Mr. Jack Bal reports

ROLLBACK AND CORPORATE UPDATE

CMC Metals Ltd. will be proceeding with a rollback of its issued and outstanding common shares on a 1:7 basis subject to TSX Venture Exchange approval, with an effective date of Feb. 11, 2016. The company received shareholder approval to a consolidation at its annual general meeting held June 18, 2015, where, at that time, shareholders granted authorization to the board of directors of the company, at their discretion, the right to consolidate the company's shares as they deemed fit and upon acceptancy of the exchange.

Upon completion of the rollback, the company will be conducting a private placement of up to 10 million units at 10 cents per unit, each unit consisting of one common share and one transferable share purchase warrant. Two warrants will be exercisable for one additional common share at 12 cents per share for a two-year period. The proceeds derived from the total 10-million-unit placement will be used toward the company's continuing costs associated with the further development of the company's Bishop mill and Radcliff property projects held in the United States. In excess of 50 per cent of funds raised will come from insiders of the company. A finder's fee may payable in relation to this private placement and the same is subject to exchange approval.

The company has provided an update on the Bishop mill and Radcliff mine projects. The Radcliff mine is a fully permitted mine with ore stockpiled and waiting processing. The company's initial plan was to ship ore to a local smelter but agreeable terms have not been achieved. The company's plan is to make the Bishop mill operational within the next 90 days and commence processing material from the Radcliff mine.

To date, the company has upgraded the mill to MSHA (Mine Safety and Health Administration) standards, installed an assay lab and a new lined tailings pond. To complete the mill, bird netting will be installed and a vadose zone well drilled. In addition, the company has engaged Donald Wedman, PEng, to complete the remaining tasks and make the Bishop mill operational to accept ore from the Radcliff mine.

We seek Safe Harbor.