Hello Investors, FEBRUARY 2024 Edition

Just thought I would provide a brief update to everyone as we just announced an attractively priced private placement to secure $1.2 million in funding for our Gavilanes and Canadian exploration projects and for working capital purposes. The private placement is priced at $0.035 per share and comes with a full warrant at $0.05 for 12 months after date of issuance.

Such attractive pricing comes due to the challenging market conditions junior explorationists are facing in the market. With a recent valuation of $0.17 provided from Fundamental Research Corp. on January 17, 2024, the management and Board of Directors are confident that there are far better days ahead for CMC.

CMC is fortunate…we have just acquired the significant silver-gold polymetallic Gavilanes project in Mexico to add to our portfolio of great projects that show significant exploration potential. We intend to focus on Gavilanes and the Silverknife project in 2024 and we will briefly review how these projects will generate an improved valuation for CMC.

Gavilanes is valued at approximately $14.0 million yet the market has given us zero valuation for that acquisition. And it is clear to us that we have only begun to uncover the exploration potential of our properties in the emerging Rancheria Silver District, including Silverknife, Amy, Silver Hart and Blue Heaven.

Also, before highlighting the intended project work for this year, I will add that we are open to option agreements for our Logjam Project in Yukon and our orogenic gold target at Bridal Veil in Newfoundland. If you know of anyone interested in securing projects that have identified exploration potential feel free to refer them to me.

GAVILANES – OUR NEW SILVER-GOLD ACQUISITION

I have been in this business now for over 3 decades and rarely does a project with the potential of Gavilanes become available for option. In the last four years I estimate I have examined over 250 projects globally and Gavilanes by far has the greatest obvious exploration upside potential of any project I have examined.

The project has a current NI 43-101 Resource of 18.2 million silver-equivalent ounces at a grade of 320 g/t silver-equivalent with a cutoff of 150 g/t. Price estimates used in the resource calculation were conservative at $19/oz silver, $1900/oz gold and $1.00/lb for lead and zinc. This is a project where resource expansion can be relatively quick. Only 0.2 square km of veins have been drill explored to date with known extents now over 5.6 square kilometers – equating to approximately 3% of the known veins to be exposed to any drilling. We have 10 previous holes logged and assayed that were not included in the resource estimate and with our goal to drill 4,500 meters in the Gavilanes Zone this year we expect to be able to demonstrate an ability to expand that resource. Previous geologists that have worked at the site estimate that at minimum a tripling of the current resource should be possible and that does not include any possible outcomes that could arise from exploration in two other significant zones on the 13,500 hectare property.

Gavilanes is a true jewel, a potential company maker as we feel it has the potential to grow into a 100M + silver ounce deposit. And we expect gold will be a more prominent factor given positive geochemistry and drill intercepts of gold in the lower portions of the Gavilanes Zone deposit.

One of the expected outcomes from the current placement is that we will secure enough funds to complete up to 1,500 meters for drilling in Phase 1-2024. Based on successful results we intend to secure a strategic partner for the project to secure financing for the medium term. We have been talking to various groups and with initial success the interest in partnership arrangements is high.

Silverknife – Our Focus for the 2023 Exploration Season

Well the news around Silverknife is quite positive. Our neighbor Coeur Mining Inc. have just announced an intention to raise an additional $25M in flow through financing to support exploration at Silvertip. In late 2023 they raised $30M in flow through financing for Silvertip and started a drilling campaign that has had immense success.

We have only just started to scratch the surface at Silverknife. In 2023, we conducted a short 2,100 meter drill program that servedin the northern part of the property to identify the heat source (Cassiar granodiorite) proximal to potential host rocks (McDame limestones) like those found at Silvertip significantly aiding our understanding of the potential mineralizing system. We also tested the viability of using gravity surveys as a tool for locating mineralized areas and found it did not work, and at silverknife we identified a mineralized fault structure and we now postulate that fault structures are key areas for the loci of mineralization in this area. And finally mapping efforts have confirmed the presence of potential CRD host rocks in the North Tootsee zone and the South Silverknife Zone, the latter likely a faulted block west-southwest of the Silvertip deposit and both areas yet to be explored even at a preliminary level.

We clearly have a lot more to do in this area. These are areally large targets where various exploration efforts will be used to pinpoint drill targets as we expect there will be several drill campaigns required in this area to fully understand its potential.

Summary

CMC is fortunate to have a strong portfolio of exploration projects, two of which are potential ‘company makers’ that deserve significant exploration investment. We now ask our investment community to support our efforts…we are a bottom priced play with significant potential for value generation in the near future.

We are attending PDAC in booth 2113 and welcome everyone to come and talk to us and if you are not attending we will respond to emails or call requests to outline our thoughts on these significant exploration plays.

Kevin Brewer, P.Geo
President and CEO
CMC Metals Ltd.

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.

“This newsletter may contain certain statements that constitute “forward-looking information” within the meaning of applicable securities law, including without limitation, statements that address the timing and content of upcoming work programs, geological interpretations, receipt of property titles and exploitation activities and developments. In this release disclosure regarding the potential to undertake future exploration work comprise forward looking statements. Forward-looking statements address future events and conditions and are necessarily based upon a number of estimates and assumptions. While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks, including the ability of the Company to raise the funds necessary to fund its projects, to carry out the work and, accordingly, may not occur as described herein or at all. Actual results may differ materially from those currently anticipated in such statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, the impact of the constantly evolving COVID-19 pandemic crisis and continued availability of capital and financing and general economic, market or business conditions. Readers are referred to the Company’s filings with the Canadian securities regulators for information on these and other risk factors, available at www.sedar.com. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements. The forward-looking statements included in this news release are made as of the date hereof and the Company 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 expressly required by applicable securities legislation.”