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 quarter ended June 30, 2012. For more information please see the
Company's condensed interim consolidated 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$(16.7) million or US$(0.22) cents per basic
share for the quarter ended June 30, 2012, from total revenue of US$(16.3)
million (US$(16.3) million from the loss on its metal investments). For the
quarter ended June 30, 2011, Dacha reported net earnings of US$57.8 million or
US$0.79 per basic share from total revenues of US$60.3 million (US$61.6 million
from gain on its metals investments, US$(1.4) million from loss on its security
investments).


As of June 30, 2012, the Company's metals inventory, which has a cost basis of
US$19.6 million, had an estimated market value of US$63.4 million. During the
quarter then ended, Dacha executed trades of US$5.1 million for a realized
pre-tax profit of approximately US$4.1.


As at June 30, 2012, in addition to its metal inventory, which had an estimated
fair market value of US$63.4 million, the Company had cash of approximately
US$3.1 million, for a total of US$66.5 million, or US$0.88 cents per basic
share, based on 75.1 million shares outstanding, or US$0.80 cents per share on a
fully diluted basis of 93.9 million shares outstanding.


The Company also announces the approval by its board of directors (the "Board of
Directors") on August 14, 2012 of amendments to the Company's by-laws to
include, among other things, an advance notice policy (the "Policy"), which
Policy includes a provision that requires advance notice to the Company in
circumstances where nominations of persons for election to the Board of
Directors are made by shareholders of the Company other than pursuant to: (i) a
requisition of a meeting made pursuant to the provisions of the Canada Business
Corporations Act (the "Act"), or (ii) a shareholder proposal made pursuant to
the provisions of the Act.


Among other things, the Policy fixes a deadline by which holders of record of
common shares of the Company must submit director nominations to the Company
prior to any annual or special meeting of shareholders and sets forth the
information that a shareholder must include in the notice to the Company for the
notice to be in proper written form.


In the case of an annual meeting of shareholders, notice to the Company must be
made not less than 30 nor more than 65 days prior to the date of the annual
meeting; provided, however, that in the event that the annual meeting is to be
held on a date that is less than 50 days after the date on which the first
public announcement of the date of the annual meeting was made, notice may be
made no later than the close of business on the 10th day following such public
announcement.


In the case of a special meeting of shareholders (which is not also an annual
meeting), notice to the Company must be made not later than the close of
business on the 15th day following the day on which the first public
announcement of the date of the special meeting was made. The Policy is
effective as of the date it was approved.


The full text of the Policy is available via SEDAR at www.sedar.com or upon
request by contacting the Corporate Secretary of the Company at 416-309-2963 or
by e-mail at nsaid@forbesmanhattan.com.


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, general investment and
market trends and the Company's adoption of by-law amendments. 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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