Montreal, Quebec - February 9, 2015 - Canada Strategic Metals Inc. ("Strategic Metals" or the "Company") (TSX.V: CJC; FSE: YXEN; OTC-BB: CJCFF) and Lomiko Metals Inc. ("Lomiko") (TSX-V:LMR, OTC:LMRMF, FSE:DH8B) are very pleased to confirm Lomiko's acquisition of a 40% interest in the La Loutre Property (see press release dated September 23, 2014 for more details on the initial transaction) and announce a new option agreement between the two companies following a successful drilling campaign on the La Loutre Property.

Strategic Metals has recently sought to divest itself of graphite assets and an opportunity to acquire the Lac des Iles Property arose for Lomiko. As such, Strategic Metals and Lomiko have agreed on the terms of an additional option pursuant to which Lomiko shall have the exclusive right and option to acquire an additional 40% undivided interest in the La Loutre Property and an 80% undivided interest in the Lac des Iles Property in exchange for a payment of $10,000, the issuance of 3,000,000 common shares of Lomiko and the funding of $2.75 million in exploration expenditures over a 2 year period.

The Lac des Iles property consists of 1 large contiguous block of 104 mineral claims totaling 5,601.30 hectares (56.01 km2) that borders the western limit of the Imerys Lac des Iles property which is the location of the Imerys Carbon and Graphite Mine and Processing Facility. The Property is close to the town of Mont-Laurier, 150 km northwest of Montréal in southern Québec.

As for the La Loutre Property, Lomiko had optioned the property from Strategic Metals in September 2014 to explore for high grade, crystalline flake graphite deposits that were near surface and for graphite flakes with high carbon purity. Lomiko is especially interested in 6 drill holes intercepts that met or exceeded the criteria jointly established by Canada Strategic and Lomiko. Further, these intercepts indicate the possibility of significant tonnage of high grade graphite near the surface.

Details of the transaction

In order to acquire (i) an additional 40% undivided interest in the La Loutre Property, thereby bringing its total interest to 80%, and (ii) an 80% undivided interest in the Lac des Iles Property (collectively, the "Option"), Lomiko will need to complete the following:

• pay a non-refundable amount of $10,000 to Strategic Metals upon the execution of the option agreement between the parties;
• issue to Strategic Metals 3,000,000 common shares of Lomiko at a deemed price of $0.07 per share five (5) business days following the receipt of the required regulatory approvals, and;
• complete or fund $2.75 million in exploration expenses:
• $1,500,000 of which $950,000 by no later than December 31, 2015 an $550,000 by no later than December 31, 2016 on the La Loutre Property;
• $250,000 of which $150,000 by no later than December 31, 2015 and $100,000 by no later than December 31, 2016 on the Lac des Iles Property, and;
• $1,000,000 of which $700,000 by no later than December 31, 2015 and $300,000 by no later than December 31, 2016 on other mining rights of Strategic Metals.

Strategic Metals will remain the operator for the conduct of exploration programs on the properties until completion of the Option by Lomiko, at which time the parties will form a joint venture on the La Loutre Property and on the Lac des Iles Property, and Lomiko will become the Operator. Strategic Metals will thereafter maintain a non-dilutive 20% interest on both properties until such time as a Feasibility Study (as such term is defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects) is completed on the La Loutre Property or the Lac des Iles Property, as applicable, and the parties elect to proceed with the financing of the project for the construction and operation of a mine thereon.

The common shares of Lomiko issued in connection with the Option shall be subject to a regulatory hold period of four months and one day from their date of issuance. Furthermore, Strategic Metals has agreed to a voluntary 10 month period on half of the Lomiko shares received (1,500,000). The completion of the transaction is subject to the approval of the TSX Venture Exchange.

- See more at: http://www.canadastrategicmetals.com/en/investors/news-releases/strategic-metals-monetizes-graphite-asset-in-exchange-for-important-exploration-programs-on-its-properties-while-keeping-20-percent-non-dilutive-interest#sthash.iu4bE4Gc.dpuf