Strategic Metals Ltd. (TSX VENTURE:SMD) ("Strategic") is pleased to announce
that it has signed a binding letter agreement with Gold Royalties Corporation
("Gold Royalties"). Under the terms of the letter agreement Gold Royalties will
acquire Strategic's net smelter royalty interests (the "Royalty Interests") in
the Kink 3 mineral claim and the Northern Dancer property for $13.8 million,
less any royalties earned on the Royalty Interests up to the closing date for
the sale.


The Kink 3 mineral claim is owned by Yukon Zinc Corporation ("Yukon Zinc") and
covers a portion of the Wolverine mineral deposit, currently being developed by
Yukon Zinc. The Wolverine deposit is a high grade zinc-silver-copper-lead-gold
volcanogenic massive sulphide deposit and is located in the east central Yukon.
Strategic holds a 1% net smelter return royalty interest in that portion of the
Wolverine deposit underlying the Kink 3 claim.


The net smelter royalty interest will be reduced from 1% to 0.5% after the
royalty holder has received aggregate royalty payments of $500,000. The 0.5%
royalty interest will continue to apply for the duration of all metal production
from the Kink 3 claim. To date, Strategic has received total royalty payments
from Yukon Zinc in the amount of $54,000.


Under the letter agreement with Gold Royalties, Strategic will also sell its 1%
net smelter return royalty interest in the Northern Dancer property, currently
owned by Largo Resources Ltd. The Northern Dancer property is located in south
central Yukon and hosts a large tungsten-molybdenum porphyry system. The 1% net
smelter royalty interest in the Northern Dancer property is not subject to any
reduction and will apply to all future production from the property.


Completion of the sale of the Royalty Interests is scheduled to take place on
January 16, 2012. The transaction remains subject to Gold Royalties obtaining
suitable financing, the completion of a satisfactory due diligence review by
Gold Royalties and the obtaining of any required consents.


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.


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.
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