Dacha Strategic Metals Inc.
TSX VENTURE : DSM
OTCQX : DCHAF

Dacha Strategic Metals Inc.

April 05, 2011 08:52 ET

Dacha Reports Net Assets of $0.68 Per Share With Inventory Valued at US$41.8 Million as of March 31, 2011

TORONTO, ONTARIO--(Marketwire - April 5, 2011) - Dacha Strategic Metals Inc. ("Dacha" or the "Company") (TSX VENTURE:DSM)(OTCQX:DCHAF) is pleased to announce the continued appreciation of its Rare Earth metals inventory. As of March 31, 2011, the estimated value of its metals inventory was US$41.8 million or C$40.6 million, an increase of C$4.8 million, or 13%, from the estimated value of C$35.8 million at March 10, 2011, as reported in the Company's March 14, 2011 press release.

Net Assets are defined as metal inventory, cash and marketable securities. At March 31, 2011, in addition to its metal inventory, which had an estimated fair market value of C$40.6 million, the Company's equity investments had an estimated fair market value of approximately C$4.2 million and cash of approximately C$4.8 million for a total of C$49.6 million, or $0.68 per share, based on 73.1 million shares outstanding.

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

Metals
Inventory
as at
March 31, 2011
Grades* Quantity
(Kgs)
Value/
Kgs
(US$)
Market
Value
(US$
millions)
Market
Value
(C$
millions)
          US$1.00 =
C$0.9696
Busan, South Korea          
Dysprosium Oxide 4N 15,000 $639 $9.6 $9.3
Dysprosium Fe Santoku 12,000 $609 $7.3 $7.1
Gadolinium 4N5+ 10,000 $185 $1.9 $1.8
Lutetium Oxide 4N+ 3,000 $800 $2.4 $2.3
Neodymium Oxide 4N+ 10,000 $201 $2.0 $2.0
Terbium Oxide 4N+ 13,000 $1,080 $14.0 $13.6
Yttrium Oxide 5N 10,000 $160 $1.6 $1.6
Shanghai, China          
Yttrium Oxide 4N5+ 120,000 $25 $3.0 $2.9
Total:   193,000   $41.8 $40.6
           
*Grades:          
4N = 99.99%          
4N+ = 99.99+%          
5N = 99.999%          
4N5+ = 99.99%/99.999+%          

Effective April 10, 2011, Dacha's inventory, including market value, will be updated weekly every Monday morning and posted to the "Inventory" tab on 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.

The Company is also pleased to announce that it has increased its insurance policy on its physical inventory of Rare Earth Elements to US$40 million per warehouse location which covers its entire inventory of Rare Earth Elements held both within and outside of China based on current market values.

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.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

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