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A Unique Investment Vehicle
      for Strategic Materials


  Corporate Presentation - October 2012
               TSX:DSM.V        OTCQX:DCHAF

A member of the Forbes&Manhattan Group of Companies
Forward-Looking Statements


Caution regarding forward-looking information:

This presentation contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking
information includes without limitation, statements regarding the proposed use of the proceeds of the financing, the receipt of all necessary
approvals, the issue of permits, progress in development of mineral properties, future production and sales volumes, capital and mine
production costs, demand and market outlook for rare earth metals, future metal prices and treatment and refining charges, the financial
results of the Company, the future financial or operating performance of the Company, and terms and the availability and likelihood of
future acquisitions. 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 state that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved". 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 the Company to be materially different
from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive,
geopolitical and social uncertainties; market risks; risks related to leverage; acquisition risks; and other risks of the mining and trading
industries. Although the Company 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 information 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. The Company
does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

This presentation does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The
securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act")
or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption from such registration is available.




                                                                                                                                            2
Company Overview


 Dacha operates as a unique investment conduit allowing its
  shareholders to invest directly in physical strategic materials
 Dacha focuses on achieving investment gains through the trading and
  long-term appreciation of physical holdings in strategic minerals,
  particularly REE’s, held in LME warehouses
 Current net assets of approximately US$58 million
 Management and Board composed of leading REE experts
 Strong relationships for acquisition of Rare Earths from China


                                        TSX .V: DSM
  Company Ticker Symbols
                                       OTCQX : DCHAF


  Shared Outstanding (Fully Diluted)     94.3 million

  Share Price (October 26, 2012)           $ 0.45


                                                                        3
An Actively Managed Physical Portfolio



                                 Fundamental Research


                                    Asset Allocation
    Dynamic
Physical Portfolio
 of Rare Earths
                       +           Trading Operations


                                Corporate not Hedge Fund
                                        Structure


                                 First Mover Advantage


                                                           4
Management


Scott Moore, MBA, President & Chief Executive Officer
•   Mr. Moore is an experienced business executive with 20 years experience in the resource and durable goods sector
•   Former CEO of Franc-Or Resources Corp and VP Corporate Development for Aberdeen International. Former Director of Sulliden
    Exploration, Franc Or Resources and Avion Gold
•   He holds a Bachelor of Arts degree from the University of Toronto and an MBA from the Kellogg School of Management

Alastair Neill, P.Eng., MBA, Executive Vice-President
•   Mr. Neill is the former VP sales, Rare Earth Division and VP Business Development for AMR (Now Neo-Material Technologies) and
    brings over 15 years of direct Rare Earth experience
•   He holds a MBA from York University and a Bachelor of Engineering in Material Science from the University of Western Ontario

Ryan Ptolemy, CFA, Chief Financial Officer
•   From August, 2005, to September, 2009, Mr. Ptolemy was at an independent investment dealer in Toronto, most recently serving as
    Chief Financial Officer, where he was responsible for financial reporting, auditing, budgeting and internal controls
•   Mr. Ptolemy currently serves as Chief Financial Officer to a number of public companies in the mining sector.

Christine Gallo, L.L.B., Corporate Secretary
•   Christine Gallo is a corporate securities lawyer who works as a legal consultant to several publicly traded companies in the mining
    industry.
•   Previously, Ms. Gallo practiced law at a major Canadian law firm, with a focus on securities law.
•   Ms. Gallo holds a Bachelor of Laws from Osgoode Hall Law School and a Bachelor of Business Administration from the Schulich School
    of Business.




                                                                                                                                          5
Board Of Directors


Stan Bharti, P.Eng., Executive Chairman
  Mr. Bharti is a business consultant and a professional mining engineer with more than 25 years experience in business, management, operations, public
  markets, and finance. Mr. Bharti has been the President of Forbes & Manhattan, Inc., a private merchant bank operating in Canada, the United States and
  Western Europe, since July 2001. He is the Chairman and Director of many other publicly listed junior mining companies.

Scott Moore, MBA, President & Chief Executive Officer and Director
Alastair Neill, Executive Vice-President and Director
  Mr Neill is the former VP sales, Rare Earth Division and VP Business Development for AMR (Now Neo-Material Technologies). Alastair is one of the leading
  experts in rare earth elements. He brings over 15 years of direct Rare Earth experience with downstream end-users in Korea, Japan, Europe and North
  America and with suppliers in China. He holds a Master of Business Administration from York University and a Bachelor of Engineering in Material Science
  from the University of Western Ontario.

Jean-Guy Lambert, MBA, Vice chairman
  Mr. Lambert served as President and CEO of Dacha Capital Inc. since 1996. He has served as a financial advisor for Hydro-Quebec as well as a pension fund
  investment manager and Vice President for major financial institutions. He now sits on the boards of several public companies and is involved in the
  management of many private companies.

Claude Blanchet, MBA, Director
  Mr. Blanchet was President of Overload Financial Inc., a Calgary-based corporation, managing energy-related investment funds. He was the Chairman
  and CEO of Societe Generale de Financement du Quebec (SGF) from April 1997 to May 2003, and CEO of the Fonds de Solidarite des travailleurs du
  Quebec (F.T.Q.), from November 1983 to March 1997. Throughout his career, Mr. Blanchet has acted as director of many public companies such as
  Cascades Inc. (TSX), Domtar Inc. (TSX) and Saputo Inc. (TSX). He’s currently a Director of Demcap Investments Inc. (TSX-V)

Ronald Hite, Lieutenant General
  Lieutenant General Hite retired July 1, 1997 from the United States Army after 33 years of service. During his military career, General Hite held several
  senior military leadership positions and is a Vietnam War veteran. Lieutenant General Hite holds a BA in Chemistry and a MS in Management Science, and
  is a graduate of several senior-level military schools. General Hite currently serves on various boards and advisory boards and is President of the East
  Tennessee State University Alumni Association.

George Faught
  George Faught is a Chartered Accountant with over 25 years of senior management experience. He has served as the Chief Financial Officer of
  publicly traded companies in the natural resources, financial services and pharmaceutical industries. Mr. Faught has broad financial management,          6
  corporate development and operating experience.
Metals Inventory – Oct 26, 2012



                                                          Quantity          Spot Price/kg    Market Value
                                         Grades*
                                                           (Kg)                (US$)        (US$ millions)

Busan, South Korea

Dysprosium Oxide                     3N+                  15,000                $810           $12.2
Dysprosium Fe                        Santoku              12,000                $825           $9.9
Neodymium Oxide                      4N+                  18,000                $86            $1.5
Terbium Oxide                        4N+                  14,000                $1,405         $19.7
Yttrium Oxide                        5N                   14,000                $98            $1.4
Gadolinium Oxide                     4N5+                 9,950                 $140           $1.4

TOTAL:                                                    82,950                               $46.0

*Grades:   4N = 99.99%   4N+ = 99.99+%     5N = 99.999%    4N5+ = 99.99%/99.999+%


** Inventory is marked to market based on the average price of
   the metals as published on “MetalPages” and “Asian Metals”
                                                                                                             7
Valuation Based On NAV Plus Premium



NAV of Physical Portfolio
               +
     Scarcity of Rare Earths

               +
       Financial Products

               +
    Dynamic Trading Strategy

               +
      Only Financial Player

                                     8
An Actively Managed Physical Portfolio


Assess Long-Term                     Acquire Inventory
Demand Imbalance




                      Post Markets
                         Trade
                      Earn Spread




Rebalance                                  Assess Short
Inventory                             Price Fluctuations
                                                           9
Discount to NAV


                                      2.25                                                     0.7
- Rare Earth market is not exchange
                                      2.00
traded so pricing is reported from                                                             0.6
end users and suppliers               1.75
                                                                                               0.5
- General investor market has         1.50
difficulty accepting the pricing                                                               0.4
                                      1.25
reported hence a large discount to
NAV                                   1.00                                                     0.3

- Overall, the 2011 Rare Earth        0.75
                                                                                               0.2
demand increased 50% from 2010        0.50
                                                                                               0.1
 - Ongoing discount to NAV creates    0.25
risk of corporate action
                                      0.00                                                     0



                                             Share price   FD NAV   NAV   Discount to FD NAV




                                                                                                   10
Industrial Minerals are the
Enablers of Modern Technology




                               11
“Biggest User of Rare Earths
                                                 of any Object in the World”


                                     Toyota Prius




“In 20 years, all cars on the road will be electric”- Warren Buffett, November 2009
                                                                                      12
The largest user of rare earths tomorrow
  1mt Neodymium needed for every 3 MW of wind power generated




                                                                13
Strong Demand Growth

                                IMCOA Rare Earth Oxide Forecast
                   250,000



                   200,000
Demand tpa - REO




                   150,000



                   100,000



                    50,000



                       -
                               2004 2005 2006 2007 2008 2009 2010f 2011f 2012f 2013f 2014f

                      China Supply        ROW Supply    Global Demand        China Demand

                             Global Demand                            China Demand
                             (Exclusive of China)
                                                       ROW: rest of word supply (yet to come on stream)
                                                       REO: Rare Earth Oxides
                                                       Source: IMCOA

                                                                                                          14
“The value of global rare-earth trade last
year was just $1.25 billion, and it is
projected to grow to about $3 billion by
2015.” - The Wall Street Journal, September 3rd, 2009




    China – Guarding The Supply
        • +95% of Global Supply
        • Export Tariffs to drive mana
        • Export Quotas



                                                        15
And Rare Earth Companies
                                                                            Are Raising Capital
                               Rare Element Development Mining Companies

                                                                        Capital Raised      Expected
Company                                                    Market Cap. Since July 2009    Production
                                                                 (US$MM)      (US$MM)           Year
Arafura                                                             236            NA          2010
Lynas                                                               993           416          2011
Great Western Minerals*                                              66          17 (1)        2012
Avalon*                                                             203            17          2013
Greenland Minerals and Energy Limited                               147            NA            NA
Quest Uranium Corporation                                           123              8           NA
Rare Element                                                        112              5           NA
Commerce Resources Corp.                                             57              7           NA
Hudson Resources Inc.                                                50              3           NA
Midland Exploration Inc.                                             34              3           NA
Pele Mountain Resources Inc.                                         25              1           NA
Matamec Explorations, Inc.                                           19              2           NA
Gold Canyon Resources Inc.                                           14              2           NA
Forum Uranium Corp.                                                  13              2           NA
Fieldex Exploration Inc.                                             13              2           NA
Butler Resource Corp                                                  7              1           NA
Big Red Diamond Corp.                                                 3              0           NA
Mainstream Minerals Corporation                                       2              0           NA
Canadian International Minerals                                       2              1           NA
Molycorp                                                             NA            NA            NA
Total                                                            $1,885          $469
(1) Includes C$7M M prospectus offering announced Jan 12, 2009

* Production date is not confirmed

                                                                                                       16
Attractive Value Proposition for Investors


    Growing demand for REE’s
        Opportunity for early stage investment in a potentially
        valuable industrial commodities trading operation


    Limited supply to satisfy growth
        Participate in the expected price appreciation of
        rare earths and strategic industrial commodities


    Direct access to physical inventory; No mining risk
        Invest in a diversified portfolio of physical inventory
        that can earn a substantial market premium


    Industry Veterans
        Management and Board of Dacha is composed
        of leading REE experts




                                                                  17
Appendices
Company History: 1996-2009




                         19
Company Milestones: 2009 - Present




                                 20
F&M International Advisory Board


General John Abizaid, U.S. Army (Ret.)
Served for 34 years in U.S. military; was Commander of US Central Command from 2003-2007
Peter Boot, South America
25 years financial markets experience; 15 years with ING Group in Brazil, Curacao, Venezuela, Paraguay and Bolivia
General Jay Garner, U.S. Army (Ret.)
Served for 35 years in the U.S. military; Command of Air Missile Defense Units during the Gulf War
General Ron Hite, U.S. Army (Ret.)
Served 33 years in the U.S. military; Senior Military Advisor to the Army Chief of Staff
Larry King, U.S.A.
American icon; Former Host of CNN’s Larry King Live
General Lewis MacKenzie, Canadian Army (Ret.)
Served in the Canadian Forces for 35 years; led the UN peacekeeping mission in Sarajevo
Hon. Pierre Pettigrew, Canada
Served as Canadian Federal Minister of Foreign Affairs and Minister of International Trade
Jim Rogers
Author, financial commentator and successful international investor.
James Rooney
Investment and Infrastructure development expert; Established and cultivated new businesses
General Sir Michael Rose, British Army (Ret.)
Highly decorated former SAS Commander for the British Army
Bernard Wilson
Corporate Finance and Investment Banking advisor with substantial experience in financial restructurings             21
Strategic Metal Advisory Board


Management will be assisted by the Advisory Board consisting of Alistair Neill, Executive Vice
President of Dacha Capital, Dr. Allen Alper, former General Manager of Osram Sylvania and
Zheng Zhi, Chairman of the Beijing based China Mining United Fund

Dr. Allen Alper
•   Accomplished senior executive, 30 year career at Osram Sylvania
•   Formerly VP and General Manager Osram Chemical/Metallurgical Division (15 years)
•   Expert in manufacturing and marketing of Tungsten, Molybdenum and other strategic metals
•   Holder of 33 patents in high temperature metals

Zheng Zhi
•   Chairman of China Mining United Fund (www.cmufund.com)
•   He graduated from Jilin University majoring in corporate management in 1987, and completed his graduate
    studies from Tsinghua University in the class of mining finance
•   Mr. Zheng is also acting as the board director for the Zhengda Group, which controls about 10 billion RMB in
    assets




                                                                                                               22
Market Size Must be Considered


                                                    Rare Earth Element - Market
                                         Price/Kg     Market Size    Common
                                           ($/Kg)          ($MM)     Uses
                                                                     Optical fibres, Carbon arc lamps, High quality
Lanthanum                                   4.12             123
                                                                     glass

                                                                     Laser crystals, Internal Combustion Engines,
Cerium                                      5.59             170
                                                                     Steel manufacturing

Praseodymium                               16.18               76    Glass, Ceramics, Carbon arc lamps

                                                                     Protective lenses, Lasers, Magnetic imaging
Neodymium                                  17.21             271
                                                                     equipment, Magnets (NdFeB)
                                                                     Industrial magnets, Neutron absorber in
Samarium                                    2.21                5
                                                                     nuclear reactors, Glass, Magnets (SmCo)

                                                                     Liquid Crystal Display (LCD), Fluorescent
Europium                                  367.65             138
                                                                     lighting, Cathode ray tubes

                                                                     Magnetic resonance imaging (MRI), Control
Gadolinium                                  6.47               16    rods in nuclear power plants, Microwaves,
                                                                     Magnetic Refrigeration
                                                                     Fluorescent lightning, X-Rays, Fuel Cells,
Terbium                                   294.10               71
                                                                     Military sonar equipment
                                                                     Control rods in nuclear power plants, Compact
Dysprosium                                 95.59             127
                                                                     discs, Magnets

                                                                     Glass, Lasers for surgical applications, Control
Erbium                                       NA               NA
                                                                     rods in nuclear power plants
                                                                     Fluorescent Lighting, Electronic displays, Laser
Yttrium                                     6.32               57
                                                                     systems, High strength metal alloys
Ho-Tm-Yb-Lu                                  NA               NA
Total                                                       1,054
Source: Metal Pages and Roskill Report                                                                                  23
Rare Earth Ore Compositions

                                                          Rare earth content of major source minerals (% total REO)

                                Monazite                     Apatite            Loparite           Bastnaesite                  Ion Adsorption Clays
                                                                                                                                Longnan,
                                              Nangang, Nolan's             Baiyun Obo, Mountain Pass,            Xunwu, Jiangxi Jiangxi
                        Mt Weld, Guangdong, Guangdong,     Bore Lovozersky, Mongolia,     California, Guangdong,     Province, Province,
                       Austrailia     China      China Australia    Russia       China           USA       China          China    China
Lanthanum                    25.50             24.00        23.00       20.40       28.00        25.00            33.20       30.40          43.40      1.82
Cerium                       46.74             42.70        42.70       48.32       57.50        50.00            49.10        1.90           2.40      0.40
Praseodymium                   5.32                4.10       4.10       5.91        3.80         5.10                4.30     6.60           9.00      0.70
Neodymium                    18.50             17.00        17.00       21.06        8.80        16.70            12.00       24.40          31.70      3.00
Samarium                       2.27                3.00       3.00       2.37        0.96         1.20                0.80     5.20           3.90      2.80
Europium                       0.44                0.10       0.10       0.37        0.13         0.20                0.12     0.70           0.50      0.10
Gadolinium                   Trace                 2.00       2.00       0.95        0.21         0.70                0.17     4.80           3.00      6.90
Terbium                        0.07                0.70       0.70       0.08        0.07        Trace            Trace        0.60          Trace      1.30
Dysprosium                     0.12                0.80       0.80       0.34        0.09        Trace            Trace        3.60          Trace      6.70
Holmium                      Trace             Trace          0.12       0.05        0.03        Trace            Trace       Trace          Trace      1.60
Erbium                         0.03                0.30       0.30       0.09        0.07        Trace            Trace        1.80          Trace      4.90
Thulium                      Trace                          Trace        0.01      Trace        Trace             Trace       Trace         Trace       0.70
Yttrium                       0.06                 2.70      2.40        0.05       0.29        Trace             Trace       Trace          0.30       2.50
Lutetium                     Trace                           0.14        0.01       0.05        Trace             Trace       Trace          0.10       0.40
Yttrium                       0.35             2.60          2.40        1.48      Trace         0.20              2.60       20.00          8.00      65.00
Total                        99.98           100.00         98.76      101.49     100.00       100.00             99.79      100.00        102.30      98.82
Source: US Geological Survey and Company Reports

                                                                                                                                                               24
REE Demand – Additional Information




                                  25
The Periodic Table of The Elements




Lanthanides

 Actinides


                                               26
For more information:                                       Toronto Office
                                                            65 Queen Street W
                                                            Suite 800
    G. Scott Moore                                          Toronto, Ontario
    President and CEO                                       M5H 2M5
    Tel: +1 (416) 861-5903
    smoore@dachacapital.com                                 China Office
                                                            Floor 5, South Building
    www.dachacapital.com                                    Zhonghai Mansion
                                                            Jianguomenwai Street
    TSX-V: DAC | OTCQX: DCHAF                               Beijing, China A Forbes & Manhattan Group Company
    A Member of the Forbes & Manhattan Group of Companies   1000020

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Unique Investment Vehicle for Strategic Materials

  • 1. A Unique Investment Vehicle for Strategic Materials Corporate Presentation - October 2012 TSX:DSM.V OTCQX:DCHAF A member of the Forbes&Manhattan Group of Companies
  • 2. Forward-Looking Statements Caution regarding forward-looking information: This presentation contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes without limitation, statements regarding the proposed use of the proceeds of the financing, the receipt of all necessary approvals, the issue of permits, progress in development of mineral properties, future production and sales volumes, capital and mine production costs, demand and market outlook for rare earth metals, future metal prices and treatment and refining charges, the financial results of the Company, the future financial or operating performance of the Company, and terms and the availability and likelihood of future acquisitions. 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 state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". 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 the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; market risks; risks related to leverage; acquisition risks; and other risks of the mining and trading industries. Although the Company 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 information 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. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. This presentation does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. 2
  • 3. Company Overview  Dacha operates as a unique investment conduit allowing its shareholders to invest directly in physical strategic materials  Dacha focuses on achieving investment gains through the trading and long-term appreciation of physical holdings in strategic minerals, particularly REE’s, held in LME warehouses  Current net assets of approximately US$58 million  Management and Board composed of leading REE experts  Strong relationships for acquisition of Rare Earths from China TSX .V: DSM Company Ticker Symbols OTCQX : DCHAF Shared Outstanding (Fully Diluted) 94.3 million Share Price (October 26, 2012) $ 0.45 3
  • 4. An Actively Managed Physical Portfolio Fundamental Research Asset Allocation Dynamic Physical Portfolio of Rare Earths + Trading Operations Corporate not Hedge Fund Structure First Mover Advantage 4
  • 5. Management Scott Moore, MBA, President & Chief Executive Officer • Mr. Moore is an experienced business executive with 20 years experience in the resource and durable goods sector • Former CEO of Franc-Or Resources Corp and VP Corporate Development for Aberdeen International. Former Director of Sulliden Exploration, Franc Or Resources and Avion Gold • He holds a Bachelor of Arts degree from the University of Toronto and an MBA from the Kellogg School of Management Alastair Neill, P.Eng., MBA, Executive Vice-President • Mr. Neill is the former VP sales, Rare Earth Division and VP Business Development for AMR (Now Neo-Material Technologies) and brings over 15 years of direct Rare Earth experience • He holds a MBA from York University and a Bachelor of Engineering in Material Science from the University of Western Ontario Ryan Ptolemy, CFA, Chief Financial Officer • From August, 2005, to September, 2009, Mr. Ptolemy was at an independent investment dealer in Toronto, most recently serving as Chief Financial Officer, where he was responsible for financial reporting, auditing, budgeting and internal controls • Mr. Ptolemy currently serves as Chief Financial Officer to a number of public companies in the mining sector. Christine Gallo, L.L.B., Corporate Secretary • Christine Gallo is a corporate securities lawyer who works as a legal consultant to several publicly traded companies in the mining industry. • Previously, Ms. Gallo practiced law at a major Canadian law firm, with a focus on securities law. • Ms. Gallo holds a Bachelor of Laws from Osgoode Hall Law School and a Bachelor of Business Administration from the Schulich School of Business. 5
  • 6. Board Of Directors Stan Bharti, P.Eng., Executive Chairman Mr. Bharti is a business consultant and a professional mining engineer with more than 25 years experience in business, management, operations, public markets, and finance. Mr. Bharti has been the President of Forbes & Manhattan, Inc., a private merchant bank operating in Canada, the United States and Western Europe, since July 2001. He is the Chairman and Director of many other publicly listed junior mining companies. Scott Moore, MBA, President & Chief Executive Officer and Director Alastair Neill, Executive Vice-President and Director Mr Neill is the former VP sales, Rare Earth Division and VP Business Development for AMR (Now Neo-Material Technologies). Alastair is one of the leading experts in rare earth elements. He brings over 15 years of direct Rare Earth experience with downstream end-users in Korea, Japan, Europe and North America and with suppliers in China. He holds a Master of Business Administration from York University and a Bachelor of Engineering in Material Science from the University of Western Ontario. Jean-Guy Lambert, MBA, Vice chairman Mr. Lambert served as President and CEO of Dacha Capital Inc. since 1996. He has served as a financial advisor for Hydro-Quebec as well as a pension fund investment manager and Vice President for major financial institutions. He now sits on the boards of several public companies and is involved in the management of many private companies. Claude Blanchet, MBA, Director Mr. Blanchet was President of Overload Financial Inc., a Calgary-based corporation, managing energy-related investment funds. He was the Chairman and CEO of Societe Generale de Financement du Quebec (SGF) from April 1997 to May 2003, and CEO of the Fonds de Solidarite des travailleurs du Quebec (F.T.Q.), from November 1983 to March 1997. Throughout his career, Mr. Blanchet has acted as director of many public companies such as Cascades Inc. (TSX), Domtar Inc. (TSX) and Saputo Inc. (TSX). He’s currently a Director of Demcap Investments Inc. (TSX-V) Ronald Hite, Lieutenant General Lieutenant General Hite retired July 1, 1997 from the United States Army after 33 years of service. During his military career, General Hite held several senior military leadership positions and is a Vietnam War veteran. Lieutenant General Hite holds a BA in Chemistry and a MS in Management Science, and is a graduate of several senior-level military schools. General Hite currently serves on various boards and advisory boards and is President of the East Tennessee State University Alumni Association. George Faught George Faught is a Chartered Accountant with over 25 years of senior management experience. He has served as the Chief Financial Officer of publicly traded companies in the natural resources, financial services and pharmaceutical industries. Mr. Faught has broad financial management, 6 corporate development and operating experience.
  • 7. Metals Inventory – Oct 26, 2012 Quantity Spot Price/kg Market Value Grades* (Kg) (US$) (US$ millions) Busan, South Korea Dysprosium Oxide 3N+ 15,000 $810 $12.2 Dysprosium Fe Santoku 12,000 $825 $9.9 Neodymium Oxide 4N+ 18,000 $86 $1.5 Terbium Oxide 4N+ 14,000 $1,405 $19.7 Yttrium Oxide 5N 14,000 $98 $1.4 Gadolinium Oxide 4N5+ 9,950 $140 $1.4 TOTAL: 82,950 $46.0 *Grades: 4N = 99.99% 4N+ = 99.99+% 5N = 99.999% 4N5+ = 99.99%/99.999+% ** Inventory is marked to market based on the average price of the metals as published on “MetalPages” and “Asian Metals” 7
  • 8. Valuation Based On NAV Plus Premium NAV of Physical Portfolio + Scarcity of Rare Earths + Financial Products + Dynamic Trading Strategy + Only Financial Player 8
  • 9. An Actively Managed Physical Portfolio Assess Long-Term Acquire Inventory Demand Imbalance Post Markets Trade Earn Spread Rebalance Assess Short Inventory Price Fluctuations 9
  • 10. Discount to NAV 2.25 0.7 - Rare Earth market is not exchange 2.00 traded so pricing is reported from 0.6 end users and suppliers 1.75 0.5 - General investor market has 1.50 difficulty accepting the pricing 0.4 1.25 reported hence a large discount to NAV 1.00 0.3 - Overall, the 2011 Rare Earth 0.75 0.2 demand increased 50% from 2010 0.50 0.1 - Ongoing discount to NAV creates 0.25 risk of corporate action 0.00 0 Share price FD NAV NAV Discount to FD NAV 10
  • 11. Industrial Minerals are the Enablers of Modern Technology 11
  • 12. “Biggest User of Rare Earths of any Object in the World” Toyota Prius “In 20 years, all cars on the road will be electric”- Warren Buffett, November 2009 12
  • 13. The largest user of rare earths tomorrow 1mt Neodymium needed for every 3 MW of wind power generated 13
  • 14. Strong Demand Growth IMCOA Rare Earth Oxide Forecast 250,000 200,000 Demand tpa - REO 150,000 100,000 50,000 - 2004 2005 2006 2007 2008 2009 2010f 2011f 2012f 2013f 2014f China Supply ROW Supply Global Demand China Demand Global Demand China Demand (Exclusive of China) ROW: rest of word supply (yet to come on stream) REO: Rare Earth Oxides Source: IMCOA 14
  • 15. “The value of global rare-earth trade last year was just $1.25 billion, and it is projected to grow to about $3 billion by 2015.” - The Wall Street Journal, September 3rd, 2009 China – Guarding The Supply • +95% of Global Supply • Export Tariffs to drive mana • Export Quotas 15
  • 16. And Rare Earth Companies Are Raising Capital Rare Element Development Mining Companies Capital Raised Expected Company Market Cap. Since July 2009 Production (US$MM) (US$MM) Year Arafura 236 NA 2010 Lynas 993 416 2011 Great Western Minerals* 66 17 (1) 2012 Avalon* 203 17 2013 Greenland Minerals and Energy Limited 147 NA NA Quest Uranium Corporation 123 8 NA Rare Element 112 5 NA Commerce Resources Corp. 57 7 NA Hudson Resources Inc. 50 3 NA Midland Exploration Inc. 34 3 NA Pele Mountain Resources Inc. 25 1 NA Matamec Explorations, Inc. 19 2 NA Gold Canyon Resources Inc. 14 2 NA Forum Uranium Corp. 13 2 NA Fieldex Exploration Inc. 13 2 NA Butler Resource Corp 7 1 NA Big Red Diamond Corp. 3 0 NA Mainstream Minerals Corporation 2 0 NA Canadian International Minerals 2 1 NA Molycorp NA NA NA Total $1,885 $469 (1) Includes C$7M M prospectus offering announced Jan 12, 2009 * Production date is not confirmed 16
  • 17. Attractive Value Proposition for Investors Growing demand for REE’s Opportunity for early stage investment in a potentially valuable industrial commodities trading operation Limited supply to satisfy growth Participate in the expected price appreciation of rare earths and strategic industrial commodities Direct access to physical inventory; No mining risk Invest in a diversified portfolio of physical inventory that can earn a substantial market premium Industry Veterans Management and Board of Dacha is composed of leading REE experts 17
  • 20. Company Milestones: 2009 - Present 20
  • 21. F&M International Advisory Board General John Abizaid, U.S. Army (Ret.) Served for 34 years in U.S. military; was Commander of US Central Command from 2003-2007 Peter Boot, South America 25 years financial markets experience; 15 years with ING Group in Brazil, Curacao, Venezuela, Paraguay and Bolivia General Jay Garner, U.S. Army (Ret.) Served for 35 years in the U.S. military; Command of Air Missile Defense Units during the Gulf War General Ron Hite, U.S. Army (Ret.) Served 33 years in the U.S. military; Senior Military Advisor to the Army Chief of Staff Larry King, U.S.A. American icon; Former Host of CNN’s Larry King Live General Lewis MacKenzie, Canadian Army (Ret.) Served in the Canadian Forces for 35 years; led the UN peacekeeping mission in Sarajevo Hon. Pierre Pettigrew, Canada Served as Canadian Federal Minister of Foreign Affairs and Minister of International Trade Jim Rogers Author, financial commentator and successful international investor. James Rooney Investment and Infrastructure development expert; Established and cultivated new businesses General Sir Michael Rose, British Army (Ret.) Highly decorated former SAS Commander for the British Army Bernard Wilson Corporate Finance and Investment Banking advisor with substantial experience in financial restructurings 21
  • 22. Strategic Metal Advisory Board Management will be assisted by the Advisory Board consisting of Alistair Neill, Executive Vice President of Dacha Capital, Dr. Allen Alper, former General Manager of Osram Sylvania and Zheng Zhi, Chairman of the Beijing based China Mining United Fund Dr. Allen Alper • Accomplished senior executive, 30 year career at Osram Sylvania • Formerly VP and General Manager Osram Chemical/Metallurgical Division (15 years) • Expert in manufacturing and marketing of Tungsten, Molybdenum and other strategic metals • Holder of 33 patents in high temperature metals Zheng Zhi • Chairman of China Mining United Fund (www.cmufund.com) • He graduated from Jilin University majoring in corporate management in 1987, and completed his graduate studies from Tsinghua University in the class of mining finance • Mr. Zheng is also acting as the board director for the Zhengda Group, which controls about 10 billion RMB in assets 22
  • 23. Market Size Must be Considered Rare Earth Element - Market Price/Kg Market Size Common ($/Kg) ($MM) Uses Optical fibres, Carbon arc lamps, High quality Lanthanum 4.12 123 glass Laser crystals, Internal Combustion Engines, Cerium 5.59 170 Steel manufacturing Praseodymium 16.18 76 Glass, Ceramics, Carbon arc lamps Protective lenses, Lasers, Magnetic imaging Neodymium 17.21 271 equipment, Magnets (NdFeB) Industrial magnets, Neutron absorber in Samarium 2.21 5 nuclear reactors, Glass, Magnets (SmCo) Liquid Crystal Display (LCD), Fluorescent Europium 367.65 138 lighting, Cathode ray tubes Magnetic resonance imaging (MRI), Control Gadolinium 6.47 16 rods in nuclear power plants, Microwaves, Magnetic Refrigeration Fluorescent lightning, X-Rays, Fuel Cells, Terbium 294.10 71 Military sonar equipment Control rods in nuclear power plants, Compact Dysprosium 95.59 127 discs, Magnets Glass, Lasers for surgical applications, Control Erbium NA NA rods in nuclear power plants Fluorescent Lighting, Electronic displays, Laser Yttrium 6.32 57 systems, High strength metal alloys Ho-Tm-Yb-Lu NA NA Total 1,054 Source: Metal Pages and Roskill Report 23
  • 24. Rare Earth Ore Compositions Rare earth content of major source minerals (% total REO) Monazite Apatite Loparite Bastnaesite Ion Adsorption Clays Longnan, Nangang, Nolan's Baiyun Obo, Mountain Pass, Xunwu, Jiangxi Jiangxi Mt Weld, Guangdong, Guangdong, Bore Lovozersky, Mongolia, California, Guangdong, Province, Province, Austrailia China China Australia Russia China USA China China China Lanthanum 25.50 24.00 23.00 20.40 28.00 25.00 33.20 30.40 43.40 1.82 Cerium 46.74 42.70 42.70 48.32 57.50 50.00 49.10 1.90 2.40 0.40 Praseodymium 5.32 4.10 4.10 5.91 3.80 5.10 4.30 6.60 9.00 0.70 Neodymium 18.50 17.00 17.00 21.06 8.80 16.70 12.00 24.40 31.70 3.00 Samarium 2.27 3.00 3.00 2.37 0.96 1.20 0.80 5.20 3.90 2.80 Europium 0.44 0.10 0.10 0.37 0.13 0.20 0.12 0.70 0.50 0.10 Gadolinium Trace 2.00 2.00 0.95 0.21 0.70 0.17 4.80 3.00 6.90 Terbium 0.07 0.70 0.70 0.08 0.07 Trace Trace 0.60 Trace 1.30 Dysprosium 0.12 0.80 0.80 0.34 0.09 Trace Trace 3.60 Trace 6.70 Holmium Trace Trace 0.12 0.05 0.03 Trace Trace Trace Trace 1.60 Erbium 0.03 0.30 0.30 0.09 0.07 Trace Trace 1.80 Trace 4.90 Thulium Trace Trace 0.01 Trace Trace Trace Trace Trace 0.70 Yttrium 0.06 2.70 2.40 0.05 0.29 Trace Trace Trace 0.30 2.50 Lutetium Trace 0.14 0.01 0.05 Trace Trace Trace 0.10 0.40 Yttrium 0.35 2.60 2.40 1.48 Trace 0.20 2.60 20.00 8.00 65.00 Total 99.98 100.00 98.76 101.49 100.00 100.00 99.79 100.00 102.30 98.82 Source: US Geological Survey and Company Reports 24
  • 25. REE Demand – Additional Information 25
  • 26. The Periodic Table of The Elements Lanthanides Actinides 26
  • 27. For more information: Toronto Office 65 Queen Street W Suite 800 G. Scott Moore Toronto, Ontario President and CEO M5H 2M5 Tel: +1 (416) 861-5903 smoore@dachacapital.com China Office Floor 5, South Building www.dachacapital.com Zhonghai Mansion Jianguomenwai Street TSX-V: DAC | OTCQX: DCHAF Beijing, China A Forbes & Manhattan Group Company A Member of the Forbes & Manhattan Group of Companies 1000020