Comstock Cancels Private Placement Announced on August 24, 2012

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 29, 2012) - Comstock Metals Ltd. (TSX VENTURE:CSL) ("Comstock" or the "Company") is cancelling the Private Placement that was announced on August 24th pending the release of new assay results recently received form the Company's follow up trenching program on its QV claims in the White Gold District of the Yukon. The proposed financing was to be a non-brokered private placement of up to 8,000,000 Units at a price of $0.25 per Unit for aggregate gross proceeds of $2,000,000.

The Company feels that the preliminary assay results from the QV trenches have changed its view of the project, and in the interests of all shareholders management has decided to cancel the proposed financing at this time. The Company recently closed a non-brokered private placement as also announced on August 24^th and raised gross proceeds of $2,996,050.

Gord Davidson, P.Geo., has reviewed the technical information in this News Release.

August 29, 2012 (Source: Marketwire)

http://www.marketwire.com/press-release/comstock-cancels-private-placement-announced-on-august-24-2012-tsx-venture-csl-1695761.htm

Disclosure:  Comstock Metals Ltd. is a Vulture Bargain Candidate of Interest (VBCI).  Members of the GGR team are actively accumulating and may hold long positions in CSL.T