Hello Investors, APRIL 2024 Edition

A recent promotional piece written for the upcoming Investors Forum provided an excellent summary of their perspective on the current market and they have perfectly expressed my own feelings as to the current situation. It was as follows:

“Stock traders are looking for love.  Gold, copper, silver and other metals continue to have a great 2024 while if feels like stocks are lagging. You’re not just imagining that. Most stocks are lagging, but I think this is an opportunity.  The truth is, when metal prices run, stock prices don’t move in lockstep.  Not all companies are equal. And, when a market sector has been through a long bear market, traders will remain skeptical well into the following bull market. That means there is a delay between metal price and share price returns, and returns will go to the most senior and stable companies first, then move down the food chain to smaller and earlier stage companies. If you think there is more upside in gold, copper and other metals prices - and I do - then the day will come that stock prices start catching up, then exceeding, metal price moves as their inherent leverage comes back into play.  Do I have a date this will happen?  No, other than that it probably won’t be long.  Months, not years.  Maybe even weeks, The good news, for you, is that generalist traders, hedge funds, etc. are NOT in this market.  They’re still coming. When they do, returns will be magnified. The smart move is for you to be looking at great companies and picking ones you want to hold, BEFORE the other guys show up.” 

So please take a look at CMC…we now explain what we see as the opportunity as a solid silver explorer.

Well the big news is …We just announced a current financing to secure $500,000 for the 2024 exploration program….

this newsletter provides a vision of growth for CMC, the opportunities we have and the possible different directions it may take us…I am also providing a review of news from the silvertip-Silverknife area that is a very exciting story and that is the key to value generation for cmc and our shareholders

So first of all I will highlight why you should consider participating in the current placement and then provide the details behind those reasons.

Why invest in CMC?

• We have a solid portfolio of projects with significant exploration upside - our Silverknife project is immediately adjacent to one of the world’s highest-grade silver-lead-zinc CRD deposits 
• The area proximal to our Silverknife project is going to be subjected to a very significant exploration play for silver deposits
• Well defined targets at Silverknife with interest being expressed by other companies on possible involvement in the project
• We now have considerable experience in searching for CRD deposits
• We are well positioned in the Rancheria Silver District in other plays than Silverknife - Amy and Silver Hart properties have significant exploration upside
• The outlook for increases in future demand for silver as an industrial commodity are excellent and it is also now a commodity of choice for gifting in Asia – prices are setting new records and can be expected to be as high or better this year – USD $30+/ounce for silver is now conceivable before year end
• Our overhead costs are some of the lowest in the industry…that way we maximize monies raised to go “into the ground”
• Stock volumes are high averaging over 575,000 shares per day in the last 60 days
• At 4 cents flow through and 3.5 cents non flow through we are priced for good potential returns considering a valuation at $0.12

Activity in the Rancheria Silver district is expected to be very high

The Rancheria Silver District, and in particular the area around the Silvertip Mine owned by Coeur Mining (“Couer”), is a beehive of activity and has seen huge exploration success in the past few years. Coeur has significantly increased its resources since 2017 through the combination of extensive surface and underground exploration.

Couer has noted that they are now implementing an aggressive 24 month exploration program involving the entire area around Silvertip designed to (i) enable better understanding of the overall mineralizing system, (ii) discover all mineralization styles (i.e., skarn and/or porphyry) on the property, (iii) expand the resource base, and (iv) assess the potential footprint and upside of the larger land package, 95% of which remains to be explored. Their efforts have resulted in our new mineralization model and have identified areas for potential CRD which we had not originally considered at Silverknife. This year’s programs at Silvertip by Coeur will entail a reduction in underground drilling compared to prior years but the underground program is expected to continue systematically tracing mineralization in the Southern Silver Zone and Saddle Zone to the southeast and south, respectively. Coeur have announced that their surface exploration is transitioning into a multi-pronged approach encompassing larger step outs from known mineralization and district-scale work aimed at identifying additional chimney structures hosting mineralization similar to the Southern Silver Zone.

Ultimately, Coeur’s goal is to identify multiple targets that could lead to resource growth over the next few years to allow a restart decision on this world-class high-grade deposit. Coeur expects to invest $11 - $14 million in exploration in 2024 at Silvertip, which excludes $15 - $20 million related to underground mine development and site support costs.

Couer’s significant exploration program and their new approach is great news for CMC as it is expected to add to the knowledge of the geology and prospectivity of the Silvertip region. The geology, structural and alteration features of the Silverknife Property are similar or potentially the same as at Silvertip and well suited to the formation and depositional environment for carbonate replacement deposit(s).

Key highlights of Couer’s success that serve to increase the exploration attractiveness of Silverknife are:

• Grades at Silvertip continue to be among the world’s highest compared to similar carbonate replacement deposits suggesting that other potential deposits, if found, could be of comparable high grades
• In addition to mineralization in the McDame Limestone unit, favorable indications for mineralization have also been identified by Coeur’s drilling lower in the stratigraphic sequence, in the underlying dolostone, sandstone and Atan Group limestones. This opens up over 2,500 vertical meters of stratigraphy that is prospective for stacked, carbonate replacement deposits and increases the prospectivity of the known similar geology of the Silverknife Property
• Coeur believes that multiple look-alike targets to Silvertip exist within their large 37,650 hectares land package. Exploration modelling by Coeur suggests a “hub and spoke” model and structural features that are applicable and suggest exploration prospectivity within the Silverknife Property.
• Since late 2017, Coeur has discovered several new, stacked manto horizons hosted at different elevations throughout the McDame Limestone. This is important as it suggests the potential for mineralization throughout the McDame Formation. McDame Formation rocks are known to exist on the Silverknife Property in the Tootsee North Zone and the Silverknife South Zone.
• Coeur’s current plan includes a focus on the Southern Silver Zone where they have discovered numerous sub-vertical mineralized chimneys and encountered some of the highest grade intersections drilled at Silvertip. This zone is extremely close to the eastern boundary of the Silverknife Property. The Southern Silver Zone now accounts for approximately 50% of Couer’s current inferred resource and 9% of the current measured and indicated resources at Silvertip.

Mitchell J. Krebs, Coeur President and Chief Executive Officer of Couer noted:

“Silvertip is one of the highest-grade undeveloped carbonate replacement deposits in the world, hosting large and growing resources of silver, zinc and lead—three minerals already playing key roles in the accelerating transition to a net-zero emissions global economy. Located in British Columbia, recent drilling at Silvertip has also identified a suite of other key critical minerals that may further support the growing strategic value of this deposit for Canada and for Coeur as a key driver of future growth.”

Obviously Coeur see the Silvertip area as their growth opportunity and so do we.

CMC is highly optimistic that our properties in the Rancheria Silver District will pivot growth for our Company as we have only started to explore and understand the potential of this area.

Our  Vision for the 2024 Exploration Season

Our program is clearly going to have a major focus on Silverknife. On March 20, we provided a brief overview of the prospectivity on the property in four zones (i) Tootsee North Zone; (ii) South-Central Zone; (iii) Silverknife South Zone; and (iv) Silverknife Prospect Zone. In addition, we presented our new mineralization model.

The high level of activity and exploration success in the Silvertip area has served to heighten interest from other parties in the Silverknife project and we are in discussions with them.

This presents two possible scenarios.

Scenario 1: Another Company secures the rights to acquire an interest in the Silverknife property and CMC focuses efforts on its other properties and seeks new opportunities for year-round exploration.

Generally, under such an earn-in arrangement for a property like Silverknife, the Company entering into the arrangement with CMC become the “operator”, or in other words take over management and implementation of the exploration program. Expressions of interest have been presented from other companies and discussions are ongoing. We can provide no timing as to the discussions reaching a conclusion nor on whether they will actually result in any agreement at this time. If these discussions materialize in an arrangement, CMC would possibly benefit through payments and commitments for exploration expenditures that can serve to increase the value of the property while CMC retains an interest in the property. Another typical advantage is that additional technical expertise is brought to the table.

Briefly what would our 2024 season then entail…

At Silver Hart we would like to evaluate the areas of opportunity identified by Ronacher McKaenzie Geosciences to determine if they merit drilling and to conduct a study to examine the potential of using DMS/ore sorting technologies to improve project economics for possible small scale seasonal mining of the Main Zone (est. cost: 50-100K).

At Amy we need to plan a new access route, apply and secure an exploration permit, and conduct detailed mapping and geophysics to precisely define drill targets (est. cost: 10-25K).

At Logjam (Yukon) we have not conducted much work since a brief evaluation in 2019 that produced several high-grade samples from surface outcrops and the adit on the property….and this is likely to be a much bigger story yet to unfold. This property is potentially the upper portion of a significant porphyry system that exists in the area. The property is available for option but this work will increase its attractiveness for an option deal in the foreseeable future and does not come at a huge cost (est 25K).

And at Bridal Veil in Newfoundland and Labrador, the source of high-grade gold in soils needs to be identified and a better examination of large-scale alteration on the property possibly associated with an orogenic gold system requires further evaluation. If the source of gold is identified the property will be quite valuable and this work does not require a significant investment. This work is also not at a huge cost (est 25-50K).

And with additional resources, CMC can again seek new opportunities for year-round exploration with a potential focus in Mexico.

Scenario 2: CMC advances exploration at Silverknife.

Our plan is to conduct a detailed geological and geophysical examination of the four areas of exploration interest at Silverknife, with a focus on the Tootsee North Zone, to establish drill targets. Tootsee North has been priorized because it is best suited to exploration drilling in fall and winter conditions as compared to the other three zones.

Both scenarios present a promising outlook for cmc, support the current financing level, and provide a vision for growth in the foreseeable future

PLEASE REACH OUT

If you wish to further understand our plans please feel free to call me at +52 669 198 8503 (after mid-June (709) 327-8013) or email me and I will call you back or answer your questions on our vision for growth.

Best wishes,

Kevin Brewer

Forward Looking Statements

Certain statements included in this newsletter are forward-looking statements within the meaning of Canadian securities laws, including statements regarding the Silverknife, Amy, Silver Hart, Blue Heaven, Logjam and Bridal Veil properties, as well as Claims and Land: Statements pertaining to the ability of CMC Metals Ltd. (“CMC”) to acquire additional joint venture concessions with potential resources; the potential to develop resources and then further develop reserves; the anticipated economic potential of the concession; the availability of capital and finance for CMC to execute its joint venture commitments and strategy going forward. Forward-looking statements are based on estimates and assumptions made by CMC in light of its experience and perception of current conditions and expected future developments, as well as other factors that CMC believes are appropriate in the circumstances. Many factors could cause CMC’s results, performance or achievements to differ materially from those expressed or implied by the forward looking statements, including: discrepancies between actual and estimated results from exploration and development and operating risks, dependence on early exploration stage concessions; uninsurable risks; competition; regulatory restrictions, including environmental regulatory restrictions and liability; currency fluctuations; defective title to mineral claims or property and dependence on key employees. Persons reviewing this presentation are cautioned not to place undue reliance on forward-looking statements due to inherent uncertainty therein.

CMC disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. This presentation is for distribution to Accredited Investors only. This presentation is NOT for public disclosure.

Additional Disclosure

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this newsletter.