Dacha Corporate Presentation – August, 2011

1. Corporate Presentation TSX-V:DSM OTCQX:DHCAF August 2011 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. Capital Structure 3 Rare Earth Metal Value HARD ASSET VALUE $1.96 PER SHARE Metals ` $143.8 million Cash$3.7 million Liquid Securities$3.7 million Total: $150.0 million Discount to Net Assets 60%

5. Multi Metal strategy reduces single element exposure risk

6. Generate profits from trading to downstream customers

7. Mitigate Risk with inventory located in multiple LME approved warehouses located off-shore near end-users

8. Maximize inventory and trade gains through a tax effective off-shore corporate structure

10. Attractive Value PropositionInventory Value at April 21, 2011 6 Participate in the expected price appreciation of rare earths and strategic industrial metals No Exploration or Mining Risk

11. Attractive Value PropositionInventory Value at May 27, 2011 7 Participate in the expected price appreciation of rare earths and strategic industrial metals No Exploration or Mining Risk

12. Attractive Value PropositionInventory Value at June 10, 2011 8 Participate in the expected price appreciation of rare earths and strategic industrial metals No Exploration or Mining Risk

13. Attractive Value PropositionInventory Value at August 5, 2011 9 Participate in the expected price appreciation of rare earths and strategic industrial metals No Exploration or Mining Risk

16. 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”. “ China Defends Rare Earth Quotas as inline with WTO” Bloomberg Dec 30-2010 12

18. 15 elements plus Yttrium are classified as REE and have specific magnetic, fluorescent and chemical properties

19. Some are classed as Light, Medium or Heavy REE and have varying applications in laptops, LCD’s , cellular phones and hybrid vehicles.

22. 15kg Lanthanum

23. 0.1kg Dysprosium

24. Top-selling car in Japan100 g of Dysprosium is worth approximately $160 Without Dysprosium you don’t have a Prius

25. The Largest User of Rare Earths Tomorrow1mt Neodymium needed for every 3 MW of wind power generated 16

26. Current State of the Rare Earth Markets 17 Source: Rhodia

28. Starting Mt Weld mine with announced production in late 2011

29. Primarily a Light Rare Earth Deposit with 96% of 2012 production in Cerium, Lanthanum and Neodymium and Praseodymium

30. First production is 11,000 tonnes per year.

31. No production of Heavy Rare Earth Elements ( DY,Tb,Yt)

32. MolyCorp Inc AMEX-MCP

33. Re-opening the Mountain Pass mine closed since 1998 with production in 2013

34. Primarily a Light Rare Earth Deposit with 86% of 2013 production in Cerium, Lanthanum and Neodymium

35. Expected to produce approximately 40,000 Tonnes per year

37. SUPPLY/Demand Gap Increasing 20 Rare Earth Oxide Forecast

39. No buffer to volatile pricing or actions from China

40. No ability to hedge against future price increases

41. Limited supply-side response

42. Most advanced Rare Earth mining projects are 2-5 years away from delivering product to market with substantial financial and technical hurdles to overcomeDacha has the inventory today!

43. Risk Minimization 22 Inventory Insured at Market Value not cost Pacorini Metals Shanghai Warehouse Pacorini Metals LME Warehouse Korea x 2 * Pacorini Metals is owned by Glencore

45. Only Rare Earth Company that actually owns the finished product

46. Focused on high value Heavy Rare Earths

47. Demonstrated Ability to acquire REE in China despite reduction in export quotas

48. No new supply of Heavy Rare Earths till 2015 at the earliest

49. Demonstrated Ability to trade with downstream customers

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

55. TSX:DSM OTCQX:DHCAF China Office 11th Floor, Kerry Centre North Tower 1 Guanghua Rd Beijing, China 1000020 G. Scott Moore President and CEO Tel: 416-861-5903 smoore@dachametals.com Toronto Office 65 Queen St west, Suite 800 Toronto, Ontario M5h 2M5