Mr. W. Douglas Eaton reports

STRATEGIC METALS ACQUIRES THE DIVISION MOUNTAIN THERMAL COAL DEPOSIT, YUKON

Strategic Metals Ltd. has acquired two coal licences covering the Division Mountain thermal coal deposit, located 90 kilometres northwest of Whitehorse, Yukon. It lies within the traditional territories of Champagne and Aishihik, Little Salmon/Carmacks, and Kwanlin Dun first nations and the Ta'an Kwach'an Council.

"Division Mountain represents a tremendous opportunity for a made-in-Yukon solution to Yukon's current and increasing energy problem," stated Doug Eaton, Strategic's president and chief executive officer. "The deposit is road accessible and lies near existing Yukon Energy Corp. transmission lines. It contains a historical measured resource of 52.5 Mt of bituminous coal (1), which is envisioned to supply a state-of-the-art, clean coal-fired electrical generation plant that would replace the Yukon's existing and proposed diesel power generators. The resource at Division Mountain represents a local thermal coal supply that would be sufficient to provide baseload power for a generation or more. In the coming weeks, Strategic intends to work closely with local first nations to establish a co-operative structure that would facilitate evaluation and, if warranted, development of this timely opportunity."

The Division Mountain area is underlain by primarily Jurassic to Cretaceous sedimentary rocks of the Laberge group and Tantalus formation. Coal occurrences occur within a 50-metre interval in the Tanglefoot formation of the Laberge group. Exploration at Division Mountain occurred intermittently since 1972, and work included: 10.2 kilometres of excavator trenching; 11,442 metres of diamond drilling in 68 holes; 1,869 m of reverse circulation drilling in 20 holes; and 124.7 m of rotary-air-blast drilling in four holes. This work has identified a historical measured resource of 52.5 million tonnes of high-volatile B-grade bituminous coal, which includes a historical proven reserve of 26.4 Mt (1). Reserves were calculated on the basis of coal being surface mined using conventional truck and shovel practices. In addition, the deposit remains open to the north, west and southeast.

Recent reporting by the Yukon Energy Crown corporation has forecasted a 50-per-cent peak demand increase for non-industrial electricity uses by 2035 (2). This surge is further amplified by major mine projects that are advancing in the territory. As there are no crude oil pipelines, crude-by-rail facilities or natural gas pipelines in the Yukon, virtually all of the fuel for thermal power generation is delivered to communities by truck from Alberta and British Columbia. The Division Mountain deposit is located 20 km west of a major electrical transmission line and ideally situated to provide feedstock to a local power plant.

(1) Reserves and resources were defined by Norwest Corp. in 2008 and may not be National Instrument 43-101 compliant. Therefore, they are considered historical in nature. A qualified person on behalf of Strategic has not done sufficient work to review and update the historical estimate as current mineral resources or reserves, and the issuer is not treating the historical estimate as current mineral resources or reserves.

(2) Source: Building a Resilient and Renewable Energy Future, Yukon Energy Corp., 2025; retrieved from the Yukon Energy website.

Technical information in this news release has been approved by Strategic's vice-president, exploration, Jackson Morton, PGeo, a qualified person as defined under the terms of National Instrument 43-101.

About Strategic Metals Ltd.

Strategic is a project generator with 16 royalty interests, 12 projects under option to others and a portfolio of 83 wholly owned projects that are the product of over 50 years of focused exploration and research by a team with a record of major discoveries. Projects available for option, joint venture or sale include drill-confirmed prospects and drill-ready targets with high-grade surface showings and/or geochemical anomalies and geophysical features that resemble those at nearby deposits.

Strategic has a current cash position of approximately $1.2-million and large shareholdings in several active mineral exploration companies including 31.9 per cent of Broden Mining Ltd., 33.4 per cent of GGL Resources Corp., 28 per cent of Rockhaven Resources Ltd., 15.6 per cent of Silver Range Resources Ltd. and 15.6 per cent of Precipitate Gold Corp. All these companies are engaged in promising exploration projects. Strategic also owns 15 million shares of Terra CO2 Technologies Holdings Inc., a private Delaware corporation developing a cost-effective alternative to Portland cement, which recently announced a definitive agreement with Asher Materials for an exclusive market licence of Terra's first commercial-scale advanced processing facility.

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