Arizona Metals Corp. announced that it intends to create two new companies through the spin-out of the Sugarloaf Peak Gold Project ("Sugarloaf") and two newly-created royalties on its Kay Mine Project. The first company, expected to be named "Sugarloaf Gold Corp.", will be transferred shares of the Company's wholly-owned subsidiary, which holds Arizona Metals' Sugarloaf Peak Gold Project.

Sugarloaf has a historic estimate of 1,500,000 ounces of gold (defined in 1982). The second company, expected to be named 'Arizona Royalties Corp.", will hold a newly-created 2% net smelter royalty ("NSR") on any potential future mineral production at Arizona Metals' Kay Mine Deposit, as well as a newly-created 2% NSR royalty on all future potential mineral production from any new deposits discovered through Arizona Metals' ongoing exploration activities at the Kay Mine Project (collectively the "Royalties"). The Sugarloaf Peak Gold Project is a bulk-tonnage, open-pit target that has an historic estimate containing 1.5 million ounces of gold.

This historic estimate provides a strong starting point for expansion, with only 1km of a 4km strike length having been fully drill-tested. Sugarloaf Gold Corp. will provide shareholders direct leverage to a pure-play gold project at a time the gold price is trading near all-time highs.

Shareholders of Arizona Royalties Corp. will have ownership in a start-up royalty company with its initial assets consisting of a 2% royalty on the world-class Kay Mine Deposit, located on patented claims, as well as a second 2% royalty on the highly prospective surrounding Bureau of Land Management exploration claims where the company have identified potential new areas of mineralization. The Kay Mine Project is currently not subject to any royalties or encumbrances.

The Kay Mine Deposit is a steeply dipping VMS deposit that has been defined from a depth of 60 m to at least 900 m. It is open for expansion on strike and at depth. The Company also owns 100% of the Sugarloaf peak Gold Project, in La Paz County, Arizona which is located on 4,400 acres of BLM claims. The Sugarloaf Peak Gold project is a heap-leach, open-pit target and has a historic estimate of "100 million tons containing 1.5 million ounces gold" at a grade of 0.5 g/t. A Qualified Person has not done sufficient work to classify it as a current mineral resource, and Arizona Metals is not treating the historic estimate as a current mineral resource. The Qualified Person who reviewed and approved the technical disclosure in this release is David Smith, CPG.