DACHA STRATEGIC METALS INC

TORONTO, ONTARIO--(Marketwire - Aug. 2, 2011) - Dacha Strategic Metals Inc. ("Dacha" or the "Company") (TSX VENTURE:DSM)(OTCQX:DCHAF) is pleased to announce that it has released its financial results for the fiscal year ended March 31, 2011. For more information please see the Company's annual financial statements and Management's Discussion and Analysis ("MD&A") posted on SEDAR at www.sedar.com.

Dacha reported net earnings of $23.6 million or $0.33 per share for the year ended March 31, 2011 from total revenue of $30.2 million ($27.5 million from gain on its metal investments and $2.9 million from gain on investments). For the twelve months ending March 31, 2010, Dacha reported net loss of $1.9 million or $0.10 per share from total revenue of $1.0 million ($0.4 million from gain on its metal investments and $0.5 million from gain on investments).

As of March 31, 2011, its metals inventory, which had an initial cost base of $18.6 million, had an estimated market value of $40.6 million. During the year then ended, Dacha purchased a total of $27.6 million of metals and executed trades of $19.0 million of metals for realized profit of approximately $6.0 million as at fiscal year end.

Scott Moore, President and CEO of the Company, commented: "2010 was a very strong year for Dacha. We have seen remarkable gains in our inventory based on significant price appreciation of our underlying metal inventory. We have a focused strategy of stockpiling heavy Rare Earths and these financial results indicate that we have ultimately been rewarded in that strategy."

Normal Course Issuer Bid

Subsequent to year ending March 31, 2011, Dacha commenced a Normal Course Issuer Bid ("NCIB") that will terminate on June 3, 2012. Since the end of fiscal 2011, 1,950,000 common shares have been purchased for cancellation at an average cost of $1.03. Dacha expects to continue to purchase shares over the remainder of the fiscal year, depending on market conditions and other investment opportunities that may be available.

About Dacha

Dacha Strategic Metals Inc. is an investment company focused on the acquisition, storage and trading of strategic metals with a primary focus on Rare Earth Elements. Dacha is in the unique position of holding a commercial stockpile of Physical Rare Earth Elements. Its shares are listed on the TSX Venture Exchange under the symbol "DSM" and on the OTCQX exchange under the symbol "DCHAF".

Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the future expectations of the Company's performance based on prior year results, Company's ability to trade in rare earth elements, the realization value of Dacha's physical inventory portfolio, the future success of the investment strategy of the Company, and general investment and market trends. 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 statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made.

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 Dacha to be materially different from those expressed or implied by such forward-looking information. Although management of Dacha 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 statements 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. Dacha does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

The market value of the Company's physical inventory is estimated using price quotes published by two of the largest independent news sources for the metals industry, namely, Asian Metal (www.asianmetal.com) and Metal-Pages (www.metal-pages.com). In cases where these websites do not provide a price quote on the type or quality of metal held in the Company's physical inventory, the Company relies on a price quote provided by independent third-party industry participants.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.