Canada Strategic Metals Report More High Grade Results With Up to 17.25% Graphite on La Loutre Property, Quebec

Marketwired

MONTREAL, QUEBEC--(Marketwired - Sep 26, 2013) - Canada Strategic Metals Inc. ("Canada Strategic Metals" or "the Company") (TSX VENTURE:CJC) (YXEN.F) (CJCFF) is pleased to announce that it has received more high grade graphite grab sample assay results derived from recent detailed sampling program on the La Loutre property and from reconnaissance sampling from the Lac des Iles property. The La Loutre property consists of contiguous claim blocks totaling approximately ± 2,500 hectares (25 km2) situated approximately 53 km to the east of Timcal's Lac des Iles Graphite Mine, 117 km northwest of Montreal. To date, the sampling program has confirmed a graphite bearing structure covering an area approximately 7 kilometers by 1 kilometer with results of up to 22.04% Graphite in multiple parallel zones of 30 to 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 up to 18% Graphite. All new assays are show in the table below*.

La Loutre best grab samples:

Sample No Graphite
%
Sample No Graphite
%
Sample No Graphite
%
Sample No Graphite
%
Sample No Graphite
%
115732 17.25 115719 3.00 115708 2.15 115701 1.82 115731 0.65
115728 9.16 115712 2.60 115726 2.13 115710 1.80 115720 0.49
115718 7.76 115716 2.49 115709 2.08 115725 1.78 115721 0.44
115707 6.72 115711 2.44 115703 2.04 115723 1.66 115722 0.44
115717 5.26 115713 2.42 115715 2.04 115706 1.65
115729 4.12 115727 2.27 115705 1.96 115702 1.54
115730 3.86 115704 2.26 115724 1.91 115714 1.29

Lac des Iles best grab samples:

Sample
No
Graphite
%
Sample
No
Graphite
%
115736 1.2 115737 1.2

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

All the samples were sent for analysis in sealed containers to the Chemex laboratory in Val-d'Or by employees of the Company. The samples are weighed and identified prior to sample preparation. The samples are crushed to 70% minus 2 mm, then separated and pulverized to 85% passing 75 μm. All samples are analyzed using C-IR18, for Carbon Graphite.

Management is encouraged that these new samples results that confirm again the presence of graphite, on surface, and over a large area, all of which offers great potential to develop a graphite resource on the La Loutre property.

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 ~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 Sakami

The property straddles the structural contact between the Opinaca and La Grande subprovinces of the Archean-age Superior structural province. This is a major structural corridor that occurs on surface as a 100-kilometre-long "S" shape feature trending northeast to southwest. The Sakami property covers approximately 35 kilometres of this structure, which is up to 500 metres wide on the property. Since 1998 Matamec has made a number of new gold discoveries within or near this structural zone.

To date most exploration work has focused on zone 25 where stratiform gold mineralization has been found hosted by a sequence of strongly silicified quartzites, arkoses and felsic dikes within paragneiss of the Opinaca subprovince. This mineralized horizon occurs as an antiform-synform pair that plunges moderately to the southwest. Matamec drilling has intersected it within a surface area of approximately 150 metres by 160 metres, and to a depth of 220 metres. The thickest mineralization is developed within the hinge zone of the two interpreted folds with drill intercepts including: 2.62 grams per tonne (g/t) Au over 54.70 m drill width from EX-10 and 4.16 g/t Au over 21 m drill width in EX-22. A broad envelope of lower-grade mineralization of approximately one gram per tonne gold characterizes the zone and encloses higher-grade sections typically ranging from one to three grams per tonne Au.

Narrow high-grade intervals occur throughout the horizon often associated with discrete quartz veins containing pyrrhotite and tourmaline (for instance, drill hole EX-31 which assayed 10.02 g/t Au over 2.82 metres near the hinge of the synform fold). Gold mineralization occasionally extends into the enclosing paragneiss of the Opinaca where it is also commonly associated with quartz veins. The mineralized horizon is open both down plunge and laterally along the fold limbs and there are indications that, to the northwest, it is extending back to surface.

As agreed, in the amended Option Agreement dated June 26, 2013 on La Loutre property in Quebec, the Company will settle $15,000 in outstanding indebtedness through the issuance to three creditors of an aggregate of 300,000 common shares at a price of $ 0.05 per share (the "Debt Settlement"). Of this amount, a total of $5,000 represents indebtedness owed to the President and CEO of the Company. The shares issued under the Debt Settlement are subject to a hold period of four months and one day from the date of issuance.

Jean-Sébastien Lavallée (OGQ #773), geologist, shareholder and President and Chief Executive Officer of the Company and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this release.

About Canada Strategic Metals

Canada Strategic Metals is an emerging growth company focused on the exploration and development of its early stage 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 its shareholders.

For more information on the Company, please visit www.csmetals.ca.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) responsibility for the adequacy or accuracy of this release.

Contact:
Jean-Sebastien Lavallee, P. Geo
President & Chief Executive Officer
819-354-5146
Paradox Public Relations
514-341-0408

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