Corporate Presentation TSX-V:DSM OTCQX:DHCAF August 2011

A Forbes & Manhattan Group Company

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.
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Capital Structure

Capital Structure
Stock symbol: Shares issued: Fully diluted: Price (08/09/11): Market Cap: 52-week High/Low: DSM TSX:V 76.7 M 100 M $0.82 $62 M $1.20 -$0.32

Key Institutional Shareholders

AGF Management RAB Capital ~ 6% ~ 4%

Management & Insiders

~ 4%

Rare Earth Metal Value

Metals ` $143.8 million Cash $3.7 million Liquid Securities $3.7 million Total: $150.0 million

HARD ASSET VALUE

$1.96 PER SHARE

Discount to Net Assets 60%
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Investment Objectives

Provide investment exposure to a physical inventory of Heavy Rare

Earth Elements

Multi Metal strategy reduces single element exposure risk Generate profits from trading to downstream customers Mitigate Risk with inventory located in multiple LME approved
warehouses located off-shore near end-users

Maximize inventory and trade gains through a tax effective off-shore

corporate structure

Dachas Effective Tax rate is 2.5%

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BUSINESS MODEL Fiscal Achievements

Raised $22 million of Equity at $.45 per share in April 2010 to initiate business model 300,000 kilograms of Heavy Rare Earth Oxides Acquired in F2011 in 12 trades totaling $33.84 million

193,000 kilograms of Heavy Rare Earth Oxides in Inventory at March 31

18 trades executed in 2011 for $5.2 million in gross profit in Q3 2011 Raised Net Assets from $0.38 per share to $0.64 per share at year end March 31 for 68% gain in Net Assets per share

Attractive Value Proposition

Inventory Value at April 21, 2011

Participate in the expected price appreciation of rare earths and strategic industrial metals
Metals Inventory 4/21/2011 Grades*

Quantity (Kg)

Spot Price/kg Market Value (US$) (US$millions)

Market Value (C$millions)

US$1.00=C$0.9537

Busan, South Korea Dysprosium Oxide Dysprosium Fe Gadolinium Oxide Lutetium Oxide Neodymium Oxide Terbium Oxide Yttrium Oxide Shanghai, China Yttrium Oxide
Total: *Grades: 4N = 99.99% 4N+ = 99.99+% 5N = 99.999% 4N5+ = 99.99%/99.999+%

4N Santoku 4N5+ 4N+ 4N+ 4N+ 5N

15,000 12,000 10,000 3,000 18,000 14,000 10,000

$699 $653 $185 $800 $221 $1,195 $160

$10.5 $7.8 $1.9 $2.4 $4.0 $16.7 $1.6

$10.0 $7.5 $1.8 $2.3 $3.8 $16.0 $1.5

4N5+

120,000 202,000

$29

$3.5 $48.5

$3.3 $46.2

No Exploration or Mining Risk

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Attractive Value Proposition

Participate in the expected price appreciation of rare earths and strategic industrial metals
Metals Inventory
5/27/2011

Inventory Value at May 27, 2011

Grades *

Quantity (Kg)

Spot Price/kg (US$)

Market Value (US$millions)

Market Value (C$millions) US$1.00=C$0.9 773 $14.2 $11.3 $1.8 $2.9 $4.5 $23.2 $1.6

Busan, South Korea Dysprosium Oxide Dysprosium Fe Gadolinium Oxide Lutetium Oxide Neodymium Oxide Terbium Oxide Yttrium Oxide Shanghai, China Yttrium Oxide

4N Santoku 4N5+ 4N+ 4N+ 4N+ 5N

15,000 12,000 10,000 3,000 18,000 14,000 10,000

$969 $960 $185 $1,000 $257 $1,695 $160

$14.5 $11.5 $1.9 $3.0 $4.6 $23.7 $1.6

4N5+

120,000

$33

$3.9

$3.8

Total:
*Grades: 4N = 99.99% 4N+ = 99.99+% 5N = 99.999% 4N5+ = 99.99%/99.999+%

202,000

$64.8

$63.3

No Exploration or Mining Risk

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Attractive Value Proposition

Inventory Value at June 10, 2011

Participate in the expected price appreciation of rare earths and strategic industrial metals
Metals Inventory 6/10/2011 Grades*

Quantity (Kg)

Spot Price/kg Market Value (US$) (US$millions)

Market Value (C$millions)

US$1.00=C$0.9783

Busan, South Korea Dysprosium Oxide Dysprosium Fe Gadolinium Oxide Lutetium Oxide Neodymium Oxide Terbium Oxide Yttrium Oxide Shanghai, China Yttrium Oxide
Total: *Grades: 4N = 99.99% 4N+ = 99.99+% 5N = 99.999% 4N5+ = 99.99%/99.999+%

4N Santoku 4N5+ 4N+ 4N+ 4N+ 5N

15,000 12,000 10,000 3,000 18,000 14,000 10,000

$1,469 $1,565 $255 $1,000 $318 $2,695 $168

$22.0 $18.8 $2.6 $3.0 $5.7 $37.7 $1.7

$21.5 $18.4 $2.5 $2.9 $5.6 $36.9 $1.7

4N5+

4,000 202,000

$44

$0.2

$0.2

$91.7

$89.7

No Exploration or Mining Risk

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Attractive Value Proposition

Inventory Value at August 5, 2011

Participate in the expected price appreciation of rare earths and strategic industrial metals
Metals Inventory 8/5/2011 Grades*

Quantity (Kg)

Spot Price/kg Market Value (US$) (US$millions)

Market Value (C$millions)

US$1.00=C$0.9781

Busan, South Korea Dysprosium Oxide 4N Dysprosium Fe Santoku Gadolinium Oxide 4N5+ Lutetium Oxide 4N+ Neodymium Oxide 4N+ Terbium Oxide 4N+ Yttrium Oxide 5N

15,000 12,000 10,000 3,000 18,000 14,000 14,000

$2,545 $2,800 $255 $1,000 $338 $4,353 $190

$38.2 $33.6 $2.6 $3.0 $6.1 $60.9 $2.7

$37.4 $32.9 $2.5 $2.9 $5.9 $59.6 $2.6

Total: *Grades: 4N = 99.99% 4N+ = 99.99+% 5N = 99.999% 4N5+ = 99.99%/99.999+%

86,000

$147.0

$143.8

No Exploration or Mining Risk

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China - Guarding the Supply

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 reduced Quotas for second half 2010 by 70%

CHINA REDUCED QUOTAS FOR H1-2011 BY 35% CHINA INCREASED QUOTAS FOR H2-2011 BY 8.9%
China mandates consolidation of Heavy REE producers July, 2011 Heavy REE plant closures for consolidation = further supply strain

Monetary surcharges for Export Quotas only implemented in past year Additional US$100 per kg regardless of element on top of 25% tariff

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Rare Earths in the Limelight

I certainly believe that the FOB China prices for REEs will continue to rise given the Chinese announcement of second-half quotas. There is no reason to believe there will be anything but continuing pressure on REE prices and supplies outside of China.
Jon Hykawy interview in The Gold Report

China Minmetals calls for rare earth production suspension August 3, 2011 Bejing (Reuters) China Cracks Down on Illegal Mining of Rare Earth Metals Dec 2010

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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
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What Are Rare Earth Elements

Rare Earth Element or REE are Lanthanide series elements and are found at the bottom of the Periodic Table

15 elements plus Yttrium are classified as REE and have specific magnetic, fluorescent and chemical properties
Some are classed as Light, Medium or Heavy REE and have varying applications in laptops, LCDs , cellular phones and hybrid vehicles. Heavy REE such as Europium, Terbium and Dysprosium command the highest value

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Rare Earth Elements Industry Primer

Lighter Weight
Product Miniaturization Enhanced Performance and Functionality Enhanced Control and Measurement Energy Efficiency / Environmental Compliance

Essential inputs for virtually all electronic products

No substitutes exist that have the same characteristics and provide the same benefits
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Rare Earth Applications

Toyota Prius
Biggest User of Rare Earths of any Object in the World

1kg Neodymium 15kg Lanthanum 0.1kg Dysprosium Top-selling car in Japan

100 g of Dysprosium is worth approximately $160 Without Dysprosium you dont have a Prius

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The Largest User of Rare Earths Tomorrow

1mt Neodymium needed for every 3 MW of wind power generated

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Current State of the Rare Earth Markets

Source: Rhodia

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Supply Side Response

MolyCorp Inc AMEX-MCP

Re-opening the Mountain Pass
mine closed since 1998 with production in 2013 Deposit with 86% of 2013 production in Cerium, Lanthanum and Neodymium approximately 40,000 Tonnes per year

Lynas Corporation ASX-LYC

Starting Mt Weld mine with
announced production in late 2011 Deposit with 96% of 2012 production in Cerium, Lanthanum and Neodymium and Praseodymium tonnes per year.

Primarily a Light Rare Earth

Primarily a Light Rare Earth

Expected to produce

First production is 11,000

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

No production of Heavy Rare

Earth Elements ( DY,Tb,Yt)

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SUPPLY/Demand Gap Increasing

IMCOA Rare Earth Oxide Forecast

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SUPPLY/Demand Gap Increasing

Rare Earth Oxide Forecast

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Current State of the Rare Earth Markets

No significant commercial stockpile exists globally

No buffer to volatile pricing or actions from China

No ability to hedge against future price increases Limited supply-side response

Most advanced Rare Earth mining projects are 2-5

years away from delivering product to market with substantial financial and technical hurdles to overcome

Dacha has the inventory today!

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Risk Minimization

Inventory Insured at Market Value not cost

* Pacorini Metals is owned by Glencore

Pacorini Metals Shanghai Warehouse

Pacorini Metals LME Warehouse Korea x 2

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Why buy DACHA?

Rising Commodity Prices For Rare Earths forecasted in next 3-5 years Only Rare Earth Company that actually owns the finished product Focused on high value Heavy Rare Earths Demonstrated Ability to acquire REE in China despite reduction in
export quotas

No new supply of Heavy Rare Earths till 2015 at the earliest

Demonstrated Ability to trade with downstream customers 97.5% after tax exposure to gains in inventory or trading profits
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Management

Scott Moore, MBA, President & Chief Executive Officer

Mr. Moore is an experienced capital markets executive with 20 years experience in the resource sector. 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 resource companies in the last 3 years. He holds a Bachelor of Arts degree from the University of Toronto and an MBA from the Kellogg School of Management

Alastair Neill, P.Eng., MBA, Executive Vice-President

Mr. Neill is the former GM, Rare Earth Division and VP Business Development for Neo-Material Technologies (TSX:NEM) and brings over 15 years of direct Rare Earth experience. Mr Neill lives full time in Beijing. He holds a MBA from York University and a Bachelor of Engineering in Material Science from the University of Western Ontario

Ryan Ptolemy, CFA, CGA., Chief Financial Officer

Mr. Ptolemy is a certified general accountant and CFA charter holder. Mr. Ptolemy currently serves as CFO to a number of public companies in the mining sector. From August, 2005, to September, 2009, Mr. Ptolemy was at an independent investment dealer in Toronto, most recently serving as CFO, where he was responsible for financial reporting, auditing, budgeting and internal controls.

Jihong Gan, BA, MA, Manager Contracts and Administration

Ms. Gan is an accomplished administrator with a specialization in East Asian languages. Ms. Gan has a Bachelor of Arts (Major: Japanese) from the Shanghai International Studies University in Shanghai and a Masters of Arts in East Asian Language studies from Osaka University of Foreign Studies.
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A Forbes & Manhattan Group Company

Forbes & Manhattan

A Private Merchant Bank

Dacha Strategic Metals Inc.

Management Team
Scott Moore President and CEO Alastair Neill Executive VP Ryan Ptolemy CFO

Board of Directors
Scott Moore Stan Bharti Alastair Neill George Faught

Claude Blanchet

Jean-Guy Lambert

Gen. Ron Hite

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TSX:DSM OTCQX:DHCAF China Office 11th Floor, Kerry Centre North Tower 1 Guanghua Rd Beijing, China 1000020

Toronto Office 65 Queen St west, Suite 800 Toronto, Ontario M5h 2M5

G. Scott Moore President and CEO Tel: 416-861-5903 smoore@dachametals.com