Dacha Strategic Metals Inc.

Dacha Strategic Metals Inc.

May 30, 2011 17:00 ET

Dacha Strategic Metals Inc. Announces Intention to Make a Normal Course Issuer Bid

TORONTO, ONTARIO--(Marketwire - May 30, 2011) - Dacha Strategic Metals Inc. ("Dacha" or "the Company") (TSX VENTURE:DSM)(OTCQX:DCHAF) is pleased to announce its intention to make a Normal Course Issuer Bid ("NCIB") to buy back its common shares through the facilities of the TSX Venture Exchange ("Exchange"). The NCIB is subject to receipt of Exchange approval.

The maximum number of common shares that may be purchased for cancellation pursuant to the NCIB is that number of common shares that represents 10% of the common shares in the public float on the date that the Exchange approves the NCIB. Based on the 67,476,789 common shares in the public float as at May 18, 2011, the maximum number of shares that the Company could acquire would be 6,747,679 common shares. Dacha notes that the number of its shares in the public float is less than the number of issued and outstanding Dacha common shares because the public float number does not include common shares held by Dacha insiders. Although Dacha intends to purchase the maximum number of shares available under the issuer bid, the actual number of common shares that would be purchased, if any, and the timing of such purchases will be determined by Dacha considering market conditions, stock prices, its cash position, and other factors.

The Board of Directors of Dacha believes that the underlying value of Dacha, particularly based on the liquid assets on hand per share, is not reflected in the current market price of its common shares, and may not be so reflected at certain times during the course of the NCIB, and has thus concluded that the repurchase of common shares pursuant to the proposed NCIB presently constitutes an appropriate use of financial resources and would be in the best interest of Dacha shareholders.

Purchases under the NCIB are expected to be permitted to commence on or about June 3, 2011 and will terminate on June 3, 2012 or the date upon which the maximum number of common shares have been purchased by Dacha pursuant to the NCIB. There cannot be any assurance as to how many common shares, if any, will ultimately be acquired by Dacha under the NCIB. Dacha intends that any shares acquired pursuant to the NCIB will be cancelled. Dacha has not previously repurchased any of its common shares pursuant to an issuer bid.

Any purchases made pursuant to the NCIB will be made in accordance with the rules of the Exchange and will be made at the market price of the common shares at the time of the acquisition. Dacha will make no purchases of common shares other than open market purchases that may be made during the period that the NCIB is outstanding. National Bank Financial has agreed to act on behalf of Dacha to conduct the NCIB.

Appointment of New Chief Financial Officer

Dacha is also pleased to announce the appointment of Mr. Ryan Ptolemy to the position of Chief Financial Officer. Mr. Ptolemy is a certified general accountant and CFA charter holder. Mr. Ptolemy currently serves as Chief Financial Officer to a number of public companies in the mining sector. From August, 2005, to September, 2009, Mr. Ptolemy was at an independent investment dealer in Toronto, most recently serving as Chief Financial Officer, where he was responsible for financial reporting, auditing, budgeting and internal controls.

The appointment of Mr. Ptolemy follows the resignation of Mr. Brad Boland who has served as Dacha's CFO since September of 2009. Dacha would like to take the opportunity to thank Mr. Boland for his dedicated commitment to Dacha over the past two years, and to wish him the best in his future endeavours.

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".

Cautionary Note

Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, statements regarding the Company's plan of business operations; purchases under the NCIB; receipt of regulatory approval; conduct and operation of the NCIB; and impact and other benefits of the proposed NCIB. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, transaction risks, regulatory risks, oil prices, competition, financing risks, and risks inherent in the junior oil and gas industry. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.


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