS labs in Hermosillo and Guadalajara, where they were dried, crushed, split and pulverized, then shipped to the ALS lab in Vancouver. At ALS Vancouver, samples were first assayed (minimum 30 g) using the ME-ICP61a (Conventional ICP-AES) analytical package. For values of zinc greater than 10%, values of lead greater than 10%, and values of silver greater than 200 g/t, samples were re-assayed using the ME-OG62 (High-Grade Material ICP-AES) analytical package. For values of zinc greater than 30%, samples were re-assayed using the Zn-VOL50 (Potentiometric titration for Zn) analytical package. For values of lead greater than 20%, samples were re-assayed using the Pb-VOL70 (Volumetric Titration with EDTA for the Determination of Lead) analytical package.

About Discovery Metals
Discovery Metals is focused on discovering and advancing high grade polymetallic deposits in a recently assembled land package of approximately 300,000 hectares over a large and historic mining district in northern Coahuila State, Mexico. The portfolio of seven key properties, all with shallow high grade silver-zinc-lead mineralization, is situated in a world class Carbonate Replacement Deposit (CRD) belt that stretches from SE Arizona to central Mexico. The land holdings contain numerous historical direct-ship ore workings with over 4,000 m of underground development. No modern exploration or exploration drill testing has been carried out on the properties.

On Behalf of the Board of Directors of:

For further information contact:

Taj Singh, P.Eng, CPA
President & CEO
Phone: 416-613-9410

Susie Bell
Investor Relations Manager
Phone: 604-683-7790

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements: This news release may include forward-looking statements that are subject to inherent risks and uncertainties. All statements within this news release, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those described in forward-looking statements. Factors that could cause actual results to differ materially from those described in forward-looking statements include fluctuations in market prices, including metal prices, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required under applicable laws.

Figure 1 - Schematic plan view of the La Kika Project's main area. Red lines indicate the high-grade subvertical chimney-like structures.

Figure 2 - La Kika Project's “North Mine” and sampling locations. Red lines indicate the high-grade subvertical chimney-like structures.

Figure 3 - La Kika Project's “Souh Mine” and sampling locations. Red lines indicate the high-grade subvertical chimney-like structures.

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