This document provides an overview and corporate presentation for Dacha Strategic Metals Inc., a company that aims to provide investment exposure to physical holdings of rare earth elements and other strategic metals without mining risk. Some key points: - Dacha has accumulated 199,000 kg of heavy rare earth oxide inventory and executed multiple acquisition and sales contracts in 2010. - Management has extensive experience in the rare earth industry and supply chain in China. - Tightening export controls by China have increased political and supply security concerns about rare earths among other countries. - Rare earth elements are essential inputs for electronics and technologies like hybrid vehicles but alternatives do not exist. Supply is expected to remain tight in the

1. Rare Earth Elements “Physical Ownership in Strategic Metals” Corporate Presentation January 5th, 2011 TSX-V:DSM OTCQX:DHCAF A Forbes & Manhattan Group Company

2. Forward Looking Statements Caution regarding forward-looking information: This presentation contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes without limitation, statements regarding the proposed use of the proceeds of the financing, the receipt of all necessary approvals, the issue of permits, progress in development of mineral properties, future production and sales volumes, capital and mine production costs, demand and market outlook for rare earth metals, future metal prices and treatment and refining charges, the financial results of the Company, the future financial or operating performance of the Company, and terms and the availability and likelihood of future acquisitions. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; market risks; risks related to leverage; acquisition risks; and other risks of the mining and trading industries. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. This presentation does not constitute an offer to sell or a solicitation of an offer to sell 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. 2

3. • Produces +95% of Global Supply• Export Tariffs of 25% imposed to drive manufacturing to China• Export Quotas reduced every year for last 5 years• China reduces Quotas for second half 2010 by 70%CHINA REDUCES QUOTAS FOR H1-2011 BY 35% 3 China- Guarding the Supply “Chinese adamant on rare-earth metal cuts”- Aug 30-2010

4. BUSINESS MODEL 4 Provide Investment exposure to a Physical Stockpile of Strategic metals including Rare Earths without any mining risk Source and Export REE from China utilizing long established relationships Store metals in Secure LME warehouse locations outside of China Trade individual Rare Earth Elements to downstream customers to generate profit

5. Capital Structure 5

7. Former CEO of Franc-Or Resources Corp and VP Corporate Development for Aberdeen International. Former Director of Sulliden Gold and Avion Gold. He has raised in excess of $250 million in resources in the last 3 years.

10. From May 2005 to September 2007, he was at Kinross Gold Corp., most recently serving in the position of Vice President, Corporate Controller

12. Attractive Value Proposition 8 Participate in the expected price appreciation of rare earths and strategic industrial metals No Exploration or Mining Risk

13. Rare Earths in the Limelight “China Tightens Grip on Rare Minerals” “China slashes first batch of rare earth export quotas by 35.17%”- Dec 30-2010 “China Cuts Rare Earth Exports” Japan rare earths imports from China plunge in Nov December 27, 2010 -- TOKYO (Source: Reuters) “China Cracks Down on Illegal Mining of Rare Earth Metals” – NY Times Dec 2010 9

14. A Paradigm Shift in the REE Industry Security of Supply no longer just a commercial Issue It is now a Political Issue Rare Earth Supply Technology and Resources Transformation Act [RESTART] introduced to both the U.S House of Representatives and the U.S. Senate in 2010 Japanese industry minister asked Chinese Minister of Industry and Information for reductions to this year's export quota to be reversed. “We are concerned that rare-earth metals will not come to Japan in the future”. “” China Defends Rare Earth Quotas as inline with WTO” Bloomberg Dec 30-2010 10

16. 15 elements plus Yttrium are classified as REE and have specific magnetic, fluorescent and chemical properties

17. Some are classed as Light, Medium or Heavy REE and have varying applications in laptops, LCD’s , cellular phones and hybrid vehicles.

20. 15kg Lanthanum

21. 0.1kg Dysprosium

22. Top-selling car in Japan100 g of Dysprosium is worth approximately $10 Without Dysprosium you don’t have a Prius

23. The Largest User of Rare Earths Tomorrow1mt Neodymium needed for every 3 MW of wind power generated 14

24. Current State of the Rare Earth Markets 15 Source: Rhodia

26. Starting Mt Weld mine with announced production in late 2011

27. Primarily a Light Rare Earth Deposit with 96% of 2012 production in Cerium, Lanthanum and Neodymium and Praseodymium

28. First production is 11,000 tonnes per year.

29. No production of Heavy Rare Earth Elements ( DY,Tb,Yt)

30. MolyCorp Inc AMEX-MCP

31. Re-opening the Mountain Pass mine closed since 1998 with production in 2013

32. Primarily a Light Rare Earth Deposit with 86% of 2013 production in Cerium, Lanthanum and Neodymium

33. Expected to produce approximately 18,000 Tonnes per year

35. SUPPLY/Demand Gap Increasing 18 Rare Earth Oxide Forecast

37. No buffer to volatile pricing or actions from China

38. No ability to hedge against future price increases

39. Limited supply-side response

40. Most advanced Rare Earth mining projects are 2-5 years away from delivering product to market with substantial financial and technical hurdles to overcomeDacha has the inventory today and the ability to grow its stockpile quickly

41. An Actively Managed Physical Portfolio 20 Fundamental Research Dynamic Physical Portfolio of Rare Earths Asset Allocation + Trading Operations First Mover Advantage

42. Risk Minimization 21 Dacha’s LME Warehouse Locations LME Warehouse Korea Inventory Insured at Market Value LME Warehouse Singapore

44. Only Rare Earth Company that actually owns the finished product

45. Focused on high value Heavy Rare Earths

46. Demonstrated Ability to acquire REE in China despite reduction in export quotas

47. No new supply of Heavy Rare Earth’s till 2015

49. TSX:DSM OTCQX:DHCAF China Office Floor 5, South Building Zhonghai Mansion Jianguomenwai Street Beijing, China 1000020 G. Scott Moore President and CEO Tel: 416-861-5903 smoore@dachametals.com Toronto Office 65 Queen St west, Suite 800 Toronto, Ontario M5h 2M5