Comstock Metals Samples 16.28 g/t Gold and 47 g/t Silver on its QV Property, White Gold District, Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 29, 2012) - Comstock Metals Ltd. (TSX VENTURE:CSL) (the "Company") is pleased to announce the results from its initial discovery of visible gold on the QV property in the White Gold District, Yukon Territory.

The initial 070-075 degree trending visible gold-bearing quartz vein returned 16.28 g/t Au by metallic screen gold assay, the recommended analytical preparation procedure for coarse gold. The fine (-150 mesh) fraction returned 13.12 g/t gold (Au), indicating that most of the gold occurs as fine particles. The gold is accompanied by 47 g/t silver (Ag) and anomalous bismuth, tellurium, mercury, molybdenum and lead. This initial exposure consisted of a subcrop boulder 50 cm wide, with continuous chips collected across it, but should be considered a grab sample due to incomplete exposure. The vein has been discontinuously traced for 100 m with a width of possibly 1.5 m or more. A subcrop grab sample of strongly silicified and bleached felsic schist with quartz veinlets and oxidized cubic pyrite and limonite, 20 m above (perpendicular to the strike of) the vein, returned 0.92 g/t Au. This area is too steep to trench, but a second subparallel vein containing fine visible gold, 25 m above the intial gold-bearing vein, and three additional veins separated by quartz stockwork and silicification, were uncovered in trench QVTR12-6, 65 m to the northeast. This trench does not intersect the initial gold-bearing vein due to local topographic conditions.

The initial gold-bearing quartz vein occurs within a significant 1.8 km-long gold soil anomaly following the strike of the vein, and quartz and silicification was uncovered in trenches QVTR12-2, -3, and -5 along this extent. Abundant quartz and silicification was also uncovered in QVTR12-4 over an area 200-300m southeast (perpendicular to the strike of) the initial visible gold-bearing quartz vein. All trench results, including results from the second visible gold-bearing vein, are pending but will be released when received.

Please visit the link below to learn more about the project:

http://www.comstock-metals.com/projects/white_gold_north/

Assays were completed by Acme Analytical Laboratories Ltd., Vancouver, British Columbia. Acme is an IS0 9001:2008 accredited facility.

The Company is also pleased to announce that it will conduct a non-brokered private placement for gross proceeds of up to $1,000,000, comprised of:

1. up to 2,500,000 flow-through units ("FT Units") at a price of $0.20 per FT Unit for aggregate proceeds of up to $500,000, each FT Unit being comprised of one common share and one-half warrant (a whole such warrant being referred to as a "Warrant"); and
2. up to 3,333,334 non flow-through units ("NFT Units") at a price $0.15 per NFT Unit for aggregate gross proceeds of up to $500,000, 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 for a period of five years after closing, at a price of $0.30 if exercised in the first or second year after closing, $0.40 if exercised in the third year after closing, $0.50 if exercised in the fourth year after closing and $0.60 if exercised in the fifth year after closing, all subject to acceleration on the occurrence of certain events.

The proceeds of the private placement will be used to fund the exploration and development on the Company's mineral properties and for general working capital purposes. The Company may pay finder's fees in connection with the private placement, subject to compliance with the policies of the TSX Venture Exchange (the "Exchange"). Completion of the private placement and the payment of the finder's fees remain subject to the approval of the Exchange.

Jean Pautler, P.Geo., an independent geologist, reviewed the technical information in this News Release.

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.