This document provides an overview of rare earth elements and Dacha Strategic Metals Inc., a company that manages a physical portfolio of rare earths and other strategic metals. It notes that China controls over 95% of the global rare earth element supply and is reducing export quotas, highlighting the strategic importance and increasing value of these elements. Dacha aims to provide investors exposure to rare earths through its stockpiled inventory without exploration or mining risks. The company is led by an experienced management team and advises investors on the rising commodity prices, diversification benefits, and premium valuation it offers compared to net asset value.

1. Rare Earth Elements Unique Ownership in Strategic Metals Global Investment Conference September 14th 2010 TSX:DAC OTCQX:DHCAF A Forbes & Manhattan Group Company

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

4. Rare Earths in the Limelight “China Tightens Grip on Rare Minerals” “Rare Earth Minerals' Scarcity Worrisome for Growing Tech Sector”-06-10 “Why China holds 'rare' cards in the race to go green”-08-10 “Top China rare earth producer to build stockpile” -08-10 Toyota to set up rare earth processing plant in India- 08-10

5. A Paradigm Shift in the REE Industry Security of Supply no longer just a commercial Issue It is now a Political Issue Rare Earth Supply Technology and Resources Transformation Act [RESTART] introduced to both the U.S House of Representatives and the U.S. Senate in 2010 Japanese industry minister asked Chinese Minister of Industry and Information for reductions to this year's export quota to be reversed. “We are concerned that rare-earth metals will not come to Japan in the future”.

6. Why all the Fuss? Growing Demand for REE in Green Tech Limited Supply to satisfy growth in China China cutting back material available for Rest of World New projects outside of China have technical and financial challenges Timeline for new mines is years away 6

7. BUSINESS MODEL 7 Provide Investors Direct Access to a Physical Strategic Stockpile of Rare Earths Proven Ability to Source and Export REE from China LME Warehouses established in Korea and Singapore Ability to Trade individual metals to take advantage of spot market volatility

8. Attractive Value Proposition for Investors 8 Participate in the expected price appreciation of rare earths and strategic industrial metals *28% Increase in Inventory Value No Exploration or Mining Risk

9. Industrial Minerals are the Enablers of Modern Technology 9

11. 15kg Lanthanum

12. 0.1kg Dysprosium

13. Top-selling car in Japan“In 20 years, all cars on the road will be electric”- Warren Buffett, November 2009

14. The Largest User of Rare Earths Tomorrow1mt Neodymium needed for every 3 MW of wind power generated 11

15. SUPPLY/Demand Gap Increasing 12 IMCOA Rare Earth Oxide Forecast Global Demand (Exclusive of China) China Demand ROW: rest of word supply (yet to come on stream) REO: Rare Earth Oxides Source: IMCOA

17. Transactional based market

18. No significant commercial stockpile exists globally

19. No buffer to volatile pricing from China

20. Most advanced mining projects are 2-5 years away from delivering product to marketDacha delivers investment exposure to Rare Earth Elements without the mining risk

21. An Actively Managed Physical Portfolio 14 Fundamental Research Dynamic Physical Portfolio of Rare Earths Asset Allocation + Trading Operations First Mover Advantage

22. Risk Minimization 15 Dacha’s LME Warehouse Locations LME Warehouse Korea Inventory Insured at Market Value LME Warehouse Singapore

24. Growing recognition with broader investor base and market transference of strategic premium

25. Ability to continue to acquire REE in China despite reduction in export quotas

26. Non-dilutive nature of equity financings builds critical mass for size of strategic inventory

29. Former CEO of Franc-Or Resources Corp and VP Corporate Development for Aberdeen International. Former Director of Sulliden Gold, Franc Or Resources and Avion Gold. He has raised in excess of $250 million in resources in the last 3 years.

33. From May 2005 to September 2007, he was at Kinross Gold Corp., most recently serving in the position of Vice President, Corporate Controller

35. Formerly VP and General Manager Osram Chemical/Metallurgical Division (15 years)

36. Expert in manufacturing and marketing of Tungsten, Molybdenum and other strategic metals

38. 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

40. A Forbes & Manhattan Group Company 21 Forbes & Manhattan A Private Merchant Bank Dacha Strategic Metals Inc. Management Team Stan Bharti Executive Chairman Scott Moore President and CEO Alastair Neill Executive VP Patrick Wong CIO Brad Boland CFO Board of Directors Scott Moore Alastair Neill Jean-Guy Lambert Claude Blanchet Stan Bharti George Faught Gen. Ron Hite Strategic Metal Advisory Board Zheng Zhi Alastair Neill Dr. Allen Alper Don Bubar

41. TSX:DAC OTCQX:DHCAF China Office Floor 5, South Building Zhonghai Mansion Jianguomenwai Street Beijing, China 1000020 G. Scott Moore President and CEO Tel: 416-861-5903 smoore@dachacapital.com Toronto Office 65 Queen St west, Suite 800 Toronto, Ontario M5h 2M5