Strategic Metals Ltd. Closes Second Tranche of Private Placement

Not for dissemination or distribution in the United States and not for distribution to United States newswire services

VANCOUVER, BC / ACCESSWIRE / July 15, 2020 / Strategic Metals Ltd. (TSXV:SMD) ("Strategic" or the "Company") announces the closing of the second tranche of the brokered private placement (the "Offering") co-led by Agentis Capital Markets Canada Limited Partnership and Haywood Securities Inc. (collectively, the "Agents") as announced on June 18, 2020. The second tranche consisted of the sale of 2,578,594 flow-through units (the "FT Units") at a price of $0.64 each, each consisting of one flow-through common share and one common share purchase warrant (a "Warrant"), for gross proceeds of $1,650,300.16.

Each Warrant entitles the holder to purchase one common share at a price of $0.65 until July 15, 2022.

The net proceeds from the Offering will be used primarily to fund exploration activities and for general corporate and working capital purposes. The gross proceeds raised from the sale of the FT Units will be used for "Canadian exploration expenses" and will qualify as "flow-through mining expenditures" as defined in the Income Tax Act (Canada), which will be renounced to the initial purchasers of the FT Units with an effective date no later than December 31, 2020.

The Company paid a cash commission equal to 6% of the gross proceeds from the second tranche to the Agents and has issued to the Agents a total of 583,500 Compensation Warrants, equal to 6% of the aggregate of 9,725,000 FT Units and Units sold under both the initial and second tranches of the Offering. Each Compensation Warrant entitles the holder to purchase one Unit at a price of $0.45 until July 15, 2022, each Unit to consist of one common share and one Warrant, each Warrant to entitle the holder to purchase one additional common share at a price of $0.65 for a period of 2 years from the date of issuance of those Warrants.

All securities issued pursuant to the closing of the second tranche, including any securities that may be issued pursuant to the exercise of the Warrants or the Compensation Warrants, will be subject to a hold period in Canada until November 16, 2020.

About Strategic Metals Ltd.

Strategic is a project generator with a portfolio of more than 130 projects that are the product of over 50 years of focussed exploration and research by a team with a track record of major discoveries. Current projects include more than 80 properties where precious metals are a major component. Projects available for option, joint venture or sale include drill-confirmed prospects and drill-ready targets with high-grade surface showings, geochemical anomalies and geophysical features that resemble those at nearby deposits.

Strategic has a current cash position of over $12 million and large shareholdings in a number of active mineral exploration companies including 46.3% of GGL Resources Corp., 36.3% of Rockhaven Resources Ltd., 19.9% of Precipitate Gold Corp., 18.7% of Silver Range Resources Ltd., 9.9% of Trifecta Gold Ltd., and 6.1% of ATAC Resources Ltd. Strategic also holds a 53.5% interest in Terra CO2 Technologies Holdings, Inc. a private Delaware corporation which is developing an environmentally-friendly, cost-effective alternative to Portland cement.

The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.

ON BEHALF OF THE BOARD

"W. Douglas Eaton"

President and Chief Executive Officer

Corporate Information

Strategic Metals Ltd.
W. Douglas Eaton
President and C.E.O.
Tel: (604) 688-2568

Investor Inquiries

Richard Drechsler
V.P. Communications
Tel: (604) 687-2522
NA Toll-Free: (888) 688-2522
[email protected]
http://www.strategicmetalsltd.com

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.

SOURCE: Strategic Metals Ltd.