The Board of directors of Canadian Metals Inc. (CNSX:CME) agreed to spin off Lac Chesnaye property, located in Québec on May 20, 2021. Canadian Metals Inc. entered into an arrangement to spin off Lac Chesnaye property, located in Québec on June 17, 2021. Through the Spin-Out, shareholders of Canadian Metals Inc will exchange all of the existing issued and outstanding Canadian Metals Inc common shares for the same number of new common shares of Canadian Metals Inc (having identical terms as the existing common shares) and an aggregate of 4,300,000 common shares in the capital of Spinco. There will be no change in Canadian Metals Inc shareholders' holdings in the Canadian Metals Inc as a result of the Spin-Out. In connection with the Spin-Out, Spinco intends to complete a non-brokered private placement of a minimum of 5 million units of Spinco and a maximum of 15 million Units at a price of CAD 0.10 per Spinco Unit . Following the Spin-Out for minimum aggregate gross proceeds of CAD 0.5 million and maximum aggregate gross proceeds of CAD 1.5 million, Canadian Metals Inc intends to seek a listing of the Spinco Shares on the Canadian Securities Exchange. Any such listing will be subject to Spinco meeting and satisfying all the requirements of the Canadian Securities Exchange. The directors of Spinco on closing of the Arrangement are anticipated to be Stephane Leblanc, Michel Gagnon and Maxime Lemieux. The proposed Spin-Out will be subject to the terms of agreements to be entered between Canadian Metals Inc and Spinco, and approval of CME shareholders at an annual general and special meeting of shareholders to be held in July 2021. The Spin-Out will also require the approval of the Superior Court of Québec. The transaction has been approved by the board of directors of Canadian Metals Inc. Transaction will also be subject to Spinco Shares will have been conditionally approved for listing on the CSE., no adverse material change will have occurred in the business, affairs, financial condition or operations of Spinco and other conditions. Special meeting of CME Shareholders to be held on July 27, 2021. As of July 27, 2021, CME shareholders approved the transaction. Computershare Investor Services Inc. acted as transfer agent to Canadian Metals Inc.

Canadian Metals Inc. (CNSX:CME) completed the spin-off of Lac Chesnaye property, located in Québec on September 9, 2021. Pursuant to the arrangement, Canadian Metals spun out its Lac Chesnaye property located in Québec to QNB Metals Inc. in exchange for the issuance of 4,299,961 Class A common shares of QNB Metals Inc. to Canadian Metals. QNB Metals has received approval to list the QNB Metals shares on the Canadian Securities Exchange under the symbol “TIM”. QNB Metals expects that the QNB Metals shares will commence trading on the CSE on or about September 14, 2021.