Strategic Metals Ltd.

Strategic Metals Ltd.

August 15, 2007 09:15 ET

Strategic Metals Ltd. Closes Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 15, 2007) -


Strategic Metals Ltd. (TSX VENTURE:SMD) announces the closing of the $9,020,000 non-brokered private placement announced in Strategic's July 16, 2007 press release, as amended by its July 17, 2007 press release, and that two of the influential investors referred to in the July 16, 2007 press release are Global NR Holding SA ("Global NR Holding"), a Luxembourg based holding company which is controlled by the Lundin Family (as to 5,600,000 units), and Exploration Capital Partners 2000 LP, Exploration Capital Partners 1998-B LP and Exploration Capital Partners 2006 LP, ("Exploration Capital LPs"), which are controlled by The Rule Family Trust (as to 3,500,000 units).

As announced in the July 16, 2007 and July 17, 2007 press releases, each $0.82 unit consists of one common share and one share purchase warrant, with each warrant entitling the holder to purchase one additional common share at a price of $1.20 until August 14, 2009, provided that, if after the expiry of the applicable resale restrictions, the closing price of Strategic's shares on the TSX Venture Exchange is $1.50 or greater for a period of 10 consecutive trading days, Strategic may give notice of an earlier expiry of the warrants, in which case they will expire 21 days after the giving of such notice. With the completion of this financing, Global NR Holding now holds a 9.68% equity stake in Strategic and Exploration Capital LPs, holds 11.06%. On a fully diluted basis, assuming the exercise of all outstanding warrants, Global NR Holding would hold a 15.23% equity stake in Strategic, while Exploration Capital LPs would hold 13.42%. The proceeds of the private placement will be used to continue exploration on Strategic's property portfolio and general working capital.

Strategic also issued an additional 700,000 units in payment of finders' fees in connection with this private placement, each of these units having the same terms as the units sold pursuant to the private placement.

All of the securities issued in connection with the closing of this private placement, including securities issued in payment of the finders' fees, are subject to a hold period in Canada until December 15, 2007.

"We are extremely pleased to have put together this strong financial, technical and international shareholder base that we feel will propel our projects forward and help create new exploration and investment opportunities for the Company," states Mr. Rob Carne, President of Strategic. "Strategic's project-generating exploration model has proven to be very successful and we look forward to building on these successes with the expertise and acumen of our newest shareholders."

Strategic Metals Ltd. is a project-generating mineral exploration company with an attractive exploration portfolio comprising more than 50 properties. It currently has over 15 properties optioned out and holds royalty interests in five other projects. It has a strong balance sheet with approximately $15 million in working capital plus approximately $15 million worth of marketable securities in other companies at current prices.

For further information concerning Strategic Metals Ltd. or its various exploration projects please visit our website at


Robert C. Carne, President

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Forward-Looking Statement

Some statements in this release contain forward-looking information. These statements include, but are not limited to, statements with respect to future exploration, expenditures, transactions and financings. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, risks related to actual results of exploration activities, the timing and amount of expenditures and the completion of transactions and financings.

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

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