In January we attended the Cordilleran Roundup Conference, Metals Investor Forum (MIF), and the Vancouver Resource Investment Conference (VRIC). At both MIF we exhibited and made presentations. The presentation audiences were impressive with an estimated 300 persons at MIF and 90 persons at VRIC. The presentations are posted on the website if you would like to review. The presentations focussed on our plans for Silverknife this season and why we feel it is a great exploration target.

February has been a busy month so far as we start to prepare for the 2023. The highlights of our activities are as follows:

• Permit (Silverknife Project, Rancheria Silver District, BC): We initiated engagement with affected First Nations (Liard First Nation – Watson Lake/Lower Post – Yukon and Tahltan First Nation (Dease Lake, BC). We received no concerns form another stakeholder operating in the region of our property. We remain hopeful the permit will be in place soon.
• Driller (Silverknife Project, Rancheria Silver District, BC): We solicited bids for a driller for the proposed 3,000 meters at Silverknife. The driller will be Flamingo Drilling Ltd. Flamingo have lightweight portable fly drills that are designed in a manner to facilitate easy drill moves and require a smaller drill pad footprint, thereby minimizing ground disturbance.
• Rancheria Camp (Yukon): bids from suppliers of tents/camp structures are closing on February 27, 2023 and from that we will then either purchase or lease the required structures to support our operations. We have moved our Weatherhaven structures to site that provide us with a lot of what we need for a camp. The camp will be designed to support up to 20 persons but operations will require an estimated 10-12 persons so we have contingency for expansion at short notice, if required.
• Bridal Veil (Central Newfoundland): the final permit required to be able to conduct line cutting to support the pilot Induced Polarization geophysical survey at Bridal Veil was recently received. We expect crews will be mobilized to the property in early March with results expected in mid April.
• Rodney Pond (Central Newfoundland): we issued a press release on February 14, 2023 noting the results of interpretation of the ground magnetometer survey. The results indicated the possible presence of two fault structures that appear to be related to the mineralization identified on the property to date. Next steps are to undertake geological mapping and prospecting of the entire property in order to compare geology to the magnetometer results and to secure a permit to re-establish vehicular/equipment access to the property area to facilitate activities such as trenching etc,.
• Impressive Trench/Adit Dump Results (Amy, Rancheria Silver District – BC): impressive silver-lead-zinc results were collected from the Wild Turkey and zones and the 4200 level adit dump. These were announced in a press release released on February 22, 2023 and posted on www.cmcmetals.ca. These results are a very positive indication that the historic reporting of the presence of high-grade silver-lead-zinc CRD mineralization on the Amy property is indeed accurate. The property has a non-compliant 43-101 historic resource identified by drilling between the 4450 and 4200 adits of 79,849 tonnes grading 367 g/t silver, 6.0% zinc and 2.8% lead and an additional 59,000 tonnes of resources with no assigned grade (Note: CMC Metals Ltd is not able to verify these results and they should not be relied up in any manner). Drill results from efforts dating back to the 1960’s and 1970’s are brief but appeared to indicate broad areas of mineralization that remained open at depth and in possible lateral extensions. We are therefore optimistic that this resource can be verified and expanded with additional drilling. Also you may recall that from the SkyTEM 2021 airborne survey significant conductivity anaomalies were identified in the north-central portion of the Amy property that warrant detailed investigation with possible geochemical (i.e soil sampling) and additional geophysical surveys (i.e possibly a gravity survey). The current plan is to examine a new access route to the site, complete groundtruthing of the route this summer, initiate discussions with First Nations and affected stakeholders on the proposed route and file an exploration permit in Q3-2023 for access development and a range of advanced exploration efforts including but not limited to trenching, geophysical surveys, geochemical surveys and drilling. Our team is optimistic on the potential of this property to provide drill targets for the 2024 season.
• Additional Exploration Results – 2022 (Silver Hart/Blue Heaven, Yukon). We have contracted Ronacher-McKenzie to conduct a review of the drill results. Some adjustments to the formatting of the data from the field teams is underway to facilitate the analysis of drill core and soil sampling results. In addition we are still awaiting the results of 280 rock samples collected from a detailed sampling of the central portion of the Blue Heaven property which we hope to receive this week or early next week. We are working to get the results out to everyone as soon as possible and we appreciate the patience of everyone in this regard. Ronacher-McKenzie are also undertaking a review of all results from exploration programs completed by CMC Metals Ltd in the period 2010-2022 and this review will likely be complimented with some field studies at Silver Hart/Blue Heaven for the 2023 season with the aim of identifying drill targets outside of the Main Zone vein system for 2024 and beyond.

Looking back at 2022 I am pleased to note that we managed to complete everything we noted we would get done and I hope we can accomplish the same things this summer and have some success with the drill bit.

As usual please feel free to contact me if you have any questions or concerns.

Kevin Brewer
President and CEO

In their presentation of December 15, 2022, Coeur Mining Inc. provided some insights possible additional prospectivity within the Silvertip region and that also relate to the Silverknife property. Some key takeaways from their presentation were as follows:

• The prospective McDame Formation (a limestone unit that is the host unit of the Silvertip deposit) extends southward into the northern part of Silverknife which is the area subject to the proposed drilling program by CMC for 2023;
• Recent exploration successes by Couer appear to demonstrate the potential for mineralization in the McDame formation is not limited to the upper section of that sequence as previously thought but also occurs throughout the unit

(Source:  Coeur Mining, December 15, 2022, Presentation)

• Coeur have undertaken some regional structural interpretations which show
  • A northeast trending structural corridor that aligns with the northern part of the Silverknife area in the immediate area of the gravity/conductor anomalies;
  • North-south trending faults throughout the Silverknife property (Silvertip lies in close proximity to north-south trending faults); and,
  • Possible intersecting fault structures in the area of the Silverknife Prospect that present possible good channels for mineralizing fluids.
• A geochemical anomaly extends southwest from the Berg Showing to the Silverknife north boundary;

(Source:  Couer Mining, December 15, 2022 Presentation)

• The geological sequence covering the area of the northern portion of Silverknife appears to be a repeat sequence of the geology at Silvertip and provides support for the existence of a potential thrust fault in the area accounted by the geological unconformity. This coincides with Coeur’s regional structural analysis indicating the presence of a major northeast tending structural corridor in the northern portion of Silverknife. Areas with structural characteristics like these are often attractive areas for mineralization; and,
• Coeur have identified several intrusive centers over a 15 km strike length north and south of the Silvertip Main Zone. Intrusive centers are a key feature as carbonate replacement deposits are typically associated with intrusive bodies.

This has presented a very attractive drill target for the Company that will be pursued with a proposed initial 3,000-meter drill program during the 2023 exploration season. The permit for this drill program has recently been submitted to British Columbia for approval and the Company has also initiated engagement with affected First Nations with the eventual hope of establishing exploration agreements with their governments. It is expected that the drill permit will be received within 3-6 months.

(Source: Intelligent Exploration/Aspect North, 2022).

Amy

The Amy Property comprises of 16 mineral tenures (approximately 908.4 hectares) and is located approximately 8 kilometers to the west of the Silverknife tenures.

Amy is a highly attractive property that has been subjected to considerable historical exploration. The Amy Prospect has a historic indicated reserve of 79,849 tonnes grading 367 g/t silver, 6.0% zinc and 2.8% lead for 1,839,654 ounces at 790 g/t silver equivalent with an additional 59,000 tonnes of inferred resources with no assigned grade.

Note: CMC does not consider there to be a current resource at the Amy Prospect as details on historic estimations made are not sufficient to meet current resource reporting requirements under NI 43-101 and CIM Resource Estimation standards.

The property is currently accessed by the same road that transects Silverknife. Even though having an existing road is an attractive element for Amy, prior to reaching the property the road intersects the Tootsee River.

A brief site reconnaissance and sampling program was undertaken in 2022. Samples were taken from a couple of the historical trenches that are still on and samples were also collected from the 4200-adit dump. CRD-style mineralization is evident from the observed showings. Samples have been submitted for assay but results are still pending.

The Company has determined that another route to the Amy property should be considered to avoid this significant river crossing. A potential route is located to the north but this needs to be ground truthed and other permissions for possible construction of the route would have to be sought from other stakeholders such as Coeur who own the mineral tenures on this potential routing. This will be the focus of work on Amy in 2022.

Logjam (Yukon)

Logjam is a 100% owned property of the Company located in south-central Yukon, approximately 250 km from Whitehorse and 185 km west of Watson Lake. The property is accessible through a road extending 20 km northwards from the Yukon-Alaska Highway.

Mineralization at Logjam comprises of no less than 10 polymetallic veins containing gold, silver, lead, zinc, copper and to a lesser extent antimony, bismuth and tungsten. Logjam has seen a lot of historical work completed on the project including 701 meters of underground development in two adits (5600 and 5150 levels) and 2,971 meters of drilling. Limited exploration has taken place since the mid 1980’s but it is considered that the property has exploration potential to host a polymetallic deposit.

The Company has a permit to upgrade the road access to the property enabling vehicular traffic to the site and to conduct a range of exploration activities such as prospecting, geological mapping, geochemistry, and trenching. The Company is currently undertaking an evaluation of the Property to determine best steps forward which may include optioning the property or securing a partnership arrangement to advance exploration on the Property.

Newfoundland

Bridal Veil

The Bridal Veil Property, is a copper-silver-lead +/- gold, bismuth, and tungsten prospect located 15 kilometers east of the significant gold Queensway Project being explored by Newfound Gold Corp. Bridal Veil is adjacent to the Trans Canada Highway and comprises of 150 claims (3,150 hectares) that host six mineralized showings containing high-grade gold, copper and silver. It diversifies the Company’s holdings and significantly extends our exploration season.

In 2022, the Company completed an expansion of three of the four areas explored by geochemical soil surveys in 2021. A ground magnetometer survey of a majority of the property was completed and three additional small grids were established and sampled. Results from these field efforts are pending receipt of assays at the time of this report. The ground magnetometer survey served to define the possible contact between the intrusive and metasediments which is a potentially prospective area for mineralization. It also identified north-east trending structures which are common in other adjacent properties and on the Queensway Project and possibly are also significant in the loci and controls of mineralization in the region.

The Company is also in final stages of securing a permit to conduct a pilot Induced Polarization Survey (“IP”) which will be used to determine the effectiveness of this geophysical technique to pinpoint potential drill targets. It is expected that this 10-line kilometer IP survey will be completed in the spring of 2023. Additional geological mapping and sampling of significant areas of alteration including mineralized breccia units is also planned for 2023. The overall objective is to determine whether the project warrants drill investigation in 2024 and beyond.

Terra Nova Property, Newfoundland

The Terra Nova Property located approximately 45 kilometers southeast of Terra Nova District, Newfoundland, which property is road accessible and is transected by the HV dc power line. It is also situated approximately 32 kilometers east of the high-grade gold discovery by Newfound Gold Corp.

The Terra Nova Property comprises 71 claims (approximately 1,775 hectares) and is underlain by the Square Pond Gneiss and sedimentary rocks of the Gander Group. The Company acquired the property as prospectors had identified several high-grade copper-silver-lead showings in the area.

In 2022, the Company entered into an Option agreement with Highbank Resources Ltd. (“Highbank’) on July 4^th, where Highbank earned the option to earn up to 80% ownership in Terra Nova.

Within this agreement, the Company continued as the exploration Operator. An exploration permit to construct exploration trails and conduct trenching on the known showings was acquired in late 2022. Trail construction was initiated along with a limited trenching program which was pre-empted by winter storm conditions. Plans are underway to complete the extension of the trail system to all of the property showings and conduct as more detailed trenching and pit analysis of areas over and proximal to the showings to determine both their areal extent and further define the nature of the mineralization and system controls. This work is proposed for early summer, 2023.

Rodney Pond Property, Newfoundland, Canada

The Company acquired an option to earn up to a 100% working interest in the Rodney Pond property in the highly prospective Gander Subzone in central Newfoundland, subject to an option agreement with Nancy, Stephen and Larry Rogers (the prospectors) of Hare Bay, Newfoundland.

In 2022, the Company conducted a ground magnetometer survey initially over the western part of the project and then completed a second survey over the northern portion of the Property to cover newly identified showings.

The geophysical interpretation report on this survey is pending at the time of this report. Based on the findings of this report, possible plans for further exploration of the property for 2023 will be considered.

Other Activities

On November 2, 2022, the Company commenced the development of an ESG (environmental, social and governance) manual to help develop Company policies and guide all work activities to ensure that they are being implemented in a corporate responsible manner. The initiative is designed to be the first step of a multi-phase project that is designed to ensure that the corporate philosophy and operational plans of the Company serve to mitigate and adapt project impacts on the environment, climate change, local participation, indigenous concerns and participation, local communities, project benefits, employee safety and satisfaction.

This ESG initiative is expected to evolve over the foreseeable future in particular in the area of addressing the needs and concerns of local indigenous groups and communities directly affected by our projects. In this manner it is hopeful that the outcome of these activities will serve to increase the competitiveness of our projects and de-risk both short- and long-term goals and objectives. Determining how indigenous knowledge and participation within this project is deemed fundamental to the future success of the Company.