Gold Resource Update at Altintepe Project Turkey

Stratex International Plc / Index: AIM / Epic: STI / Sector: Mining

18 August 2011

Stratex International Plc ('Stratex' or 'the Company'),

Gold Resource Increase at Altıntepe Project in Turkey and Update on Project Development

Stratex International plc, the AIM-quoted exploration and development company, is pleased to announce a revised in-house JORC-compliant gold resource estimate for its Altıntepe Project ('Altıntepe' or 'the Project') in Turkey, and to report on the Company's strategy for ensuring a successful and rapid move to production at the Project.

Overview

·; New in-house resource estimate for Altıntepe increases total contained gold to 593,131oz from 574,013 oz based on infill drilling of the Kayatepe and Extension Ridge zones

·; Excellent gold grades confirmed in oxide (1.8-2.1 g/t Au) and transition material (1.7-2.4 g/t Au) at Extension Ridge and Kayatepe zones

·; Measured and Indicated oxide and transition material now accounts for approximately 90% of the resource in the two zones

·; Stratex resumes 100% interest of the Project - Turkish partner NTF was unwilling to commit to a feasibility study at Altıntepe before start of production at Stratex's first gold production project at Inlice in Turkey in 2012

·; Discussions have commenced with another Turkish company with extensive construction and mining expertise with a view to advancing Altıntepe to production by 2013

Stratex CEO Bob Foster said, "We are delighted that infill drilling of the Kayatepe and Extension Ridge zones at Altıntepe has produced an increased JORC-compliant resource estimate total for the Project of 593,131oz of contained gold and, equally importantly, an upgraded resource with approximately 90% of the gold in these two zones now contained in the higher-confidence Measured and Indicated categories. We also now have a much clearer idea of the nature of the transition zone between oxide and sulphide material, a factor that is critical to the future mine planning of Altıntepe.

"Our original partners NTF, who continue to manage our first Turkish gold production project at Inlice with a 55% interest, have advised that they are unwilling to commit to a feasibility study on Altıntepe before Inlice comes into production in 2012. We fully understand NTF's rationale but due to our commitment and confidence in the Altıntepe project we declined to agree to its request to defer the study. We have therefore opened discussions with another Turkish company, highly experienced in gold mining and processing, which had expressed an interest in Altıntepe previously. The new company has indicated that its objective would be to fast-track the Project into gold production by 2013 subject to reaching agreement on terms and permitting. We look forward to updating shareholders on these developments in due course."

Further Information

Stratex's joint venture partner NTF, a Turkish civil engineering company that is developing the Inlice gold project in Turkey to production by H1 2012, has completed its financing commitment of US$500,000 to fund a programme of infill drilling on the Extension Ridge and Kayatepe zones at Altıntepe. The drilling programme was recommended by mining consultants SRK (press release dated 3 February 2010), which also advised that no further drilling was necessary for the third major gold-bearing zone at Altıntepe - Camlik East. The drill programme was accompanied by detailed logging of both the new core and all historical core to provide an accurate picture of the interface between near-surface oxide material and underlying transition material marking the transition from oxidised to sulphide material, a process that took longer than expected. The resource estimate was completed in-house by Stratex using a manual cross-sectional method (Table 1).

Table 1. Oxide material, transition material and sulphide material resources, Altıntepe

*Calculated using a cut-off of 0.2 g/t Au

The infill drilling has achieved its objective of allowing a substantial proportion of the resources of the Extension Ridge and Kayatepe zones to be categorised as either Measured or Indicated resources. In addition the proportions of oxide and transition material have been clearly defined. Both factors will now be used to facilitate planning future development strategies.

The combined oxide + transition material, including resources previously reported for the other zones, amounts to 491,436 oz Au, a slight increase relative to the previously announced oxide resource of 472,318 oz Au (press release dated 10 September 2008). The oxide-only resource is reduced but remains a substantial resource in terms of future mine development.

The total gold resource, including gold in sulphide material, now amounts to 593,131 oz, an increase relative to the previously announced oxide resource of 574,013 oz Au (press release dated 10 September 2008) that reflects the new resource estimates for Extension Ridge and Kayatepe.

The previously reported silver resource of 3,184,508 oz silver ('Ag') was not recalculated.

Discrimination between the two types of material is important for production purposes as heap-leaching of transition material will liberate a substantial proportion of the gold but not the same high percentages of gold as would be anticipated from leaching of the oxide material. Historical bottle roll and column leach tests on oxide material from Çamlik and Çamlik East, carried out at the Kappes Cassidy & Associates Research Lab in Reno, Nevada, indicated that very high gold recoveries averaging 96% are achievable, with low sodium cyanide, lime and cement consumption even for low-grade ore material. 

Preliminary cyanide-leach test work commissioned by Stratex and completed by Wardell Armstrong International Ltd on oxide samples from the Camlik, Camlik East, and Karakisla zones returned recoveries of 93-96% from bottle roll tests on material crushed to less than 12 mm and carbon-in-leach ('CIL') tests on material ground to less than 75 micron (press release dated 10 September 2008). Similar test work on material from Kayatepe and Extension Ridge and containing some transition material indicated recoveries of 86.7% and 68.5% respectively for bottle roll tests but higher recoveries of 91.8% and 87.5% when leaching the

An environmental baseline study, completed by Golder Associates Turkey Ltd, focused on surface water and groundwater quality, air quality, noise and flora-fauna investigations and evaluated climate and meteorology, hydrology, and land use information. No significant concerns were identified and the study will be a basis for the future Environmental Impact Study that will be required before the project can be put into production.

Stratex's JV partner in the Inlice development project, private Turkish company NTF, had the right to acquire 55% of the Altıntepe project by funding a feasibility study to the amount of US$2 million now that it has fulfilled its commitment to fund early-stage scoping studies to the amount of US$500,000. However NTF requested that this decision-making process be delayed until Inlice had achieved first production by mid-2012. However, Stratex had to decline given the Company's declared strategy to see the project going into production during 2013. One previously interested party has immediately declared its interest to enter into an agreement with Stratex with the intent of completing feasibility and construction rapidly and commencing production during 2013. Stratex believes that this private Turkish company has the technical capabilities and track record to deliver on this proposal, having managed a number of heap-leach gold projects in Turkey through construction to production. Stratex is now in detailed discussion with the company and the market will be updated as soon as possible. In the meantime the Project has reverted 100% to Stratex at no cost to the Company.

Glossary of Technical Terms

Sampling, assaying, and QA/QC

Stratex's sampling of outcropping rocks, drill core, and other geological materials conforms to industry-wide good practice, with chain of custody being observed for all samples. Gold analysis is undertaken by ALS Chemex at its laboratories in Romania and the Company maintains QA/QC on all analytical work via the use of certified reference materials, field duplicates, and blank samples in addition to monitoring of internal laboratory check-analyses.

Dr Bob Foster, CEO, is a Competent Person as defined by various international instruments and takes responsibility for the release of this information.

* * ENDS * *

For further information please visit www.stratexinternational.com, email [email protected], or contact:

Notes to editors:

Stratex International Plc is an AIM-quoted exploration and development company focussing on gold and base metal opportunities in Turkey, Ethiopia and Djibouti.

Stratex - Turkey Portfolio

In Turkey, Stratex's prime objective is to move into gold production through its partnership with its Turkish partner NTF, with initial production targeted at its Inlice project by H1 2012. Altıntepe is targeted to go into production by 2013, subject to outcome of scoping and feasibility studies. The Company also remains focussed on discovering and developing new projects through low-cost exploration, adding maximum value prior to optioning/joint venturing or selling on to a dedicated mining company.

·; Total resources stand at 1.51 million oz of gold (combined oxide and sulphide gold) and approximately 7.1 million oz of silver, on a JV-inclusive basis

·; Partnership with NTF, a technically capable Turkish company, to rapidly develop the 59,600 oz gold reserve present at the Inlice project

·; An option/joint venture agreement with Centerra Exploration B.V., a wholly owned subsidiary of Centerra Gold Inc., to explore and develop the Öksüt project, a high-sulphidation gold discovery located in Central Anatolia

·; An option/joint venture agreement over the Hasancelebi project, a high-sulphidation gold project in central Turkey with Teck Madencilik Sanayi Ticaret A.S., a Turkish subsidiary of Teck Resources Limited of Canada, a major shareholder in Stratex

·; An option/joint venture agreement with private Turkish company Aydeniz Group to explore and develop the Muratdere porphyry copper-gold-molybdenum deposit in western Turkey

·; Exploration agreement with Antofagasta to explore Turkey for porphyry copper and other copper deposit-types that will be vested into an established JV

Stratex East Africa Ltd ('SEA') - Ethiopia and Djibouti Portfolio

·; A joint venture with Sheba Exploration (UK) plc to (i) earn-in to an initial 60% of the prospective 37 sq km Shehagne gold project in Ethiopia, and (ii) explore targets in northern Ethiopia on a 70:30 joint venture basis

·; Berahale and Gademsa EEL's cover a combined area of 1,225 sq km in northern and central Ethiopia respectively and are prospective for gold and base metals

·; Multiple low-sulphidation vein systems recently discovered in the Blackrock EEL with bonanza gold values up to 34.6 g/t Au and 60.4 g/t in outcrop

·; 3,853 sq km land position over new epithermal gold discovery and multiple related gold targets in the Afar Depression of eastern Ethiopia and Djibouti

·; Stratex International has signed a binding Heads of Agreement with Thani Ashanti, an AngloGold Ashanti Limited joint venture company, to fast-track development of first 11 prospects identified within the Afar Depression (collectively the 'Afar Project'). Thani Ashanti can earn 51% of the Afar Project by spending US$3 million on exploration and development over two years. Recent results from the scout drilling programme at Megenta have confirmed epithermal gold mineralization at depth.