Canada Strategic Metals

Jumbo Flake Graphite

Message: Canada Strategic Receives Additional Large-Flake Graphite Characterization
Results and Achieves Up to 100% Purity Graphite from Samples of the La Loutre Project, Quebec



VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 26, 2013) - Canada Strategic Metals Inc. ("Canada Strategic Metals" or "the Company") (TSX VENTURE:CJC)(FRANKFURT:YXEN)(OTCBB:CJCFF) is pleased to announce that further to the Company's February 26th, 2013 news release, metallurgical characterization results from all three graphite composite samples representing the North, Central and South areas of the 25 km2 (square kilometer) La Loutre Property (the "Property") have now demonstrated that a large percentage of medium to jumbo size graphite flakes are present on surface in various areas of the Property and that the presence of high-purity flake graphite has also been demonstrated in multiple samples. This suggests there is good potential to obtain a high purity graphite concentrate from La Loutre across a broad spatial area and with a large percentage of coarse flake sizes. For a breakdown of these characterization and purity results, please see below. A copy of the full evaluation is available on the Company's website at

Vancouver based Global Mineral Research Ltd (GMR Ltd) completed this evaluation using grab samples obtained during the summer 2012 exploration program, 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 30-50 meters wide. Another area towards the north end of the property was also identified, covering approximately 2 kilometers by 1 kilometer within multiple parallel zones 20-50 meters wide, and which includes results of up to 18% graphite.

Together, this sampling and characterization program now provides a clear indication of the grade, size distribution and quality of the graphite located on surface at La Loutre, which combined with the results of the Company's electromagnetic survey suggests a promising potential to develop a high-purity flake graphite resource on the property over a broad area. Further metallurgical studies will be completed as necessary as the Company works to define the global tonnage and grade of the graphite material located on the property, starting with the Company's Phase 1 drill program set to commence this spring.

See table below for the details composite samples sent to the laboratory and full table of size characterization and Graphite Grade for composites #1 to #3:

La Loutre Graphite Characterization Results:

North Area

Graphite Grain size Sample number La Loutre #1 Size class
% Cg** 3.46%Cg
% greater than 200 mesh 85.74%Cg Small or greater
% greater than 100 mesh 63.62%Cg Medium or greater
% greater than 80 mesh 55.72%Cg Large or greater
% greater than 50 mesh 36.66%Cg Extra Large or greater
% greater than 35 mesh 27.93%Cg Jumbo

Central Area

Graphite Grain size Sample number La Loutre #2 Size class
% Cg 5.62%Cg
% greater than 200 mesh 87.00%Cg Small or greater
% greater than 100 mesh 65.75%Cg Medium or greater
% greater than 80 mesh 55.29%Cg Large or greater
% greater than 50 mesh 35.67%Cg Extra Large or greater
% greater than 35 mesh 13.24%Cg Jumbo

South Area

Graphite Grain size Sample number La Loutre #3 Size class
% Cg 6.64%Cg
% greater than 200 mesh 85.40%Cg Small or greater
% greater than 100 mesh 61.72%Cg Medium or greater
% greater than 80 mesh 51.85%Cg Large or greater
% greater than 50 mesh 27.47%Cg Extra Large or greater
% greater than 35 mesh 15.16%Cg Jumbo
* New results in bold
** Cg: Carbon graphite

(La Loutre Composite Sample Details):

La Loutre Property Composite Samples
Composite Sample number Graphite % Average grade
Composite #1 North Area 98616 5.00 3.46%Cg
98617 3.80
98618 5.48
98664 5.36
98665 3.55
98667 18.04
98668 3.96
Composite #2 Central Area 98583 3.21 5.62% Cg
98584 3.16
98586 2.43
98597 16.52
98652 2.58
98657 6.53
98658 1.96
Composite #3 South Area 98568 6.25 6.64%Cg
98569 5.46
98572 1.96
98574 4.28
98576 6.25
98577 18.08
98578 15.52
98579 4.25
98580 3.59
98581 4.89

La Loutre Graphite Purity Results:

North Area

US Mesh Sieve Size Sample #1 3.46% Cg Size class Grade, % Graphite
-200 14.26% Fine 100.00%
200-100 mesh 22.12% Small 100.00%
100-80 mesh 7.90% Medium 100.00%
80-50 mesh 19.06% Large 96.00%
>50 mesh 36.66% Extra Large 87.72%
Total (+200) 85.74% Average Grade 94.74%

Central Area

US Mesh Sieve Size Sample #2 5.62% Cg Size class Grade, % Graphite
-200 13.00% Fine 100.00%
200-100 mesh 21.26% Small 98.15%
100-80 mesh 10.46% Medium 97.56%
80-50 mesh 19.62% Large 97.30%
>50 mesh 35.67% Extra Large 96.15%
Total (+200) 87.00% Average Grade 97.45%

South Area

US Mesh Sieve Size Sample #3 6.64% Cg Size class Grade, % Graphite
-200 14.58% Fine 99.02%
200-100 mesh 23.68% Small 100.00%
100-80 mesh 9.87% Medium 100.00%
80-50 mesh 24.38% Large 100.00%
>50 mesh 27.47% Extra Large 100.00%
Total (+200) 85.42% Average Grade 99.86%

The Company has 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 near surface and establish a flake graphite resource on the property.

The Company also announces it has accepted the resignations of Ron MacDonald, Mark Baggio, Jenna Hardy, and Eileen Hao, effective immediately. The Company thanks them for their contributions and wishes them well in their future endeavors.

Meanwhile, the Company is pleased to announce the appointment of Hugo Monette as a Director of the Company. Mr. Hugo Monette is a professional engineer with a specialization in mechanical engineering. He has extensive experience in project management in the petrochemical and chemical industries and has acted as project manager for a consulting engineering firm that has conducted various assignments for several companies, including Shell Canada, Bitumar, Enerkem, Air Liquide and Petro-Canada. He is currently completing a Masters degree in Business Administration.

President & CEO Jean-Sébastien Lavallée comments that "the La Loutre project sampling, characterization, and purity test results are very positive so we look forward to strengthening our management team and commencing our phase 1 drill program at La Loutre in the coming weeks."

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. It is situated within the highly prospective Central Metasedimentary belt of the Grenville geological province, host to many presently active graphite projects. At La Loutre, graphite is hosted in graphitic crystalline marbles and paragneisses. These are similar to the host stratigraphy at Timcal's Lac des Iles graphite mine, currently Canada's only producing graphite mine, which is located only 53 kilometers West of the La Loutre property.

La Loutre Assay Results

Please click here to view a map of the surface sample results and recent electromagnetic (EM) survey.

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

About Graphite

Natural graphite comes in several forms: flake, amorphous and lump. Graphite has many important new applications including 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 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 t 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.

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.

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.

For more information on the Company, please visit

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 Company's plans for and intentions with respect to 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.

Contact Information:
Jean-Sebastien Lavallee, P. Geo
President & Chief Executive Officer

Paradox Public Relations
Source: Marketwire Canada (March 26, 2013 - 12:21 PM EDT)
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