January 16, 2012 - Strategic Metals Ltd. (TSX-V: SMD) ("Strategic") announces that the letter agreement with Gold Royalties Corporation ("Gold Royalties") as reported on November 9, 2011 has been terminated. Under the terms of the letter agreement, Gold Royalties was granted the right to purchase Strategic's net smelter royalty interests (the "Royalty Interests") in the Kink 3 mineral claim and the Northern Dancer property for $13.8 million.

Based on current market conditions, the sale of the Royalty Interests was not completed by January 16, 2012 and the parties have agreed to terminate the letter agreement.

About Strategic Metals Ltd.

Strategic is a pre-eminent explorer and claimholder in the Yukon, with an exceptional portfolio of 160 property and royalty interests. Strategic currently has approximately $30 million in cash and owns marketable shares of other resource companies, including 9.7% of ATAC Resources Ltd., 18.8% of Silver Range Resources Ltd., 26.1% of Rockhaven Resources Ltd, and 19.9% of Wolverine Minerals Corp.

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