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August 10, 2010 - Strategic Metals Ltd. (TSX-V: SMD) ("Strategic") announces assay results for the first of four diamond drill holes completed earlier this summer at its wholly owned Keg property in central Yukon Territory. The assay results confirm visual evaluation of core (see Strategic News Release dated July 26, 2010). Assays for the other three holes are expected to be announced in about 10 days, once all analytical results are completed, compiled and checked.

Hole KEG-10-01 was collared about 100 m south of a strong multi-element soil geochemical anomaly and was drilled northwards at -45° under the anomaly. It entered a well mineralized stockwork fracture zone at a depth of 59.3 m and remained in the zone to 185 m, where the hole was abandoned due to lost water circulation. The 125.7 m interval of mineralization averaged 50.09 g/t silver, 1.20% zinc, 0.65% lead, and 0.14% copper. The interval is also enriched in other metals (including indium, tin and bismuth) which could be of economic significance as by-products. The hole did not cross the entire width of the zone and based on structural measurements, true widths are believed to be about 85% of intersected widths.

The mineralization occurs in a 50 to 150 m wide zone that starts at surface and dips steeply to the south. The associated soil geochemical anomaly is about 4000 m long. The mineralization is mostly hosted in stockwork fractures that cut intensely silicified, fine-grained clastic sediments and cherts. Disseminated mineralization is also locally present within skarnified limestone horizons. No intrusive rocks have been identified to date within the zone but small plugs have been mapped nearby. The Anvil Batholith lies 5 km to the southwest and a caldera related to the South Fork Volcanics is mapped 10 km to the northeast. These Cretaceous-age intrusive events cut various Palaeozoic-age strata that have been juxtaposed by a complex series of high angle and thrust faults, which appear to have acted as conduits for mineralizing hydrothermal fluids.

The Keg property is very favourably situated in regards to infrastructure. It lies 35 km north of the town of Faro, which formerly serviced the mines and mill of the Anvil zinc-lead-silver district. A heavy duty haulage road and a high voltage power line, connected to the main Yukon electrical grid, extend to the mill site.

Since intersecting the mineralized zone, Strategic has moved aggressively to advance the project. It has enlarged its land position to cover nearby showings and soil anomalies. It has also completed a 612 line kilometre ZTEM survey across the core of the expanded property and has crews performing additional soil sampling. A land use application has been made for a Class III, five year exploration program, and pending approval of that application, camp construction, line cutting and ground geophysical surveys will begin. A small bulldozer will be flown to the property this fall and a localized system of trails and drill pads will be built. All of this work is being done in anticipation of a major diamond drill program to commence in spring 2011.

Strategic is following rigorous sample handling and analytical procedures in regard to core from the Keg property. Core samples are being processed in 36 sample batches with each batch including two assay standards, two blank samples, and one duplicate sample. Analytical work is being done by ALS Chemex with sample preparation in Whitehorse and assays and geochemical analyses in North Vancouver. All core samples were initially analyzed for gold by fire assay followed by atomic absorption (Au-AA24) and 35 other elements by inductively coupled plasma-atomic emission spectroscopy (ME-ICP41). Samples in mineralized intervals are being assayed for silver, zinc, lead and copper (Ag/Zn/Pb/Cu-OG62); geochemically analyzed for 51 other elements (which include common refractory elements) by aqua regia digestion followed by inductively coupled plasma combined with mass spectroscopy or atomic emission spectroscopy (ME-MS41); and analyzed for tin and tungsten using pressed pellet XRF (Sn/W-XRF05). The average grades reported for hole KEG-10-01 are for the assay results. All standard, blank and duplicate samples passed QAQC reviews.

Work at the Keg property is being conducted by Archer, Cathro & Associates (1981) Limited. H. Smith, P. Geo., is overseeing the program and is the qualified person for purposes of National Instrument 43-101.

Strategic's exploration programs elsewhere in Yukon and British Columbia are at various stages of completion. Diamond drill programs have concluded at the Nikki, GK, Bolt, Arm, Lea, and Off properties and core is now being logged. Surface work has been done or is underway at numerous precious metal prospects. Preliminary results from several of those prospects are encouraging and follow up work is planned. Helicopter-borne magnetic, radiometric and VLF surveys have been contracted for six properties. Summary results will be released following data compilation, evaluation and consolidation of the claim positions.

For further information concerning Strategic or its various exploration projects please visit our website atwww.strategicmetalsltd.com or contact:

Graham Downs or Richard Drechsler
Corporate Communications
Strategic Metals Ltd.
604-687-2522
graham@nordacres.com, rdrechsler@archercathro.com

STRATEGIC METALS LTD.
Per: W. Douglas Eaton, President and Chief Executive Officer

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release may contain forward looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.