Strategic Metals Ltd.

Strategic Metals Ltd.

June 19, 2008 11:32 ET

Strategic Metals Ltd. Provides Update on Some Farm-Out Projects

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 19, 2008) - Strategic Metals Ltd. (TSX VENTURE:SMD) is pleased to provide an overview detailing developments and exploration plans regarding certain properties in which the Company has large direct or indirect interests. The properties are subject to various sales and option agreements with arms-length parties, which resulted in Strategic receiving any one of or a combination of share issuances, cash payments, work expenditures and net smelter return royalties.

Advanced Stage Project

Largo Resources Ltd. has an agreement with Strategic which grants Largo the optional right to earn a 100% interest in the Northern Dancer tungsten/molybdenum project in southern Yukon. Under terms of that agreement, Largo can earn an initial 70% interest in the property by incrementally issuing Strategic 4,000,000 of its common shares and incurring $5,000,000 in work expenditures over a three year period. Upon earning a 70% interest in the project, Largo will have the optional right to purchase the remaining 30% in the property for an additional $5,000,000 or an equivalent value in stock (at Strategic's election). Whether or not the remaining 30% is sold, Strategic will retain a 1% net smelter return royalty.

Largo has done extensive drilling on the Northern Dancer project and has completed a National Instrument 43-101 compliant mineral resource estimate (see Largo Resources' news releases for details). Largo has announced that a Scoping Study is currently being carried out by Snowden Mining Industry Consultants Incorporated.

2008 Diamond Drilling Projects

Rockhaven Resources Ltd. has recently begun an approximately 50 hole diamond drilling program at the past producing Plata silver-lead-gold property. The 3000 hectare Plata property is located in east-central Yukon and hosts multiple high-grade and bulk tonnage silver-lead-gold targets. Strategic holds 46.6% of the currently issued and outstanding shares of Rockhaven (see Rockhaven's website ( for sale agreement and project details).

On June 10, 2008, Yankee Hat Minerals Ltd. entered into an option agreement with Strategic that gives Yankee Hat the optional right to earn a 100% interest in five tungsten targets in return for 10 million of its shares and $5 million in work expenditures with share issuances and work to be completed incrementally over a three year period. If earn-in is completed, Strategic will retain a 1% net smelter return royalty in each property. Yankee Hat is expected to drill at least 1900 m at the Boot and Hidden properties in 2008 and will spend approximately $75,000 exploring the Meloy and Obvious properties. Drilling is expected to begin in early July.

Yankee Hat is also expected to drill approximately 800 m at Strategic's REE property, which is located 18 km from a dormant mill at the Ketza gold mine in central Yukon. Mineralization at the REE property is hosted in a vein or altered syenite dyke and contains strongly elevated values for niobium, uranium, zirconium and yttrium and other rare earth elements. The optional sales agreement grants Yankee Hat the right to earn a 100% interest in the property in return for 4 million of its shares and a 1% net smelter return royalty.

Pacific Coast Nickel Corp. has announced that it will spend $400,000 diamond drilling six to eight holes on the Burwash nickel-copper-platinum group element (PGE) property, located near the former Wellgreen nickel-copper-PGE mine. Soil geochemistry and a 2007 VTEM survey flown by Strategic have identified and better defined numerous targets on the Burwash property. Drilling is scheduled to begin in early July (see Strategic's May 20, 2008 news release (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field: for agreement details).

Southampton Ventures Inc. began its second year of drilling on some of Strategic's seven Devonian shale hosted nickel-molybdenum-zinc-platinum group element properties in early May. The mineralized stratum is laterally extensive, potentially spanning tens to hundreds of square kilometres. Southampton is focussing its 2008 drilling on an area identified by 2007 drilling and newly interpreted helicopter-borne versatile time domain electromagnetic (VTEM) conductors. (see Strategic's April 26, 2007 news release (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field: for agreement details).

Project Pipeline

The Company continues to generate new exploration targets in its quest to discover world class mineral deposits in mining friendly jurisdictions. Some projects are being advanced to drill readiness by Strategic at its own expense, while other projects are being advanced with funding from optioning parties. Strategic currently has about 25 properties in its pre-drilling pipeline. This generation model gives Strategic a stream of quality projects to explore and provide to the mineral exploration industry, which requires new discoveries.

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

This news release has been reviewed by Robert C. Carne, M.Sc., P.Geol., a qualified person for the purpose of National Instrument 43-101.

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

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