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Canada Strategic Metals Awaiting Metallurgical Characterization Testing Results and Initiates Permitting at La Loutre

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VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/12/13 -- Canada Strategic Metals Inc. ("Canada Strategic Metals" or "the Company") (TSX VENTURE: CJC)(OTCBB: CJCFF)(FRANKFURT: YXEN) is pleased to announce that metallurgical characterization testing of several graphite samples from the La Loutre Property in now underway and the company is waiting for the results in the coming weeks. This characterization testing intends to provide a clear indication regarding the size distribution and liberation of the graphite at La Loutre, which would have a direct effect on the recovery and purity of a graphite concentrate. The Company has submitted three (3) composites, representing three (3) different geological units present on the property to Global Mineral Research Ltd (GMR Ltd) for this evaluation. These composites have been prepared with the grab samples obtained during the summer exploration program on the property (see news release dated July 24, 2012) which confirmed the presence of a large graphite bearing structure covering an area of approximately 7 kilometers by 1 kilometer with results of up to 22.04% Graphite in multiple parallel zones of 30-50 meters wide. Another area has also been identified covering approximately 2 kilometers by 1 kilometer in multiple parallel zones of 20-50 meters wide, which includes results of up to 18% Graphite. The Company anticipates these metallurgical results will be received by mid to late February 2013.

Meanwhile, the Company has also initiated the permitting process to complete a 1,500 meter drill program on the La Loutre property this spring. The objective of this 15-20 hole drill program will be to verify the areas of high-grade graphite results towards establishing a flake graphite resource at the La Loutre property by December 2013.

About the La Loutre Property

The La Loutre property consists of one large contiguous block of 42 mineral claims (25.09 km2), located approximately 117 km northwest of Montreal, in southern Quebec, and is situated within the highly prospective Central Metasedimentary belt of the Grenville geological province, host to many active graphite projects. At La Loutre, graphite is hosted in graphitic crystalline marbles and paragneiss, similar to the host stratigraphy at Timcal's Lac des Iles graphite mine, currently Canada's only producing graphite mine, which is located at only 53 kilometers West of the La Loutre property.

La Loutre Assay Results

Please visit the following link to view a map of the surface sample results and recent electromagnetic (EM) survey: http://www.canadastrategicmetals.com/wp-content/uploads/maps/01-laloutre/la-loutre-surface-sample-results.pdf

--------------------- --------------------- ---------------------Sample No Graphite % Sample No Graphite % Sample No Graphite %--------------------- --------------------- ---------------------98557 22.04 98581 4.89 98567 2.97--------------------- --------------------- ---------------------98577 18.08 98670 4.49 98593 2.76--------------------- --------------------- ---------------------98667 18.04 98655 4.35 98552 2.63--------------------- --------------------- ---------------------98597 16.52 98560 4.29 98595 2.60--------------------- --------------------- ---------------------98578 15.52 98574 4.28 98626 2.60--------------------- --------------------- ---------------------98653 10.19 98579 4.25 98652 2.58--------------------- --------------------- ---------------------98622 8.20 98671 4.21 98654 2.48--------------------- --------------------- ---------------------98663 7.34 98668 3.96 98586 2.43--------------------- --------------------- ---------------------98615 6.85 98610 3.89 98627 2.27--------------------- --------------------- ---------------------98662 6.60 98617 3.80 98562 2.27--------------------- --------------------- ---------------------98657 6.53 98558 3.77 98591 2.21--------------------- --------------------- ---------------------98656 6.45 98561 3.72 98582 2.11--------------------- --------------------- ---------------------98607 6.28 98559 3.67 98630 1.99--------------------- --------------------- ---------------------98568 6.25 98580 3.59 98620 1.98--------------------- --------------------- ---------------------98576 6.25 98665 3.55 98658 1.96--------------------- --------------------- ---------------------98566 6.05 98673 3.40 98609 1.96--------------------- --------------------- ---------------------98618 5.48 98588 3.24 98572 1.96--------------------- --------------------- ---------------------98569 5.46 98583 3.21 98659 1.92--------------------- --------------------- ---------------------98664 5.36 98584 3.16 98614 1.87--------------------- --------------------- ---------------------98672 5.06 98587 3.01 98608 1.82--------------------- --------------------- ---------------------98616 5.00 98594 3.01 98605 1.73--------------------- --------------------- ------------------------------------------ ---------------------Sample No Graphite % Sample No Graphite %--------------------- ---------------------98563 1.72 98660 1.04--------------------- ---------------------98628 1.69 98619 1.02--------------------- ---------------------98629 1.65 98631 1.00--------------------- ---------------------98592 1.64 98603 0.98--------------------- ---------------------98651 1.61 98602 0.97--------------------- ---------------------98669 1.58 98661 0.94--------------------- ---------------------98556 1.49 98564 0.94--------------------- ---------------------98585 1.47 98598 0.92--------------------- ---------------------98575 1.46 98606 0.87--------------------- ---------------------98571 1.46 98596 0.86--------------------- ---------------------98599 1.44 98565 0.85--------------------- ---------------------98621 1.41 98601 0.82--------------------- ---------------------98551 1.36 98612 0.80--------------------- ---------------------98625 1.25 98666 0.78--------------------- ---------------------98589 1.19 98613 0.77--------------------- ---------------------98623 1.16 98600 0.73--------------------- ---------------------98570 1.15 98611 0.72--------------------- ---------------------98604 1.14 98553 0.65--------------------- ---------------------98674 1.11 98555 0.46--------------------- ---------------------98590 1.10 98554 0.30--------------------- ---------------------98624 1.10 98573 0.16--------------------- ---------------------



About Graphite

Natural graphite comes in several forms: flake, amorphous and lump. Graphite has many important new applications including its use in lithium ion batteries, fuel cells and nuclear and solar power that have the potential to significantly increase the demand for this critical element. For instance, there is between 10 and 30 times more graphite required by weight to produce a lithium-ion battery than there is lithium. In addition, the recent discovery of a new material called graphene, which is actually derived from graphite, has also heightened interest. International research is now underway into a number of its potential applications including enhancing the speed and processing power of many modern electronic devices. This has also increased the interest in graphite.

Meanwhile, global consumption of natural graphite has increased from approx. 600,000 in 2000 to 1.2 MM t in 2012. Demand for graphite has been increasing by approximately 5% per year since 2000 due to the ongoing modernization of China, India and other emerging economies, resulting in strong demand from traditional end uses such as the steel and automotive industries. Of the 1.2 million tons of graphite produced annually, approximately 40% is of the most desirable flake type. China, which produces about 73% of the world's graphite, is seeing production and export growth leveling and export taxes and a licensing system have been instituted. A recent European Commission study regarding the criticality of 41 different materials to the European economy included graphite among the 14 materials high in both economic importance and supply risk (Critical Raw Materials for the EU, July 2010). As a function of these fundamentals, demand for graphite and thereby prices are expected to rise as electric vehicles and lithium battery technology continue to be adopted and while the material performs a greater role in new technology applications. Graphite prices have been increasing in recent months and over the last couple of years and prices for large flake, high purity graphite (+80 mesh, 0.2mm, 94-97% Carbon) have more than doubled.

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 covering over 60,000 hectares throughout Quebec. With management experience in green technology, and junior resource exploration and development, Canada Strategic Metals is well positioned to aggressively advance this promising portfolio for our shareholders.

(i) Grab samples are selective by nature and are unlikely to represent the average grade of a deposit.

Jean-Sebastien Lavallee P.Geo, a geologist and Qualified Person as defined by National Instrument 43-101, has reviewed and approved the content of this release.

For more information on the Company, please visit www.canadastrategicmetals.com.

On Behalf of the Board,

Jean-Sebastien Lavallee, President & CEO

Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the Company's plans for and intentions with respect to the acquisitions and exploration of the La Loutre Property constitute "forward-looking statements" and "forward-looking information" 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 obtain any required government or other regulatory approvals and any required financing to complete the Company's planned exploration activities, that the Company is able to procure equipment and supplies in sufficient quantities and on a timely basis and that actual results of exploration activities are consistent with management's expectations. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors relating to the Company's operation as a mineral exploration company 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, uncertainties involved in the interpretation of drilling results and geological tests, delays in obtaining required permits, government or other regulatory approvals or financing, inability to procure equipment and supplies in sufficient quantities and on a timely basis, equipment breakdowns 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.



Contacts:
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



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