CS EC ME Investor Presentation Baie-Comeau Silicon Project November, 2018 www.canadianmetalsinc.com
DISCLAIMER This document contains forward-looking information within the meaning of applicable Canadian securities laws. All information other than historical fact is forward-looking information. Forward-looking information relates to future events or future performance and is based on Canadian Metals current internal expectations, estimates, projections, assumptions and beliefs. Forward-looking information is often, but not always, identified by the use of words such as "expect", "project", "proposed", "intend", "seek", "anticipate", "budget", "plan", "continue", "estimate", "forecast", "may", "will", "predict", "potential", "targeting", "could", "might", "should", "believe" and similar expressions. Although management considers the assumptions and estimates reflected in forward-looking information to be reasonable based on information currently available, there can be no assurance that such information will prove to be correct. As a consequence, actual results may differ materially from those anticipated. Undue reliance should not be placed on forward-looking information, which is inherently uncertain and subject to known and unknown risks and uncertainties (both general and specific) and other factors that contribute to the possibility that the future events or circumstances contemplated by the forward looking information will not occur or that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. These risks include, but are not limited to risks associated with general economic conditions, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future metal prices, financial risks and substantial capital requirements. Further information regarding some of these risks (as well as risks relating generally to the Company's business) may be found under the headings "Risks and Uncertainties", "Forward-Looking Information" and "Financial Risk Factors" in the latest Management's Discussion & Analysis on www.sedar.com. Readers are cautioned that the foregoing list of factors that may affect future results is not exhaustive. The forward-looking statements contained in this news release are made as of the date hereof and Canadian Metals does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement. 2 CS EC ME
CORPORATE SUMMARY Canadian Metals is a diversified resource company focused on creating shareholder value through the development of large-scale industrial mineral portfolios in specific commodities and jurisdictions that will fuel the new energy economy. The company is uniquely positioned to pursue this strategy in silicon, precious and base metal assets. 3 CS EC ME
PROJECT LOCATIONS Baie-Comeau QC Saint-Vianney QC Proposed Silicon Plant Langis Silica Project 4 CS EC ME
Si BAIE-COMEAU UPDATE • Baie-Comeau has a sea harbor with a total of 6 docks and handles approximately 6 million mt of merchandise per year. • We have an agreement with the city of Baie-Comeau for a 43ha lot in the Jean-Noel Tessier industrial park, it is located 4 km away from the nearest residential area. • A new 12 km power line at 161kv from the Hauterive substation will tie our plant to the Hydro-Québec network, we have a 120 MW power allocation agreement at a 20% discount of the industrial tariff for 3 years. • A new 2 km rail section will connect our plant to the SOPOR yard in Baie- Comeau and to the CN railway system with the existing ferry-rail between Baie-Comeau and Matane on the south shore of the St-Lawrence. • The Langis quarry is located 40 km by road from the CN yard in Matane and the sandstone will be loaded in railcars for delivery to the plant. 5 CS EC ME
Si BAIE-COMEAU UPDATE • Discussions ongoing with equipment manufacturers and engineering firms to finalise mandate for the definitive feasability study. Baie-Comeau smelter will have a capacity of 18,000 mt/year of silicon 99% with one 25 MW furnace. • Preliminary evaluation is an investment of CDN$150M, revenue of CDN$60M and high profit margin due to the electrodes and furnace technology. • Process to be covered with patent (Priority date Nov 2018) • Estimated cost savings of more than CDN$500/mt on electrodes compared to composite (with graphite at US$11,000/mt) 6 CS EC ME
Si BAIE-COMEAU UPDATE • Environmental study completed by WSP during summer 2018 • Basic engineering required for operating permit available end of 2018 • Operating permit and feasibility study available: Summer 2019 • Construction period of 18 months • Start-up of first furnace: Fall 2021 • Expansion DFS and full environmental study in 2020 • Details on the technology will be disclosed November 14 th at the CRU silicon market forum in Lisbon, Portugal. https://events.crugroup.com/silicon/home ‘’ Canadian Metals Si Baie-Comeau Project, A Technological Breakthrough’’ 7 CS EC ME
Si BAIE-COMEAU PROJECT SCHEDULE janv.-18 juin-18 déc.-18 juin-19 déc.-19 juin-20 déc.-20 juin-21 déc.-21 juin-22 déc.-22 juin-23 déc.-23 mai-24 Prefeasability DFS financing Definitive feasability study Environmental permit Project financing Construction Startup Expansion DFS Environmental study expansion Expansion financing Expansion construction Expansion startup 8 CS EC ME
CANADIAN MARKET • Only one silicon producer in Canada , Quebec Silicon LLP, 3 furnaces with total capacity of 47,000 mt/year , 51% Ferroglobe- 49% Dow Chemical http://www.ferroatlantica.es/businessareas/electrometallurgical/b%C3%A9cancour/?lang=en • Silicon market in Canada 2011-2018 Quantity ('000) mt 2011 2012 2013 2014 2015 2016 2017 2018-8 mo. Production 45 43 24 45 45 45 45 30 Exports 43 41 20 23 23 20 24 18 Imports 26 20 21 14 12 19 14 10 Apparent consumption 28 21 25 36 35 44 35 22 Source: Roskill 15th edition, Statistics Canada 9 CS EC ME
USA MARKET • Largest world market for silicon imports • 6 silicon plants in the USA with 3 owned 100% by Ferroglobe, Niagara Falls NY with 2 furnaces 27,000 mt/year , Selma AL 2 furnaces 26,000 mt/year and Beverly OH 2 furnaces 20,000 mt/year http://www.ferroatlantica.es/business-areas/electrometallurgical/niagara-falls/?lang=en http://www.ferroatlantica.es/business-areas/electrometallurgical/selma/?lang=en http://www.ferroatlantica.es/business-areas/electrometallurgical/beverly/?lang=en • The largest silicon plant in the world is West Virginia Alloys owned 51% by Ferroglobe and 49% by Dow Chemical , 5 furnaces with total capacity of 75,000 mt/year http://www.ferroatlantica.es/business-areas/electrometallurgical/alloy/?lang=en • Mt.Meigs AL owned by Dow Chemical, 3 furnaces 42,000 mt/year • Burnsville MI owned by Rima, 2 furnaces 36,000 mt/year • USA silicon market 2011-2018 Quantity ('000) mt 2011 2012 2013 2014 2015 2016 2017 2018-8 mo. Production 156 158 147 146 151 154 154 103 Exports 26 21 4 3 3 5 3 3 Imports 191 169 159 194 165 153 126 77 Apparent consumption 321 306 302 337 313 302 277 176 Source: Roskill 15th edition, USGS 10 CS EC ME
USA AND CANADIAN Si MARKET 160 000 1,60 $ 140 000 1,40 $ 120 000 1,20 $ 100 000 1,00 $ 80 000 0,80 $ 60 000 0,60 $ 40 000 0,40 $ 20 000 0,20 $ 0 0,00 $ 2012 2013 2014 2015 2016 2017 2018-8mo. Tm US Tm CAD US$/lb US US$/lb CAD 11 CS EC ME
SILICON PRODUCERS Source: Ferroglobe, CRU 12 CS EC ME
FINANCING CDN$ Budget from December 2016 to September 2019* Completed Financing Canadian Funds 1,9 Preliminary Economic Assessment (PEA) completed 1,2 Economic Development (Govt) 1,4 PreFeasibilty Study (PFS) completed completed 1,7 Investors 1,2 Definitive Feasibility Study (DFS) ongoing 3,2 Osisko 0,5 5,0 Financing Needs (Ongoing) General and Administration ($100k/mth - run rate) 1,6 Government Grant 1,0 Other (Property Obligations) 0,3 Economic Development (Govt) 0,7 Investors 2,3 Contingency 1,0 4,0 9,0 9,0 * Full costs until smelter construction and financing 13 CS EC ME
DFS PROPOSAL 14 CS EC ME
CAPITAL STRUCTURE Exchange CSE - Canadian Stock Exchange Symbol CME Shares Issued 115,612,837 Controlled by Insiders & Associates 40% Approx. Float 60% Fully Diluted 161.9M Market Capitalization (CDN) $9.2M Strategic Partners / Major Shareholders Include: 15 CS EC ME
MANAGEMENT Canadian Metals Inc. has an experienced management team with specific industry expertise mineral exploration and mine development, arc furnace technology advancements, silicon production, mergers and acquisitions, investor relations, and public company administration. Stephane Leblanc Chairman & CEO Rene Boisvert, Eng. President Patsie Ducharme, CPA Chief Financial Officer Sean Tufford VP Corporate Development 16 CS EC ME
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