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

Dacha Strategic Metals Inc.

March 01, 2011 08:48 ET

Dacha Reports Quarterly Net Earnings of $0.02 Per Share; $0.07 Per Share Year-To-Date

TORONTO, ONTARIO--(Marketwire - March 1, 2011) - Dacha Strategic Metals Inc. ("Dacha" or the "Company") (TSX VENTURE:DSM)(OTCQX:DCHAF) announces its financial results for the third quarter ended December 31, 2010. The Company recorded net earnings of $1.5 million, or $0.02 per share, for the three month period and $5.2 million, or $0.07 per share, for the nine month period there ended. The net earnings were driven by gains on the Company's metal investments and its security investments.

Subsequent to the period ended December 31, 2010, prices on rare earth metals have continued to increase. Currently, the estimated value of the metals inventory is $31.3 million, an increase of $8.1 million from December 31, 2010.

At December 31, 2010, in addition to its metal inventory, which had an estimated fair market value of $23.2 million, the Company had security investments with an estimated fair market value of $4.2 million and cash of $2.2 million.

As at December 31, 2010, Dacha's physical inventory portfolio consisted as follows:

Metal inventory             
    Quantity
(Kgs)
  Cost
($millions)
  Market Value
($millions)
Held outside China            
  Dysprosium Oxide   15,000   $4.6   $4.4
  Dysprosium Fe   12,000   3.5   3.5
  Gadolinium   10,000   0.7   0.7
  Lutetium Oxide   3,000   0.9   1.2
  Neodymium   10,000   1.0   0.9
  Terbium Oxide   13,000   6.6   8.1
  Yttrium Oxide   10,000   0.4   0.8
Held within China            
  Europium Oxide   6,000   2.2   2.7
  Yttrium Oxide   120,000   0.9   0.9
    199,000   $20.8   $23.2

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, the expected performance of the Company, its ability to attract financing, proposed investment strategy of the Company, general investment trends, and receipt of all regulatory approvals. 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.

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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