January 6, 2021, Toronto, Ontario - Discovery Metals Corp. (TSX-V: DSV, OTCQX: DSVMF) (“Discovery” or the “Company”) is pleased to announce results from 10 diamond drill holes targeting the Parcionera and Josefina high-grade vein trends at its flagship Cordero project (“Cordero” or “the Project”) located in Chihuahua State, Mexico. Multiple vein trends with a combined strike extent of more than 5 km flank the higher-grade bulk-tonnage domain at Cordero; the Parcionera and Josefina vein trends currently represent approximately 2 km of this strike extent.

Highlight intercepts include:

Parcionera Vein Trend

• Hole C20-362: 4.4 m averaging 524 grams per tonne silver equivalent (“g/t AgEq¹”) from 53.9 m (246 g/t Ag, 0.39 g/t gold (“Au”), 6.5% lead (“Pb”) and 0.4% zinc (“Zn”)) within a 37.1 m interval averaging 113 g/t AgEq¹ (47 g/t Ag, 0.09 g/t Au, 1.1% Pb, 0.4% Zn)
• Hole C20-360: 0.5 m averaging 1,765 g/t AgEq¹ from 100.9 m (665 g/t Ag, 0.58 g/t Au, 13.8% Pb and 13.7% Zn)

Josefina Vein Trend

• Hole C20-361: 3.3 m averaging 612 g/t AgEq¹ from 64.2 m (196 g/t Ag, 0.17 g/t Au, 5.6% Pb and 4.9% Zn) within a 41.7 m interval averaging 131 g/t AgEq¹ (58 g/t Ag, 0.10 g/t Au, 0.7% Pb and 1.0% Zn)
• Hole C20-367: 1.6 m averaging 544 g/t AgEq¹ from 175.6 m (75 g/t Ag, 1.42 g/t Au, 1.6% Pb and 7.1% Zn) within a 53.2 m interval averaging 113 g/t AgEq¹ (20 g/t Ag, 0.11 g/t Au, 0.3% Pb and 1.8% Zn)

Taj Singh, President and CEO, states: “We continue to confirm and expand the strike extent of the high-grade vein systems at Cordero. Step out holes at Parcionera have doubled the drill-confirmed strike extent to at least 1 km with clear potential for further expansion to the northeast. A review of historic drill core also indicates that Parcionera has a depth extent of at least 470 m. Drilling at the Josefina vein trend intercepted high-grade veins, several of which were within broader zones of disseminated mineralization. This opens the possibility of expanding the higher-grade bulk-tonnage domain to the east, potentially incorporating sections of the Josefina vein trend. We look forward to the results of follow-up drilling targeting this potential expansion.”

PARCIONERA VEIN:

The Parcionera vein trend consists of multiple southwest-trending veins and vein splays. The four holes in this release were successful in establishing and extending the strike continuity of the vein trend to the northeast. Based on drilling and historic underground workings the Parcionera vein trend now has an interpreted strike extent of at least 1 km and depth extent of at least 470 m and is open along strike and at depth.

The veins at Parcionera dip steeply to the northwest and vein mineralization typically consists of semi-massive pyrite, galena and sphalerite. Vein interpretations and drill hole locations are shown in Figure 1 (see links below) and detailed drill highlights of the four holes drilled at Parcionera are provided in the table below.

¹ For full supporting technical disclosure please refer to footnote 1 under the table of Josefina vein results.

JOSEFINA VEIN:

The Josefina vein trend consists of multiple southwest-trending subparallel veins. The six holes in this release were successful in establishing approximately 1 km of strike continuity along the Josefina trend based on drilling and historic underground workings. Several of the high-grade veins were intercepted within broader zones of disseminated mineralization including holes C20-361 (41.7 m averaging 131 g/t AgEq¹) and C20-367 (53.2 m averaging 113 g/t AgEq¹). Historic drill hole C11-158 (48.0 m averaging 163 g/t AgEq¹ and 22.0 m averaging 379 g/t AgEq¹) also confirms the depth continuity of the Josefina veins and disseminated mineralization intercepted in C20-361 to at least 300 m below surface. Further drilling to test the potential eastern expansion of the higher-grade bulk-tonnage domain to the northeastern section of the Josefina vein trend is ongoing.

The veins along the Josefina trend dip steeply to the northwest and mineralization typically consists of semi-massive pyrite, galena and sphalerite. Disseminated mineralization surrounding the veins consists of galena and sphalerite in disseminations, veinlets and stockworks hosted in dacite, sedimentary rock and breccias. Vein interpretations and drill hole locations are shown in Figure 1 (see links below) and detailed drill highlights of the six holes drilled at Josefina are provided in the table below.

¹ All results in this news release are rounded. Assays are uncut and undiluted. Widths are drilled widths, not true widths, as a full interpretation of the actual orientation of mineralization is not complete. Intervals with stockwork mineralization were chosen based on a 25 g/t AgEq cutoff with no more than 10 m of dilution. Intervals with vein mineralization were based on a 100 g/t AgEq cutoff with no more than 1 m of dilution. AgEq calculations are used as the basis for total metal content calculations given Ag is the dominant metal constituent as a percentage of AgEq value in approximately 70% of the Company’s mineralized intercepts. AgEq calculations for reported drill results are based on USD $16.50/oz Ag, $1,350/oz Au, $0.85/lb Pb, $1.00/lb Zn. The calculations assume 100% metallurgical recovery and are indicative of gross in-situ metal value at the indicated metal prices. Refer to Technical Notes below for metallurgical recoveries assumed in the 2018 PEA completed on Cordero.

PHASE 1 DRILL PROGRAM UPDATE:

The Company has completed 45,400 m (116 holes) as part of its expanded 55,000 m Phase 1 drill program.  Assays from 39 holes are pending. There are currently four drill rigs on site. Additional drill rigs may be added when the Company is confident that the health and safety risks related to COVID-19 can be managed effectively.

Drilling is focused on two key concepts: (1) targeting of bulk-tonnage mineralization within and to the east and northeast of both mineralized corridors; and (2) testing of the width, grade and continuity of extensive high-grade vein systems that transect the deposit.

Supporting maps and sections, drill hole locations and full assay results can be found at the following link: https://dsvmetals.com/site/assets/files/5623/2021-01-06-dsv-nrsa.pdf

A PDF of this release with supporting maps and sections included as appendices can be found at the following link: https://dsvmetals.com/site/assets/files/5623/2021-01-06-dsv-nr.pdf

About Discovery
Discovery’s flagship project is its 100%-owned Cordero silver project in Chihuahua State, Mexico. Our drill results to date show that Cordero is developing all the attributes of a tier 1 project – grade, scale, significant organic growth opportunities and well located in one of Mexico’s premier mining belts. The project is supported by an industry leading balance sheet with over C$80 million of cash allocated for aggressive exploration, resource expansion and future development.

Sample analysis and QA/QC Program
True widths of reported drill intercepts have not been determined. Assays are uncut except where indicated. All core assays are from HQ drill core unless stated otherwise. Drill core is logged and sampled in a secure core storage facility located at the project site 40km north of the city of Parral. Core samples from the program are cut in half, using a diamond cutting saw, and are sent to ALS Geochemistry-Mexico for preparation in Chihuahua City, Mexico, and subsequently pulps are sent to ALS Vancouver, Canada, which is an accredited mineral analysis laboratory, for analysis. All samples are prepared using a method whereby the entire sample is crushed to 70% passing -2mm, a split of 250g is taken and pulverized to better than 85% passing 75 microns. Samples are analyzed for gold using standard Fire Assay-AAS techniques (Au-AA24) from a 50g pulp.  Over limits are analyzed by fire assay and gravimetric finish. Samples are also analyzed using thirty three-element inductively coupled plasma method (“ME-ICP61”). Over limit sample values are re-assayed for: (1) values of zinc > 1%; (2) values of lead > 1%; and (3) values of silver > 100 g/t. Samples are re-assayed using the ME-OG62 (high-grade material ICP-AES) analytical package. For values of silver greater than 1,500 g/t, samples are re-assayed using the Ag-CON01 analytical method, a standard 30 g fire assay with gravimetric finish. Certified standards and blanks are routinely inserted into all sample shipments to ensure integrity of the assay process. Selected samples are chosen for duplicate assay from the coarse reject and pulps of the original sample. No QAQC issues were noted with the results reported herein.

Qualified Person
Gernot Wober, P.Geo, VP Exploration, Discovery Metals Corp., is the Company's designated Qualified Person for this news release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and has reviewed and validated that the information contained in this news release is accurate.

On Behalf of the Board of Directors,

Taj Singh, M.Eng, P.Eng, CPA,
President, Chief Executive Officer and Director

For further information contact:

Forbes Gemmell, CFA
VP Corporate Development & Investor Relations
Phone: 416-613-9410
Email: forbes.gemmell@dsvmetals.com

TECHNICAL NOTES & FORWARD-LOOKING STATEMENTS:
The most recent technical report for the Cordero Project is the 2018 Preliminary Economic Assessment (PEA) authored by M3 Engineering and Technology Corp and includes the most recent resource estimate, completed by Independent Mining Consultants, Inc. It is available on Discovery’s website and on SEDAR under Levon Resources Ltd, a wholly owned subsidiary of Discovery. The PEA assumes metallurgical recoveries of 89% for Ag, 84% for Pb, 72% for Zn and 40% for Au.

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.

This news release is not for distribution to United States newswire services or for dissemination in the United States.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

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 Discovery 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. There can be no assurance that the Private Placement will close on the announced terms. Discovery does not assume any obligation to update any forward-looking statements except as required under applicable laws.