DSM Deep South Resources Inc

Dacha Strategic Metals Inc. ("Dacha" or the "Company") (TSX
VENTURE:DSM)(OTCQX:DCHAF) is pleased to announce it has released its financial
results for the fiscal year ended March 31, 2012. For more information please
see the Company's annual financial statements and management's discussion and
analysis ("MD&A") posted under the Company's profile on SEDAR at www.sedar.com. 


Dacha reported net earnings of US$30.3 million or US$0.40 cents per share for
the year ended March 31, 2012, from total revenue of US$41.3 million (US$43.8
million from the gain on its metal investments and US$(2.5) million from the
loss on its security investments). For the year ended March 31, 2011, Dacha
reported net earnings of US$23.8 million or US$0.33 per share from total
revenues of US$31.0 million (US$27.7 million from gain on its metals
investments, US$2.9 million from gain on its security investments).


As of March 31, 2012, the Company's metals inventory, which has a cost basis of
US$20.5 million, had an estimated market value of US$84.8 million. During the
year then ended, Dacha purchased US$3.1 million of metals and executed trades of
US$3.9 million for realized profit of approximately US$3.1 million as at fiscal
year end.


Scott Moore, President and CEO of the Company, commented: "2012 was another very
strong year for Dacha. The estimated fair market value of our metal investments
doubled from March 31, 2011 and the Company had US$0.40 per share in earnings
for fiscal 2012."


Normal Course Issuer Bid

On May 30, 2011, Dacha announced a Normal Course Issuer Bid ("NCIB") to buy back
its common shares through the facilities of the TSX Venture Exchange (the
"Exchange"). During the year ended March 31, 2012, the Company purchased and
cancelled 6,747,749 at an average price of Cdn$0.74.


Dacha intends to recommence its NCIB for the current financial year. The NCIB is
subject to receipt of Exchange approval. The maximum number of common shares
that may be purchased for cancellation pursuant to the NCIB is that number of
common shares that represents 10% of the common shares in the public float on
the date that the Exchange approves the NCIB. Based on the 72,526,448 common
shares in the public float as at June 10, 2012, the maximum number of shares
that the Company could acquire would be 7,252,645 common shares. Dacha notes
that the number of its shares in the public float is less than the number of
issued and outstanding Dacha common shares because the public float number does
not include common shares held by Dacha insiders. Although Dacha intends to
purchase the maximum number of shares available under the issuer bid, the actual
number of common shares that would be purchased, if any, and the timing of such
purchases will be determined by Dacha considering market conditions, stock
prices, its cash position, and other factors. 


The Board of Directors of Dacha believes that the underlying value of Dacha,
particularly based on the liquid assets on hand per share, is not reflected in
the current market price of its common shares, and may not be so reflected at
certain times during the course of the NCIB, and has thus concluded that the
repurchase of common shares pursuant to the proposed NCIB presently constitutes
an appropriate use of financial resources and would be in the best interest of
Dacha shareholders.


Purchases under the NCIB are expected to be permitted to commence on or about
July 10, 2012 and will terminate on July 9, 2013 or the date upon which the
maximum number of common shares have been purchased by Dacha pursuant to the
NCIB. There cannot be any assurance as to how many common shares, if any, will
ultimately be acquired by Dacha under the NCIB. Dacha intends that any shares
acquired pursuant to the NCIB will be cancelled.


Any purchases made pursuant to the NCIB will be made in accordance with the
rules of the Exchange and will be made at the market price of the common shares
at the time of the acquisition. Dacha will make no purchases of common shares
other than open market purchases that may be made during the period that the
NCIB is outstanding. National Bank Financial has agreed to act on behalf of
Dacha to conduct the NCIB.


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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