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Dacha Releases Q1 Financial Statements

TORONTO, Aug. 27, 2013 /CNW/ - Dacha Strategic Metals Inc. (TSX-V: DSM) ("Dacha") today released its unaudited financial results for the three months ended June 30, 2013.  For more information, please see Dacha's condensed interim consolidated financial statements and management's discussion and analysis filed under Dacha's profile on SEDAR at  All dollar references below are to U.S. funds.

During the three months ended June 30, 2013, Dacha reported a net loss of $8.1 million (or $0.11 per basic share), compared to a net loss of $16.7 million (or $0.22 per basic share) during the three months ended June 30, 2012.  The net loss during the three months ended June 30, 2013 was largely as a result of losses on Dacha's metals investments including declines over the period in the estimated fair market value of Dacha's metals inventories.

As at June 30, 2013, Dacha held 47,450 kilograms of rare earth metals with an estimated fair market value, based upon pricing reported by two independent news sources for the strategic metals industry, of $15.2 million.  The true realizable value of the rare earth metals held by Dacha may significantly differ from the prices reflected on these market websites.  Further, due to the illiquidity of rare earth metals markets and the significant volatility of prices at which Dacha's metals investments may be sold, there may be significant differences between the prices that may actually be realized in a sale of Dacha's metals and estimated values as reflected in Dacha's financial statements.

As at June 30, 2013, Dacha had net assets of $17.4 million (or $0.23 per basic share), principally comprising its metals inventories with an estimated fair value of $15.2 million, cash of $2.6 million, accounts receivable of $276,974, prepaid expenses and deposits of $57,408, accounts payable and accrued liabilities of $424,001, income taxes payable of $122,375 and deferred income taxes of $124,011.

Subsequent to June 30, 2013, Dacha sold a portion of its inventory of Terbium Oxide.  These metals were sold for an amount approximating their original cost, although market conditions at the time of this sale were such that the metals were sold for less than their estimated fair market value as at June 30, 2013 as reflected in Dacha's financial statements.

Since the reconstitution of Dacha's board on November 28, 2012, Dacha has been reviewing its opportunities and prospects to create shareholder value from both its existing metals inventories and its rare earth metals business going forward.  As part of that review, which is ongoing, Dacha continues to evaluate Dacha's inventory positions and may make future purchases or sales of rare earth metals depending upon market conditions and other relevant facts.  In seeking to best utilize its capital so as to maximize long-term value for shareholders, Dacha may also make other investments from time to time unrelated to the rare earth metals business, or seek to undertake one or more merger, amalgamation or other transactions involving Dacha.

Dacha is scheduled to hold its annual and special meeting of shareholders at 10:00 a.m. ( Toronto time) on September 27, 2013.  The record date for purposes of notice and voting at that meeting has been fixed as the close of business on August 27, 2013, and meeting materials will be sent to shareholders shortly.

About Dacha

Dacha has invested in physical strategic minerals and, in particular, indirectly owns an inventory of physical strategic minerals with a focus on rare earth elements.  Its shares are listed on the TSX Venture Exchange under the symbol "DSM".

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