2010 Mining Explorers: Strategic Metals Ltd.

SMD: TSX-V

President and CEO: W. Douglas Eaton, B.A., B.Sc.

Chief Operating Officer: Ian J. Talbot

Chief Financial Officer: Larry Donaldson

Strategic Metals Ltd. is an actively managed junior exploration company with working interests in more than 90 mineral properties in British Columbia and Yukon Territory. Its assets also include a large cash position, a valuable portfolio of shares in other resource companies and potentially valuable royalty interests. Strategic’s property interests span a widely diverse suite of commodities that have recently been expanded to include gold. Strategic follows a multifaceted business model designed to build value by various means including grassroots project generation and selective drilling aimed at major discoveries. Recent activities include the spin-out of two gold-focused subsidiaries and participation in the creation of Silver Predator Mines Inc. with Golden Predator Royalty & Development Corp. and Rockhaven Resources Ltd. and the optioning of 21 of its more than 60 gold properties to Wolverine Minerals Corp.

In 2010, Strategic planned to spend C$5 million to drill about 8,000 meters on nine highly prospective properties – five porphyry copper-gold prospects (GK, Vanderhoof Copper, Nikki, Mars, and Buzz) located in the main porphyry belts of British Columbia and Yukon Territory; and four volcanogenic massive sulphide targets situated in the Finlayson VMS District of Yukon near the Wolverine Mine, which Yukon Zinc Corp. planned to open this fall. Drill targets on the properties include numerous surface showings, historical drill intercepts and various types of geochemical and geophysical anomalies. In August, Strategic reported the discovery of a well-mineralized, stockwork fracture zone at a depth of 59.3 meters on the Keg property located 35 kilometers, or 22 miles, north of the town of Faro, which formerly serviced the mines and mill of the Anvil zinc-lead-silver district in central Yukon Territory. In hole KEG-10-01, the explorer cut a 125.7-meter interval of mineralization averaging 50.09 grams per metric ton silver, 1.20 percent zinc, 0.65 percent lead, and 0.14 percent copper. The interval also is enriched in other metals (including indium, tin and bismuth) which could be of economic significance as by-products. Since intersecting the mineralized zone at Keg, Strategic has moved aggressively to advance the project. It has enlarged its land position to cover nearby showings and soil anomalies. It also completed a 612-line-kilometer ZTEM (Z axis Tipper electromagnetic system) survey across the core of the expanded property and has crews performing additional soil sampling. The ZTEM system relies upon the naturally occurring electromagnetic fields created by worldwide thunderstorms as the source of the primary electromagnetic field. The interaction between this primary field and the varying electrical properties of sub-surface rocks result in anomalous fields which are measured. Strategic also applied for a Class III land use permit for a five-year exploration program, and pending approval of its application, camp construction, line cutting and ground geophysical surveys will begin. A small bulldozer was to be flown to the Keg property this fall and a localized system of trails and drill pads built. The work is being done in preparation for a major diamond drill program in spring 2011.

Strategic also manages a large portfolio of shares of other mining companies that it acquired through its various option and sales agreements and an investment fund as well as by participating in private placements. These share transactions helped Strategic build a large amount of working capital. Among key investments is a 10.8 percent stake in Atac Resources Ltd., which owns the highly prospective Rau Gold Project in Yukon Territory. Royalty interests held by Strategic expected to yield cash flow include a net smelter return royalty in part of the Wolverine Project. Strategic also has an active share buyback plan, which makes purchases when trading prices fall significantly below the value of working capital per share.

Cash and short-term deposits: C$11.697 million (at June 30, 2010)

Working capital: C$31.04 million (at June 30, 2010)

Market capitalization: C$100.95 million (Oct. 7, 2010)

1016-510 West Hastings St. • Vancouver, BC Canada V6B 1L8

Tel: (604) 688-2522

www.strategicmetalsltd.com