Metallic Minerals Corp. (TSXV:MMG) agreed to acquire 21 additional claims on Keno Hill and 8.7 square kilometers on east side of Keno-Lightning Property from Strategic Metals Ltd. for CAD 0.09 million on January 4, 2017. Under the terms, Metallic Minerals will issue two tranches of units in Metallic Minerals. The first tranche will consist of 0.05 million units of Metallic Minerals. Each unit consists of 1 common share and 1 non-transferable common share purchase warrant. Each warrant shall entitle Strategic Metals to acquire 1 common share at a price of CAD 0.65 at any time within 2 years of the date of issuance. A second tranche of units shall be issued at closing worth CAD 0.8 million. Each unit consists of 1 common share and 1 non-transferable common share purchase warrant. Each warrant shall entitle Strategic Metals to acquire 1 common share at a price equal to 130% of the applicable volume weighted average price. The exercise period of such warrants will be two years from the date of issuance. The Keno Summit and Gram Properties are subject to a 2% NSR for precious metals and a 1% NSR for base metals and the Company has the option to buy back the full NSR.

The shares will be subject to a four month hold period following issuance. In a related transaction, Metallic Minerals Corp. (TSXV:MMG) agreed to acquire Silver Queen properties from an arm's length, private party on January 4, 2016. The deal is subject to approval by the TSX Venture Exchange and other customary conditions. TSX Venture Exchange has accepted for filing for the transaction. The deal is expected to close on February 15, 2017.