Dacha Strategic Metals Inc. ("Dacha" or the "Company") (TSX
VENTURE:DSM)(OTCQX:DCHAF) is pleased to announce the estimated market value of
its Rare Earth metals inventory. As of September 30, 2011, the estimated value
of its metals inventory was US$121.0 million, a decrease of US$14.2 million, or
10.5%, from the estimated value of US$135.2 million at August 31, 2011, as
reported in the Company's September 2, 2011 press release.


Assets include metal inventory, cash and marketable securities. At September 30,
2011, in addition to its metal inventory, which had an estimated fair market
value of US$121.0 million, the Company's equity investments had an estimated
fair market value of approximately US$1.9 million and cash of approximately
US$3.3 million for a total of US$126.2 million, or US$1.62 per share, based on
78.1 million shares outstanding, or, US$1.37 per share on a fully diluted basis
of 98.7 million shares outstanding.


Company Update

Dacha continues to execute under its Normal Course Issuer Bid and has purchased
1.4 million shares for cancellation since its AGM on September 15th, 2011. As of
September 30, 2011, the Company has purchased and cancelled a total of 3,450,000
shares of Dacha at an average price of $0.91 as part of its on-going Normal
Course Issuer Bid.


Dacha notes that the market has reacted strongly to the recent pullback in rare
earth prices, with Dacha's share price dropping approximately 30% while its
inventory value fell only 10% over the same period from the Company's last net
asset value update on August 30th 2011. Dacha believes the severe curtailment of
heavy rare earth mining and separation combined with speculators exiting the
market will have a significant positive influence on heavy rare earth prices in
the next 90 days. Moreover, while Asian buyers have been relatively inactive in
the market since August, the Company has seen a rise in inquiries in the last
two weeks. Dacha maintains its inventory in two London Metal Exchange warehouses
in Korea owned and operated by Pacorini Metals, a Glencore company. The
Company's inventory is physically audited at the end of each quarter and its
auditors were on site on September 30th.


As at September 30, 2011, Dacha's physical inventory portfolio consisted as follows:



----------------------------------------------------------------------------
Metals Inventory           Grades(i)  Quantity  Spot Price/kg   Market Value
9/30/2011                                 (Kg)          (US$)  (US$millions)
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Busan, South Korea                                                          
----------------------------------------------------------------------------
Dysprosium Oxide                 3N+    15,000         $2,295          $34.4
----------------------------------------------------------------------------
Dysprosium Fe                Santoku    12,000         $2,450          $29.4
----------------------------------------------------------------------------
Gadolinium Oxide                4N5+     9,950           $265           $2.6
----------------------------------------------------------------------------
Lutetium Oxide                   4N+     2,900         $1,150           $3.3
----------------------------------------------------------------------------
Neodymium Oxide                  4N+    18,000           $276           $5.0
----------------------------------------------------------------------------
Terbium Oxide                    4N+    14,000         $3,153          $44.1
----------------------------------------------------------------------------
Yttrium Oxide                     5N    14,000           $153           $2.1
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Total:                                  85,850                        $121.0
----------------------------------------------------------------------------
                              
------------------------------
(i)Grades:                    
4N = 99.99%                   
4N+ = 99.99+%                 
5N = 99.999%                  
4N5+ = 99.99%/99.999+%        
------------------------------



Dacha's inventory, including market value, is updated weekly every Monday
morning and posted to the "Inventory" tab of its website at www.dachametals.com.
Dacha encourages its shareholders and all other interested parties to visit its
website regularly and to monitor the ongoing appreciation of its physical
inventory of Rare Earth Elements.


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 Company's expectations and
observations of the industry and trends, the Company's ability to trade in rare
earth elements, the realization value of Dacha's physical inventory portfolio,
proposed 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.
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