CMC Metals Ltd. Identifies Significant Exploration Potential on Its Silverknife Property in the Emerging Rancheria Silver District, Northern B.C. - Seite 2

Details of the results on the property analysis are presented in the following sections and related figures.

Overall Potential

The overall exploration potential is considered to be high at the Silverknife Project. Figure 1 identifies four key zones, a majority of which remain relatively unexplored with each having characteristics that are typically associated with silver-lead-zinc carbonate replacement ("CRD") and skarn deposits.

As previously noted, the Silverknife property is located immediately adjacent to the west of the Silvertip Mine owned by Coeur Mining Inc. Silvertip is one of the highest-grade silver-lead-zinc CRD's in the world and Coeur have achieved spectacular results from recent exploration efforts at Silvertip.

Being proximal to a deposit like Silvertip is important as CRD deposits tend to form in clusters and along structural corridors with regional targets based on a "hub and spoke" model. Silverknife is located along one of the potential "spokes" or structural corridors. Other positive aspects of Silverknife include the presence of the host rock to Silvertip, the McDame limestone, found in outcrops in both the northernmost and southernmost portions of the Silverknife property, positive geochemistry, and a non-compliant historic resource with reported high grades in drill intersections at Silverknife Prospect.

Limited mapping and exploration activity of these areas has been conducted to date by previous explorationists and CMC. These areas all merit considerably more exploration. Required work will include, but may not be limited to, geochemical sampling, detailed geological/structural mapping, and ground geophysics. These techniques will serve to target possible faults which are prime areas for mineralization and/or the presence of sulfides with the expected result to be numerous drill targets.

Zones with Exploration Potential at Silverknife

CMC has highlighted four target zones (see Figure 1) on the property, all of which require considerable exploration to truly evaluate their potential. These are detailed in the following sections.

1. Tootsee North: Interest in this zone stems from (see Figure 2):

• The defined presence of McDame Limestone in outcrops
• A large coincident gravity-conductivity anomaly
• Proximity to the Cassiar intrusive - a potential heat source to enhance the movement of mineralizing fluids into the overlying McDame limestone
• Likely presence of faults which present possible conduits for fluid movements

Work required in this area includes the completion of road access, grid establishment and line cutting, Induced Polarization, VLF and possibly CSMAT geophysical studies, trenching (if possible), and geochemical sampling to pinpoint drill targets.