Rare Earth Elements

Unique Ownership in Strategic Metals

Corporate Presentation

May 7th 2010

TSX:DAC OTCQX:DHCAF

A Forbes & Manhattan Group Company

Forward Looking Statements

Caution regarding forward-looking information:

This presentation contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes without limitation, statements regarding the proposed use of the proceeds of the financing, the receipt of all necessary approvals, the issue of permits, progress in development of mineral properties, future production and sales volumes, capital and mine production costs, demand and market outlook for rare earth metals, future metal prices and treatment and refining charges, the financial results of the Company, the future financial or operating performance of the Company, and terms and the availability and likelihood of future acquisitions. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; market risks; risks related to leverage; acquisition risks; and other risks of the mining and trading industries. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

This presentation does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the UnitedStates. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

2

Direct Access to a Strategic Stockpileof Rare Earths

3

A diversified portfolio of physical inventory

Key individuals with industry experience and contacts

Physical inventory stored outside of China

Attractive Value Propositionfor Investors

4

Participate in the expected price appreciation of rare earths and strategic industrial commodities

Early stage investment in a potentially valuable industrial commodities trading operation

Unique structure that can earn a substantial market premium

Capital Structure

5

Capital Structure

Stock symbol:

Shares issued:

Fully diluted:

Price (03/30/10):

Market Cap:

52-week High/Low:

Cash:

DAC – TSX:V

71.5 M*

92.5 M

$0.77

$55 M

$1.05-$0.39

$22 M

Latest Financing(Mar 2010)

Amount Raised:

Special W’ts issued**:

Price:

$22.0 M

48.9 M

$0.45 * Includes special warrants

** Special warrants convert to one common share on

the earlier of clearing by prospectus or July 25-2010

Key Institutional Shareholders

Libra Fund LP

Aberdeen International Inc

Sprott Asset Management

Dundee

AGF

RAB Capital

Management

6

Stan Bharti, P.Eng., Executive Chairman

• More than 25 years experience in business, management, operations, public markets, and finance• Mr. Bharti has been the President of Forbes & Manhattan, Inc., a private merchant bank operating in Canada, the United

States and Western Europe, since July 2001• He is the Chairman and Director of many other publicly listed junior mining companies

Scott Moore, MBA, President & Chief Executive Officer

• Mr. Moore is an experienced capital markets executive with 20 years experience in the resource and durable goods sector• Former CEO of Franc-Or Resources Corp and VP Corporate Development for Aberdeen International. Former Director of

Sulliden Gold, Franc Or Resources and Avion Gold. He ahs raised in excess of $250 million in resources in the last 3 years.• He holds a Bachelor of Arts degree from the University of Toronto and an MBA from the Kellogg School of Management

Alastair Neill, P.Eng., MBA, Executive Vice-President

• Mr. Neill is the former VP sales, Rare Earth Division and VP Business Development for AMR (Now Neo-Material Technologies) and brings over 15 years of direct Rare Earth experience

• He holds a MBA from York University and a Bachelor of Engineering in Material Science from the University of Western Ontario

Patrick Wong, Chief Investment Officer

• Mr. Wong is a seasoned hedge fund manager with over 15 years of experience and a consistent track record of high returns• During his career in the public markets, Mr. Wong ran proprietary trading desks at various brokerage firms

Brad Boland, C.M.A., Chief Financial Officer

• Mr. Boland was the CFO of Consolidated Thompson Iron Mines Limited until July 2009• From May 2005 to September 2007, he was at Kinross Gold Corp., most recently serving in the position of Vice President,

Corporate Controller• Prior to that, from August 1998 to February 2005, Mr. Boland was at Goldcorp Inc., as Corporate Controller and the Vice

President, Finance

Why invest in Dacha

• Growing Demand for REE

• Limited Supply to satisfy growth

• Strategic Stockpile outside China

• No Mining Risk

• Dynamic Physical Portfolio

• Industry Veterans

7

Industrial Minerals are the Enablers of Modern Technology

8

“Biggest User of Rare Earths of any Object in the World”

9

Toyota Prius

1kg Neodymium

15kg Lanthanum

0.1kg Dysprosium

Top-selling car in Japan

“In 20 years, all cars on the road will be electric”- Warren Buffett, November 2009

The Largest User of Rare Earths Tomorrow1mt Neodymium needed for every 3 MW of wind power generated

10

China – Guarding The Supply• +95% of Global Supply• Export Tariffs to drive manufacturing to China• Export Quotas to limit material available to the Rest of World

11

“The value of global rare-earth trade last year was just $1.25 billion, and it is projected to grow to about $3 billion by 2015.”- The Wall Street Journal September 3rd, 2009

Rare Earth Stocks React

12

Relative Price Performance

-100%

0%

100%

200%

300%

400%

500%

600%

Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10

Avalon

Arafura Resources

Rare Element

Lynas

Great WesternMinerals

Rare EarthElements Index

TSX Composite

•Quest Uranium Corp. was left out due to a return of over 6000%As at January 15, 2010Source: BloombergZ

-

50,000

100,000

150,000

200,000

250,000

2004 2005 2006 2007 2008 2009 2010f 2011f 2012f 2013f 2014f

Dem

an

d t

pa -

RE

O

China Supply ROW Supply Global Demand China Demand

Strong Demand Growth

13

ROW: rest of word supply (yet to come on stream)REO: Rare Earth OxidesSource: IMCOA

Global Demand (Exclusive of China)

China Demand

IMCOA Rare Earth Oxide Forecast

Current State of the Rare Earth Markets

14

Small number of market participants

Transactional based market

Contracts represent the bulk of market volumes

Conflicts between business models

Dacha believes the market for Rare Earths is relatively inefficient and mispriced

An Actively Managed Physical Portfolio

15

Dynamic Physical Portfolio

of Rare Earths+ Trading Operations

Fundamental Research

Asset Allocation

Corporate not Hedge FundStructure

First Mover Advantage

London Metal Exchange Approved Warehouses

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Dacha’s LME Warehouse Locations

Dacha will hold it’s physical inventory

initially in Korea and Singapore

Upside Potential

17

Rising Commodity Prices For Rare Earth in next 3yrs

Growing recognition with broader investor base and market transference of strategic premium

Upcoming news flow from the industry, updates on Dacha’s transactions, further corporate development

Non-dilutive nature of equity financings builds critical mass for takeout potential

Diversification into other strategic metals

Valuation Based On NAV Plus Premium

18

NAV of Physical Portfolio

+Scarcity of Rare Earths

Only Financial Player

+

Dynamic Trading Strategy

Financial Products

+

+

PREMIUM TO NAV=

Dacha CapitalA Forbes & Manhattan Group Company

19

Forbes & ManhattanA Private Merchant Bank

Dacha Capital Inc.

Management Team

Stan BhartiExecutive Chairman

Scott MoorePresident and CEO

Alastair NeillExecutive VP

Patrick WongCIO

Brad BolandCFO

Board of Directors

Scott Moore Alastair NeillJean-Guy

LabertClaude

BlanchetStan Bharti George Faught

Strategic Metal Advisory Board

Zheng Zhi Alastair NeillDr. Allen Alper Don Bubar

Dacha CapitalA Forbes & Manhattan Group Company

20

Forbes & Manhattan

Forbes FINANCIAL GROUP ForbesENERGY GROUPForbes AGRICULTURAL

GROUPForbes MINERALS GROUP

ForbesSTEEL

AND SPECIALTY MINERALS

GROUP

ForbesPRECIOUS AND BASE METALS

GROUP

China Mining United Fund

Forbes & ManhattanProven Track Record

21

Price Per Share and Returns

$0.20

>$7.00

Cost Exit

$0.22

$5.00

Cost Market

$0.86

$10-$12

Cost Exited

2007

• 3,750% return in 4 years

• Sold to Yamana Gold for $735M

• Over 3,900% return over4 years

• Market cap over C$1 B

• 1,100% return over9 months

• Market cap $C335 M

(Oct ‘09)

$8.00

$0.22$0.20 $0.20

$2.20

>$7.00

MarketCostCostCost Exit Market

Strategic Metal Advisory Board

22

Management will be assisted by the Advisory Board consisting of Alistair Neill, Executive VicePresident of Dacha Capital, Dr. Allen Alper, former General Manager of Osram Sylvania andZheng Zhi, Chairman of the Beijing based China Mining United Fund

Dr. Allen Alper• Accomplished senior executive, 30 year career at Osram Sylvania• Formerly VP and General Manager Osram Chemical/Metallurgical Division (15 years)• Expert in manufacturing and marketing of Tungsten, Molybdenum and other strategic metals• Holder of 33 patents in high temperature metals

Zheng Zhi• Chairman of China Mining United Fund (www.cmufund.com)• He graduated from Jilin University majoring in corporate management in 1987, and completed his graduate

studies from Tsinghua University in the class of mining finance• Mr. Zheng is also acting as the board director for the Zhengda Group, which controls about 10 billion RMB in

assets

Don Bubar• Mr Bubar is CEO Avalon Rare Metals and has been a leader in promoting the growth of Rare Earth Deposits

outside of China.

Appendix

Board Of Directors

24

Stan Bharti, P.Eng., Executive Chairman

Scott Moore, MBA, President & Chief Executive Officer and Director

Alastair Neill, Executive Vice-President and Director

Jean-Guy Lambert, MBA, Vice chairman• Mr. Lambert served as President and CEO of Dacha Capital Inc. since 1996• He has served as a financial advisor for Hydro-Quebec as well as a pension fund investment manager and Vice

President for major financial institutions• He sits on the boards of several public companies and is involved in the management of many private companies

Claude Blanchet, MBA, Director• Mr. Blanchet was President of Overload Financial Inc., a Calgary-based corporation, managing energy-related

investment funds• He was the Chairman and CEO of Societe Generale de Financement du Quebec (SGF) from April 1997 to May 2003,

and CEO of the Fonds de Solidarite des travailleurs du Quebec (F.T.Q.), from November 1983 to March 1997• Throughout his career, Mr. Blanchet has acted as director of many public companies such as Cascades Inc. (TSX),

Domtar Inc. (TSX) and Saputo Inc. (TSX). He’s currently a Director of Demcap Investments Inc. (TSX-V)

George Faught, CA, Director• Mr. Faught is a chartered accountant with over 25 years of senior management experience. Currently he is the CEO

of Aberdeen International Inc. and has served as the Chief Financial Officer of publicly traded companies in thenatural resources including North American Palladium Ltd., a mid-tier platinum group metal producer. Prior to that,he served as Chief Financial Officer for Hudson Bay Mining & Smelting Co. Ltd., an integrated base metals producer,and William Resources Inc., an international gold producer. Mr. Faught also serves as a director of several publiccompanies in the resource sector.

Forbes International Advisory Board

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General Jay Garner, USA

Served in the U.S. military for 35 years, includingcommand of Air Missile Defence Units in the Gulf War

General Ron Hite, USA

Served 33 years in the U.S. military, culminating as SeniorMilitary Advisor to the Army Chief of Staff

General Chuck Wald, USA

Air Force, Deputy Commander, European Commandincluding Africa

General George Joulwan

US Army, Former Supreme Allied Commander, Europe

General Tony Zinni

US Marines, Former Commander in Chief of US CentralCommand – includes all Middle Eastern Countries

General Larry Gillespie

Highly decorated, including Distinguished Flying Cross,Soldier’s Medal and Meritorious Service Medal

General Sir Michael Rose, U.K.

Former SAS Commander for the British Army and a highlydecorated General

Hon. Pierre Pettigrew, Canada

Served as Canadian federal Minister of Foreign Affairs

Hon. Brian V. Tobin, Canada

Served as the Canadian federal Minister of Industry andPremier of Newfoundland / Labrador

General Lewis MacKenzie, Canada

Served in the Canadian Forces for 36 years; led the UNpeacekeeping mission in Sarajevo

The Periodic Table of The Elements

26

Lanthanides

Actinides

Rare Earth Ore Compositions

27

Loparite

Mt Weld,

Austrailia

Guangdong,

China

Nangang,

Guangdong,

China

Nolan's

Bore

Australia

Lovozersky,

Russia

Baiyun Obo,

Mongolia,

China

Mountain Pass,

California,

USA

Guangdong,

China

Xunwu, Jiangxi

Province,

China

Longnan,

Jiangxi

Province,

China

Lanthanum 25.50 24.00 23.00 20.40 28.00 25.00 33.20 30.40 43.40 1.82

Cerium 46.74 42.70 42.70 48.32 57.50 50.00 49.10 1.90 2.40 0.40

Praseodymium 5.32 4.10 4.10 5.91 3.80 5.10 4.30 6.60 9.00 0.70

Neodymium 18.50 17.00 17.00 21.06 8.80 16.70 12.00 24.40 31.70 3.00

Samarium 2.27 3.00 3.00 2.37 0.96 1.20 0.80 5.20 3.90 2.80

Europium 0.44 0.10 0.10 0.37 0.13 0.20 0.12 0.70 0.50 0.10

Gadolinium Trace 2.00 2.00 0.95 0.21 0.70 0.17 4.80 3.00 6.90

Terbium 0.07 0.70 0.70 0.08 0.07 Trace Trace 0.60 Trace 1.30

Dysprosium 0.12 0.80 0.80 0.34 0.09 Trace Trace 3.60 Trace 6.70

Holmium Trace Trace 0.12 0.05 0.03 Trace Trace Trace Trace 1.60

Erbium 0.03 0.30 0.30 0.09 0.07 Trace Trace 1.80 Trace 4.90

Thulium Trace Trace 0.01 Trace Trace Trace Trace Trace 0.70

Yttrium 0.06 2.70 2.40 0.05 0.29 Trace Trace Trace 0.30 2.50

Lutetium Trace 0.14 0.01 0.05 Trace Trace Trace 0.10 0.40

Yttrium 0.35 2.60 2.40 1.48 Trace 0.20 2.60 20.00 8.00 65.00

Total 99.98 100.00 98.76 101.49 100.00 100.00 99.79 100.00 102.30 98.82

Source: US Geological Survey and Company Reports

Ion Adsorption Clays

Rare earth content of major source minerals (% total REO)

Monazite Apatite Bastnaesite

G. Scott MoorePresident and CEOTel: 416-861-5903

smoore@dachacapital.com

TSX:DAC OTCQX:DHCAF

China OfficeFloor 5, South Building

Zhonghai MansionJianguomenwai Street

Beijing, China1000020

Toronto Office65 Queen St west, Suite 800

Toronto, OntarioM5h 2M5