Dacha Strategic Metals Inc.

Dacha Strategic Metals Inc.

November 03, 2011 18:41 ET

Dacha Reports Assets of US$1.59 Per Share With Inventory Valued at US$118.0 Million as of October 31, 2011

TORONTO, ONTARIO--(Marketwire - Nov. 3, 2011) - Dacha Strategic Metals Inc. ("Dacha" or the "Company") (TSX VENTURE:DSM)(OTCQX:DCHAF) is pleased to announce the estimated market value of its Rare Earth metals inventory. As of October 31, 2011, the estimated value of its metals inventory was US$118.0 million, a decrease of US$3.0 million, or 2.4%, from the estimated value of US$121.0 million at September 30, 2011, as reported in the Company's October 3, 2011 press release.

Assets include metal inventory and cash. At October 31, 2011, in addition to its metal inventory, which had an estimated fair market value of US$118.0 million, the Company's had cash of approximately US$4.4 million for a total of US$122.4 million, or US$1.59 per share, based on 77.0 million shares outstanding, or, US$1.35 per share on a fully diluted basis of 97.4 million shares outstanding.

As at October 31, 2011, Dacha's physical inventory portfolio consisted as follows:

Metals Inventory Grades* Quantity Spot Price/kg Market Value
10/31/2011 (Kg) (US$) (US$millions)
Busan, South Korea
Dysprosium Oxide 3N+ 15,000 $2,205 $33.1
Dysprosium Fe Santoku 12,000 $2,450 $29.4
Gadolinium Oxide 4N5+ 9,950 $270 $2.7
Lutetium Oxide 4N+ 2,900 $1,250 $3.6
Neodymium Oxide 4N+ 18,000 $265 $4.8
Terbium Oxide 4N+ 14,000 $3,018 $42.3
Yttrium Oxide 5N 14,000 $155 $2.2
Total: 85,850 $118.0
4N = 99.99%
4N+ = 99.99+%
5N = 99.999%
4N5+ = 99.99%/99.999+%

Dacha's inventory, including market value is updated weekly every Monday morning and posted to the "Inventory" tab of its website at www.dachametals.com. Dacha encourages its shareholders and all other interested parties to visit its website regularly and to monitor the ongoing appreciation of its physical inventory of Rare Earth Elements.

Update on Normal Course Issuer Bid:

During the month, the Company has purchased and cancelled 1,300,000 shares of Dacha at an average price of $0.61. As at October 31, 2011, the Company had purchased and cancelled a total of 4,750,000 shares of Dacha at an average price of $0.83 as part of its on-going Normal Course Issuer Bid. The Company has bought back approximately 70% of the shares allowed under the current NCIB and expects to continue to purchase shares over the remainder of the fiscal year, depending on market conditions and other investment opportunities that may be available.

About Dacha

Dacha Strategic Metals Inc is an investment company focused on the acquisition, storage and trading of strategic metals with a primary focus on Rare Earth Elements. Dacha is in the unique position of holding a commercial stockpile of Physical Rare Earth Elements. Its shares are listed on the TSX Venture Exchange under the symbol "DSM" and on the OTCQX exchange under the symbol "DCHAF".

Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the Company's ability to trade in rare earth elements, the realization value of Dacha's physical inventory portfolio, proposed investment strategy of the Company, and general investment and market trends. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Dacha to be materially different from those expressed or implied by such forward-looking information. Although management of Dacha has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Dacha does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

The market value of the Company's physical inventory is estimated using price quotes published by two of the largest independent news sources for the metals industry, namely, Asian Metal (www.asianmetal.com) and Metal-Pages (www.metal-pages.com). In cases where these websites do not provide a price quote on the type or quality of metal held in the Company's physical inventory, the Company relies on a price quote provided by independent third-party industry participants.


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