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CHAMPAGNE AND AISHIHIK FIRST NATIONS AND STRATEGIC METALS LTD. ANNOUNCE EXPLORATION AGREEMENT Dakwäkäda (Haines Junction), Yukon Territory

Partnerships & JV

CHAMPAGNE AND AISHIHIK FIRST NATIONS AND STRATEGIC METALS LTD.

ANNOUNCE EXPLORATION AGREEMENT

Dakwäkäda (Haines Junction), Yukon Territory – January 18, 2018 – Champagne and Aishihik

First Nations (“CAFN”) and Strategic Metals Ltd. (TSX -V: SMD) (“Strategic”) are pleased to

announce the signing of an Exploration Agreement.

This landmark a greement provides a framework for consultation pertaining to all exploration

activities undertaken by Strategic within the CAFN Traditional Territory, excluding Category A

and B Lands as defined in the Umbrella Final Agreement . The agreement is particularly

noteworthy because consultation is expected to begin at the earliest stag es of exploration and

continue throughout the duration of the project.

“The Champagne and Aishihik First Nations government is pleased to have this agreement in

place with Strategic Metals,” said Dän natthe ada Kaaxnox (Chief Steve Smith). “ We believe it

is critical that CAFN is involved as a partner in mineral exploration projects in order to ensure

the wise use and management of lands and water in our Traditional Territory, and to support the

development of our communities and our economy. And it is important to ensure CAFN citizens

benefit any time mineral exploration takes place on our lands.”

“Strategic has undertaken to engage with CAFN as soon as claims are acquired in order to

develop cooperative and respectful relationships, identify local business and employment

opportunities, and build support for mineral exploration and development. The ongoing

consultation should make Strategic more aware of CAFN concerns and give CAFN a better

understanding of preferred exploration techniques and the ir alternatives,” states Douglas Eaton,

President and CEO of Strategic. “This Exploration Agreement provides a clear framework for

early stage consultation , and a path forward to develop a more comprehensive cooperation and

benefits agreement, should a project move from exploration to economic evaluation.”

Other key objectives of the Agreement include:

 establishing mechanisms under which environmental monitoring of exploration activities

is carried out;

 financial benefits of $100,000 paid to CAFN upon signing and an amount equal to 2% of

annual exploration expenditures undertaken within CAFN Traditional Territory;

 establishment of an Advisory Committee in order to provide support for exploration

activities and to resolve issues related to implementation of the Agreement; and

 setting a framework for long term consultation and if exploration is successful, the

negotiation of a more comprehensive project specific agreement.

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Strategic currently holds 8 projects within the CAFN Traditional Territories including the

Hopper copper/gold porphyry and skarn project, and the Meloy copper/gold/silver porphyry

project.

For further information about Champagne and

Aishihik First Nations, please visit

http://CAFN.ca or contact:

For further information concerning Strategic or

its various exploration projects please visit our

website at www.strategicmetalsltd.com or

contact:

Media Inquiries

Amy McKinnon

Communications Manager

Champagne and Aishihik First Nations

Tel: (867) 634-4200 ext 237

[email protected]

Corporate Information

W. Douglas Eaton

President and C.E.O.

Tel: (604) 688-2568

Investor and Media Inquiries

Richard Drechsler

V.P. Communications

Tel: (604) 687-2522

NA Toll-Free: (888) 688-2522

[email protected]

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.