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. Investment Objectives
o Ownership of physical stockpiles of Rare Earth Elements
without any mining risk
o Diversified basket of metals eliminates single element exposure risk
o Demonstrated ability to source and export Rare Earth Elements from China
o Current inventory stored in LME approved warehouses located off-shore near
end-users
o Generate profits from trading individual elements to downstream customers
o Tax effective corporate structure to maximize inventory and trade gains 3
4. Capital Structure
Capital Structure Key Institutional Shareholders
Goodman & Co ~10%
Stock symbol: DSM – TSX:V
AGF Management ~ 6%
Shares issued: 73.1 M
Fully diluted: 99.5 M RAB Capital ~ 4%
Price (03/03/11): $0.39 Aberdeen International Inc ~ 3%
Market Cap: $28 M
52-week High/Low: $1.05-$0.32
Management & Insiders ~ 4%
Inventory Value (Mar 14, 2011)
$0.58 per Share (Basic)
$0.52 per Share (FD)
4
5. Management
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 and Avion Gold. He has raised in excess of $250 million in resource companies 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 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
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.
Jihong Gan, BA, MA, Manager Contracts and Administration
Ms. Gan is an accomplished administrator with a specialization in East Asian languages.
Ms. Gan has a Bachelor of Arts (Major: Japanese) from the Shanghai International Studies University in Shanghai and a Masters
of Arts in East Asian Language studies from Osaka University of Foreign Studies.
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6. BUSINESS MODEL
2010 Achievements
289,000 kilograms of Heavy Rare Earth Oxides Acquired in 2010
199,000 kilograms of Heavy Rare Earth Oxides in Inventory at Dec 31
11 acquisition trades executed in 2010 totaling $30.84 million
5 Sales contracts with 4 different customers executed in Q4 2010
$15.65 million in gross sales and $5.2 million in gross profit in Q4 2010
6
7. Attractive Value Proposition
Participate in the expected price appreciation of
rare earths and strategic industrial metals
Metals Inventory Grades* Quantity Cost Market Value
as at March 22, 2011 (Kgs) ($millions) ($millions)
Busan Korea
Dysprosium Oxide 4N 15,000 $4.60 $7.70
Dysprosium Fe Santoku 12,000 $3.50 $6.70
Gadolinium 4N5+ 10,000 $0.70 $1.30
Lutetium Oxide 4N+ 3,000 $0.90 $1.20
Neodymium Oxide 4N+ 10,000 $1.00 $1.70
Terbium Oxide 4N+ 13,000 $6.60 $11.00
Yttrium Oxide 5N 10,000 $0.40 $1.20
Shanghai China
Europium Oxide 4N5+ 6,000 2.2 3.1
Yttrium Oxide 4N5+ 120,000 0.9 2.5
Total: 199,000 $20.80 $36.40
*Grades:
4N = 99.99%
4N+ = 99.99+%
5N = 99.999%
4N5+ = 99.99%/99.999+%
No Exploration or Mining Risk 7
8. China - Guarding the Supply
• Produces +95% of Global Supply
• Export Tariffs of 25% imposed to drive manufacturing to China
• Export Quotas reduced every year for last 5 years
• China reduces Quotas for second half 2010 by 70%
CHINA REDUCES QUOTAS FOR H1-2011 BY 35%
“Chinese adamant on rare-earth metal cuts”-
Aug 30-2010
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9. Rare Earths in the Limelight
“China Tightens Grip on Rare Minerals”
“China slashes first batch of rare earth export quotas by 35.17%”- Dec 30-2010
“China Cuts Rare Earth Exports”
Japan rare earths imports from China plunge in Nov
December 27, 2010 -- TOKYO (Source: Reuters)
“China Cracks Down on Illegal Mining of Rare Earth Metals” – Dec 2010
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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”.
“ China Defends Rare Earth Quotas as inline with
WTO” Bloomberg Dec 30-2010
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11. “What Are Rare Earth Elements”
Rare Earth Element or REE are Lanthanide series elements and are found at the bottom of
the Periodic Table
15 elements plus Yttrium are classified as REE and have specific magnetic, fluorescent and
chemical properties
Some are classed as Light, Medium or Heavy REE and have varying applications in laptops,
LCD’s , cellular phones and hybrid vehicles.
Heavy REE such as Europium, Terbium and Dysprosium command the highest value
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12. Rare Earth Elements
Industry Primer
Lighter Weight
Product Miniaturization
Enhanced Performance and Functionality
Enhanced Control and Measurement
Energy Efficiency / Environmental Compliance
Essential inputs for virtually all
electronic products
No substitutes exist that have the
same characteristics and provide
the same benefits
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13. Rare Earth Applications
Toyota Prius
Biggest User of Rare Earths of any Object in the World
1kg Neodymium
15kg Lanthanum
0.1kg Dysprosium
Top-selling car in Japan
100 g of Dysprosium is worth approximately $10
Without Dysprosium you don’t have a Prius
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14. The Largest User of Rare Earths Tomorrow
1mt Neodymium needed for every 3 MW of wind power generated
14
16. Supply Side Response
MolyCorp Inc AMEX- Lynas Corporation ASX-
MCP LYC
Re-opening the Mountain Pass Starting Mt Weld mine with
mine closed since 1998 with announced production in late 2011
production in 2013
Primarily a Light Rare Earth
Primarily a Light Rare Earth Deposit with 96% of 2012
Deposit with 86% of 2013 production in Cerium, Lanthanum
production in Cerium, and Neodymium and Praseodymium
Lanthanum and Neodymium
First production is 11,000 tonnes per
Expected to produce year.
approximately 40,000 Tonnes per
year No production of Heavy Rare
Earth Elements ( DY,Tb,Yt)
No production of Heavy Rare
Earth Elements ( DY,Tb,Yt) 16
19. Current State of the
Rare Earth Markets
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 19
20. An Actively Managed
Physical Portfolio
Fundamental Research
Asset Allocation
Dynamic
Physical Portfolio
of Rare Earths
+
Trading Operations
First Mover Advantage
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22. Why buy DACHA?
Rising Commodity Prices For Rare Earth forecast in next 3-5 years
Only Rare Earth Company that actually owns the finished product
Focused on high value Heavy Rare Earths
Demonstrated Ability to acquire REE in China despite reduction in
export quotas
No new supply of Heavy Rare Earths till 2015 at the earliest
Diversification into other strategic metals
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23. A Forbes & Manhattan Group Company
Forbes & Manhattan
A Private Merchant Bank
Dacha Strategic Metals Inc.
Management Team
Scott Moore Alastair Neill Brad Boland
President and CEO Executive VP CFO
Board of Directors
Jean-Guy Claude
Stan Bharti Scott Moore Alastair Neill Gen. Ron Hite George Faught
Lambert Blanchet
Strategic Metal Advisory Board
Dr. Allen Alper Alastair Neill Don Bubar
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24. TSX:DSM OTCQX:DHCAF
China Office
Toronto Office 11th Floor, Kerry Centre G. Scott Moore
65 Queen St west, Suite 800 North Tower President and CEO
Toronto, Ontario 1 Guanghua Rd Tel: 416-861-5903
M5h 2M5 Beijing, China smoore@dachametals.com
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