May 28, 2024

Hi everyone:

Well what an exciting month…silver now staying steadily above $31 and trading at $31.25 today and gold at over $2,340. Who would have ever seen this happening!! But yet these high commodity prices are not translating any value in the share prices of most micro-cap/nano-cap companies like CMC. Eventually one can expect that the value will translate down. To remain positive, many of us who have been in this sector for more than 30 years generally agree that it is only a matter of time when the current record level commodity prices will translate into improvements in share price. Obviously one can never definitively note what will happen in the market but let’s hope that happens soon.

This is a brief update…

This morning I announced our plans to investigate the use of Dense Media Separation (DMS) and ore sorting technologies for the Silver Hart Project.

What is the significance of this?

Silver Hart is characterized by high grade silver-lead-zinc veins that start at surface and extend to typically 75-100 meters in depth. These deposits may be amenable to small scale open pit mining but any conclusion on that will require considerable further investigations including engineering, metallurgy, environmental and resource definition.

The likely mill for processing any material that could potentially be mined at Silver Hart would be at Couer’s Silvertip project which will likely get expanded and reopen in 2027-28. The actual date of when they will reopen that mill is yet to be established by Coeur Mining Inc. 

By increasing the value of material in a truck, one may be able to generate a viable operation that could transport from Silver Hart to Silvertip for processing, a distance of approximately 100 kilometers. Capital costs although not yet defined, may not be that significant as the processing and marketing would be the responsibility of a third party and so costs would be limited to an ore sorter, mining equipment, camp upgrades, road upgrades etc,. This is stage 1 in developing a possible business plan for a seasonal small scale mining project at Silver Hart. Permitting would require additional environmental and engineering studies to be completed at site for the development of a mine permit application. Obviously, a lot of things to be considered and at this stage a possible project that is merely at conceptual stage. The key current question is can material upgrades from DMS/Ore sorting generate a significant enough increase in value to support the possible the viability of a seasonal, small scale open pit mining project at Silver Hart….we hope to get an answer to the question through our planned studies.

The mineralization at Silver Hart is very dense so it is a good candidate for DMS or sorting technology. So we are currently developing a conceptual business plan for this project and we hope to seek a partnership arrangement with First Nations to help advance the project. A lot of work is to be done and of course this is all forward thinking and information that should not be relied upon for investment purposes. However, the main point from all of this is CMC is working hard to examine all options to advance Silver Hart and this initiative presents some interesting possibilities.

On other matters, discussions are ongoing relating to a possible agreement on the Siverknife project.

We still have an Active financing…Why invest in CMC?…Closing SOON!

• 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  at Silvertip Mine owned by Coeur Mining Inc.

• The area proximal to our Silverknife project is going to be subjected to a very significant exploration play for silver deposits according to information releases by Coeur Mining Inc.

• We have well defined targets at Silverknife with interest being expressed by other companies on possible involvement in the project, with plans to better define the current targets and start to evaluate them through an extensive drill program

• 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

• According to industry analysts, the outlook for increases in future demand for silver as an industrial commodity are excellent

• 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 current valuation by Fundamental Research Corp. at $0.12

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 and subscribers to www.cmcmetals.ca. 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.