Strategic Metals Ltd.

Strategic Metals Ltd.

April 26, 2007 11:04 ET

Strategic Announces NiMo Deal Closes and Finger Lake Optioned

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 26, 2007) - Strategic Metals Ltd. (TSX VENTURE:SMD) is pleased to announce that it has completed the definitive agreement with Southampton Ventures Inc. regarding the NiMo Project. Under terms of the agreement, Southampton has an option to earn an initial 75% of Strategic's 100% interest in the NiMo Project by spending $6 million on exploration by December 31, 2007. Southampton has issued to Strategic 2,000,000 common shares of Southampton, 1,000,000 common share purchase warrants (which entitle Strategic to acquire one common share of Southampton at an exercise price of $1.25 until March 22, 2009) and reimbursed Strategic's costs relating to the NiMo Project. Southampton can earn an additional 25% interest, for an aggregate 100% ownership of the NiMo Project subject to a 1% net returns smelter royalty (NSR) in favour of Strategic, by issuing to Strategic an additional 2,000,000 common shares and 1,000,000 common share purchase warrants, at any time before December 31, 2008.

Southampton and Strategic plan an aggressive 2007 exploration program of prospecting and geological mapping, to be done in conjunction with stratigraphic diamond drilling to establish the presence of sub-basins where thickest mineralization may be present on the properties comprising the NiMo Project.

Exploration planning is well underway with compilation of historical exploration results into a modern GIS database. Two diamond drills have been contracted to carry out the 2007 program, which will include 10,000 metres of drilling starting in mid-June. Drilling will begin on the Pe and El properties with initial drill hole spacing at about 250 m apart, along the stratigraphic trace of the mineralized horizon. Once the thickest sections and geological controls have been identified, additional drilling will be carried out downdip to establish potential areas for definition drilling.

The NiMo Project will be managed by Archer, Cathro & Associates (1981) Limited., a geological consulting firm with extensive experience in the Yukon, under the direction of Rob Carne, P.Geo, who is the qualified person in accordance with NI 43-101.

Strategic is also pleased to announce that it has added a third property to its Vanderhoof Copper Project in central British Columbia. The new property is called Finger Lake. Under terms of the option agreement with an arms-length prospector, Strategic can earn a 100% interest in the property subject to a 2% net smelter return royalty, 50% of which Strategic can purchase for $1,000,000, by making cash payments totalling $80,000 and issuing a total of 130,000 common shares of Strategic to the prospector over an approximate 4 1/2 year period ending November 1, 2011. Strategic will also be required to issue an additional 75,000 common shares upon the announcement of a feasibility study in respect of the property.

The Vanderhoof Copper Project comprises three, road accessible properties that lie within a belt of major porphyry copper-gold and/or molybdenum deposits, the closest of which is the Endako Deposit 75 km to the northwest. Field work is scheduled to begin on May 3 and will consist of geological mapping, prospecting and soil geochemical sampling. While the main focus of the project will be to evaluate porphyry potential, the work will also consider iron-oxide copper-gold (IOCG) potential because some mineralized float samples collected from the properties appear to have IOCG characteristics.

The Vanderhoof Copper Project is one of four porphyry exploration projects Strategic intends to conduct during 2007. All of these projects will be implemented by Archer Cathro under supervision of Bill Wengzynowski, P.Eng., who will be the qualified person in accordance with NI 43-101.

Strategic is excited to have these agreements completed and awaits the start of exploration. Management is working to finalize the previously announced sale of four zinc properties to Zinccorp Resources Inc. (see news release dated March 2, 2007). Management is also in advanced negotiations regarding two other potential farm-out agreements.


Robert C. Carne, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release.

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