Mr. Jean-Sebastien Lavallee of Canada Strategic Metals reports

CANADA STRATEGIC METALS INC.: EARLY WARNING REPORT

Canada Strategic Metals Inc. has acquired ownership of one million common shares of Stem 7 Capital Inc. in connection with a shares-for-debt settlement of the issuer with a number of its creditors. See press release of the issuer dated Nov. 24, 2015, for more information. The shares acquired represent approximately 17.48 per cent of the issuer's issued and outstanding common shares.

Prior to the transaction, the company owned 72,693 common shares of the issuer. Following the closing of this transaction, the company owns 1,072,693 common shares, which represents approximately 18.75 per cent of the issuer's issued and outstanding common shares.

The shares were acquired for investment purposes. The company may, from time to time, acquire additional securities of the issuer, dispose of some or all of the existing or additional securities it holds or will hold, or may continue to hold its current position.

A copy of the early warning report filed by the company in connection with the shares-for-debt settlement is available on SEDAR on the issuer's SEDAR profile. The news release is being issued under the early warning provisions of Canadian securities legislation.