November 8, 2016 - Strategic Metals Ltd. (TSX-V: SMD) ("Strategic") announces that on November 8, 2016, it exercised 10,000,000 share purchase warrants of Precipitate Gold Corp. ("Precipitate") at a price of $0.12 per share for total cash consideration of $1,200,000. (These warrants formed part of a private placement of 10,000,000 units which Strategic purchased from Precipitate by way of a private placement on November 26, 2015.)

As a result of the exercise of these 10,000,000 warrants, Strategic currently holds 24,597,327 common shares of Precipitate, representing 33.38% of the 73,692,575 common shares of Precipitate currently issued and outstanding.

The securities of Precipitate as disclosed herein are held by Strategic for investment purposes. Strategic may increase or decrease its ownership of securities of Precipitate in the future, depending upon market conditions. There are no persons acting jointly or in concert with Strategic in respect of its securityholdings in Precipitate, nor has it entered into any agreements in respect of its securityholdings in Precipitate with any other person or persons.

This news release is being issued pursuant to National Instrument 62-103, which also requires an updated report to be filed by Strategic with each of the British Columbia and Alberta Securities Commissions containing information with respect to its securityholdings in Precipitate (an updated Early Warning Report).

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 at www.strategicmetalsltd.com or contact:

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.