Strategic Metals Ltd.

TSX.V:SMD $0.47

Strategic Metals Ltd. Discovers New Zones And Substantially Expands Keg Area Claim Holdings To Create Silver Range Project


November 4, 2010 - Strategic Metals Ltd. (TSX-V: SMD) ("Strategic") is pleased to announce that it has identified four more large-scale zones of silver-zinc-lead-copper mineralization on its Keg and Rebel properties in the Faro District of south-central Yukon. Prompted by very encouraging results from initial diamond drilling, prospecting and soil geochemical surveys, Strategic has expanded its land position to 1,758 wholly-owned claims covering 350 square kilometres in what is now referred to as the "Silver Range Project." During the 1970's and 1980's, the Faro District was the site of the largest open-pit lead-zinc-silver mining operation in Canada, and the area still has excellent but now under-utilized infrastructure.

An initial, four hole drill program at the Keg property in June and July 2010 intersected broad intervals of disseminated and stockwork mineralization in all holes (see news release dated September 7, 2010). Drill hole Keg 10-1 returned 50.09 g/t silver, 1.20% zinc, 0.65% lead, 0.14% copper, 217 ppm tin and 9.55 ppm indium over 125.7 m and bottomed in mineralization. The widely-spaced drilling partially tested a 550 m strike length of the Keg Zone, which lies within soil geochemical and geophysical anomalies approximately four kilometres long and several hundred metres wide. The strongest part of the soil geochemical anomaly lies to the east of the drill area and has yet to be tested.

A comprehensive exploration program is planned for 2011 to follow-up positive results from the initial drilling at the Keg Zone and to evaluate other zones at the Silver Range Project. Five diamond drills have been reserved for this project and land use permits have been approved for more than 20,000 m of drilling in up to 100 holes.

The zones at the Silver Range Project are distinguished from typical base metal showings and deposits elsewhere in Yukon by their uncommonly high silver contents relative to contained base metals and by their enrichments of tin, indium and other relatively rare metals. The large size, overall geometry and metal signatures of the zones suggest that they could be porphyry related.

The mineralized zones are spaced 6 to 10 km apart and are named the Owl, Keg, Drex and Marks Zones. The Rebel Zone is similar geologically and geochemically but lies about 15 km south of the main mineralized trend. Each of the five zones is marked by strong multi-element soil geochemical values. Widely spaced, reconnaissance-scale sampling elsewhere on the property has identified other areas with similar geochemical signatures, and follow-up soil sampling and prospecting in these areas are expected to identify more zones of mineralization. Individual zones are briefly described in the following paragraphs:

The Keg Zone is the best known of the showings at the Silver Range Project. The mineralization mostly fills narrow, steeply south dipping fractures in strongly silicified clastic sediments. Disseminated to semi-massive mineralization is also developed in calc-silicate altered limy horizons that dip moderately to the south. Bedrock exposures are rare in the zone so relatively little surface rock sampling has been done. Twelve samples from well mineralized outcrops and talus in the central part of the zone averaged 182 g/t silver, 1.28% zinc, 1.78% lead, 0.66% copper, 936 ppm tin (note: 500 ppm = 1 pound/ton) and 13.8 ppm indium. In June and July 2010, four diamond drill holes tested the west end of the Keg Zone over a length of 550 m. All of these holes intersected mineralization over lengths ranging from 80 m to 130 m, with results shown in the following table.
Hole
No.
From
(m)
To
(m)
Length+
(m)
Ag
(g/t)
Zn
(%)
Pb
(%)
Cu
(%)

Sn*
(ppm)

In*
(ppm)
Keg-10-01 59.30 185.00 125.70 50.09 1.20 0.65 0.14 217 9.55
Keg-10-02 7.62 139.00 131.38 28.10 1.39 0.21 0.22 534 5.94
Keg-10-03 150.75 231.70 80.95 15.67 0.64 0.26 0.07 114 4.21
Keg-10-04 24.92 144.27 119.35 32.48 1.08 0.32 0.18 333 8.33
+True widths of mineralized intervals are approximately 85% of intersected lengths
* Tin (Sn) and indium (In) are potential by-product metals


These four drill holes have tested the mineralization to a maximum vertical depth of 115 m below surface. Soil geochemical and geophysical anomalies associated with the Keg Zone indicate a target area about 4 km long and several hundred metres wide. Limited previous drilling in the area targeted massive sulphide mineralization similar to that present at the Anvil mining camp and did not systematically sample fracture-style mineralization. A bulldozer/excavator was mobilized to the Keg Zone in early September. It has built a trunk road from the zone to a camp that will be used to support the follow-up drill program scheduled to begin in spring 2011.

The Owl Zone lies six kilometres northwest of the Keg Zone. It has never been drilled despite being marked by a strong soil geochemical anomaly and a large prominent gossan. Five well mineralized rock samples collected in 2010 averaged 500 g/t silver, 3.52% zinc, 7.72% lead, 0.05% copper, 381 ppm tin and 10.4 ppm indium. The soil geochemical anomaly at the Owl Zone is approximately 2 km long and terminates in areas blanketed by thick layers of frozen organic matter which made further sampling impractical.

The Drex Zone is situated 11 km east of the Keg Zone and is exposed in a deep creek cut that has eroded through a heavily vegetated, glaciated plateau. It was not mentioned in any historical reports and appears to be a new discovery. The zone is about 50 m wide and has been traced for a length of 400 m. It remains open to extension in both directions along strike. Eleven rock samples from this zone averaged 224 ppm silver, 0.81% zinc, 2.18% lead, 0.15% copper, 2417 ppm tin and 9.0 ppm indium.

The Marks Zone lies 20 km east-southeast of the Keg Zone near the floor of a broad creek valley. A number of mineralized exposures are reportedly scattered through an area of anomalous soil geochemistry. Some soil sampling was done at this zone in 2010 but it was not prospected or mapped.

The Rebel Zone is the only zone other than the Keg Zone that has received any diamond drilling. Eighteen holes were completed by previous owners at various times between 1967 and 1980 to test soil geochemical and geophysical anomalies. Several of these holes cut fracture filling mineralization but little systematic core sampling was done. The longest continuously sampled interval reportedly graded 2.28% zinc, 0.10% lead and 0.10% copper over 61 m. Assay results were not reported for silver and other elements. No drilling was done in 2010 but eighteen mineralized rock samples taken from gossanous talus in a 500 m diameter area averaged 107 g/t silver, 1.41% zinc, 2.54% lead, 0.73% copper, 129 ppm tin and 37 indium.

Most of the claims comprising the Silver Range Project have not yet been systematically soil sampled. Outcrop is rare and many areas are blanketed with thick layers of glacial till or frozen organics. Therefore, geophysical surveys are required before systematic diamond drilling begins. Strategic had a ZTEM survey flown across central part of the Keg property earlier this summer and has recently expanded that survey to cover most of that property. The Keg, Drex and Rebel zones have also been tested with a few line kilometres of induced polarization surveys to evaluate their response to that geophysical technique. Data from the geophysical surveys is currently being processed and interpreted. Additional information on the Silver Range Project has been posted on Strategic's website at www.strategicmetalsltd.com.

The 2010 exploration program at the Keg and Rebel properties was conducted by Archer, Cathro & Associates (1981) Limited under the supervision of Heather Smith, P. Geo. who is a qualified person as defined by National Instrument 43-101.

Analytical work for the Silver Range Project in 2010 was done by ALS Chemex. The sample preparation of core samples was done in Whitehorse and the assays and geochemical analyses in North Vancouver. Core samples were processed in 36 sample batches with each batch including two assay standards, two blank samples, and one duplicate sample. 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). All samples in mineralized intervals were subsequently assayed for silver, zinc, lead and copper by Ag/Zn/Pb/Cu-OG62 and selected samples were further checked by Ag/Zn/Pb and/or Cu-OG46. All of the samples were also 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 were analyzed for tin and tungsten using pressed pellet X-ray fluorescence (Sn/W-XRF05). The average grades reported for silver, zinc, lead and copper in this news release are calculated from the assay results, while reported grades for tin and indium were calculated using Sn-XRF05 and ME-MS41 values, respectively. All standard, blank and duplicate samples passed QAQC reviews. Rock and soil samples were prepared and analyzed at the ALS Chemex lab in North Vancouver. Initially rock and soil samples were analyzed by ME-ICP41 and Au-ICP21, but all of these samples were later reanalyzed by ME-MS41. This technique (ME-MS41) was subsequently used exclusively for rock and soil samples and analysis by ME-ICP41 and Au-ICP21 were discontinued. When rock or soil samples exceeded detection limits for elements of interest, they were further analyzed by the same techniques used on over-limit core samples.


About Strategic Metals Ltd.

Strategic is a pre-eminent explorer and landowner in the Yukon, with 35 properties under option to other companies, 11 properties subject to an optional sales agreements, and approximately 100 wholly-owned properties. Strategic also holds royalty interests in 8 more projects, including a net smelter return royalty on part of the Wolverine Deposit which is scheduled to commence production in 2010. Strategic currently has about $30 million in cash and owns marketable shares of other resource companies with a total value of approximately $87 million as of October 31, 2010. Its stock holdings include 9,806,286 shares of ATAC Resources Ltd. and 10,134,500 shares of Rockhaven Resources Ltd.

ON BEHALF OF THE BOARD

"W. Douglas Eaton"

President and Chief Executive Officer


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

Corporate Information

Strategic Metals Ltd.
W. Douglas Eaton
President and C.E.O.
Tel: (604) 688-2568

Strategic Metals Ltd.
Bruce A. Youngman
Chairman
Tel: (604) 687-2522

Investor Inquiries

Richard Drechsler
Corporate Communications
Tel: (604) 687-2522
NA Toll-Free: (888) 688-2522
rdrechsler@strategicmetalsltd.com
http://www.strategicmetalsltd.com

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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.