TORONTO, ONTARIO -- (MARKET WIRE) -- 10/27/10 -- Dacha Strategic Metals Inc. ("Dacha" or the "Company") (TSX VENTURE: DSM)(OTCQX: DCHAF) is pleased to report the trade of 20,000 kilograms ("kg") (20 metric tonnes) of +99.99% pure Gadolinium Oxide for a total consideration of US$1,180,000. This transaction represents a 25% premium to the replacement cost of the material as at September 28, 2010. Dacha acquired the Gadolinium Oxide in June 2010 at a cost of US$17.49/kg, or US$349,800 and was being held in its Busan, South Korea facility. Total return on this transaction was US$830,200 or a 237% gain in the value of our Gadolinium Oxide held in inventory since acquisition.

Scott Moore, President and CEO stated; "With this transaction Dacha has successfully demonstrated the liquidity and market value of its inventory. Dacha's business model is to acquire a Rare Earth Element stockpile, see increases in its value through rising prices for the physical commodity and trade opportunistically and we feel that this transaction addresses any concerns about the market value or tradability of our inventory."

Dacha has a unique position in the Rare Earth Element sector in that it owns finished Rare Earth Oxides, which management believes will contribute to the success of the Company's business model.

Alastair Neill, Executive Vice-President stated; "In building our stockpile we have focused on acquiring high quality material, either in four nine or five nines purity, on the basis of ultimately having a liquid inventory that can be traded. This trade clearly validates our strategy as we continue to work towards building Dacha into a significant player in Rare Earth Elements."

The Company would also like to announce the appointment of Christine Gallo as Corporate Secretary of the Company. Ms. Gallo is a corporate securities lawyer who works as a legal consultant to several publicly traded companies in the mining industry. Ms. Gallo received a Bachelor of Laws from Osgoode Hall Law School in 2006. Prior to joining the Company, Ms. Gallo practiced law at Cassels Brock & Blackwell LLP. Ms. Gallo was granted 50,000 options of the Company upon her appointment. The options have an exercise price of $0.53 and shall expire five years from the date of grant. The options shall vest immediately, subject to the four month regulatory hold period. The grant of options is subject to regulatory approval.

Ms. Gallo's appointment follows the resignation of Ms. Brianna Davies, who will continue as a consultant to the Company. Dacha would like to thank Ms. Davies for her ongoing contributions.

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 has 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, proposed investment strategy and business model of the Company, general investment trends, and the anticipated value of commodities. 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. Estimates regarding the anticipated impact of the appointment are based on previous professional accomplishments and competencies. 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.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contacts:
Dacha Strategic Metals Inc.
Scott Moore
President and CEO
(416) 861-5903
smoore@dachametals.com

Dacha Strategic Metals Inc.
Stan Bharti
Executive Chairman
(416) 861-5903
www.dachametals.com