Strategic Metals Ltd. Corporate Presentation June 2016
Forward Looking Statements Certain information regarding the Company contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond the Company's control, and that future events and results may vary substantially from what the Company currently foresees. Discussion of the various factors that may affect future results is contained in the Company's Annual Report which is available at www.sedar.com. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. All technical information contained in this corporate presentation has been approved by Heather Burrell, B.Sc., P.Geo., a geological consultant to Strategic Metals and qualified person for the purposes of NI 43-101. 2
Investment Highlights Innovative, well funded explorer with working capital of $44 million*. Company trading at significant discount (~12%) to working capital. Portfolio of investments in precious metal companies working on a variety of promising deposits. Pipeline of wholly-owned projects for option or sale to produce more cash, shares and royalty interests. * Includes cash and marketable securities estimated as of June 2, 2016. The value of marketable securities fluctuates on a daily basis. 3
Management Team and Board Extensive management knowledge and expertise W. Douglas Eaton, B.A., B.Sc. President, CEO and Director Ian J. Talbot, B.Sc., LLB. COO Larry Donaldson, C.A. CFO Glenn R. Yeadon, B.Comm. LLB. Secretary and Director Richard Drechsler, B.Sc. VP, Communications Bruce A. Youngman, B.Sc. Director Partner of Archer, Cathro & Associates since 1981. Exceptional knowledge of Yukon geology and contributor to several important discoveries. Geologist and lawyer. Practiced exclusively in mining and securities law. Former in-house counsel with BHP Billiton World Exploration Inc. Chartered Accountant. Extensive experience in public company audits, and in accounting and tax planning for mineral exploration companies. Barrister and solicitor practicing primarily in the field of securities law. Partner or associate with Tupper Jonsson & Yeadon since 1983. Investor relations manager; First Nations and community liaison. Worked in the mining/mineral exploration industry since 2005. Former President of Canplats Resources, acquired by Goldcorp for $300 million in 2010. Former President and VP of Northern Dynasty Minerals. Independent Directors: Lee A. Groat, B.Sc, Ph.D. Bruce J. Kenway, C.A. R.E. Gordon Davis, P.Eng. Ryan E. Schedler, B.Sc, MBA Geology Professor, University of British Columbia. Chartered Accountant and founder Kenway Mack Slusarchuk Stewart LLP. Former Chairman of Canplats Resources & VP of Cyprus Anvil Mining. Investment Professional, Managing Director of Condire Investors. 4
Project Generation Archer, Cathro & Associates (1981) Limited, has been the pre-eminent Yukon exploration consulting firm since 1965. Archer Cathro uses its knowledge and proprietary database to generate prospects on behalf of Strategic. Yukon discoveries and/or deposits made or advanced by Archer Cathro include: Casino Western Copper Osiris ATAC Resources Wellgreen Wellgreen Platinum Klaza Rockhaven Resources Wolverine Yukon Zinc Tiger ATAC Resources Carmacks Copper Copper North Marg Golden Predator Division Mountain Pitch Black Golden Revenue Northern Freegold Blende Blind Creek Resources Ice Yukon Zinc Archer Cathro has designed and implemented programs on behalf of companies that have received four Leckie Awards for Excellent Environmental Stewardship since 2000. 5
Capital Structure STRATEGIC METALS LTD. TSX-V:SMD SHARES OUTSTANDING: 87,768,851 FULLY DILUTED: 92,883,351 WORKING CAPITAL: ~$44 million 1 MARKET CAPITALIZATION: Significant Holders STRATEGIC MANAGEMENT 2 17.7% TOCQUEVILLE GOLD FUND 12.5% CONDIRE RESOURCE PARTNERS 13.4% ~$39 million $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 1 Estimated cash and marketable securities as of June 2, 2016. 2 Includes consultants and key employees on a fully diluted basis. $- 6
Working Capital vs Market Capitalization 7
Major Shareholdings Tireo Gold Camp, Dominican Republic Share purchase warrants to 41% Precipitate Gold Corp. 28.7% ATAC Resources High grade near surface gold oxide deposit Carlin-type gold district east central Yukon 8.6% Rockhaven Resources 46.6% Epithermal gold and silver veins Dawson Range Gold Belt of Southwest Yukon 3 Yukon deposits $1.7 million cash Gold project generator in NWT, Nunavut & Nevada Silver Range Resources 19.9% Strategic Metals Kesselrun Resources 4.2% Ontario focused gold exploration Zambia-Congo Copper Belt 15 km SW of the Kansanshi Mine Midnight Sun Mining 4.6% Investment Fund Orefinders Resources 6.5% Gold exploration in the Kirkland Lake and Red Lake Districts of Ontario Minor holdings in 27 other companies 8
Foundation: Project Generator Yukon N.W.T. Largest claim holder in Canada s most geologically prospective jurisdiction. Interests in over 100 properties. Diverse suite of commodities with a focus on precious metals. 7 royalty interests. B.C. 9
# of mineral properties Growing Portfolio of Projects 180 160 140 120 100 80 60 40 20 Acquire on weakness. Deal on strength. 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Royalty Interest Under Option 100% Interest $7.5 million accrued assessment credits prior to 2016 field work 10
Permitted Precious Metal Projects 24 precious metal projects with land-use permits granted or pending. Emphasis on proximity to infrastructure. 11
Project Life Cycle 12
Looking Forward Strategic has demonstrated its ability to acquire good projects at low cost during times of market weakness and capitalize on those projects during times of market strength. At current pricing, our shares offer tremendous value. Strategic is highly leveraged to the exploration cycle and has enormous upside as metal markets improve. Our business model favours patient growth and effective risk management. Company plans to drill one or more properties as phase two of its 2016 exploration program. 13
Contact Information Strategic Metals Ltd. 1016-510 West Hastings Street Vancouver, BC, V6B 1L8 Phone: 604-687-2522 Toll Free: 1-888-688-2522 E-mail: info@nordacres.com Web: www.strategicmetalsltd.com V.P. Communications: Richard Drechsler Phone: 604-687-2522 Toll Free: 1-888-688-2522 E-mail: rdrechsler@strategicmetalsltd.com 14