----

----

|  British Columbia, Canada                                            |   |  98-1009717                       |
|---------------------------------------------------------------------------|--------|----------------------------------------|
|  (State or other jurisdictionof incorporation or organization)  |   |  (IRS EmployerIdentification No.) |

| Large accelerated filer | o | Accelerated filer         | o |
|-------------------------|---|---------------------------|---|
| Non-accelerated filed   | o | Smaller reporting company | x |

----

----

----

----

| EMC Metals Corp.                      |
|---------------------------------------|
| (An Exploration Stage Company)        |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (Expressed in US Dollars) (Unaudited) |
|                                  |

|  As at:                                                                                                                     |   |  June 30, 2014 |        |   |  December 31, 2013 |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|-------------|--------|-------------------------|--------|
|                                                                                                                             |   |                |        |   |                    |   |
|                                                                                                                             |   |                |        |   |                    |   |
| ASSETS                                                                                                                           |   |                |        |   |                    |   |
|                                                                                                                             |   |                |        |   |                    |   |
| Current                                                                                                                          |   |                |        |   |                    |   |
| Cash                                                                                                                             |   | $                   | 780,711     |   |                    | $      | 785,075 |   |
| Prepaid expenses and receivables                                                                                                 |   |                | 23,460      |   |                    |   | 127,410 |   |
| Subscription receivable (Note 10)                                                                                                |   |                | 234,175     |   |                    |   | - |   |
|                                                                                                                             |   |                |        |   |                    |   |   |   |
| Total Current Assets                                                                                                             |   |                | 1,038,346   |   |                    |   | 912,485 |   |
|                                                                                                                             |   |                |        |   |                    |   |   |   |
| Restricted cash (Note 3)                                                                                                         |   |                | -           |   |                    |   | 149,868 |   |
| Property, plant and equipment (Note 5)                                                                                           |   |                | 8,361       |   |                    |   | 10,278 |   |
| Mineral interests (Note 6)                                                                                                       |   |                | 2,977,234   |   |                    |   | 1,613,203 |   |
|                                                                                                                             |   |                |        |   |                    |   |   |   |
| Total Assets                                                                                                                     |   | $                   | 4,023,941   |   |                    | $      | 2,685,834 |   |
|                                                                                                                             |   |                |        |   |                    |   |   |   |
|                                                                                                                             |   |                |        |   |                    |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                       |   |                |        |   |                    |   |   |   |
|                                                                                                                             |   |                |        |   |                    |   |   |   |
| Current                                                                                                                          |   |                |        |   |                    |   |   |   |
| Accounts payable and accrued liabilities                                                                                         |   | $                   | 348,937     |   |                    | $      | 247,613 |   |
| Convertible debentures (Note 7)                                                                                                  |   |                | -           |   |                    |   | 650,000 |   |
| Promissory notes payable (Note 8)                                                                                                |   |                | 2,500,000   |   |                    |   | 1,204,875 |   |
|                                                                                                                             |   |                |        |   |                    |   |   |   |
| Total Liabilities                                                                                                                |   |                | 2,848,937   |   |                    |   | 2,102,488 |   |
|                                                                                                                             |   |                |        |   |                    |   |   |   |
| Stockholders’ Equity                                                                                                       |   |                |        |   |                    |   |   |   |
| Capital stock (Note 10) (Authorized: Unlimited number of shares; Issued and outstanding: 188,429,143 (2013 – 165,358,337)) |   |                | 88,394,298  |   |                    |   | 87,310,708 |   |
| Treasury stock (Note 11)                                                                                                         |   |                | (1,264,194  | )      |                    |   | (1,264,194 | ) |
| Additional paid in capital (Note 10)                                                                                             |   |                | 2,109,493   |   |                    |   | 2,108,327 |   |
| Accumulated other comprehensive loss                                                                                             |   |                | (853,400    | )      |                    |   | (853,400 | ) |
| Deficit accumulated during the exploration stage                                                                                 |   |                | (87,211,193 | )      |                    |   | (86,718,095 | ) |
|                                                                                                                             |   |                |        |   |                    |   |   |   |
| Total Stockholders’ Equity                                                                                                 |   |                | 1,175,004   |   |                    |   | 583,346 |   |
|                                                                                                                             |   |                |        |   |                    |   |   |   |
| Total Liabilities and Stockholders’ Equity                                                                                 |   | $                   | 4,023,941   |   |                    | $      | 2,685,834 |   |

----

| EMC Metals Corp.                                                       |
|------------------------------------------------------------------------|
| (An Exploration Stage Company)                                         |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
| (Expressed in US Dollars) (Unaudited)                                  |
|                                                                   |

|                                                             |   | Cumulative amounts from incorporation on July 17, 2006 to June 30, 2014 |        |   | Quarter ended June 30, 2014 |   |        | Quarter ended June 30, 2013 |   |   | Six Months ended June 30, 2014 |   |   | Six Months ended June 30, 2013 |        |
|------------------------------------------------------------------|--------|-------------------------------------------------------------------------|-------------|--------|-----------------------------|--------|-------------|-----------------------------|--------|--------|--------------------------------|--------|--------|--------------------------------|-------------|
|                                                             |   |                                                                    |        |   |                        |   |        |                        |   |   |                           |   |   |                           |        |
|                                                             |   |                                                                    |        |   |                        |   |        |                        |   |   |                           |   |   |                           |        |
| EXPENSES                                                         |   |                                                                    |        |   |                        |   |        |                        |   |   |                           |   |   |                           |        |
| Amortization (Note 5)                                            |   | $                                                                       | 2,150,714   |   |                        | $      | 959         |                        |   | $      | 1,074                          |   |   | $                              | 1,917       |   |   | $ | 2,149 |   |
| Consulting                                                       |   |                                                                    | 2,269,734   |   |                        |   | 8,500       |                        |   |   | 41,865                         |   |   |                           | 8,500       |   |   |   | 77,153 |   |
| Exploration                                                      |   |                                                                    | 15,127,312  |   |                        |   | 635         |                        |   |   | 2,044                          |   |   |                           | 53,391      |   |   |   | 309,115 |   |
| General and administrative                                       |   |                                                                    | 7,344,025   |   |                        |   | 39,788      |                        |   |   | 44,978                         |   |   |                           | 87,110      |   |   |   | 120,225 |   |
| Insurance                                                        |   |                                                                    | 950,824     |   |                        |   | (241        | )                           |   |   | 7,593                          |   |   |                           | 6,448       |   |   |   | 15,015 |   |
| Professional fees                                                |   |                                                                    | 3,278,246   |   |                        |   | 62,691      |                        |   |   | 32,020                         |   |   |                           | 83,813      |   |   |   | 78,942 |   |
| Research and development                                         |   |                                                                    | 3,042,091   |   |                        |   | -           |                        |   |   | -                              |   |   |                           | -           |   |   |   | - |   |
| Salaries and benefits                                            |   |                                                                    | 7,567,767   |   |                        |   | 89,475      |                        |   |   | 137,347                        |   |   |                           | 186,769     |   |   |   | 280,349 |   |
| Stock-based compensation (Note 10)                               |   |                                                                    | 5,416,151   |   |                        |   | -           |                        |   |   | 43,165                         |   |   |                           | 1,166       |   |   |   | 64,197 |   |
| Travel and entertainment                                         |   |                                                                    | 1,631,765   |   |                        |   | 5,176       |                        |   |   | 4,872                          |   |   |                           | 12,442      |   |   |   | 13,718 |   |
|                                                             |   |                                                                    |        |   |                        |   |        |                        |   |   |                           |   |   |                           |        |   |   |   |   |   |
| Loss from continuing operations before other items               |   |                                                                    | (48,778,629 | )      |                        |   | (206,983    | )                           |   |   | (314,958                       | )      |   |                           | (441,556    | ) |   |   | (960,863 | ) |
|                                                             |   |                                                                    |        |   |                        |   |        |                        |   |   |                           |   |   |                           |        |   |   |   |   |   |
|                                                             |   |                                                                    |        |   |                        |   |        |                        |   |   |                           |   |   |                           |        |   |   |   |   |   |
| OTHER ITEMS                                                      |   |                                                                    |        |   |                        |   |        |                        |   |   |                           |   |   |                           |        |   |   |   |   |   |
| Foreign exchange gain                                            |   |                                                                    | 363,136     |   |                        |   | 11,355      |                        |   |   | 38,099                         |   |   |                           | 4,124       |   |   |   | 27,783 |   |
| Gain on transfer of marketable securities                        |   |                                                                    | 181,238     |   |                        |   | -           |                        |   |   | -                              |   |   |                           | -           |   |   |   | - |   |
| Gain on settlement of convertible debentures                     |   |                                                                    | 1,268,246   |   |                        |   | -           |                        |   |   | -                              |   |   |                           | -           |   |   |   | - |   |
| Gain on sale of marketable securities                            |   |                                                                    | 1,720,016   |   |                        |   | -           |                        |   |   | -                              |   |   |                           | -           |   |   |   | - |   |
| Write-off of mineral interests and property, plant and equipment |   |                                                                    | (16,015,169 | )      |                        |   | -           |                        |   |   | -                              |   |   |                           | -           |   |   |   | - |   |
| Write-off of land and water rights                               |   |                                                                    | (2,800,000  | )      |                        |   | -           |                        |   |   | -                              |   |   |                           | -           |   |   |   | - |   |
| Gain on insurance proceeds                                       |   |                                                                    | 912,534     |   |                        |   | -           |                        |   |   | -                              |   |   |                           | -           |   |   |   | - |   |
| Interest expense                                                 |   |                                                                    | (873,640    | )      |                        |   | (25,666     | )                           |   |   | (156,427                       | )      |   |                           | (55,666     | ) |   |   | (302,706 | ) |
| Other income                                                     |   |                                                                    | 466,463     |   |                        |   | -           |                        |   |   | -                              |   |   |                           | -           |   |   |   | - |   |
| Gain on disposition of assets                                    |   |                                                                    | 933,075     |   |                        |   | -           |                        |   |   | -                              |   |   |                           | -           |   |   |   | - |   |
| Change in fair value of derivative liability                     |   |                                                                    | 453,790     |   |                        |   | -           |                        |   |   | -                              |   |   |                           | -           |   |   |   | - |   |
| Unrealized loss on marketable securities                         |   |                                                                    | (3,070,425  | )      |                        |   | -           |                        |   |   | -                              |   |   |                           | -           |   |   |   | - |   |
|                                                             |   |                                                                    |        |   |                        |   |        |                        |   |   |                           |   |   |                           |        |   |   |   |   |   |
|                                                             |   |                                                                    | (16,460,736 | )      |                        |   | (14,311     | )                           |   |   | (118,328                       | )      |   |                           | (51,542     | ) |   |   | (274,923 | ) |
|                                                             |   |                                                                    |        |   |                        |   |        |                        |   |   |                           |   |   |                           |        |   |   |   |   |   |
| Loss from continuing operations before income taxes              |   |                                                                    | (65,239,365 | )      |                        |   | (221,294    | )                           |   |   | (433,286                       | )      |   |                           | (493,098    | ) |   |   | (1,235,786 | ) |
|                                                             |   |                                                                    |        |   |                        |   |        |                        |   |   |                           |   |   |                           |        |   |   |   |   |   |
| Deferred income tax recovery                                     |   |                                                                    | 6,020,527   |   |                        |   | -           |                        |   |   | -                              |   |   |                           | -           |   |   |   | - |   |
|                                                             |   |                                                                    |        |   |                        |   |        |                        |   |   |                           |   |   |                           |        |   |   |   |   |   |
| Loss from continuing operations for the period                   |   |                                                                    | (59,218,838 | )      |                        |   | (221,294    | )                           |   |   | (433,286                       | )      |   |                           | (493,098    | ) |   |   | (1,235,786 | ) |
|                                                             |   |                                                                    |        |   |                        |   |        |                        |   |   |                           |   |   |                           |        |   |   |   |   |   |
| Loss from discontinued operations (Note 4)                       |   |                                                                    | (25,501,664 | )      |                        |   | -           |                        |   |   | (88,609                        | )      |   |                           | -           |   |   |   | (196,397 | ) |
|                                                             |   |                                                                    |        |   |                        |   |        |                        |   |   |                           |   |   |                           |        |   |   |   |   |   |
| Loss for the period                                              |   |                                                                    | (84,720,502 | )      |                        |   | (221,294    | )                           |   |   | (521,895                       | )      |   |                           | (493,098    | ) |   |   | (1,432,183 | ) |
|                                                             |   |                                                                    |        |   |                        |   |        |                        |   |   |                           |   |   |                           |        |   |   |   |   |   |
| Foreign currency translation adjustment                          |   |                                                                    | (2,844,668  | )      |                        |   | -           |                        |   |   | -                              |   |   |                           | -           |   |   |   | - |   |
|                                                             |   |                                                                    |        |   |                        |   |        |                        |   |   |                           |   |   |                           |        |   |   |   |   |   |
| Comprehensive loss for the period                                |   | $                                                                       | (87,565,170 | )      |                        | $      | (221,294    | )                           |   | $      | (521,895                       | )      |   | $                              | (493,098    | ) |   | $ | (1,432,183 | ) |
|                                                             |   |                                                                    |        |   |                        |   |        |                        |   |   |                           |   |   |                           |        |   |   |   |   |   |
| Basic and diluted loss per common share                          |   |                                                                    |        |   |                        |   |        |                        |   |   |                           |   |   |                           |        |   |   |   |   |   |
| Loss from continuing operations                                  |   |                                                                    |        |   |                        | $      | (0.00       | )                           |   | $      | (0.00                          | )      |   | $                              | (0.00       | ) |   | $ | (0.01 | ) |
| Loss from discontinued operations                                |   |                                                                    |        |   |                        | $      | (0.00       | )                           |   | $      | (0.00                          | )      |   | $                              | (0.00       | ) |   | $ | (0.00 | ) |
|                                                             |   |                                                                    |        |   |                        |   |        |                        |   |   |                           |   |   |                           |        |   |   |   |   |   |
| Weighted average number of common shares outstanding             |   |                                                                    |        |   |                        |   | 177,640,929 |                        |   |   | 165,358,337                    |   |   |                           | 171,690,544 |   |   |   | 165,358,337 |   |

----

| EMC Metals Corp.                                |
|-------------------------------------------------|
| (An Exploration Stage Company)                  |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Expressed in US Dollars) (Unaudited)           |
|                                            |

|                                                                |   | Cumulative amounts from incorporation on July 17, 2006 to June 30, 2014 |        |   | Six month period ended June 30, 2014 |   |       | Six month period ended June 30, 2013 |   |
|---------------------------------------------------------------------|--------|-------------------------------------------------------------------------|-------------|--------|--------------------------------------|--------|------------|--------------------------------------|--------|
|                                                                |   |                                                                    |        |   |                                 |   |       |                                 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                |   |                                                                    |        |   |                                 |   |       |                                 |   |
| Loss for the period                                                 |   | $                                                                       | (84,720,502 | )      |                                 | $      | (493,098   | )                                    |   | $ | (1,432,183 | ) |
| Items not affecting cash:                                           |   |                                                                    |        |   |                                 |   |       |                                 |   |   |   |   |
| Amortization                                                        |   |                                                                    | 2,361,260   |   |                                 |   | 1,917      |                                 |   |   | 11,854 |   |
| Research and development                                            |   |                                                                    | 3,042,091   |   |                                 |   | -          |                                 |   |   | - |   |
| Consulting paid with common shares                                  |   |                                                                    | 9,379       |   |                                 |   | -          |                                 |   |   | - |   |
| Gain on disposal of assets                                          |   |                                                                    | (933,075    | )      |                                 |   | -          |                                 |   |   | - |   |
| Convertible debenture costs                                         |   |                                                                    | (1,149,630  | )      |                                 |   | -          |                                 |   |   | - |   |
| Unrealized foreign exchange                                         |   |                                                                    | 794,240     |   |                                 |   | -          |                                 |   |   | 8,660 |   |
| Stock-based compensation                                            |   |                                                                    | 5,416,151   |   |                                 |   | 1,166      |                                 |   |   | 64,197 |   |
| Unrealized gain on marketable securities                            |   |                                                                    | (46,707     | )      |                                 |   | -          |                                 |   |   | - |   |
| Realized gain on marketable securities                              |   |                                                                    | (1,720,016  | )      |                                 |   | -          |                                 |   |   | - |   |
| Write-off of mineral properties and property, plant & equipment |   |                                                                    | 39,442,452  |   |                                 |   | -          |                                 |   |   | - |   |
| Write-off of land and water rights                                  |   |                                                                    | 3,243,685   |   |                                 |   | -          |                                 |   |   | - |   |
| Realized loss on transfer of marketable securities                  |   |                                                                    | 2,935,895   |   |                                 |   | -          |                                 |   |   | - |   |
| Change in fair value of derivative liability                        |   |                                                                    | (453,790    | )      |                                 |   | -          |                                 |   |   | - |   |
| Deferred income tax recovery                                        |   |                                                                    | (6,020,527  | )      |                                 |   | -          |                                 |   |   | - |   |
| Finance charge                                                      |   |                                                                    | 504,479     |   |                                 |   | -          |                                 |   |   | 177,260 |   |
|                                                                |   |                                                                    | (37,294,615 | )      |                                 |   | (490,015   | )                                    |   |   | (1.170,212 | ) |
| Changes in non-cash working capital items:                          |   |                                                                    |        |   |                                 |   |       |                                 |   |   |   |   |
| Decrease (increase) in prepaids and receivables                     |   |                                                                    | (243,256    | )      |                                 |   | 103,950    |                                 |   |   | 51,042 |   |
| Increase (decrease) in accounts payable and accrued liabilities     |   |                                                                    | (355,309    | )      |                                 |   | 101,324    |                                 |   |   | 279,556 |   |
| Increase in due to related parties                                  |   |                                                                    | 1,091,043   |   |                                 |   | -          |                                 |   |   | - |   |
| Asset retirement obligations                                        |   |                                                                    | (999,176    | )      |                                 |   | -          |                                 |   |   | - |   |
|                                                                |   |                                                                    | (37,801,313 | )      |                                 |   | (284,741   | )                                    |   |   | (839,614 | ) |
| CASH FLOWS FROM INVESTING ACTIVITIES                                |   |                                                                    |        |   |                                 |   |       |                                 |   |   |   |   |
| Cash acquired from subsidiary                                       |   |                                                                    | 4,543,435   |   |                                 |   | -          |                                 |   |   | - |   |
| Cash paid for Subsidiary                                            |   |                                                                    | (10,602,498 | )      |                                 |   | -          |                                 |   |   | - |   |
| Spin-out of Golden Predator Corp.                                   |   |                                                                    | (66,890     | )      |                                 |   | -          |                                 |   |   | - |   |
| Restricted cash                                                     |   |                                                                    | (11,293     | )      |                                 |   | 149,868    |                                 |   |   | - |   |
| Reclamation bonds                                                   |   |                                                                    | 747,862     |   |                                 |   | -          |                                 |   |   | - |   |
| Proceeds from sale of marketable securities, net                    |   |                                                                    | (3,881,287  | )      |                                 |   | -          |                                 |   |   | - |   |
| Proceeds from sale of property, plant and equipment                 |   |                                                                    | 5,633,294   |   |                                 |   | -          |                                 |   |   | - |   |
| Purchase of property, plant and equipment                           |   |                                                                    | (19,920,751 | )      |                                 |   | -          |                                 |   |   | - |   |
| Proceeds from sale of mineral interests                             |   |                                                                    | 517,550     |   |                                 |   | -          |                                 |   |   | - |   |
| Additions to unproven mineral interests                             |   |                                                                    | (5,588,419  | )      |                                 |   | (1,364,031 | )                                    |   |   | (1,108,484 | ) |
|                                                                |   |                                                                    | (28,628,997 | )      |                                 |   | (1,214,163 | )                                    |   |   | (1,108,484 | ) |
|                                                                |   |                                                                    |        |   |                                 |   |       |                                 |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                |   |                                                                    |        |   |                                 |   |       |                                 |   |   |   |   |
| Common shares issued                                                |   |                                                                    | 53,595,724  |   |                                 |   | 876,946    |                                 |   |   | - |   |
| Share issuance costs                                                |   |                                                                    | (1,218,332  | )      |                                 |   | (27,531    | )                                    |   |   | - |   |
| Special warrants                                                    |   |                                                                    | 12,095,274  |   |                                 |   | -          |                                 |   |   | - |   |
| Options exercised                                                   |   |                                                                    | 370,812     |   |                                 |   | -          |                                 |   |   | - |   |
| Warrants exercised                                                  |   |                                                                    | 10,534,109  |   |                                 |   | -          |                                 |   |   | - |   |
| Notes payable                                                       |   |                                                                    | (11,412,423 | )      |                                 |   | -          |                                 |   |   | - |   |
| Receipt of promissory note                                          |   |                                                                    | 4,844,874   |   |                                 |   | 2,500,000  |                                 |   |   | 1,200,000 |   |
| Convertible debenture                                               |   |                                                                    | 2,650,000   |   |                                 |   | -          |                                 |   |   | 649,175 |   |
| Debt issuance costs                                                 |   |                                                                    | (249,827    | )      |                                 |   | -          |                                 |   |   | - |   |
| Payment of promissory note and convertible debenture                |   |                                                                    | (4,540,103  | )      |                                 |   | (1,854,875 | )                                    |   |   | - |   |
| Advances from related party                                         |   |                                                                    | 191,508     |   |                                 |   | -          |                                 |   |   | - |   |
| Loans advanced to Midway                                            |   |                                                                    | (1,822,651  | )      |                                 |   | -          |                                 |   |   | - |   |
| Loan repayment from Midway                                          |   |                                                                    | 1,760,221   |   |                                 |   | -          |                                 |   |   | - |   |
|                                                                |   |                                                                    | 66,799,186  |   |                                 |   | 1,494,540  |                                 |   |   | 1,849,175 |   |
|                                                                |   |                                                                    |        |   |                                 |   |       |                                 |   |   |   |   |
| Effect of foreign exchange on cash flows                            |   |                                                                    | 411,835     |   |                                 |   | -          |                                 |   |   | - |   |
|                                                                |   |                                                                    |        |   |                                 |   |       |                                 |   |   |   |   |
| Change in cash during the period                                    |   |                                                                    | 780,711     |   |                                 |   | (4,364     | )                                    |   |   | (98,923 | ) |
| Cash, beginning of period                                           |   |                                                                    | -           |   |                                 |   | 785,075    |                                 |   |   | 190,215 |   |
|                                                                |   |                                                                    |        |   |                                 |   |       |                                 |   |   |   |   |
| Cash, end of period                                                 |   | $                                                                       | 780,711     |   |                                 | $      | 780,711    |                                 |   | $ | 91,292 |   |

----

| EMC Metals Corp.                                                           |
|----------------------------------------------------------------------------|
| (An Exploration Stage Company)                                             |
| CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY |
| (Expressed in US Dollars) (Unaudited) Page 1 of 2                          |
|                                                                       |

|                                                                     |   | Capital Stock    |       |   | Additional |   |        |           |   |   | Accumulated Other |   |   | Deficit Accumulated During the |       |   |             |   |
|--------------------------------------------------------------------------|--------|------------------|------------|--------|------------|--------|-------------|----------------|--------|--------|-------------------|--------|--------|--------------------------------|------------|--------|------------------|--------|
|                                                                     |   | Number of Shares |       |   | Amount     |   |        | Paid inCapital |   |   | TreasuryStock     |   |   | ComprehensiveLoss              |       |   | ExplorationStage |   |   | Total |   |
|                                                                     |   |             |       |   | $          |   |        | $              |   |   | $                 |   |   | $                              |       |   | $                |   |   | $ |   |
| Balance, July 17, 2006                                                   |   |             | -          |   |       |   | -           |           |   |   | -                 |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | - |   |
| Private placements                                                       |   |             | 5,000,000  |   |       |   | 3,017,350   |           |   |   | -                 |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 3,017,350 |   |
| Excess of exchange amount over carrying                                  |   |             | -          |   |       |   | -           |           |   |   | -                 |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   |   |   |
| Excess of exchange amount over carryingamount of Springer Mining Company |   |             | -          |   |       |   | -           |           |   |   | -                 |   |   |                           | -          |   |             |   | - |   |   |   | (2,490,691 | ) |   |   | (2,490,691 | ) |
| Loss for the period                                                      |   |             | -          |   |       |   | -           |           |   |   | -                 |   |   |                           | -          |   |             |   | - |   |   |   | (316,382 | ) |   |   | (316,382 | ) |
|                                                                     |   |             |       |   |       |   |        |           |   |   |              |   |   |                           |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2006                                               |   |             | 5,000,000  |   |       |   | 3,017,350   |           |   |   | -                 |   |   |                           | -          |   |             |   | - |   |   |   | (2,807,073 | ) |   |   | 210,277 |   |
| Private placements                                                       |   |             | 17,577,500 |   |       |   | 35,598,475  |           |   |   | -                 |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 35,598,475 |   |
| Conversion of special warrants                                           |   |             | 5,390,000  |   |       |   | 5,590,529   |           |   |   | -                 |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 5,590,529 |   |
| Exercise of warrants                                                     |   |             | 50,000     |   |       |   | 74,235      |           |   |   | -                 |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 74,235 |   |
| Share issuance costs – broker’s fees                         |   |             | -          |   |       |   | (1,202,721  | )              |   |   | 97,56500          |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | (1,105,156 | ) |
| Share issuance costs – shares issued                               |   |             | 100,000    |   |       |   | 99,910      |           |   |   | -                 |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 99,910 |   |
| Shares issued for mineral properties                                     |   |             | 100,000    |   |       |   | 95,822      |           |   |   | -                 |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 95,822 |   |
| Stock-based compensation                                                 |   |             | 40,000     |   |       |   | 38,314      |           |   |   | 472,489           |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 510,803 |   |
| Loss for the year                                                        |   |             | -          |   |       |   | -           |           |   |   | -                 |   |   |                           | -          |   |             |   | - |   |   |   | (5,579,477 | ) |   |   | (5,579,477 | ) |
|                                                                     |   |             |       |   |       |   |        |           |   |   |              |   |   |                           |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2007                                               |   |             | 28,257,500 |   |       |   | 43,311,914  |           |   |   | 570,054           |   |   |                           | -          |   |             |   | - |   |   |   | (8,386,550 | ) |   |   | 35,495,418 |   |
| Private placements                                                       |   |             | 5,322,500  |   |       |   | 10,543,444  |           |   |   | -                 |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 10,543,444 |   |
| Conversion of special warrants                                           |   |             | 7,610,000  |   |       |   | 7,484,629   |           |   |   | -                 |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 7,484,629 |   |
| Share issuance costs – broker’s fees                         |   |             | -          |   |       |   | (263,169    | )              |   |   | -                 |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | (263,169 | ) |
| Shares issued for mineral properties                                     |   |             | 110,000    |   |       |   | 206,229     |           |   |   | -                 |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 206,229 |   |
| Acquisition of Gold Standard Royalty Corp.                               |   |             | 2,050,000  |   |       |   | 4,088,552   |           |   |   | 138,529           |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 4,227,081 |   |
| Acquisition of Great American Minerals Inc.                              |   |             | 1,045,775  |   |       |   | 2,065,059   |           |   |   | 419,891           |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 2,484,950 |   |
| Acquisition of Fury Explorations Ltd.                                    |   |             | 10,595,814 |   |       |   | 12,963,070  |           |   |   | 7,343,879         |   |   |                           | (1,964,364 | )      |             |   | - |   |   |   | - |   |   |   | 18,342,585 |   |
| Exercise of stock options                                                |   |             | 6,637,224  |   |       |   | 9,690,543   |           |   |   | (178,482          | )      |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 9,512,061 |   |
| Shares issued for repayment of promissory note                           |   |             | 4,728,000  |   |       |   | 2,017,257   |           |   |   | -                 |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 2,017,257 |   |
| Stock-based compensation                                                 |   |             | -          |   |       |   | -           |           |   |   | 2,251,500         |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 2,251,500 |   |
| Loss for the year                                                        |   |             | -          |   |       |   | -           |           |   |   | -                 |   |   |                           | -          |   |             |   | - |   |   |   | (16,979,873 | ) |   |   | (16,979,873 | ) |
|                                                                     |   |             |       |   |       |   |        |           |   |   |              |   |   |                           |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2008                                               |   |             | 66,356,813 |   |       |   | 92,107,528  |           |   |   | 10,545,371        |   |   |                           | (1,964,364 | )      |             |   | - |   |   |   | (25,366,423 | ) |   |   | 75,322,112 |   |
| Private placements                                                       |   |             | 14,500,000 |   |       |   | 1,123,489   |           |   |   | -                 |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 1,123,489 |   |
| Exercise of stock options                                                |   |             | 101,000    |   |       |   | 110,689     |           |   |   | (92,970           | )      |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 17,719 |   |
| Shares issued for mineral properties                                     |   |             | 2,765,643  |   |       |   | 311,606     |           |   |   | -                 |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 311,606 |   |
| Settlement of convertible debentures                                     |   |             | 7,336,874  |   |       |   | 2,299,061   |           |   |   | 49,278            |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 2,348,339 |   |
| Shares issued for consulting                                             |   |             | 89,254     |   |       |   | 9,168       |           |   |   | -                 |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 9,168 |   |
| Shares issued for acquisition of TTS                                     |   |             | 19,037,386 |   |       |   | 1,976,697   |           |   |   | -                 |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 1,976,697 |   |
| Stock-based compensation before spin-out                                 |   |             | -          |   |       |   | -           |           |   |   | 799,008           |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 799,008 |   |
| Spin-out of GPD                                                          |   |             | -          |   |       |   | (18,044,538 | )              |   |   | (11,300,687       | )      |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | (29,345,225 | ) |
| Stock-based compensation after spin-out                                  |   |             | -          |   |       |   | -           |           |   |   | 935,995           |   |   |                           | -          |   |             |   | - |   |   |   | - |   |   |   | 935,995 |   |
| Foreign currency translation adjustment                                  |   |             | -          |   |       |   | -           |           |   |   | -                 |   |   |                           | -          |   |             |   | (2,536,527 | ) |   |   | - |   |   |   | (2,536,527 | )     |

----

| EMC Metals Corp.                                                           |
|----------------------------------------------------------------------------|
| (An Exploration Stage Company)                                             |
| CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY |
| (Expressed in US Dollars) (Unaudited) Page 2 of 2                          |
|                                                                       |

|                                                                           |   | Capital Stock    |        |   | Additional |   |       |           |   |   | Accumulated Other |   |   | Deficit Accumulated During the |       |   |              |   |
|--------------------------------------------------------------------------------|--------|------------------|-------------|--------|------------|--------|------------|----------------|--------|--------|-------------------|--------|--------|--------------------------------|------------|--------|-------------------|--------|
|                                                                           |   | Number of Shares |        |   | Amount     |   |       | Paid inCapital |   |   | TreasuryStock     |   |   | Comprehensive Loss             |       |   | Exploration Stage |   |   | Total |   |
|                                                                           |   |             |        |   | $          |   |       | $              |   |   | $                 |   |   | $                              |       |   | $                 |   |   | $ |   |
| Loss for the year                                                              |   |             | -           |   |       |   | -          |           |   |   | -                 |   |   |                           | -          |   |              |   | - |   |   |   | (18,954,099 | ) |   |   | (18,954,099 | ) |
|                                                                           |   |             |        |   |       |   |       |           |   |   |              |   |   |                           |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                                                     |   |             | 110,186,970 |   |       |   | 79,893,700 |           |   |   | 935,995           |   |   |                           | (1,964,364 | )      |              |   | (2,536,527 | ) |   |   | (44,320,522 | ) |   |   | 32,008,282 |   |
| Private placements                                                             |   |             | 30,252,442  |   |       |   | 4,563,680  |           |   |   | 441,565           |   |   |                           | -          |   |              |   | - |   |   |   | - |   |   |   | 5,005,245 |   |
| Exercise of stock options                                                      |   |             | 1,320,000   |   |       |   | 443,329    |           |   |   | (219,732          | )      |   |                           | -          |   |              |   | - |   |   |   | - |   |   |   | 223,597 |   |
| Exercise of warrants                                                           |   |             | 7,300,000   |   |       |   | 1,060,257  |           |   |   | -                 |   |   |                           | -          |   |              |   | - |   |   |   | - |   |   |   | 1,060,257 |   |
| Stock-based compensation                                                       |   |             | -           |   |       |   | -          |           |   |   | 772,179           |   |   |                           | -          |   |              |   | - |   |   |   | - |   |   |   | 772,179 |   |
| Foreign currency translation adjustment                                        |   |             | -           |   |       |   | -          |           |   |   | -                 |   |   |                           | -          |   |              |   | 99,091 |   |   |   | - |   |   |   | 99,091 |   |
| Loss for the year                                                              |   |             | -           |   |       |   | -          |           |   |   | -                 |   |   |                           | -          |   |              |   | - |   |   |   | (4,585,644 | ) |   |   | (4,585,644 | ) |
| Balance, December 31, 2010                                                     |   |             | 149,059,412 |   |       |   | 85,960,966 |           |   |   | 1,930,007         |   |   |                           | (1,964,364 | )      |              |   | (2,437,436 | ) |   |   | (48,906,166 | ) |   |   | 34,583,007 |   |
| Exercise of stock options                                                      |   |             | 250,000     |   |       |   | 140,466    |           |   |   | (76,796           | )      |   |                           | -          |   |              |   | - |   |   |   | - |   |   |   | 63,670 |   |
| Exercise/expiry of warrants                                                    |   |             | 1,369,301   |   |       |   | 378,563    |           |   |   | (700,170          | )      |   |                           | 700,170    |   |              |   | - |   |   |   | - |   |   |   | 378,563 |   |
| Stock-based compensation                                                       |   |             | -           |   |       |   | -          |           |   |   | 296,127           |   |   |                           | -          |   |              |   | - |   |   |   | - |   |   |   | 296,127 |   |
| Foreign currency translation adjustment                                        |   |             | -           |   |       |   | -          |           |   |   | -                 |   |   |                           | -          |   |              |   | (984,896 | ) |   |   | - |   |   |   | (984,896 | ) |
| Loss for the year                                                              |   |             | -           |   |       |   | -          |           |   |   | -                 |   |   |                           | -          |   |              |   | - |   |   |   | (7,156,033 | ) |   |   | (7,156,033 | ) |
| Balance, December 31, 2011                                                     |   |             | 150,678,713 |   |       |   | 86,479,995 |           |   |   | 1,449,168         |   |   |                           | (1,264,194 | )      |              |   | (3,422,332 | ) |   |   | (56,062,199 | ) |   |   | 27,180,438 |   |
| Private placements                                                             |   |             | 13,679,624  |   |       |   | 790,508    |           |   |   | -                 |   |   |                           | -          |   |              |   | - |   |   |   | - |   |   |   | 790,508 |   |
| Stock-based compensation                                                       |   |             | -           |   |       |   | -          |           |   |   | 331,794           |   |   |                           | -          |   |              |   | - |   |   |   | - |   |   |   | 331,794 |   |
| Shares issued for mineral properties                                           |   |             | 1,000,000   |   |       |   | 40,205     |           |   |   | -                 |   |   |                           | -          |   |              |   | - |   |   |   | - |   |   |   | 40,205 |   |
| Issue of convertible debenture warrants                                        |   |             | -           |   |       |   | -          |           |   |   | 252,756           |   |   |                           | -          |   |              |   | - |   |   |   | - |   |   |   | 252,756 |   |
| Foreign currency translation adjustment                                        |   |             | -           |   |       |   | -          |           |   |   | -                 |   |   |                           | -          |   |              |   | 577,664 |   |   |   | - |   |   |   | 577,664 |   |
| Loss for the year                                                              |   |             | -           |   |       |   | -          |           |   |   | -                 |   |   |                           | -          |   |              |   | - |   |   |   | (4,965,297 | ) |   |   | (4,965,297 | ) |
| Balance, December 31, 2012                                                     |   |             | 165,358,337 |   |       |   | 87,310,708 |           |   |   | 2,033,718         |   |   |                           | (1,264,194 | )      |              |   | (2,844,668 | ) |   |   | (61,027,496 | ) |   |   | 24,208,068 |   |
| Stock-based compensation                                                       |   |             | -           |   |       |   | -          |           |   |   | 74,609            |   |   |                           | -          |   |              |   | - |   |   |   | - |   |   |   | 74,609 |   |
| Foreign currency translation adjustment on disposal of Springer Mining Company |   |             | -           |   |       |   | -          |           |   |   |              |   |   |                           |       |   |              |   | 1,991,268 |   |   |   | - |   |   |   | 1,991,268 |   |
| Loss for the year                                                              |   |             | -           |   |       |   | -          |           |   |   | -                 |   |   |                           | -          |   |              |   | - |   |   |   | (25,690,599 | ) |   |   | (25,690,599 | ) |
| Balance, December 31, 2013                                                     |   |             | 165,358,337 |   |       |   | 87,310,708 |           |   |   | 2,108,327         |   |   |                           | (1,264,194 | )      |              |   | (853,400 | ) |   |   | (86,718,095 | ) |   |   | 583,346 |   |
| Private placements                                                             |   |             | 23,070,806  |   |       |   | 1,083,590  |           |   |   | -                 |   |   |                           | -          |   |              |   | - |   |   |   | - |   |   |   | 1,083,590 |   |
| Stock-based compensation                                                       |   |             | -           |   |       |   | -          |           |   |   | 1,166             |   |   |                           | -          |   |              |   | - |   |   |   | - |   |   |   | 1,166 |   |
| Loss for the period                                                            |   |             | -           |   |       |   | -          |           |   |   | -                 |   |   |                           | -          |   |              |   | - |   |   |   | (493,098 | ) |   |   | (493,098 | ) |
| Balance, June 30, 2014                                                         |   |             | 188,429,143 |   |       |   | 88,394,298 |           |   |   | 2,109,493         |   |   |                           | (1,264,194 | )      |              |   | (853,400 | ) |   |   | (87,211,193 | ) |   |   | 1,175,004 |   |

----

| EMC Metals Corp.                                         |
|----------------------------------------------------------|
| (An Exploration Stage Company)                           |
| NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
| June 30, 2014                                            |
| (Expressed in US Dollars) (Unaudited)                    |

| 1. | NATURE AND CONTINUANCE OF OPERATIONS |
|----|--------------------------------------|

| 2. | BASIS OF PRESENTATION |
|----|-----------------------|

----

| EMC Metals Corp.                                         |
|----------------------------------------------------------|
| (An Exploration Stage Company)                           |
| NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
| June 30, 2014                                            |
| (Expressed in US Dollars) (Unaudited)                    |

| 2. | BASIS OF PRESENTATION (cont’d...) |
|----|---------------------------------------------|

|    |   | June 30,2014 |    |   | Quoted Pricesin Active Markets(Level 1) |   |    | Significant OtherObservable Inputs(Level 2) |   |   | SignificantUnobservable Inputs(Level 3) |   |
|---------|--------|--------------|---------|--------|-----------------------------------------|--------|---------|---------------------------------------------|--------|--------|-----------------------------------------|--------|
| Assets: |   |         |    |   |                                    |   |    |                                        |   |   |                                    |   |
| Cash    |   | $            | 780,711 |   |                                    | $      | 780,711 |                                        |   | $      | —                                 |   |   | $ | — |   |
|    |   |         |    |   |                                    |   |    |                                        |   |   |                                    |   |   |   |   |   |
| Total   |   | $            | 780,711 |   |                                    | $      | 780,711 |                                        |   | $      | —                                 |   |   | $ | — |   |

----

| EMC Metals Corp.                                         |
|----------------------------------------------------------|
| (An Exploration Stage Company)                           |
| NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
| June 30, 2014                                            |
| (Expressed in US Dollars) (Unaudited)                    |

| 3. | RESTRICTED CASH |
|----|-----------------|

| 4. | DISCONTINUED OPERATIONS |
|----|-------------------------|

| ·   | Cash paid by AMB to the convertible debt holder paid the debt in full and released the security interest in the Springer property and assets, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The cash advanced by AMB formed a new loan, with AMB as lender, as at September 13, 2013, |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | The new loan carries a zero interest rate, and |
|--------------------|------------------------------------------------|

| ·   | AMB agreed to additionally fund all Springer property carrying costs until the final payment and closing date. |
|--------------------|----------------------------------------------------------------------------------------------------------------|

|                                  |   | Quarter ended June 30, 2014 |   |   | Quarter ended June 30, 2013 |   |    | Six month period ended June 30, 2014 |   |   | Six month period ended June 30,2013 |   |
|---------------------------------------|--------|-----------------------------|--------|--------|-----------------------------|--------|---------|--------------------------------------|--------|--------|-------------------------------------|--------|
|                                  |   |                        |   |   |                        |   |    |                                 |   |   |                                |   |
| EXPENSES                              |   |                        |   |   |                        |   |    |                                 |   |   |                                |   |
| Amortization                          |   |                        | -      |   |                        |   | 4,853   |                                 |   |   | -                                   |   |   |   | 9,705 |   |
| Consulting                            |   |                        | -      |   |                        |   | 438     |                                 |   |   | -                                   |   |   |   | 10,053 |   |
| General and administrative            |   |                        | -      |   |                        |   | 21,767  |                                 |   |   | -                                   |   |   |   | 57,779 |   |
| Insurance                             |   |                        | -      |   |                        |   | 20,202  |                                 |   |   | -                                   |   |   |   | 32,176 |   |
| Professional fees                     |   |                        | -      |   |                        |   | 263     |                                 |   |   | -                                   |   |   |   | 500 |   |
| Salaries and benefits                 |   |                        | -      |   |                        |   | 128,469 |                                 |   |   | -                                   |   |   |   | 232,646 |   |
| Travel and entertainment              |   |                        | -      |   |                        |   | -       |                                 |   |   | -                                   |   |   |   | 1,853 |   |
|                                  |   |                        |   |   |                        |   |    |                                 |   |   |                                |   |   |   |   |   |
| OTHER ITEMS                           |   |                        |   |   |                        |   |    |                                 |   |   |                                |   |   |   |   |   |
| Interest expense                      |   |                        | -      |   |                        |   | -       |                                 |   |   | -                                   |   |   |   | 56,250 |   |
| Other income                          |   |                        | -      |   |                        |   | (87,383 | )                                    |   |   | -                                   |   |   |   | (204,565 | ) |
|                                  |   |                        |   |   |                        |   |    |                                 |   |   |                                |   |   |   |   |   |
| Net loss from discontinued operations |   |                        | -      |   |                        |   | (88,609 | )                                    |   |   | -                                   |   |   |   | (196,397 | ) |

|                                               |   | Six month period ended June 30,2014 |   |   | Six month period ended June 30,2013 |   |
|----------------------------------------------------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|
|                                               |   |                                |   |   |                                |   |
| Cash flows from discontinued operations            |   |                                |   |   |                                |   |
| Net cash used in (from) operating activities       |   |                                | -      |   |                                |   | (154,597 | ) |
| Net cash used in (from) investing activities       |   |                                | -      |   |                                |   | - |   |
| Net cash used in (from) financing activities       |   |                                | -      |   |                                |   | - |   |
|                                               |   |                                |   |   |                                |   |   |   |
| Net cash used in (from) discontinued operations    |   |                                | -      |   |                                |   | (154,597 | ) |
|                                               |   |                                |   |   |                                |   |   |   |
| Non-cash transactions from discontinued operations |   |                                | -      |   |                                |   | - |   |

----

| EMC Metals Corp.                                         |
|----------------------------------------------------------|
| (An Exploration Stage Company)                           |
| NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
| June 30, 2014                                            |
| (Expressed in US Dollars) (Unaudited)                    |

| 5. | PROPERTY, PLANT and EQUIPMENT   |
|----|-------------------------------------------|

|                          |   | December 31, 2013 Net Book Value |   |   | Additions (disposals) (write-offs) |   |   |  Amortization |   |   | June 30, 2014 Net Book Value |   |
|-------------------------------|--------|----------------------------------|--------|--------|------------------------------------|--------|--------|--------------------|--------|--------|------------------------------|--------|
| Computer equipment            |   | $                                | 2,375  |   |                               | $      | -      |               |   | $      | (339                         | )      |   | $ | 2,036 |   |
| Office equipment              |   |                             | 7,903  |   |                               |   | -      |               |   |   | (1,578                       | )      |   |   | 6,325 |   |
| Property, plant and equipment |   | $                                | 10,278 |   |                               | $      | -      |               |   | $      | (1,917                       | )      |   | $ | 8,361 |   |

|                          |   | December 31, 2012 Net Book Value |   |   | Additions (disposals) (write-offs) |   |   |  Amortization |   |   | December 31, 2013 Net Book Value |   |
|-------------------------------|--------|----------------------------------|--------|--------|------------------------------------|--------|--------|--------------------|--------|--------|----------------------------------|--------|
| Computer equipment            |   | $                                | 3,402  |   |                               | $      | -      |               |   | $      | (1,027                           | )      |   | $ | 2,375 |   |
| Office equipment              |   |                             | 11,058 |   |                               |   | -      |               |   |   | (3,155                           | )      |   |   | 7,903 |   |
| Property, plant and equipment |   | $                                | 14,460 |   |                               | $      | -      |               |   | $      | (4,182                           | )      |   | $ | 10,278 |   |

|                          |   | December 31, 2012 Net Book Value |       |   | Additions (disposals) (write-offs) |   |        |  Amortization |   |   | December 31, 2013 Net Book Value |   |
|-------------------------------|--------|----------------------------------|------------|--------|------------------------------------|--------|-------------|--------------------|--------|--------|----------------------------------|--------|
| Land and water rights         |   | $                                | 4,252,146  |   |                               | $      | (4,252,146  | )                  |   | $      | -                                |   |   | $ | - |   |
| Plant and equipment           |   |                             | 25,749,852 |   |                               |   | (25,749,852 | )                  |   |   | -                                |   |   |   | - |   |
| Buildings                     |   |                             | 165,959    |   |                               |   | (163,235    | )                  |   |   | (2,724                           | )      |   |   | - |   |
| Automobiles                   |   |                             | 11,262     |   |                               |   | (9,134      | )                  |   |   | (2,128                           | )      |   |   | - |   |
| Property, plant and equipment |   | $                                | 30,179,219 |   |                               | $      | (30,174,367 | )                  |   | $      | (4,852                           | )      |   | $ | - |   |

| 6. | MINERAL INTERESTS |
|----|-------------------|

| June 30, 2014                            |   | Scandium and other |      |   | Tungsten |   |   | Total  |   |
|------------------------------------------|--------|--------------------|-----------|--------|----------|--------|--------|--------|--------|
|                                     |   |               |      |   |     |   |   |   |   |
| Acquisition costs, continuing operations |   |               |      |   |     |   |   |   |   |
|                                     |   |               |      |   |     |   |   |   |   |
| Balance, December 31, 2013               |   | $                  | 1,613,203 |   |     | $      | -      |   |   | $ | 1,613,203 |   |
| Additions                                |   |               | 1,364,031 |   |     |   | -      |   |   |   | 1,364,031 |   |
| Balance June 30, 2014                    |   | $                  | 2,977,234 |   |     | $      | -      |   |   | $ | 2,977,234 |   |

| December 31, 2013                          |   | Scandium and other |      |   | Tungsten |   |     | Total  |   |
|--------------------------------------------|--------|--------------------|-----------|--------|----------|--------|----------|--------|--------|
|                                       |   |               |      |   |     |   |     |   |   |
| Acquisition costs, continuing operations   |   |               |      |   |     |   |     |   |   |
|                                       |   |               |      |   |     |   |     |   |   |
| Balance, December 31, 2012                 |   | $                  | 554,719   |   |     | $      | -        |   |   | $ | 554,719 |   |
| Additions                                  |   |               | 1,108,484 |   |     |   | -        |   |   |   | 1,108,484 |   |
| Write-off                                  |   |               | (50,000   | )      |     |   | -        |   |   |   | (50,000 | ) |
| Balance, December 31, 2013                 |   | $                  | 1,613,203 |   |     | $      | -        |   |   | $ | 1,613,203 |   |
|                                       |   |               |      |   |     |   |     |   |   |   |   |   |
| Acquisition costs, discontinued operations |   |               |      |   |     |   |     |   |   |   |   |   |
|                                       |   |               |      |   |     |   |     |   |   |   |   |   |
| Balance, December 31, 2012                 |   | $                  | -         |   |     | $      | 198,463  |   |   | $ | 198,463 |   |
| Disposal                                   |   |               | -         |   |     |   | (198,463 | )      |   |   | (198,463 | ) |
| Balance, December 31, 2013                 |   | $                  | -         |   |     | $      | -        |   |   | $ | - |   |

----

| EMC Metals Corp.                                         |
|----------------------------------------------------------|
| (An Exploration Stage Company)                           |
| NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
| June 30, 2014                                            |
| (Expressed in US Dollars) (Unaudited)                    |

| 6. | MINERAL INTERESTS (cont’d...)   |
|----|-----------------------------------------------------|

| 7. | CONVERTIBLE DEBENTURES |
|----|------------------------|

----

| EMC Metals Corp.                                         |
|----------------------------------------------------------|
| (An Exploration Stage Company)                           |
| NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
| June 30, 2014                                            |
| (Expressed in US Dollars) (Unaudited)                    |

| 8. | PROMISSORY NOTES PAYABLE |
|----|--------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | June 30, 2014 |       |   | December 31, 2013 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|-------------------|--------|
| Promissory Note related to discontinued operationsPromissory note with a principal balance of $3,750,000, bearing interest at 6% per annum, maturing July 3, 2013 and secured by land and water rights.During fiscal 2008 the Company entered into a promissory note for $6,750,000 as consideration for the acquisition of land and water rights. The Company subsequently made principal payments of $3,000,000 consisting of a cash payment of $1,000,000 and 4,728,000 units of the Company equity valued at $2,000,000. Each unit consisted of one common share and one-half share purchase warrant exercisable at C$0.75 each and exercisable for a period of two years.  The note was secured by a First Deed of Trust on the Cosgrave property land and water rights.In June 2013 the Company returned, to the note holder, the Cosgrave Ranch for the value of the promissory note thereby extinguishing this debt. (Note 5)                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $             | Nil        |   |              | $      | Nil |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |       |   |              |   |   |   |
| Promissory Notes related to continuing operationsOn June 24, 2014, the Company completed a $2,500,000 loan financing which includes a convertible feature. The loan has a maturity date of December 24, 2015 and bears loan interest that increases in quarterly increments from 4% to a maximum of 12%.  The full loan can be converted into an effective 20% JV interest in Nyngan and Honeybugle.  This conversion features can convert at the lender’s option or once EMC raises $3,000,000 million in equity. The 20% JV partner has a carried interest until EMC meets two milestones: (1) filing a feasibility study on SEDAR, and (2) receiving a mining license on either JV property.  The JV partner becomes fully participating on development and build costs thereafter. The JV partner holds an option to convert their 20% JV interest into equivalent value of EMC shares, at market prices, rather than participate in construction.  The JV partner’s option to convert its project interest to EMC shares is a one-time option, at such time the partner becomes fully participating on project costs. If the Company is unable to raise $3,000,000 and repay the loan, the lender may exercise a purchase option wherein the debt will be settled in exchange for 100% interest in the Nyngan mineral rights. |   | $             | 2,500,000  |   |              | $      | Nil |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |       |   |              |   |   |   |
| On June 24, 2013 the Company completed a $1,204,875 financing consisting of a series of insider and non-insider loans. The loans had a maturity date in June 2014 and bore interest at 10% per annum. The loans were secured by the ownership interest the Company has or earns in the Nyngan Scandium Project.  As an inducement to enter into this loan, the lenders received a royalty of 0.2% of average scandium sales value, produced from the Nyngan property, on the first 100 tonnes of scandium oxide product produced and sold. The royalty was capped at $370,000 and EMC retained a right to buy back the royalty from the lenders or their assigns for $325,000 at any time up to the commencement of first production, or three years from loan date, whichever occurs first. This financing was paid in full of June 2014.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          | Nil        |   |              | $      | 1,204,875 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |       |   |              |   |   |   |
| During the year ended December 31, 2012, the Company completed a $3,000,000 loan financing which included a $1,000,000 note payable bearing interest of 7% per annum maturing August 15, 2013. Presented is this principle balance, less financing and costs, which are amortized over the term of the debt using the effective interest method. This resulted in a carrying costs of $831,841 upon deducting a debt discount of $168,159 from the principal balance of $1,000,000. During fiscal 2013, the Company recognized $69,313 in accretion through interest expense. During fiscal 2012, the Company recognized $98,847 in accretion through interest expense. The note payable was secured by an interest in the Company’s subsidiary, Springer Mining Company.  The financing was repaid in full on September 13, 2013.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          | Nil        |   |              |   | Nil |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |       |   |              |   |   |   |
| Less current portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          | (2,500,000 | )      |              |   | (1,204,875 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $             | Nil        |   |              | $      | Nil |   |

----

| EMC Metals Corp.                                         |
|----------------------------------------------------------|
| (An Exploration Stage Company)                           |
| NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
| June 30, 2014                                            |
| (Expressed in US Dollars) (Unaudited)                    |

| 9. | RELATED PARTY TRANSACTIONS |
|----|----------------------------|

| 10. | CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL |
|-----|----------------------------------------------|

----

| EMC Metals Corp.                                         |
|----------------------------------------------------------|
| (An Exploration Stage Company)                           |
| NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
| June 30, 2014                                            |
| (Expressed in US Dollars) (Unaudited)                    |

| 10. | CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL (cont’d...)   |
|-----|--------------------------------------------------------------------------------|

|                              |   | Warrants |       |   | Stock Options                                 |   |
|-----------------------------------|--------|----------|------------|--------|-----------------------------------------------|--------|
|                              |   | Number   |       |   | Weighted average exercise price in Canadian $ |   |   |  Number |   |   | Weighted averageexercise price in Canadian $ |   |
|                              |   |     |       |   |                                          |   |   |   |   |   |   |   |
|                              |   |     |       |   |                                          |   |   |   |   |   |   |   |
| Outstanding, December 31, 2012    |   |     | 3,750,000  |   |                                          | $      | 0.20 |   |   |   | 13,546,250 |   |   | $ | 0.14 |   |
| Granted                           |   |     | -          |   |                                          |   | - |   |   |   | 2,100,000 |   |   |   | 0.07 |   |
| Cancelled                         |   |     | -          |   |                                          |   | - |   |   |   | (1,477,500 | ) |   |   | 0.34 |   |
| Exercised                         |   |     | -          |   |                                          |   | - |   |   |   | - |   |   |   | - |   |
|                              |   |     |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding, December 31, 2013    |   |     | 3,750,000  |   |                                          |   | 0.20 |   |   |   | 14,168,750 |   |   |   | 0.12 |   |
| Granted                           |   |     | -          |   |                                          |   | - |   |   |   | - |   |   |   | - |   |
| Cancelled                         |   |     | (3,750,000 | )      |                                          |   | 0.20 |   |   |   | (2,090,000 | ) |   |   | 0.18 |   |
| Exercised                         |   |     | -          |   |                                          |   | - |   |   |   | - |   |   |   | - |   |
|                              |   |     |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding, June 30, 2014        |   |     | -          |   |                                          | $      | - |   |   |   | 12,078,750 |   |   | $ | 0.11 |   |
|                              |   |     |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Number currently exercisable |   |     | -          |   |                                          | $      | - |   |   |   | 12,078,750 |   |   | $ | 0.11 |   |

----

| EMC Metals Corp.                                         |
|----------------------------------------------------------|
| (An Exploration Stage Company)                           |
| NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
| June 30, 2014                                            |
| (Expressed in US Dollars) (Unaudited)                    |

| 10. | CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL (cont’d...)   |
|-----|--------------------------------------------------------------------------------|

|    |   | Number ofoptions |       |   | ExercisePrice in Canadian $ |   | Expiry Date |
|---------|--------|------------------|------------|--------|-----------------------------|--------|-------------|
|    |   |             |       |   |                        |   |        |
| Options |   |             |       |   |                        |   |        |
|    |   |             | 225,000    |   |                        |   | 0.120       |   | August 27, 2014 |
|    |   |             | 200,000    |   |                        |   | 0.105       |   | December 16, 2014 |
|    |   |             | 568,750    |   |                        |   | 0.250       |   | January 4, 2015 |
|    |   |             | 500,000    |   |                        |   | 0.050       |   | May 9, 2015 |
|    |   |             | 4,800,000  |   |                        |   | 0.100       |   | November 5, 2015 |
|    |   |             | 250,000    |   |                        |   | 0.315       |   | May 4, 2016 |
|    |   |             | 500,000    |   |                        |   | 0.250       |   | May 16, 2016 |
|    |   |             | 300,000    |   |                        |   | 0.155       |   | September 15, 2016 |
|    |   |             | 2,335,000  |   |                        |   | 0.080       |   | April 24, 2017 |
|    |   |             | 1,400,000  |   |                        |   | 0.070       |   | August 8, 2017 |
|    |   |             | 1,000,000  |   |                        |   | 0.100       |   | May 9, 2018 |
|    |   |             |       |   |                        |   |        |   |   |
|    |   |             | 12,078,750 |   |                        |   |        |   |   |

|                    |   | 2014   |   |   | 2013   |    |
|-------------------------|--------|--------|--------|--------|--------|---------|
|                    |   |   |   |   |   |    |
| Risk-free interest rate |   |   | N/A    |   |   |    | 0.62 | % |
| Expected life           |   |   | N/A    |   |   | 5 years |   |
| Volatility              |   |   | N/A    |   |   |    | 144.60 | % |
| Forfeiture rate         |   |   | N/A    |   |   |    | 0.00 | % |
| Dividend rate           |   |   | N/A    |   |   |    | 0.00 | % |

| 11. | TREASURY STOCK |
|-----|----------------|

|                                                |   | Number |      |   | Amount |   |
|-----------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                                |   |   |      |   |   |   |
| Treasury shares, June 30, 2014 and December 31 2013 |   |   | 1,033,333 |   |   | $      | 1,264,194 |   |
|                                                |   |   |      |   |   |   |   |   |
|                                                |   |   | 1,033,333 |   |   | $      | 1,264,194 |   |

----

| EMC Metals Corp.                                         |
|----------------------------------------------------------|
| (An Exploration Stage Company)                           |
| NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
| June 30, 2014                                            |
| (Expressed in US Dollars) (Unaudited)                    |

| 12. | SEGMENTED INFORMATION |
|-----|-----------------------|

| June 30, 2014                 |   | Norway |    |   | Australia |   |      | United States |   |   | Total  |   |
|-------------------------------|--------|--------|---------|--------|-----------|--------|-----------|---------------|--------|--------|--------|--------|
|                          |   |   |    |   |      |   |      |          |   |   |   |   |
| Property, plant and equipment |   | $      | -       |   |      | $      | -         |          |   | $      | 8,361  |   |   | $ | 8,361 |   |
| Mineral interests             |   |   | 203,181 |   |      |   | 2,774,053 |          |   |   | -      |   |   |   | 2,977,234 |   |
|                          |   |   |    |   |      |   |      |          |   |   |   |   |   |   |   |   |
|                          |   | $      | 203,181 |   |      | $      | 2,774,053 |          |   | $      | 8,361  |   |   | $ | 2,985,595 |   |

| December 31, 2013             |   | Norway |    |   | Australia |   |      | United States |   |   | Total  |   |
|-------------------------------|--------|--------|---------|--------|-----------|--------|-----------|---------------|--------|--------|--------|--------|
|                          |   |   |    |   |      |   |      |          |   |   |   |   |
| Property, plant and equipment |   | $      | -       |   |      | $      | -         |          |   | $      | 10,278 |   |   | $ | 10,278 |   |
| Mineral interests             |   |   | 203,181 |   |      |   | 1,410,022 |          |   |   | -      |   |   |   | 1,613,203 |   |
|                          |   |   |    |   |      |   |      |          |   |   |   |   |   |   |   |   |
|                          |   | $      | 203,181 |   |      | $      | 1,410,022 |          |   | $      | 10,278 |   |   | $ | 1,623,481 |   |

| 13. | SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS |
|-----|----------------------------------------------------|

|                                                  |   | 2014   |   |   | 2013   |   |
|-------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                  |   |   |   |   |   |   |
| Cash paid during the six months for interest          |   | $      | 57,407 |   |   | $      | 56,250 |   |
|                                                  |   |   |   |   |   |   |   |   |
| Cash paid during the six months for income taxes |   | $      | -      |   |   | $      | - |   |

| 14. | SUBSEQUENT EVENTS |
|-----|-------------------|

----

----

----

----

----

| 1. | Roberts & Schaefer (Utah, USA) was commissioned in 2010 to develop a preliminary, conceptual engineering and economic report for the processing elements of the project. The work was based entirely on prior Jervois-commissioned test work research. No mining or commercial elements of the project were considered, and the accuracy level was +/-50%, done for management only. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Hazen Research (Colorado, USA) was commissioned in 2010 to do bench scale test work to confirm the earlier property test work results provided by Jervois, which it did, |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Hazen Research was subsequently commissioned in 2011 to do pilot scale test work to further confirm and optimize the process plant flow sheet, consistent with the acid bake systems, as initially defined, and |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | SNC-Lavalin (Brisbane, Australia) was commissioned in 2011 to do a feasibility study on the economics and process viability of the Nyngan Scandium Project, to absorb the Hazen test work results, to confirm the project was economic, and to satisfy the primary condition of the JV with Jervois. The SNC Report was done to inform management and the JV partners, and is not public information. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Nyngan Gilgai Scandium Project Resource Estimation |
|----------------------------------------------------|
| ResourceCategory                                   | Cut off Sc(ppm) | Total Tonnes(kt) | Grade Sc(ppm) | OverburdenRatio |
| Measured                                           | 100 | 2,718 | 274 | 0.81:1 |
| Indicated                                          | 100 | 9,294 | 258 | 1.40:1 |
| Total                                              | 100 | 12,012 | 261 | 1.10:1 |

----

| · | Results of conventional sulfuric acid bake and water leach systems, at atmospheric pressure, demonstrated scandium recoveries averaging 75%, |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

| · | Results of conventional solvent extraction ("SX") on the pregnant leach solution, demonstrated scandium recoveries exceeding 99%, |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|

| · | Results on final stage precipitation of scandium oxide, focused on highest combined purity and recovery, demonstrated scandium recoveries of 97.5%, at purity levels of 97.5% Sc2O3, |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Overall recovery results ranged from 70% to 80%, based on Nyngan ore type (limonite or saprolite), and |
|--------|--------------------------------------------------------------------------------------------------------|

| · | All process assumptions were based on standard and accepted techniques for ore preparation, leaching, solvent extraction and final product preparation. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | Draft ground water assessment study finalized and submitted to regulators, |
|--------|----------------------------------------------------------------------------|

| · | Surface water assessment results favorable, State review ongoing, |
|--------|-------------------------------------------------------------------|

| · | Aboriginal heritage study finalized, no areas of significance, |
|--------|----------------------------------------------------------------|

| · | Soils study finalized, no issues, and |
|--------|---------------------------------------|

| · | Property aerial photography and contour mapping completed, location of site facilities defined. |
|--------|-------------------------------------------------------------------------------------------------|

| · | License applications (6), for access to groundwater as generated from property water bores have been submitted, |
|--------|-----------------------------------------------------------------------------------------------------------------|

| · | Flora and fauna studies are ongoing; to-date no significant issues have arisen, and |
|--------|-------------------------------------------------------------------------------------|

| · | Traffic, noise and air quality baseline monitoring are ongoing. |
|--------|-----------------------------------------------------------------|

----

| · | Tørdal 2012 assays of pegmatite rocks show presence of both scandium and REE’s, |
|--------|--------------------------------------------------------------------------------------------|

| · | Best scandium assays exceed 1,600 ppm, |
|--------|----------------------------------------|

| · | Promising HREE assay results from pegmatites with gadolinite mineralization, |
|--------|------------------------------------------------------------------------------|

| · | Host rock mineralization points to higher grade scandium or HREE contents, |
|--------|----------------------------------------------------------------------------|

| · | 2012 summer exploration program mapped and sampled over 300 pegmatites, |
|--------|-------------------------------------------------------------------------|

| · | A total of 1,940 Niton XRF scandium readings were taken on whole rock samples, and |
|--------|------------------------------------------------------------------------------------|

| · | Overall program results at Tørdal are very encouraging and warrant expanded exploration. |
|--------|-----------------------------------------------------------------------------------------------|

----

----

| · | Area 1 (Kleppe); Mapped more than 50 pegmatite bodies. Best average XRF Sc readings from 1,000-1,500 ppm, some very large surface expressions. Gadolinite present. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Area 2 (Heftetjern); Partially mapped more than 40 pegmatite bodies, many large surface expressions, green amazonite mineralization. Better XRF Sc readings from 500-1,500 ppm. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Area 3 (Solli); Mapped numerous large and small pegmatites. Generally lower XRF Sc readings, ranging 300-700 ppm. Red feldspars, quartz and gadolinite mineralization present. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Area 4 (South Kleppsvatn); Partially mapped large area containing more than 80 pegmatites, generally mica-based. Typical XRF Sc readings in the 300-900 ppm range, with some reaching 1,500 ppm Sc. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Area 5 (Buvatn); Partially mapped, numerous pegmatite bodies, some very large. Typical XRF Sc readings in the 300-1,000 ppm range. Old feldspar quarries, amonizite mineralization present. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | The highest 3-meter intercept graded 572 ppm scandium (hole EHAC 11) |
|--------|----------------------------------------------------------------------|

| · | EHAC 11 also generated two additional high grade scandium intercepts, grading 510 ppm and 415 ppm, each over 3 meters, |
|--------|------------------------------------------------------------------------------------------------------------------------|

| · | The program identified a 13-hole cluster which was of particular interest; |
|--------|----------------------------------------------------------------------------|

| · | intercepts on these 13 holes averaged 270 ppm scandium over a total 273 meters, |
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| · | at an average continuous thickness of 21 meters per hole, |
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| · | representing a total of 57% (354 meters) of total initial program drilling. |
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| · | The 13 holes produced 29 individual (3-meter) intercepts over 300 ppm, representing 31% of the mineralized intercepts in the 273 meters of interest, and |
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| · | This initial 30-hole AC exploratory drill program generated a total of 620 meters of scandium drill/assay results, over approximately 1 square kilometer on the property. |
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| · | Area 2 received 3 holes, 60 meters total, and generated Sc grades from 45-75 ppm, |
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| · | Area 3 received 4 holes, 87 meters total, and generated Sc grades from 47-122 ppm, |
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| · | Area 4 received 5 holes, 72 meters total, and generated Sc grades from 60-101 ppm, and |
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| · | The average depth of all of these holes was 18 meters, with the deepest 30 meters. |
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|                                              | 2014      | 2013      | 2012        |
|---------------------------------------------------|-----------|-----------|-------------|
|                                              | Q2        | Q1        | Q4          | Q3 | Q2 | Q1 | Q4 | Q3 |
| Net Sales                                    | -         | -         | -           | - | - | - | - | - |
|  Net Income(loss)                            | (221,294) | (271,804) | (2,197,558) | (22,060,858) | (521,895) | (910,288) | (1,623,015) | (1,148,216) |
|  Basic and dilutedNet Income(Loss) per share | (0.00)    | (0.00)    | (0.02)      | (0.13) | (0.00) | (0.01) | (0.01) | (0.01) |

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| Q2 2014 vs. Q2 2013 - Variance Analysis |
|-----------------------------------------|
| Item                                    | Variance Favourable /(Unfavourable) | Explanation |
| Interest expense                   | $130,761  | The Company reduced its debt load from one year ago with the sale of the Springer operations in the second half of 2013. The lower debt resulted in lower interest costs in the current quarter. |
| Loss from discontinued operations  | $88,609  | The Company’s results from one year ago included the costs of the Springer mine which was sold in the second half of 2013. |
| Stock-based compensation           | $43,165  | The Company has not issued any stock options since Q2 of 2013. All expensing of issued options was completed in Q1 of 2014. In the corresponding quarter of 2013 options were issued that were expensed immediately resulting the higher costs one year ago. |
| Consulting                         | $33,365  | Consulting in the pursuit of the Springer mine and mill sale in Q2 2013 resulted in the higher consulting costs when compared to Q2 2014. No such costs were incurred in 2014. |
| Salaries and benefits              | $47,872  | Decreased salary expenses in Q2 2014 relate to the Company’s decision to forgo salaries for key executives to reduce costs in efforts to conserve capital. |
| Insurance                               | $7,834 | In Q2 2014 the Company received a refund on workers compensation premiums charged in the prior year. This adjustment resulted in current charges being lower than in the Q2 2013. |
| General and administrative              | $5,190 | Lower overall activity in Q2 2014 resulted in this favorable variance. |
| Exploration                        | $1,409  | In both comparative quarters very little activity took place. Spending in Q2 2014 was only $635 as compared to $2,044 in Q2 of 2013. |
| Amortization                            | $115 | Lower amortization is reflective of the fact that the assets held in our Sparks office are declining in value. |
| Travel and entertainment           | $(304)  | The cost differential between comparative quarters is minimal where spending in the current quarter was $5,176 compared to $4,872 one year ago. |
| Foreign exchange gain              | $(26,744)  | In Q2 of 2013 the Canadian dollar strengthened against the US dollar making those assets held in Canadian dollars worth more when converted to US$. In Q2 2014 there was still some strengthening against the US dollar but not to the same level as one year ago. |
| Professional fees                  | $(30,671)  | Unfavorable variance is due to legal fees incurred in association with June 2014 loan financing transaction. No such costs were incurred in Q2 2013. |

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| Six months ending June 30, 2014 vs. six months ending June 30, 2013 - Variance Analysis |
|-----------------------------------------------------------------------------------------|
| Item                                                                                    | Variance Favourable /(Unfavourable) | Explanation |
| Exploration                                                                   | $255,724  | In 2014 the Company carried out a small exploration program at its Honeybugle operation resulting in costs of $53,391. In the prior year funds were expended to secure the Nyngan project in Australia resulting in the cost differential between the two comparative periods. |
| Interest expense                                                                   | $247,040  | In 2013 the Company was making interest payments on the loan taken out in February of 2012. The loan matured in August 2013 and the sale of the Springer operation was used to extinguish that debt. Smaller financings were taken subsequent which has resulted in lower financing costs. |
| Loss from discontinued operations                                                  | $196,397  | The Company’s results from one year ago included the costs of the Springer mine which was sold in the second half of 2013. |
| Salaries and benefits                                                              | $93,580  | Decreased salary expenses in 2014 are as a result of the Company’s decision to forgo salaries for key executives in efforts to conserve capital. |
| Consulting                                                                         | $68,653  | Consulting in the pursuit of the Springer mine and mill sale in 2013 resulted in the higher consulting costs when compared to 2014. No such costs were incurred in 2014. |
| Stock-based compensation                                                           | $63,031  | The Company has not issued any stock options since Q2 of 2013. All expensing of issued options was completed in Q1 of 2014. |
| General and administrative                                                              | $33,115 | Lower overall activity in 2014 has resulted in this favorable variance. |
| Insurance                                                                          | $8,567  | In 2014 the Company received a refund on workers compensation premiums charged in the prior year. This adjustment resulted in current charges being lower than in 2013. |
| Travel and entertainment                                                                | $1,276 | Lower operational activity in 2014 when compared with 2013 resulted in this favorable variance. |
| Amortization                                                                            | $232 | Lower amortization is reflective of the fact that the assets held in our Sparks office are declining in value. |
| Professional fees                                                                       | $(4,871) | Unfavorable variance is due to legal fees incurred in association with June 2014 loan financing transaction. No such costs were incurred in Q2 2013. |
| Foreign exchange gain                                                              | $(23,659)  | In of 2013 the Canadian dollar strengthened against the US dollar making those assets held in Canadian dollars worth more when converted to US$. In 2014 there was still some strengthening against the US dollar but not to the same level as one year ago. |

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| · | The limited number of personnel in smaller companies, which constrains the Company’s ability to fully segregate conflicting duties; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Company relies on an active Board and management with open lines of communication to maintain the effectiveness of the Company’s disclosure controls and procedures; and |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The dynamic and evolving nature of smaller companies, which limits their ability to have static processes that are well-documented. |
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| 10.1  | Loan Agreement dated June 24, 2014. |
|------------|-------------------------------------|

| 11.1  | Statement of Computation of Per Share Earnings for the Quarter Ended June 30, 2014. |
|------------|-------------------------------------------------------------------------------------|

| 31.1   | Certification of the Principal Executive Officer, pursuant to Rule 13a-14(a) or 15d-14(a) of the U.S. Securities Exchange Act of 1934. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| 31.2   | Certification of the Principal Financial Officer, pursuant to Rule 13a-14(a) or 15d-14(a) of the U.S. Securities Exchange Act of 1934. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| 32.1   | Section 1350 Certification of the Principal Executive Officer. |
|------------------|----------------------------------------------------------------|

| 32.2   | Section 1350 Certification of the Principal Financial Officer. |
|------------------|----------------------------------------------------------------|

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|                 | EMC METALS CORP.(Registrant) |                        |
|----------------------|------------------------------|-----------------------------|
|                 |                         |                        |   |
| Date: August 8, 2014 | By:                          | /s/ George Putnam      |   |
|                 |                         | George Putnam               |   |
|                 |                         | Principal Executive Officer |   |
|                 |                         |                        |   |
|                 | By:                          | /s/ Edward Dickinson        |   |
|                 |                         | Edward Dickinson            |   |
|                 |                         | Principal Financial Officer |   |

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