Strategic Metals Ltd.
TSX VENTURE : SMD

Strategic Metals Ltd.

January 09, 2008 12:01 ET

Strategic Metals Ltd. Updates Proposed Plan of Arrangement With Zinccorp Resources Inc.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 9, 2008) - Strategic Metals Ltd. (TSX VENTURE:SMD) is pleased to provide an update on its proposed Plan of Arrangement with Zinccorp Resources Inc. ("Zinccorp"), a private company incorporated by Richard Hughes that is pursuing a listing on the TSX Venture Exchange (the "Exchange") (Please refer to Strategic's March 2, 2007 news release).

Key terms of the Plan of Arrangement are as follows:

- Strategic has acquired approximately 18,000,000 Zinccorp common shares and 18,000,000 Zinccorp share purchase warrants as a result of having sold its Bar, Convert, Kit and Michelle claims, all situated in the Yukon Territory, to Zinccorp, and as a result of having subscribed for certain additional Zinccorp common shares and Zinccorp share purchase warrants;

- Strategic proposes to distribute to its own shareholders pro rata certain of the Zinccorp common shares and Zinccorp share purchase warrants that it has acquired by way of a Plan of Arrangement, on the basis of one Zinccorp common share and one Zinccorp share purchase warrant to be distributed for each four (4) common shares of Strategic held;

- The distribution of these Zinccorp common shares and Zinccorp share purchase warrants to Strategic's shareholders is intended so as to provide Zinccorp with sufficient distribution to qualify for a listing on the Exchange.

Strategic intends to complete the Plan of Arrangement and distribute the Zinccorp shares and Zinccorp warrants to its shareholders in March 2008. Additional information on the Plan of Arrangement will be made available in a Strategic management information circular currently being prepared in connection with a General Meeting of Strategic's shareholders expected to be held in early March 2008, at which shareholder approval for the Plan of Arrangement will be sought by way of a special resolution. In the event this special resolution is passed, Strategic will file the requisite documentation with the Supreme Court of British Columbia so as to obtain an Order of said Court approving the Plan of Arrangement. The Order would then be filed with the Registrar of Companies for British Columbia, as well as with the Exchange, with the listing of Zinccorp's shares expected to occur shortly thereafter, subject to Zinccorp having filed all requisite supporting documents with the Exchange and meeting the Exchange's minimum listing requirements.

Cautionary Statements

Completion of the Plan of Arrangement is subject to a number of conditions, including, but not limited to, the approval of Strategic's shareholders by way of special resolution, and Exchange acceptance for both the Plan of Arrangement and the listing of Zinccorp's shares thereon. The Plan of Arrangement and the listing of Zinccorp's shares on the Exchange will not be effected until all such conditions have been satisfied. There can be no assurance that these matters will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in Strategic's management information circular being prepared in connection with the Plan of Arrangement, any information released or received with respect to the Plan of Arrangement may not be accurate or complete and should not be relied upon.

For further information concerning Strategic Metals Ltd. or its various exploration projects please visit our website at www.strategicmetalsltd.com.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.

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