The Gold Report

Dacha Strategic Metals Inc. TICKER: DSM:TSX.V; DCHAF:OTCQX Visit Company Website Dacha Strategic Metals provides a unique investment vehicle to rare earths and strategic minerals without the associated mining risk. By creating the world's first and only corporate stockpile of these minerals, Dacha offers investors the opportunity to participate in physical ownership of these critical elements. The company employs an extensive screening process to identify opportunities that represent undervalued and critical rare metals in markets that are difficult to access for typical investors.

The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.

Expert Analysis

The Critical Metals Report Interview with Anthony Alfidi (12/20/11) "Dacha Strategic Metals Inc. is an interesting company. It has a unique business model. The way it stockpiles metals means it functions more like an ETF than an operating company. The company has done a very smart thing in locating its three warehouses in Korea, Singapore and Shanghai, close to manufacturers who will need the inputs. It's good that its inventory is primarily heavy rare earths (HREEs), which are the more valuable ones. . .it stands out as a business model."

The Critical Metals Report Interview with Brian Chin (11/15/11) "Different governments around the world—Japan, Korea, the U.S. and the E.U.—have considered stockpiling. Supply is tight right now, and although there will be some additional supply coming online outside of China in 2012, many projects are years away from production. Dacha's model has some credence for at least the near-term, until additional supply comes on-line outside of China.

In general, I think the challenge with Dacha's model is the off-loading. If they have off-take agreements already in place, then it shouldn't be a problem. . .It takes buyers to realize that value. . .The demand is there."

Jae Jun, Seeking Alpha (10/19/11) "The low supply and high demand has created the situation where Chinese miners will illegally mine over their quota and export it discreetly; now that the Chinese government is cracking down on such activity and enforcing an adherence to the quota, this will only increase the demand; Dacha Strategic Metals Inc. is set to take full advantage of this with its inventory held in South Korea and capable of liquidating inventory very easily. In fact, with such a large discrepancy between the stock price and net asset value of $1.40 on a fully diluted basis, management is buying on the open market, shares are being repurchased and management has stated that it plans to liquidate some of its inventory which should help the stock price to catch up to the business."

Matt Gowing, Mackie Research (8/22/11) "Dacha Strategic Metals Inc. remains significantly undervalued. . .and the company has been successful in timing its rare earth purchases. As a result, Dacha has seen significant gains in its rare earth inventory (current inventory value of $150M versus $30M in December 2010); in addition, the company only has to pay a corporate tax of 2.5% due to its offices in Barbados. Hence, Dacha's corporate structure will allow it to realize higher after-tax profits from its transactions."

Matt Gowing, Mackie Research (8/4/11) "Dacha Strategic Metals Inc. released its Q411 results and gain in metal investments for the quarter totaled $20.3M. The company has been successful in increasing its rare earth inventory to $141M from just $21M in June 2010. To date, Dacha has sold inventory for gross proceeds of $19M and realized gains of $8.4M."

(9/21/10) Patrick Wong

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