Strategic Metals Ltd.

TSX.V:SMD $0.51

Investment Fund

In November 2008, Strategic established an investment fund (the "Fund") because Strategic felt the rate of return from GICs and other investment vehicles were not a good utilization of capital. Through the Fund, Strategic buys and sells the shares of other companies based on its own market research.

As of March 31, 2016, transactions within the Fund have generated total realized gains of approximately $2.037 million and unrealized losses of approximately $1.257 million.
(The reader is cautioned that these are unaudited figures).

The activities of the Investment Committee are carried out in accordance with a set of formal investment guidelines (the "Guidelines"). Under the Guidelines:

(a) The Investment Committee has the authority to commit up to $2,000,000 of Strategic's working capital funds to equity investments within the Fund;

(b) Profits generated from sales of securities purchased by the Fund shall be retained within the Fund for reinvestment;

(c) No more than 20% of the Fund's assets shall be invested in the securities of any one company, excluding securities owned by Strategic prior to November 7, 2008;

(d) All securities purchased by the Fund shall be those of mining companies, with preference given to companies whose market capitalization figures on a non-diluted basis are exceeded by their working capital per share;

(e) The Fund shall be managed by James Stephen, an independent consultant and former director of Strategic. Mr. Stephen will be under the direct supervision of the Investment Committee and shall not have the authority to withdraw funds from any of Strategic's stock accounts;

(f) Cash resources of the Fund not invested in mining company securities shall be held by the Fund in the form of T-bills until utilized;

(g) The Fund's investments shall be independent of purchases made under Strategic's current normal course issuer bid (share buy back plan);

(h) Members of the Investment Committee shall consult at least bi-weekly and shall be immediately advised if investments since the last consultation exceed $100,000 or before any individual transaction of $100,000 or more is completed;

(i) Decisions by the Investment Committee require unanimous consent of the members if it is comprised of two directors and a simple majority if it is comprised of three or more directors;

(j) The members of the Investment Committee shall disclose to each other, any personal security ownership they may have in any company whose securities the Fund is contemplating purchasing; and

(k) The Fund will provide Strategic's Audit Committee with a written monthly report summarizing its activities and investments.