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Canadian Metals Reviews 2019 and Announces its Strategic Objectives

Corporate Updates

Canadian Metals Inc. CSE: CME

CANADIAN METALS REVIEWS 2019 AND ANNOUNCES ITS STRATEGIC

OBJECTIVES

August 12, 2019 Montréal, Québec. - Canadian Metals Inc. (“CME” or the “Company”)

(CSE: CME) reviews its progress and accomplishments during 2019 and announces its

strategic objectives for 2020.

Major accomplishments during fiscal year ended July 31, 2019

Baie-Comeau Silicon Project:

• The Baie Comeau project was modified from ferrosilicon to silicon production with

emphasis for the aluminum and polysilicon industry. The industrial definitive feasibility

study (DFS) began in November 2018 with the support of SMS Metix and Mesar , it

was recently completed. The DFS is currently under review by the Company, with a

final release by the end of calendar year 2019.

• CME was awarded a $1,000,000 grant to execute its industrial study in January 2019.

• Hydro Québec also finalized its study to supply power lines to the reserved parcel of

land in Baie-Comeau where the smelter will be built.

Langis Property:

CME entered into a definitive agreement to sell its quarry to Les Minéraux Industriels du

Québec Inc., an experienced quarry operator. This transaction totalling $2,250,000,

provided an immediate cash inflow of $500,000 in May this year, and subsequent staged

cash payments over a period of approximately 8 years.

Quebec Iron Ore Properties:

The Company entered into an option agreement with FeTiV Minerals Inc. (“FeTiv”) a

private exploration company, to increase its interest to 100% in the

followings: Silicates Lake, Seignelay, Mouchalagane, Lac Robot and Baie-

Trinité iron projects.These Projects are all well located near local infrastructures

of Baie Comeau and Port Cartier.

Strategic Objectives for 2020

Quebec Iron Ore Properties:

Our strategy is to develop in priority sequence each of our 5 projects listed above

based on their individual location to infrastructure, advanced drilling, quality of the

ore, and finally lower capital expenditures. Each of these project s will be 43 -101

qualified after we completed our technical work.

• The Silicate Lake property is our #1 priority due to its proximity of 1.6 km from the

ArcelorMittal railway. Historical works include:

o 9460 metres of historical drilling

o Conceptual estimate (see News release of July 8th, 2019 for more details)

o Excellent potential to increase the estimate as the deposit is open

o Metallurgical sampling indicate excellent concentrate grade with very low

impurities (Silica and aluminium).

o

We expect to initiate a comprehensive drill program in the fall of 2019 with the objectives

of upgrading the conceptual estimate to 43-101 qualified resource in 2020, and complete

all the necessary work to advance the Project to a development decision, by the end of

2020.

• Lac Robot, located 60 km from the city of Baie-Comeau, is a potential new iron ore

discovery. Historical work done on the Property include:

o Mag and TDEM survey covering approximately 2000 hectares ( 20 square

kilometers)

o Surface sampling indicating the presence of Iron, Titanium and Vanadium.

Corporate Structure:

• Gerald Panneton became Chairman and CEO as of July 5th, 2019, bringing experience

and expertise in the exploration and development to production along with extensive

financial acumen to raise the financial requirements.

• CME shareholders will be asked to consider and approve a share consolidation on the

basis of one new common share of the Company for up to every ten existing common

shares of the Company . The roll back has already been supported by many major

shareholders to strengthen the Company share structure, to further eliminate fatal

dilution. The final count of oustandings shares will amount to only 13.2 million shares

after the proposed consolidation.

Gerald Panneton, Chairman and CEO commented, ‘’Canadian Metals with the option to

acquire 100% of the FETIV assets, on or before December 31 st 2020, will be positioning

itself as a Canadian leader on the Cote-Nord du Quebec with excellent potential to develop

large iron ore deposits with low impurities near existing infrastructure.

About Canadian Metals Inc.

Canadian Metals is a diversified resource company focused on creating shareholder value

through the development of large -scale mineral deposits in safe jurisdictions. The

Company is focusing on its new acquisition of the Iron deposits as well as advancing its

special development in the Silicon market.

For more information, please contact:

Gerald Panneton

Chairman & CEO

Email: [email protected]

Stéphane Leblanc

Vice President Corporate Development

Email: : [email protected]

1-418-717-2553

Website: www.canadianmetalsinc.com

Cautionary Statements Regarding Forward-Looking Information

Certain statements in this news release constitute "forward -looking" statements. These statements relate to

future events or our future performance. Forward -looking statements include the completion of the

Consolidation and the statement that the Consolidation will permit CME to reduced future dilution from the

ability to raise additional capital at a higher price per share. All such statements involve substantial known and

unknown risks, uncertainties and other factors which may cause the actual results, p erformance or

achievements to vary from those expressed or implied by such forward -looking statements. Forward-looking

statements reflect current expectations regarding future events and operating performance and speak only as

of the date of this news rele ase. Forward-looking statements involve significant risks and uncertainties, they

should not be read as guarantees of future performance or results, and they will not necessarily be accurate

indications of whether or not such results will be achieved. A nu mber of factors could cause actual results to

differ materially from the results discussed in the forward-looking statements, including, but not limited to, that

the closing will not occur. Although the forward -looking statements contained in this news release are based

upon what management of the Company believes are reasonable assumptions on the date of this news

release, the Company cannot assure investors that actual results will be consistent with these forward-looking

statements. These forward -looking statement are subject to certain risks and uncertainties and other risks

detailed from time-to-time in CME's ongoing filings with the securities regulatory authorities, which filings can

be found at www.sedar.com. These forward-looking statements are made as of the date of this news release

and CME disclaims any intent or obligation to update any forward -looking statement, whether as a result of

new information, future events or otherwise, unless required by applicable securities laws.

Neither the CSE nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of

this release.