Strategic Metals Ltd.

Strategic Metals Ltd.

November 30, 2006 10:38 ET

Strategic Metals Ltd. Plans New Spin-Outs

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 30, 2006) - Strategic Metals Ltd. (TSX VENTURE:SMD) is pleased to review results from its ongoing research and property acquisition activities and to discuss plans for additional property divestments.

The Company's generative business model is designed to capitalize on the mineral industry's requirement for new exploration projects by staking attractive prospects then advancing them to "drill ready" status. Current plans are to spin off selected projects from the Company's extensive property portfolio, in return for large share positions in other publicly traded companies. The objective of these property-for-shares transactions is to duplicate the Company's success with Twenty-Seven Capital Corp., which is currently the object of a take-over bid by Mega Uranium Ltd.

Robert Carne, President states, "The strengths of the spin-out model are that it potentially unlocks the largely unappreciated value of properties which are lost within the broader portfolio, and that it allows Strategic Metals to benefit from aggressive drill programs without suffering dilution to fund those programs." The model is consistent with the Company's policy of maximizing shareholder returns while minimizing exploration risks.

During 2006, Strategic Metals has staked 16 new prospects, mostly in Yukon. Over the course of summer and fall, work was done on a number of these prospects and some of the Company's pre-existing properties. Exploration highlights are as follows:

Zap Property: 1350 m long by up to 350 m wide area of strongly anomalous silver-in-soil geochemistry (3 to 61 ppm) plus newly discovered silver-rich veins located downhill from the soil anomaly, with grab samples ranging from 1250 to 4010 g/t silver.

Michelle Property: high stream sediment values mark a drainage containing abundant limonitic boulders that assayed 1.04 to 36.8% lead, 2.12 to 15.70% zinc, 0.12 to 0.92% copper and 31.8 to 1090 g/t silver.

Kit Property: soil sampling to confirm earlier geochemical anomalies returned high zinc (1000 to 16,000 ppm), lead (1000 to 12,500 ppm) and silver (1 to 9.1 ppm) values. The target is sedimentary exhalative (Sedex) mineralization within particularly favourable, approximately 1.6 billion year old strata.

Uno Property: mineralized boulders and soil geochemical results identified a number of vein zones within a three kilometre diameter area, from which grab samples of vein material typically assayed between 100 and 706 g/t silver.

Obvious Property: specimens of magnetite-rich skarn collected along the margin of a pluton during staking assayed 2.73 to 5.23% tungsten.

Hopper Property: grid soil sampling returned moderately to strongly anomalous copper values (200 to 2330 ppm) over a length of 2300 m and an average width of 400 m within a dioritic stock where chip samples from scattered outcrops sampled by a previous operator reportedly yielded several intervals grading between 0.1 and 0.52% copper over lengths of 30 to 60 m. Gold assays are in progress.

VTEM Surveys: helicopter-borne magnetic and electromagnetic surveys were conducted over five of the companies wholly owned properties and identified attractive exploration targets in areas of favourable geology at the Bar, Convert, Four Corners and Mick base metal properties.

The 2006 exploration programs were conducted by Archer, Cathro & Associates (1981) Limited under the supervision of W. A. Wengzynowski, P.Eng, who is the qualified person for the purpose of National Instrument 43-101. All analyses were done at ALS Chemex in North Vancouver, BC.

The Company is in advanced negotiations regarding a potential spin-off of four properties and is in discussions concerning similar transactions for two other groups of properties. Each proposed spin-off has a particular commodity focus.

Strategic Metals is a junior mining company with an attractive exploration portfolio comprising nearly 50 properties. It currently has 13 properties optioned out and holds royalty interest in four other projects. The Company has a strong balance sheet with approximately $2.5 million in working capital plus approximately $13 million worth of common shares in other companies at today's prices.


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