Mr. Jean-Sebastien Lavallee of Canada Strategic reports

CANADA STRATEGIC AND JV PARTNER ON LA LOUTRE GRAPHITE PROJECT PLAN 1,500 M DRILL PROGRAM

Canada Strategic Metals Inc.'s joint venture partner, Lomiko Metals Inc., has recently arranged a financing round to support drilling, and to complete the acquisition of the La Loutre and Lac des Iles flake graphite properties. Lomiko is currently awaiting drill permits to be issued to start drilling based on proceeds already raised earlier in the year.

On Feb. 9, 2016, Lomiko Metals and Canada Strategic announced the resource for the La Loutre flake graphite property of 18.4 million tonnes of 3.19 per cent indicated and 16.7 million tonnes of 3.75 per cent flake graphite inferred with a cut-off of 1.5 per cent. The sensitivity table features 4.1 million tonnes of 6.5 per cent indicated and 6.2 million tonnes of 6.1 per cent flake graphite inferred with a cut-off of 3 per cent. The resource is calculated on the Graphene-Battery zone only, and does not include recent high-grade intercepts of 28.5 metres of 16.53 per cent Cg (carbon as graphite) and 21.5 metres of 11.53 per cent Cg reported on Jan. 6, 2016, and 9 per cent over 90.75 metres reported on Sept. 24, 2015, from the Refractory zone.

"The properties are located close to the Imerys carbon and graphite mine, and benefits from similar infrastructure advantages and similar flake graphite grade, deposit size and near-surface mineralization amenable to low-cost, small-footprint extraction. All of these elements make this an excellent candidate for a positive preeconomic assessment," stated A. Paul Gill, chief executive officer of Lomiko Metals. "Additional resource definition in the Refractory zone will bolster the PEA."

Subject to Lomiko having exercised the additional option signed on Feb. 6, 2015, Canada Strategic will also grant to Lomiko the exclusive right and option to increase its undivided interest in and to the La Loutre property and the Lac des Iles property from 80 per cent to 100 per cent by paying to Canada Strategic an additional amount of $10,000, by issuing to Canada Strategic an additional 7.5 million common shares of Lomiko and by financing exploration expenditures for an additional amount of $1,125,000 for a period commencing on the deemed exercise of the additional option and ending on Dec. 31, 2018. Previous to this option, Lomiko owned 40 per cent of the La Loutre and Lac des Iles properties, and had an option to increase ownership to 80 per cent based on completing work and issuing shares.

The La Loutre property consists of contiguous claim blocks totalling approximately 2,867.29 hectares (28.67 square kilometres) situated approximately 53 kilometres east of the Imerys carbon and graphite mine, formerly known as the Timcal graphite mine, North America's only operating graphite mine, and 117 kilometres northwest of the international port of Montreal, key to shipping to North America and Europe. The Lac des Iles property is directly west of the Imerys graphite mine. Lomiko is currently completing the second option to acquire 80 per cent of the La Loutre and Lac des Iles properties, which requires $580,000 of work expenditure between the La Loutre property and other Canada Strategic properties.

The La Loutre resource is constrained within a drilled area of approximately 900 metres along the N150-degree striking trend of the graphitic paragneiss, 250 metres across the strike and down to 225 metres below surface. Geological interpretation and estimation were based on 62 NQ drill holes (totalling 8,193.3 metres) drilled by Lomiko and Canada Strategic Metals in 2014 and 2015.

Qualified persons

Jean-Sebastien Lavallee (OGQ No. 773), geologist, is a shareholder of both companies, president and chief executive officer of the Canada Strategic, and a qualified person under National Instrument 43-101, and has reviewed and approved the technical content of this release.