Mr. Ray Wladichuk reports

SILICON METALS CORP. ANNOUNCES SHARE CONSOLIDATION AND DIRECTOR RESIGNATION

Silicon Metals Corp. intends to consolidate the common shares of the company on the basis of one postconsolidation share for every five preconsolidation shares.

Currently, a total of 53,051,908 shares are issued and outstanding. Accordingly, upon the consolidation becoming effective, a total of 10,610,382 shares, subject to adjustments for rounding, will be issued and outstanding. There is no maximum number of authorized shares. The exercise or conversion price and the number of common shares issuable under any of the company's outstanding stock options or common share purchase warrants will be proportionately adjusted to reflect the consolidation in accordance with the respective terms thereof.

Endeavor Trust Corp. will mail out a letter of transmittal to the shareholders of record as of the record date, providing instructions on exchanging preconsolidation share certificates for postconsolidation share certificates. Shareholders are encouraged to send their share certificates, together with their letter of transmittal, to Endeavor in accordance with the instructions in the letter of transmittal.

Shareholders who hold their common shares through a broker, investment dealer, bank or trust company, or other intermediary should contact that nominee or intermediary for assistance in depositing their common shares in connection with the consolidation.

The consolidation is subject to the approval of the Canadian Securities Exchange. Upon acceptance by the CSE, the company's trading symbol will remain the same, but the Cusip and ISIN will change upon the completion of the consolidation.

The company also wishes to announce the resignation of Leighton Bocking from the board of directors. The company thanks Mr. Bocking for his time and commitment over recent years, assisting the company in advancing its objectives, and wishes him all the best in his future endeavours. The company is actively seeking a new director and will update the market accordingly in the near future.

About Silicon Metals Corp.

Silicon Metals is currently focused on exploration and development in Canada, namely British Columbia and Ontario. The company's Maple Birch project, located approximately 30 kilometres southeast of Sudbury, Ont., is a high-purity quartz pegmatite project with a 3,000-tonne-per-year production permit. The company holds a 100-per-cent interest in the Crystal Hills project, located approximately 40 kilometres north of the city of North Bay, Ont., Canada, which consists of five mineral claims composed of 18 cells totalling approximately 400 hectares. The company also holds an undivided 100-per-cent right, title and interest in the exploration-stage and fully five-year permitted Ptarmigan silica project, located approximately 130 km from Prince George, B.C. The company has also acquired an undivided 100-per-cent right, title and interest in both the exploration-stage Silica Ridge silica project located approximately 70 km southeast from the town of MacKenzie, B.C., as well as the exploration-stage Longworth silica project located approximately 85 km east from Prince George, B.C.

We seek Safe Harbor.