Strategic Metals Ltd.
TSX VENTURE : SMD

Strategic Metals Ltd.

May 20, 2008 10:23 ET

Strategic Metals Ltd. Farms Out the Burwash Nickel-Copper-Platinum Group Element (PGE) Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 20, 2008) - Strategic Metals Ltd. (TSX VETURE:SMD) is pleased to announce that it has entered into an option agreement with Pacific Coast Nickel Corp. (TSX VENTURE:NKL). The agreement grants Pacific Coast the optional right to earn up to a 75% interest in the Burwash nickel-copper-platinum group element (PGE) property, located 8 kilometres by an all weather road from the Alaska Highway in southwestern Yukon.

The Burwash property hosts nickel-copper-platinum group element (PGE) mineralization related to intrusions of the Late Triassic Kluane Mafic-Ultramafic Suite that were emplaced during a period of uplift and extension related to widespread basaltic volcanism. The property overlies the east half of the Quill Creek Mafic-Ultramafic Complex, a 20 km long multiphase sill-like intrusion that attains a maximum thickness of over 1 km. The Complex also hosts a number of other nickel-copper-PGE occurrences, the most significant and best explored of which is the former Wellgreen Mine.

Soil geochemistry and a 2007 helicopter-borne Versatile Time Domain Electromagnetic (VTEM) survey flown by Strategic have identified and better defined numerous targets on the Burwash property, which will be drill tested by Pacific Coast starting in early July 2008.

Under terms of the option agreement, Pacific Coast has the right to initially earn a 50% interest in the property by making cash payments totalling $125,000, issuing 350,000 of Pacific Coast common shares to Strategic and incurring work expenditures totalling $3,000,000 by December 1, 2010. Pacific Coast can earn an additional 10% (for a total of 60%) by providing Strategic with a positive bankable feasibility study on or before March 31, 2013. In order for Pacific Coast to earn a final 15% (for a total of 75%), it must provide all of the funding required to put the property into commercial production on or before March 31, 2016.

Robert C, Carne, M.Sc., P. Geol. is the qualified person under National Instrument 43-101 who has reviewed and approved the contents of this New Release.

For additional information concerning Strategic or its various exploration projects please contact:

STRATEGIC METALS LTD.

Per: Robert C. Carne, President

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

Contact Information