Canada Strategic Metals Announces Closing of Brokered Private Placement

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, BRITISH COLUMBIA -- (Marketwire - Dec. 28, 2012) - Canada Strategic Metals Inc. ("the Company") (TSX VENTURE:CJC)(OTCBB:CJCFF)(FRANKFURT:YXEN) announces that it has completed its brokered private placement previously announced on December 4, 2012 for gross proceeds of $470,000. The Company issued a total of 2,937,500 flow-through units at $0.16 per unit. Each unit was comprised of one (1) common share and one-half (1/2) of one non-transferable share purchase warrant. Each full warrant entitles the holder to purchase one non-flow-through common share at a price of $0.30 per share for a period of twelve (12) months from the date of issue.

In connection with the private placement, the Company paid total commissions of $32,900 in cash and 146,875 broker warrants to the agents, Marquest Capital Markets and Casimir Capital Ltd. The broker warrants are exercisable at a price of $0.25 for a period of twelve (12) months following the closing date.

Proceeds will be used to advance the Company's portfolio of graphite projects located in Quebec, Canada.

All securities to be issued in connection with the offering are subject to a hold period of four months which expires on April 29, 2013.


About Canada Strategic Metals

Canada Strategic Metals is an emerging growth company focused on the exploration and development of its large portfolio of graphite projects located throughout Québec. With management experience in green technology, Québec exploration and development, and the junior resource sector, Canada Strategic Metals is well positioned to aggressively advance this promising portfolio for our shareholders.


On behalf of the Board,

Jean-Sébastien Lavallée
President & CEO



Cautionary Note Regarding Forward-Looking Statements:

Certain disclosure in this release, including statements regarding the intended use of proceeds from the private placement may constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to procure equipment and supplies in sufficient quantities and on a timely basis and to obtain any required government or other regulatory approvals. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks may include, among others, actual results of the Company's exploration activities being different than those expected by management, delays in obtaining or failure to obtain required government or other regulatory approvals or financing, inability to procure equipment and supplies in sufficient quantities and on a timely basis, equipment breakdown and bad weather. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

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.



Contact

Canada Strategic Metals Inc.
Jean-Sebastien Lavallee, P. Geo
President & Chief Executive Officer
819.354.5146
ir@canadastrategicmetals.com
www.canadastrategicmetals.com

Paradox Public Relations
514.341.0408