DSM Deep South Resources Inc

Dacha Strategic Metals Inc. ("Dacha" or the "Company") (TSX
VENTURE:DSM)(OTCQX:DCHAF) is pleased to announce that it has released its
interim financial results for the three and six months ended September 30, 2011.
For more information please see the Company's interim financial statements and
Management's Discussion and Analysis ("MD&A") posted on SEDAR at www.sedar.com.


Dacha reported net earnings of US$70.8 million or US$0.94 per basic share for
the six months ended September 30, 2011 from total revenue of US$77.5 million
(US$80.1 million from gain on its metal investments offset by US$2.6 million
loss on security investments). For the six months ending September 30, 2010,
Dacha reported net income of US$3.6 million or US$0.05 per basic share from
total revenue of US$7.5 million (US$6.9 million from gain on its metal
investments offset by US$0.4 million loss on security investments). 


As of September 30, 2011, its metals inventory, with a cost basis of US$20.5
million, had an estimated market value of US$121.0 million. During the six
months ended September 30, 2011, Dacha purchased US$3.1 million of metals and
disposed of US$3.9 million of metals for realized profit of approximately US$3.0
million. A physical inventory count was also conducted by the Company's auditors
with the Company's entire inventory held at Pacorini Metals, in two separate LME
approved warehouses in Busan, Korea. Subsequent to the quarter end Dacha has
opened a third warehouse in Singapore, also operated by Pacorini Metals.


Dacha's net assets at September 30th are US$125.3 million or US$1.60 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.


Outlook on Rare Earth Market and Hong Kong Rare Earth Conference update

Dacha attended the Roskill Rare Earth conference in Hong Kong last week to meet
with existing customers, potential new customers and industry participants. A
major theme from the conference is the severe impact of flooding in Thailand on
two significant users of rare earth magnets, namely Japanese auto makers and the
Hard Disk Drive manufacturers. This has severely weakened an already slow market
as Japan draws down inventories in hopes of falling prices.


The lack of export buying has the potential to impact export quotas for 2012.
Speculation in Hong Kong had the year end use as much as 10,000 tonnes short of
the quota. Industry participants would not be surprised if 2012 quotas were
reduced in the first half of 2012.


In addition to potentially lower export quotas, the consolidation of the Rare
Earth market continues inside China and the number of exporters with quotas is
expected to fall from the current 26. Chinese rare earth mining and processing
seems to be headed for an oligopoly situation with much of the industry falling
under the control of a few state owned enterprises.


2012 Export Quotas and approved exporters will likely be released sometime
around Christmas with the Lunar New Year falling on January 23rd in 2012. 


Normal Course Issuer Bid 

During the six months ended September 30, 2011, the Company purchased and
cancelled 3,450,000 common shares at an average cost of $0.91. Subsequent to
September 30, 2011, an additional 1,300,000 common shares have been purchased
for cancellation at an average cost of $0.62. 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 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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