Mr. Michael Liik reports

CYMAT PROVIDES MILITARY AND JOINT VENTURE UPDATE

Cymat Technologies Ltd. has provided an update on the progression of business development activities pertaining to military vehicles and the joint venture sandwich panel initiatives.

On the military vehicle front, Cymat has been developing a version of its SmartMetal material for Science Applications International Corp. -- one of only two companies competing to provide the U.S. Marines with the next-generation Amphibious Combat Vehicle. SmartMetal kits provided the SAIC version of the ACV with capabilities vital to satisfying the marines' functional requirements for the vehicle. Unfortunately, the marines have selected the other competing firm to be the provider of ACVs. Cymat executive chair Michael Liik commented, "While the marines selection is disappointing to Cymat, I believe that our collaboration with SAIC on the ACV project has the potential to provide longer range benefits for the adoption of SmartMetal in military vehicle applications."

Cymat continues to work closely with Alucoil SA, its venture partner, on the completion of a pilot production line for the manufacture of aluminum sandwich panels with Cymat's stabilized aluminum foam as the panel core. The pilot panel brazing line in Spain is expected to be completed in August. At that time Cymat will deliver recently developed SAF panels, produced at the Ontario location, with an aluminum alloy and metal matrix composite that is new to Cymat's production process. These panels measuring approximately 1.2 metres by 1.4 metres will be utilized in the Spanish brazing trials, which will inform the company's decision on how to proceed to full-scale production. It is anticipated that this brazing line will be combined with a SAF production line, thereby expediting the transition to full-scale production capability. Meaningful revenue from sandwich panel production is not expected to occur before Cymat's next fiscal year-end.

Recently, the world marked the one-year anniversary of the tragic fire in London's Grenfell Tower. Investigators have identified aluminum-composite panels with combustible cores as a contributor to the rapid spread of this fire which claimed the lives of 71 people. International standard setting bodies -- including the International Code Council, which governs construction standards for the United States and other global markets -- are currently examining existing building codes and recommending stricter limits on fire ratings for material used in the construction of high-rise building facades. The sandwich panels under development by Alucoil and Cymat are targeted to meet applications requiring such increased combustibility resistance.

About Cymat Technologies Ltd.

Cymat develops innovative materials for industry. The company has worldwide rights, through patents and licences, for producing stabilized aluminum foam. The ultra-light metallic foam is manufactured by bubbling gas through molten alloyed aluminum containing a dispersion of fine ceramic particles and can be either continuously produced in flat panels or as near-net shapes. The result is a revolutionary material with a wide array of features including very low density, mechanical energy absorption, thermal and acoustic insulation, is recyclable, time and temperature insensitive, and has a relatively low cost of production.