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Rare Earth Elements
“Unique Ownership in Strategic Metals”
November, 2010
TSX-V:DSM OTCQX:DHCAF
A Forbes & Manhattan Group Company
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
• China – Guarding The Supply
• +95% of Global Supply
• Export Tariffs to drive manufacturing to China
• Export Quotas to limit material available to the Rest of World
• CHINA REDUCES QUOTAS FOR 2010 BY 70%
3
“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
“Chinese adamant on rare-earth metal cuts”-
Aug 30-2010
BUSINESS MODEL
4
Provide Investment exposure to a Physical Strategic Stockpile of Rare Earths
without any mining risk
Source and Export REE from China utilizing long established relationships
Establish Secure warehouse locations outside of China
Trade individual Rare Earth Elements to downstream customers to generate
profit
Capital Structure
5
Capital Structure
Stock symbol:
Shares issued:
Fully diluted:
Price (10/2210):
Market Cap:
52-week High/Low:
DSM – TSX:V
71.1 M
97.5 M
$0.55
$39 M
$1.05-$0.32
Latest Financing(Mar 2010)
Amount Raised:
Shares issued:
Issue Price:
$22.0 M
48.9 M
$0.45
Key Institutional Shareholders
Goodman & Co ~12%
AGF Management ~ 6%
RAB Capital ~ 4%
Aberdeen International Inc ~ 3%
TD Asset Management ~ 2%
Management & Insiders ~ 4%
Management
6
Scott Moore, MBA, President & Chief Executive Officer
 Mr. Moore is an experienced capital markets executive with 20 years experience in the resource sector
 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.
 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 GM, Rare Earth Division and VP Business Development for AMR (Now Neo-Material
Technologies TSX:NEM) and brings over 15 years of direct Rare Earth experience. Mr Neill lives full time in Beijing
 He holds a MBA from York University and a Bachelor of Engineering in Material Science from the University of
Western Ontario
Patrick Wong, Chief Investment Officer
 Mr. Wong is a seasoned hedge fund manager with over 15 years of experience and a consistent track record of high
returns
 During his career in the public markets, Mr. Wong ran proprietary trading desks at various brokerage firms
Brad Boland, C.M.A., Chief Financial Officer
 Mr. Boland was the CFO of Consolidated Thompson Iron Mines Limited until July 2009
 From May 2005 to September 2007, he was at Kinross Gold Corp., most recently serving in the position of Vice
President, Corporate Controller
 Prior to that, from August 1998 to February 2005, Mr. Boland was at Goldcorp Inc., as Corporate Controller and the
Vice President, Finance
Investment Rationale
1. Dacha Strategic Metals Inc. “DACHA” has acquired a physical inventory of strategic
minerals including Rare Earth Elements with its mainland China expertise
2. The physical inventory of Rare Earth Oxides and Metal is held in LME approved
warehouses off-shore near primary users such as Japan and Korea
3. DACHA has the ability to trade in and out of multiple strategic minerals and
is not limited to one specific commodity
4. DACHA can capitalize on the strategic minerals asset class without the mining risk
associated with equity resource investments
Dacha can become the “market maker” in Rare Earth Elements
7
Attractive Value Proposition
8
Participate in the expected price appreciation of
rare earths and strategic industrial metals
No Exploration or Mining Risk
Rare Earth Metal inventory
Apr 2010 to Sept 30 2010 Quantity (Kgs) Cost Market Value
Dysprosium Oxide 5,000 $ 1,002,000 $ 1,467,000
Dysprosium Fe 30,000 5,856,000 8,480,000
Gadolinium 20,000 357,000 1,232,000
Lutetium 3,000 949,000 1,235,000
Terbium 13,000 6,647,940 8,166,000
Yttrium 20,000 250,000 788,000
Europium 6,000 2,554,000 2,747,000
Yttrium 120,000 1,022,000 1,034,000
217,000 $ 18,622,139 $ 25,175,000 *
*35% Increase in Inventory Value
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
9
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”.
10
Supply response
• 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 11
Industrial Minerals are the
Enablers of Modern Technology
12
“Biggest User of Rare Earths
of any Object in the World”
13
Toyota Prius
 1kg Neodymium
 15kg Lanthanum
 0.1kg Dysprosium
 Top-selling car in Japan
“In 20 years, all cars on the road will be electric”- Warren Buffett, November 2009
The Largest User of Rare Earths Tomorrow
1mt Neodymium needed for every 3 MW of wind power generated
14
-
50,000
100,000
150,000
200,000
250,000
2004 2005 2006 2007 2008 2009 2010f 2011f 2012f 2013f 2014f
Demandtpa-REO
China Supply ROW Supply Global Demand China Demand
SUPPLY/Demand Gap Increasing
15
ROW: rest of word supply (yet to come on stream)
REO: Rare Earth Oxides
Source: IMCOA
Global Demand
(Exclusive of China)
China Demand
IMCOA Rare Earth Oxide Forecast
Current State of the
Rare Earth Markets
16
 No significant commercial stockpile exists globally
 No buffer to volatile pricing or actions from China
 No ability to hedge against future price increases
 Limited supply-side response
 Most advanced Rare Earth mining projects are 2-5 years
away from delivering product to market with substantial
financial and technical hurdles to overcome
Dacha has the inventory today and the ability to
grow its stockpile quickly
An Actively Managed
Physical Portfolio
17
Dynamic
Physical Portfolio
of Rare Earths
+
Trading Operations
Fundamental Research
Asset Allocation
First Mover Advantage
Risk Minimization
18
Dacha’s LME Warehouse Locations
LME Warehouse
Singapore
LME Warehouse
Korea
Inventory Insured
at Market Value
Why buy DACHA?
なぜDacha製品を買うのか
19
Rising Commodity Prices For Rare Earth forecast in next 3yrs
Only Rare Earth Company that actually owns the finished product
Focused on high value Heavy Rare Earths
Ability to continue to acquire REE in China despite reduction in export
quotas
Non-dilutive nature of equity financings builds critical mass for size of
strategic inventory
Diversification into other strategic metals
A Forbes & Manhattan Group Company
20
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
Strategic Metal Advisory Board
Alastair NeillDr. Allen Alper Don Bubar
Gen. Ron Hite
Forbes and Manhattan profile
21
Market Capitalization of F&M Group Companies >$4B
Employees & Consultants
Group Companies >30
Total Funds Raised in last 4 Years
Number of Resource Projects in F&M Group
Number of Producing Assets in F&M Group
Number of Countries F&M Group has Projects
>150
>$3B
>40
>7
22
Forbes Advisory Board
22
General Jay Garner, USA
Served in the U.S. military for 35 years, including command of Air Missile Defence Units in the Gulf War.
General John Abizaid, USA
US Army, Commander, US Central Command
General Chuck Wald, USA
Air Force, Deputy Commander, European Command including Africa
General George Joulwan, USA
US Army, Former Supreme Allied Commander, Europe
General Tony Zinni, USA
US Marines, Former Commander in Chief of US Central Command – includes all Middle Eastern Countries
General Larry Gillespie, USA
Highly decorated, including Distinguished Flying Cross, Soldier’s Medal and Meritorious Service Medal
General Sir Michael Rose, U.K.
Former SAS Commander for the British Army and a highly decorated General.
Hon. Pierre Pettigrew, Canada
Served as Canadian Minister of Foreign Affairs and Trade Minister
General Lewis MacKenzie, Canada
Served in the Canadian Forces for 36 years; led the UN peacekeeping mission in Sarajevo
G. Scott Moore
President and CEO
Tel: 416-861-5903
smoore@dachametals.com
TSX:DSM OTCQX:DHCAF
China Office
Floor 5, South Building
Zhonghai Mansion
Jianguomenwai Street
Beijing, China
1000020
Toronto Office
65 Queen St west, Suite 800
Toronto, Ontario
M5h 2M5

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Dsm november, 2010

  • 1. Rare Earth Elements “Unique Ownership in Strategic Metals” November, 2010 TSX-V:DSM 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
  • 3. • China – Guarding The Supply • +95% of Global Supply • Export Tariffs to drive manufacturing to China • Export Quotas to limit material available to the Rest of World • CHINA REDUCES QUOTAS FOR 2010 BY 70% 3 “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 “Chinese adamant on rare-earth metal cuts”- Aug 30-2010
  • 4. BUSINESS MODEL 4 Provide Investment exposure to a Physical Strategic Stockpile of Rare Earths without any mining risk Source and Export REE from China utilizing long established relationships Establish Secure warehouse locations outside of China Trade individual Rare Earth Elements to downstream customers to generate profit
  • 5. Capital Structure 5 Capital Structure Stock symbol: Shares issued: Fully diluted: Price (10/2210): Market Cap: 52-week High/Low: DSM – TSX:V 71.1 M 97.5 M $0.55 $39 M $1.05-$0.32 Latest Financing(Mar 2010) Amount Raised: Shares issued: Issue Price: $22.0 M 48.9 M $0.45 Key Institutional Shareholders Goodman & Co ~12% AGF Management ~ 6% RAB Capital ~ 4% Aberdeen International Inc ~ 3% TD Asset Management ~ 2% Management & Insiders ~ 4%
  • 6. Management 6 Scott Moore, MBA, President & Chief Executive Officer  Mr. Moore is an experienced capital markets executive with 20 years experience in the resource sector  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.  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 GM, Rare Earth Division and VP Business Development for AMR (Now Neo-Material Technologies TSX:NEM) and brings over 15 years of direct Rare Earth experience. Mr Neill lives full time in Beijing  He holds a MBA from York University and a Bachelor of Engineering in Material Science from the University of Western Ontario Patrick Wong, Chief Investment Officer  Mr. Wong is a seasoned hedge fund manager with over 15 years of experience and a consistent track record of high returns  During his career in the public markets, Mr. Wong ran proprietary trading desks at various brokerage firms Brad Boland, C.M.A., Chief Financial Officer  Mr. Boland was the CFO of Consolidated Thompson Iron Mines Limited until July 2009  From May 2005 to September 2007, he was at Kinross Gold Corp., most recently serving in the position of Vice President, Corporate Controller  Prior to that, from August 1998 to February 2005, Mr. Boland was at Goldcorp Inc., as Corporate Controller and the Vice President, Finance
  • 7. Investment Rationale 1. Dacha Strategic Metals Inc. “DACHA” has acquired a physical inventory of strategic minerals including Rare Earth Elements with its mainland China expertise 2. The physical inventory of Rare Earth Oxides and Metal is held in LME approved warehouses off-shore near primary users such as Japan and Korea 3. DACHA has the ability to trade in and out of multiple strategic minerals and is not limited to one specific commodity 4. DACHA can capitalize on the strategic minerals asset class without the mining risk associated with equity resource investments Dacha can become the “market maker” in Rare Earth Elements 7
  • 8. Attractive Value Proposition 8 Participate in the expected price appreciation of rare earths and strategic industrial metals No Exploration or Mining Risk Rare Earth Metal inventory Apr 2010 to Sept 30 2010 Quantity (Kgs) Cost Market Value Dysprosium Oxide 5,000 $ 1,002,000 $ 1,467,000 Dysprosium Fe 30,000 5,856,000 8,480,000 Gadolinium 20,000 357,000 1,232,000 Lutetium 3,000 949,000 1,235,000 Terbium 13,000 6,647,940 8,166,000 Yttrium 20,000 250,000 788,000 Europium 6,000 2,554,000 2,747,000 Yttrium 120,000 1,022,000 1,034,000 217,000 $ 18,622,139 $ 25,175,000 * *35% Increase in Inventory Value
  • 9. 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 9
  • 10. 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”. 10
  • 11. Supply response • 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 11
  • 12. Industrial Minerals are the Enablers of Modern Technology 12
  • 13. “Biggest User of Rare Earths of any Object in the World” 13 Toyota Prius  1kg Neodymium  15kg Lanthanum  0.1kg Dysprosium  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 Tomorrow 1mt Neodymium needed for every 3 MW of wind power generated 14
  • 15. - 50,000 100,000 150,000 200,000 250,000 2004 2005 2006 2007 2008 2009 2010f 2011f 2012f 2013f 2014f Demandtpa-REO China Supply ROW Supply Global Demand China Demand SUPPLY/Demand Gap Increasing 15 ROW: rest of word supply (yet to come on stream) REO: Rare Earth Oxides Source: IMCOA Global Demand (Exclusive of China) China Demand IMCOA Rare Earth Oxide Forecast
  • 16. Current State of the Rare Earth Markets 16  No significant commercial stockpile exists globally  No buffer to volatile pricing or actions from China  No ability to hedge against future price increases  Limited supply-side response  Most advanced Rare Earth mining projects are 2-5 years away from delivering product to market with substantial financial and technical hurdles to overcome Dacha has the inventory today and the ability to grow its stockpile quickly
  • 17. An Actively Managed Physical Portfolio 17 Dynamic Physical Portfolio of Rare Earths + Trading Operations Fundamental Research Asset Allocation First Mover Advantage
  • 18. Risk Minimization 18 Dacha’s LME Warehouse Locations LME Warehouse Singapore LME Warehouse Korea Inventory Insured at Market Value
  • 19. Why buy DACHA? なぜDacha製品を買うのか 19 Rising Commodity Prices For Rare Earth forecast in next 3yrs Only Rare Earth Company that actually owns the finished product Focused on high value Heavy Rare Earths Ability to continue to acquire REE in China despite reduction in export quotas Non-dilutive nature of equity financings builds critical mass for size of strategic inventory Diversification into other strategic metals
  • 20. A Forbes & Manhattan Group Company 20 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 Strategic Metal Advisory Board Alastair NeillDr. Allen Alper Don Bubar Gen. Ron Hite
  • 21. Forbes and Manhattan profile 21 Market Capitalization of F&M Group Companies >$4B Employees & Consultants Group Companies >30 Total Funds Raised in last 4 Years Number of Resource Projects in F&M Group Number of Producing Assets in F&M Group Number of Countries F&M Group has Projects >150 >$3B >40 >7 22
  • 22. Forbes Advisory Board 22 General Jay Garner, USA Served in the U.S. military for 35 years, including command of Air Missile Defence Units in the Gulf War. General John Abizaid, USA US Army, Commander, US Central Command General Chuck Wald, USA Air Force, Deputy Commander, European Command including Africa General George Joulwan, USA US Army, Former Supreme Allied Commander, Europe General Tony Zinni, USA US Marines, Former Commander in Chief of US Central Command – includes all Middle Eastern Countries General Larry Gillespie, USA Highly decorated, including Distinguished Flying Cross, Soldier’s Medal and Meritorious Service Medal General Sir Michael Rose, U.K. Former SAS Commander for the British Army and a highly decorated General. Hon. Pierre Pettigrew, Canada Served as Canadian Minister of Foreign Affairs and Trade Minister General Lewis MacKenzie, Canada Served in the Canadian Forces for 36 years; led the UN peacekeeping mission in Sarajevo
  • 23. G. Scott Moore President and CEO Tel: 416-861-5903 smoore@dachametals.com TSX:DSM OTCQX:DHCAF China Office Floor 5, South Building Zhonghai Mansion Jianguomenwai Street Beijing, China 1000020 Toronto Office 65 Queen St west, Suite 800 Toronto, Ontario M5h 2M5