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| January 21, 2009 Amendment/Increase of 5,000,000 Unit Flow-Through Private Placement @ $0.15 Per Unit | |
| Vancouver, B.C.: CMC Metals Ltd. (the "Company") wishes to announce that it has closed its flow-thru private placement at $0.15 per Unit as announced by press release dated September 30, 2008, the terms of which were revised by press release dated November 6, 2008, raising gross proceeds of approximately $1,134,850 and issuing a total of 7,565,666 flow-through common shares to its placees at $0.15 per share, and issuing Warrant Certificates for 7,565,666 Warrant Shares. This placement was originally intended to raise a total of $1,250,000 by the issuance of 5,000,000 Units at $0.25 per Unit, as revised to announce the increase in the number of Units issued to 7,400,000 Units at a reduced subscription price of $0.15 per Unit. The Company's placement was oversubscribed at $0.15 per Unit resulting in the increase of the issuance of flow-through common shares to 7,565,666. The terms of the exercise of the Share Purchase Warrants are that every two Warrants are exercisable into one non-"flow-through" common share at $0.20 per share expiring December 31, 2009, which expiry date was amended from an original expiry date of September 30, 2009, resulting in the further issuance of 3,782,833 common shares should all the Warrant Shares be exercised pursuant to this placement, as amended. All funds raised pursuant to this placement were used to pay for the work program on the Company's properties both in British Columbia and the Yukon, and for general working capital. Finders' fees were paid to arms-length parties to the Company by way of cash equal to the percentage of funds raised by those parties. A finder's fee of cash was paid in the amount of $11,842.50, representing approximately 1% of the total gross proceeds raised. Michael C. Scholz, the Company's Chief Financial Officer and majority shareholder, subscribed for a total of 1,800,000 Units of this placement resulting in the increase in his total holdings (held directly or indirectly) to 4,876,503, or 20.42% of the Company's total issued and outstanding share capital. This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents. The technical information herein has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Donald Wedman, P.Eng., President and Chief Executive Officer for CMC Metals Ltd., a qualified person under National Instrument 43-101. On behalf of the Board: "Don Wedman" Don Wedman, P.Eng. CEO CMC METALS LTD. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. | |
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