Strategic Metals Ltd.


Strategic Metals Announces Hopper Property Option Agreement and Updates on Wolverine and Silver Predator Transactions

December 16, 2010 - Strategic Metals Ltd. (TSX-V: SMD) ("Strategic") is pleased to announce that it has entered into an option agreement with Bonaparte Resources Inc. ("Bonaparte") granting Bonaparte the right to acquire up to a 100% interest in the Hopper copper-gold-silver property (the "Hopper Property") located in the southwestern Yukon. Under terms of the agreement, Bonaparte can acquire a 50% interest in the property by paying Strategic $1,000,000 and incurring exploration expenditures of $4 million by December 31, 2013. An initial $50,000 payment is due to Strategic within 10 days of Exchange acceptance. Bonaparte can earn a further 30% interest in the Hopper Property by paying Strategic an additional $2 million and incurring additional exploration expenditures of $10 million by December 31, 2015. Bonaparte can acquire a full 100% interest in the property by paying Strategic a further $5 million by March 31, 2016 and granting Strategic a 2% net smelter return royalty on all production. Strategic may elect to accept full or partial payment of the final $5 million in shares of Bonaparte, provided that Strategic does not receive more than 19.9% of Bonaparte's issued share capital.

By agreement dated September 15, 2010 with Monster Mining Corp. ("Monster"), Strategic became the legal owner of a 100% interest in the Hopper Property. Under the agreement, Monster retained a 50% beneficial interest in all proceeds received by Strategic from the disposition of the Hopper Property. Accordingly, one-half of all cash payments, share issuances and royalty interests received pursuant to the Bonaparte option will be held in trust by Strategic and paid to Monster.

Wolverine Option Update

The property option transaction with Wolverine Minerals Corp. ("Wolverine") as announced on September 16, 2010 has closed. Under the terms of the option, Wolverine can acquire a 100% interest in 21 Yukon gold properties by paying Strategic $3 million by December 31, 2013 and issuing 19.9% of its share capital to Strategic at closing. Upon the exercise of the option, Strategic will retain a 2% net smelter return ("NSR") royalty on all precious metals production and a 1% NSR royalty on all other commodities. During the earn-in period, Strategic will also have the optional right to participate in future Wolverine financings to maintain its 19.9% stake in the company.

Prior to the closing of the option transaction, Strategic did not hold any Wolverine shares. The 6,785,044 Wolverine common shares acquired by Strategic at closing represent 19.9% of the Wolverine issued share capital following the closing. All of these shares will be held directly by Strategic and are being held for investment purposes. Strategic may in the future take such actions in respect of the Wolverine shares as it deems appropriate in light of the market circumstances then existing, including the potential purchase of additional shares of Wolverine through open market purchases or privately negotiated transactions, or the sale of all or a portion of such holdings in the open market or in privately negotiated transactions to one or more purchasers.

Silver Predator Transactions Update

Further to its February 4, 2010 news release, Strategic and Silver Predator Corp. ("Silver Predator") have signed a formal asset purchase agreement related to Silver Predator's purchase of eight mineral properties from Strategic. The properties are located in the Yukon and northern British Columbia. As consideration, Strategic will receive 2,000,000 common shares of Silver Predator and be granted a 2% NSR royalty on all precious metals production and a 1% NSR royalty on all other commodities.

In a related transaction, Strategic and Silver Predator have finalized the terms of a formal property option agreement under which Silver Predator will be granted an option to acquire a 100% interest in Strategic's Blue Heaven, QB and Ranch properties, located in the Yukon and northern British Columbia. As consideration, Strategic will receive 500,000 Silver Predator common shares at closing and a total of not less than an additional 5.5 million Silver Predator shares by February 28, 2014. Upon Silver Predator exercising the option, Strategic will retain a 2% NSR royalty on all precious metals production and a 1% NSR royalty on all other commodities.

Both the asset purchase and the property option transactions are required to close on or before February 28, 2011 and are subject to several conditions precedent, including the conditional acceptance for the listing of Silver Predator's common shares on the Toronto Stock Exchange.

About Strategic Metals Ltd.

Strategic is a pre-eminent explorer and landowner in the Yukon, with 39 properties under option to other companies, 8 properties subject to the Silver Predator sale agreement, and more than 100 wholly-owned properties. Strategic also holds royalty interests in 8 projects, including a net smelter return royalty on part of the Wolverine Deposit which is scheduled to commence production in 2011. Strategic currently has approximately $28 million in cash and owns marketable shares of other resource companies with a total value of approximately $70 million as of December 15, 2010. Its stock holdings include 9,806,286 shares of ATAC Resources Ltd. and 10,134,500 shares of Rockhaven Resources Ltd. Both ATAC and Rockhaven have recently announced very encouraging results from their Yukon gold projects. Further details can be found on their websites at and


"W. Douglas Eaton"

President and Chief Executive Officer

For further information concerning Strategic or its various exploration projects please visit our website 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
Tel: (604) 687-2522

Investor Inquiries
Richard Drechsler
Corporate Communications
Tel: (604) 687-2522
NA Toll-Free: (888) 688-2522

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.