Mr. Kevin Brewer reports

CMC ANNOUNCES SHARES FOR DEBT AGREEMENT TO IMPROVE ITS BALANCE SHEET

CMC Metals Ltd. has settled and extinguished $163,457.02 of outstanding debt through the issuance of common shares of the company.

In accordance with the settlement of debt, the company issued 2,611,111 common shares at a deemed price of 4.5 cents per share to four non-arm's-length creditors of the company. The company previously entered into a non-arm's-length administrative services agreement for services provided by officers of the company. The company also issued 1,021,267 common shares at a deemed price of 4.5 cents to three arm's-length creditors of the company.

The company chose to settle and extinguish the debt through the issuance of shares to preserve cash and improve the company's balance sheet. The debt settlement is subject to approval by the TSX Venture Exchange.

Under the agreements, the company intends to issue all shares to both the officers and non-arm's-length creditors at a price of 4.5 cents per share. The shares issued are subject to a four-month hold period, which will expire on a date that is four months and one day from the date of issuance.

The issuance of the shares pursuant to the debt and the issuance of the shares remains subject to the approval of the TSX-V. No new insiders will be created, nor will any change of control occur as a result of the issuance of the shares.

As certain insiders are party to the agreement, it may be considered a related-party transaction under Multilateral Instrument 61-101 -- Protection of Minority Security Holders In Special Transactions and the TSX-V. The company is relying on the exemptions from the formal valuation and the minority shareholder approval requirements of MI 61-101 contained in Section 5.5 (a) and Section 5.7 (1)(a), as the fair market value of the common shares being issued to insiders in connection with the service shares does not exceed 25 per cent of the market capitalization of the company, as determined in accordance with MI 61-101.

Kevin Brewer, president and chief executive officer of CMC Metals, noted: "We have significantly reduced all costs and expenditures to deal with the challenges our sector has faced in the past few months. We sincerely thank the service and supply companies who participated in this agreement. CMC is now well positioned to now take advantage of the improved market conditions to advance its silver projects in the Rancheria silver district."

About CMC Metals Ltd.

CMC Metals is a growth-stage exploration company focused on the exploration of high-grade silver-lead-zinc critical mineral carbonate replacement deposits (CRD) and skarn deposits in the Rancheria silver district in Northern British Columbia and Yukon. Its properties include the flagship Silverknife project, which is immediately adjacent to Coeur Mining's Silvertip deposit, one of the highest-grade underground CRD-vein deposits in the world, the Silver Hart deposit and Blue Heaven claims (Yukon), and the Amy claims (north-central British Columbia). Other polymetallic projects in its portfolio and available for option include the Bridal Veil (Newfoundland), which is an orogenic gold target, and Logjam (Yukon), a silver-gold target, possibly with porphyritic association.

We seek Safe Harbor.