Rare Earth Elements“Unique Ownership in Strategic Metals”

November, 2010TSX-V:DSM OTCQX:DHCAF

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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• China – Guarding The Supply• +95% of Global Supply• Export Tariffs to drive manufacturing to China• Export Quotas to limit material available to the Rest of World

• CHINA REDUCES QUOTAS FOR 2010 BY 70%

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“The value of global rare-earth trade last year was just $1.25 billion, and it is projected to grow to about $3 billion by 2015.”- The Wall Street Journal September 3rd, 2009

“Chinese adamant on rare-earth metal cuts”- Aug 30-2010

BUSINESS MODEL

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Provide Investment exposure to a Physical Strategic Stockpile of Rare Earths without any mining risk

Source and Export REE from China utilizing long established relationships

Establish Secure warehouse locations outside of China

Trade individual Rare Earth Elements to downstream customers to generate profit

Capital Structure

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Capital Structure

Stock symbol:Shares issued:Fully diluted:Price (10/2210):Market Cap:52-week High/Low:

DSM – TSX:V71.1 M97.5 M$0.55$39 M$1.05-$0.32

Latest Financing(Mar 2010)

Amount Raised:Shares issued:Issue Price:

$22.0 M48.9 M $0.45

Key Institutional Shareholders

Goodman & Co ~12%

AGF Management ~ 6%

RAB Capital ~ 4%

Aberdeen International Inc ~ 3%

TD Asset Management ~ 2%

Management & Insiders ~ 4%

Management

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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, Franc Or Resources and Avion Gold. He has raised in excess of $250 million in resources 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 AMR (Now 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

Patrick Wong, Chief Investment Officer Mr. Wong is a seasoned hedge fund manager with over 15 years of experience and a consistent track record of high

returns During his career in the public markets, Mr. Wong ran proprietary trading desks at various brokerage firms

Brad Boland, C.M.A., Chief Financial Officer Mr. Boland was the CFO of Consolidated Thompson Iron Mines Limited until July 2009 From May 2005 to September 2007, he was at Kinross Gold Corp., most recently serving in the position of Vice

President, Corporate Controller Prior to that, from August 1998 to February 2005, Mr. Boland was at Goldcorp Inc., as Corporate Controller and the Vice

President, Finance

Investment Rationale

1. Dacha Strategic Metals Inc. “DACHA” has acquired a physical inventory of strategic minerals including Rare Earth Elements with its mainland China expertise

2. The physical inventory of Rare Earth Oxides and Metal is held in LME approved warehouses off-shore near primary users such as Japan and Korea

3. DACHA has the ability to trade in and out of multiple strategic minerals and is not limited to one specific commodity

4. DACHA can capitalize on the strategic minerals asset class without the mining risk associated with equity resource investments

Dacha can become the “market maker” in Rare Earth Elements

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Attractive Value Proposition

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Participate in the expected price appreciation of rare earths and strategic industrial metals

No Exploration or Mining Risk

Rare Earth Metal inventoryApr 2010 to Sept 30 2010 Quantity (Kgs) Cost Market Value

Dysprosium Oxide 5,000 $ 1,002,000 $ 1,467,000 Dysprosium Fe 30,000 5,856,000 8,480,000 Gadolinium 20,000 357,000 1,232,000 Lutetium 3,000 949,000 1,235,000 Terbium 13,000 6,647,940 8,166,000 Yttrium 20,000 250,000 788,000 Europium 6,000 2,554,000 2,747,000 Yttrium 120,000 1,022,000 1,034,000

217,000 $ 18,622,139 $ 25,175,000 **35% Increase in Inventory Value

Rare Earths in the Limelight

“China Tightens Grip on Rare Minerals”

“Rare Earth Minerals' Scarcity Worrisome for Growing Tech Sector”-06-10

“Why China holds 'rare' cards in the race to go green”-08-10

“Top China rare earth producer to build stockpile” -08-10

Toyota to set up rare earth processing plant in India- 08-10

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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”.

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Supply response

• Growing Demand for REE in Green Tech

• Limited Supply to satisfy growth in China

• China cutting back material available for Rest of World

• New projects outside of China have technical and financial challenges

• Timeline for new mines is years away

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Industrial Minerals are the Enablers of Modern Technology

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“Biggest User of Rare Earths of any Object in the World”

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Toyota Prius

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

“In 20 years, all cars on the road will be electric”- Warren Buffett, November 2009

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

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50,000

100,000

150,000

200,000

250,000

2004 2005 2006 2007 2008 2009 2010f 2011f 2012f 2013f 2014f

Dem

and

tp

a -

RE

O

China Supply ROW Supply Global Demand China Demand

SUPPLY/Demand Gap Increasing

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ROW: rest of word supply (yet to come on stream)REO: Rare Earth OxidesSource: IMCOA

Global Demand (Exclusive of China)

China Demand

IMCOA Rare Earth Oxide Forecast

Current State of the Rare Earth Markets

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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 and the ability to grow its stockpile quickly

An Actively Managed Physical Portfolio

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Dynamic Physical Portfolio

of Rare Earths+

Trading Operations

Fundamental Research

Asset Allocation

First Mover Advantage

Risk Minimization

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Dacha’s LME Warehouse Locations

LME WarehouseSingapore

LME WarehouseKorea

Inventory Insured at Market Value

Why buy DACHA?なぜ Dacha製品を買うのか

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Rising Commodity Prices For Rare Earth forecast in next 3yrs

Only Rare Earth Company that actually owns the finished product

Focused on high value Heavy Rare Earths

Ability to continue to acquire REE in China despite reduction in export quotas

Non-dilutive nature of equity financings builds critical mass for size of strategic inventory

Diversification into other strategic metals

A Forbes & Manhattan Group Company

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Forbes & ManhattanA Private Merchant Bank

Dacha Strategic Metals Inc.

Management Team

Stan Bharti Executive Chairman

Scott MoorePresident and CEO

Alastair NeillExecutive VP

Patrick WongCIO

Brad BolandCFO

Board of Directors

Scott Moore Alastair Neill Jean-Guy Lambert

Claude BlanchetStan Bharti George Faught

Strategic Metal Advisory Board

Alastair NeillDr. Allen Alper Don Bubar

Gen. Ron Hite

Forbes and Manhattan profile

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Market Capitalization of F&M Group Companies >$4B

Employees & Consultants

Group Companies >30

Total Funds Raised in last 4 Years

Number of Resource Projects in F&M Group

Number of Producing Assets in F&M Group

Number of Countries F&M Group has Projects

>150

>$3B

>40

>7

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Forbes Advisory Board

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General Jay Garner, USAServed in the U.S. military for 35 years, including command of Air Missile Defence Units in the Gulf War.

General John Abizaid, USAUS Army, Commander, US Central Command

General Chuck Wald, USAAir Force, Deputy Commander, European Command including Africa

General George Joulwan, USAUS Army, Former Supreme Allied Commander, Europe

General Tony Zinni, USAUS Marines, Former Commander in Chief of US Central Command – includes all Middle Eastern Countries

General Larry Gillespie, USAHighly decorated, including Distinguished Flying Cross, Soldier’s Medal and Meritorious Service Medal

General Sir Michael Rose, U.K.Former SAS Commander for the British Army and a highly decorated General.

Hon. Pierre Pettigrew, CanadaServed as Canadian Minister of Foreign Affairs and Trade Minister

General Lewis MacKenzie, CanadaServed in the Canadian Forces for 36 years; led the UN peacekeeping mission in Sarajevo

G. Scott MoorePresident and CEOTel: 416-861-5903

smoore@dachametals.com

TSX:DSM OTCQX:DHCAF

China OfficeFloor 5, South Building

Zhonghai MansionJianguomenwai Street

Beijing, China1000020

Toronto Office65 Queen St west, Suite 800

Toronto, OntarioM5h 2M5