First of all a personal thought. This is a very challenging time in the market for all of us. Like many of you, I have invested significantly in CMC Metals…so in other words I have “skin in the game”. It is both confusing and frustrating to see our world in great need for a current and future supply of mineral commodities and yet failing to support the junior sector that typically are responsible for a majority of mineral discoveries. In recent times, despite being quite active and in many cases generating a lot of success in our exploration efforts, share prices of junior exploration companies have been decimated. This is particularly frustrating for those of us who are working hard to direct our companies to conduct responsible exploration programs based on the sound science and knowledgeable industry experts. I am hopeful of better times ahead. We have recently seen a slight improvement in precious metals prices and some movements in juniors that are producing or have major advanced project. I think it is quite safe to predict that economic forces will eventually drive an improvement in commodity prices across the board in the foreseeable future and eventually the value growth and investment capital will translate into growth stage explorationists like CMC Metals. Meanwhile persons in similar roles to myself agree that the best thing to do is continue to work hard, advance our projects as best we can, and try not to look at the stock ticker too much as we all confident that improvements in the market are on the horizon. I expect my sentiments are shared by most of you and lets hope it turns relatively soon. Meanwhile the one promise I can make is that I and our team will continue to work hard to advance projects so when the value does come back into the market stocks like CMC Metals will benefit significantly.

Now to news on our recent activities and plans ahead.

In March we exhibited at the Prospectors and Developers Association of Canada Conference, and exhibited and presented at the Metals Investor Forum (MIF), both held in Toronto, Canada. This provide opportunities to meet with current and prospective .

March has been a busy month so far as we continue preparations for the 2023 exploration season. Highlights of our activities are as follows:

• Drill Permit - Silverknife Project, Rancheria Silver District, BC: The permit application has been deemed complete by the Smither-EMR office and it has been sent out for referral to governments, First Nations and the general public. The duration of the referral process is approximately 40 working days, at which point we are hopeful that the final permit terms will be defined and issued. This took considerable effort and involved an initial round of engagement with the Tahltan Central Government with positive discussions and information sharing. As a result of these discussions we issued a Request for Proposals to complete a desktop Archeological Overview Assessment of the Silverknife Area and the proposal also included all proposed new exploration trails/roads and the Amy claims. This assessment will aid in current and future permitting efforts and also address concerns raised by the Tahltan Central Government.
• Silverknife Project, Rancheria Silver District, BC: We confirmed the signing of the contract with Flamingo Drilling recently. We are currently creating a 3-D geological model in Leapfrog of the historical drilling on the Silverknife Prospect. We have also been in touch with ground gravity survey companies to expand the gravity survey we completed last year further south to cover the Silverknife Prospect and the conductivity anomaly that extends from Silverknife and thence southwestwards to the western property boundary of our claim area. It is interesting to note that this area of conductivity links into the conductivity anomalies associated with the Silvertip mine and the new discoveries recently identified by Coeur immediately to the south of their mine. Our aim for this is to combine the magnetic-EM data, the geological model, and new gravity survey results this summer to generate new drill targets in the area of the Silverknife Prospect.
• Rancheria Camp (Yukon): we have secured an industrial camp to support operations for the Silverknife Project and plans are underway to transport and construct the camp in the next 4-6 weeks.
• Bridal Veil (Central Newfoundland): crews have now been mobilized to the property and work has commenced on completing a pilot Induced Polarization geophysical survey. If positive results from this survey are achieved it will be significant as to the indication of potential mineralization at Bridal Veil. To date we have the property has provided a range of positive indications with as the saying goes “lots of smoke and no fire” so we hope this current survey effort will start to lead us to a better understanding of the mineralizing system. Being in close proximity to the Newfound Gold Queensway Project one remains hopeful that an orogenic gold system in present at Bridal Veil.
• Rodney Pond (Central Newfoundland): We are in process of completing the assessment report related to the ground magnetic surveys completed on the property in 2022. Filing assessment reports ensures that we get credit on our claims for projects and helps to maintain the claims in good standing.
• Amy, Rancheria Silver District, BC: we are currently completing the filing of the assessment report on the Data Capture and Compilation Report prepared by SRK last year.
• Silver Hart/Blue Heaven, Rancheria Silver District, Ronacher-McKenzie have made excellent progress in analyzing the results from the 2022 drill program. The drill data has been integrated into the current property model. Soil data has been compiled and we are near completion on compiling results from trench and prospecting samples at Silver Hart and Blue Heaven. The expected near term outcome is to provide an initial interpretation of the 2022 results and provide a perspective on steps ahead with respect to further data interpretation and a comprehensive study effort to identify future exploration strategies on the property for 2024 and beyond. The 2022 program highlighted to us the need to acquire a greater holistic approach to over 30 years of exploration efforts on the property. The Silver Hart/Blue Heaven project remains a very key asset of CMC as it continues to hold promise for further discoveries of high grade silver-lead-zinc veins, skarns, and carbonate replacement deposits. The property has a number of prospects that are yet to be fully explored and many of which have not been explored and deserve advanced exploration efforts and/or drilling. These studies will serve to provide significant insights into generating maximum value from explored prospects and as well as identifying additional value from prospects yet to be evaluated with advanced exploration techniques. This has been abundantly clear to us in the early stages of working with Ronacher-McKenzie to evaluate the extensive database of geological, geochemical and geophysical data and we expect this will continue into the summer months with further field investigations, examinations of core, resampling of core, and data compilation efforts.

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 43-101and 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.