Canadian Metals to Introduce Hybrid Flex Concept for Planned Ferrosilicon Production Plant

Canadian Metals Inc. (The "Corporation") plans to significantly enhance its strategic options with the introduction of a Hybrid Flex concept for its planned ferrosilicon production plant based on the Langis quartzite deposit. This concept allows the facility to adapt fully with the flexibility to shift production between ferrosilicon and metallurgical-silicon production according to market needs.

The enhanced plant profile is an outcome of the ongoing Preliminary Economic Assessment (PEA / NI 43-101) which is being carried out by the German company Viridis.iQ GmbH under the coordination of Montreal based Celtis Capital Inc., in collaboration with local environmental and geotechnical experts, respectively Biofilia and GeoLogic, both located in the province of Quebec.

The technical specification of the broadened plant profile in the initial phase is based on 3 submerged arc furnaces (SAF) with individual furnace power rating of approximately 38MVA and a possible expansion phase of an additional 3 furnaces. The planned operation of the improved plant design can be tailored such that individual furnaces can be used to produce either ferrosilicon or metallurgical silicon, or the complete plant can be shifted to single product operation depending on market conditions. Correspondingly, the estimated annualized output volumes in the initial phase could vary between 0 to 80,000tpy of ferrosilicon and from 0 to 52,000tpy for metallurgical silicon.

The expected benefits of the Hybrid Flex plant concept result from a broadened and diversified end-market exposure, as the new concept will not only serve the steel industry but also could produce materials for the aluminum, silicones and polysilicon industries. Next to the improved diversification, the envisioned plant design could also benefit from the strong trend in renewable energies, as the vast majority of polysilicon is used in the production of crystalline silicon photovoltaic cells. Economies-of-scale and procurement advantages of the Hybrid Flex plant concept are anticipated to remain in place or even improve as both products, ferrosilicon and metallurgical-silicon, utilize -to a large degree- the same resources and highly similar technology.

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 ferrosilicon producer.

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