Mr. Kevin Brewer reports

CMC SELLS IT SUBSIDIARY COMPANY 0877887 BC LTD. INCLUDING THE BISHOP MILL TO 1436132 B.C. LTD.

CMC Metals Ltd. has entered into a share purchase agreement to sell its subsidiary company 0877887 B.C. Ltd. (087 B.C.), and all of assets, rights and responsibilities of the Bishop mill located in California, United States, with 1436132 B.C. Ltd., a private Canadian company. This agreement will be subjected to a 30-day due diligence period from the effective date of the deal being Sept. 18, 2023.

The details of the transaction are as follows. The purchaser agrees to buy from CMC and CMC agrees to sell to the purchaser all of the common shares of 087 for total consideration comprising $270,000 (U.S.) in cash and $600,000 in shares or cash equivalent, payable as follows:

(a) a total of $270,000 (U.S.) in cash, payable as follows:

(i) $5,000 (U.S.) payable on the effective date (the due diligence payment);

(ii) $15,000 (U.S.) payable on or before the first business day following the end of the due diligence period (defined herein) if the purchaser has not provided a termination notice (defined herein) to the vendor in accordance with Section 5.2;

(iii) $50,000 (U.S.) payable on or before the 120th day following the effective date;

(iv) $50,000 (U.S.) payable on or before the 300th day following the effective date;

(v) $50,000 (U.S.) payable on or before the 480th day following the effective date;

(vi) $50,000 (U.S.) payable on or before the 660th day following the effective date; and

(vii) $50,000 (U.S.) payable on or before the 720th day following the effective date; and

(b) $600,000 in shares or cash equivalent, as follows:

(i) $200,000 in common shares of the purchaser (or its successor) deliverable on or before the 120th day following the effective date;

(ii) $200,000 in common shares of the purchaser (or its successor) deliverable on or before the 300th day following the effective date; and

(iii) $200,000 in common shares of the purchaser (or its successor) deliverable on or before the 480th day following the effective date.

The price per share for calculating the number of shares to be issued under paragraph (b) herein will be determined as follows: while the purchaser is a private company, the price per share will be the price per share at which its most recent third party financing was completed; or, if the purchaser (or its successor) is publicly traded company, the price per share will be the 10-day, volume weighted average closing price of its shares on its primary listing stock exchange.

The primary asset of 087 B.C. is the Bishop mill, located six miles north of Bishop, Inyo County, California. The mill has a flotation circuit designed to process up to 96 tons per day. 1436132 B.C. Ltd. proposes to operate the Bishop mill in the near to medium term. The mill is currently permitted for operation subject to various conditions and minor infrastructure completions.

Kevin Brewer, president and chief executive officer of CMC Metals, noted that: "We are very pleased to liquidate this asset to a group who have an operational plan for the Bishop mill. We look forward to their future success in this endeavour."

The sale of this asset is subject to TSX Venture Exchange approval.

About CMC Metals Ltd.

CMC Metals is a growth-stage exploration company focused on opportunities for high-grade polymetallic deposits in Yukon, British Columbia and Newfoundland. The company's polymetallic silver-lead-zinc CRD prospects include the Silver Hart deposit and Blue Heaven claims (the Silver Hart project) and Amy and Silverknife claims in north-central British Columbia. The company's polymetallic projects with potential for copper-silver-gold and other metals, include Terra Nova and Rodney Pond (central Newfoundland) and Terra Nova which has been option to Highbank Mining.

We seek Safe Harbor.