Canadian Metals Announces Positive Preliminary Economic Assessment of Langis Project

MONTRÉAL, QUÉBEC--(Marketwired - April 28, 2016) - Canadian Metals Inc. (The "Corporation") (CSE:CME) is pleased to announce the results of a positive PEA study that was completed by Viridis.iQ GmbH in collaboration with GeoLogic, GeoForbes and Biofilia, respectively responsible for metallurgy and mineral processing, resource estimate and environmental. The PEA study demonstrates that the Project has robust economics and potential to become a profitable producer of silicon metal. Highlights of the PEA are summarized below:

Operational Highlights:

• Quarry Life estimated at a minimum of 35 years based on measured resources
• Metallurgical grade silicon metal mgSi production of 50,000 tonnes per year (Phase 1 only)
• Microsilica - high quality production of 24,000 tonnes per year (Phase 1 only)

Financial Highlights After-Tax and in US dollar:

Preliminary Economic Assessment Highlights (Phase 1 only)	Dynamic Best-Case	Dynamic Base-Case
NPV at a 7.3% Discount Rate	$543 M	$380 M
Internal Rate of return (IRR)	23.6%	20.7%
Payback Period Following the 36 Months Investment Period	3.75 years	4.2 years
Average Annual Silicon Metal Production	50,000 tonnes
Average Annual Microsilica Production	24,000 tonnes
Direct Capex	$190.0 M
Indirect Capex	$49.4 M
Other Costs - Subtotal	$39.5 M
Working Capital Assumption	$23.7 M
Total CAPEX	$302.6 M

The capital cost per ton installed for the proposed CME smelter is estimated to come in at approximately US$5,050/ton, approximately 7% below the average capital cost per ton installed from a peer-group of recently announced new entrant greenfield silicon smelter projects of US$5,450/ton.

MINERAL RESOURCES ESTIMATE - April, 2016

Canadian Metals - Langis Project

Material	Resources	Volume (m3)	Density (t/m3)	SiO2 (%)	Tons
Silica	Measured	1,398,000	2.5	98,57	3,495,000
Silica	Indicated 1	600,400	2.5	98,52	1,501,000
Silica	Indicated 2	814,000	2.5	98,92	2,035,000

"The project economics are robust and I am very pleased with a NPV of US$543 million After-Tax," commented Stephane Leblanc, President and CEO. "Our goal is to continue toward delivering a feasibility study before the end of Q2 2017. Quebec is emerging as a global silicon metal centre driven by the ever increasing demand for solar panels and for the Next Generation of Lithium-Ion batteries and other key industries.

"The project capitalizes on the unique benefits of both the Langis Deposit and Canadian Metal's position in the field of newcomers to the metallurgical silicon world," according to Lou Parous, Executive Director of Viridis.iQ GmbH. "This PEA is the result of a rigorous technical and economic assessment of the project fundamentals and reflects the seriousness and diligence of Canadian Metals to its investors and stakeholders. Metallurgical silicon remains a key raw material to sustain the world's increasing renewable energy demands, which will continue to grow as solar energy is globally disseminated and the Canadian Metals project will be instrumental in providing a source of this material to the solar and other key industries."

The Technical Report will be posted on Canadian Metals website at www.canadianmetalsinc.com and on SEDAR at www.sedar.com, within 45 days following this news release.

Quality Control and Assurance

Valdiney Domingos, M.Sc. Eng., MBA, of Viridis.iQ. is the independent Qualified Person as defined by National Instrument 43-101, for the purposes of the PEA. Lou Parous, Eng., a Qualified Person for Viridis.iQ has read and approved this press release.

Qualified persons for resource estimate

Alain Tremblay Geol.Eng. of Consultations GeoLogic, a qualified person as defined by National Instrument 43-101, is responsible for the Langis Silica resource estimate and has approved the technical information contained in this news release.

About Viridis.iQ GmbH (http://www.viridis-iq.de/home.html)

Viridis.iQ GmbH is an independent German engineering, consulting and technology firm with unique expertise in the silicon and ferroalloy value chain. Viridis.iQ provides process design and optimization as well as operations knowhow transfer and technical project development to international green-field manufacturing projects from metallurgical silicon and ferroalloys production, in the metals field, to polysilicon, solar cell and module production in the photovoltaics sector. With its in-house experts, engineers and specialists on silicon based manufacturing from quartz ores to solar panels, Viridis.iQ provides independent engineering, consulting and operating knowhow to private and corporate project developers, investors and lenders, and industry associations and governmental institutions worldwide.

About Canadian Metals

Canadian Metals Inc. is focused exclusively on the development of its Langis Project, a high-purity silica deposit located in the province of Quebec. The Company is rapidly positioning itself to eventually become a North American silicon metal producer.

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