Megenta Drill Update - Afar region, Ethiopia

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

27 July 2011

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

Scout Drilling Confirms Widespread Gold Mineralisation at Megenta

Stratex International plc, the AIM-quoted exploration and development company is pleased to announce the first set of results from an initial 3,000 metre drilling programme at the Megenta hot spring epithermal gold discovery. Megenta is located within the Company's Tendaho Exclusive Exploration Licence ('EEL') in the Afar region of Ethiopia.

Highlights

·; First eleven drill holes for 2,260 m of initial Thani Ashanti-funded 3,000 m programme, with a number of highly encouraging intersections returned from selective sampling

·; Drilling confirms gold mineralised structures extend laterally and up to 200 m beneath surface outcrops. Best results include:

o MG-DH-09 - 33.30 metres grading 0.54 g/t Au, including 2.57 g/t Au over 1 m, 1.67 g/t Au over 2.10 m, 1.17 g/t Au over 1.5 m, 1.13 g/t Au over 1.18 m and 0.85 g/t Au over 2.75 m

o MG-DH-07 - 22.80 metres grading 0.23 g/t Au including 3.24 g/t Au over 0.5m, and 14.0 metres grading 0.27 g/t Au including 2.35 g/t Au over 1 m

o MG-DH-01 - 10.4 metres grading 0.35 g/t gold, including 1.98 g/t Au over 0.5 m MG-DH-08 - 0.35 m grading 4.74 g/t and 11.90 metres grading 0.28 g/t Au, including 1.61 g/t Au over 0.5 m and 1.37 g/t Au over 0.4 m

·; Textures observed to date indicate drilling is yet to intersect boiling zone and thus peak gold deposition

·; Drilling continues to test mineralisation in multiple structures over the wide area

David J. Hall, Executive Director East Africa commented, "We are highly encouraged by these results from selected intersections from initial drill holes at Megenta, the first of multiple discoveries in the new Afar Epithermal Gold Province. It confirms the existence of gold mineralisation at depth over wide areas and at up to 200m below surface. The veining is dominated by calcite, which tells us we are still above the boiling zone where one may find bonanza grades that we know exist in the district from our work at Blackrock.

"The Megenta prospect is a very large low-sulphidation epithermal gold system, extending over approximately 6 square kilometres, and the continuing drilling programme at the project aims to test the key fundamentals of the fluid dynamics controlling gold distribution and to define a level where bonanza gold grades may exist. This will require considerable drilling and re-construction of the hydrology of this hot spring epithermal system which we will undertake with our partners Thani Ashanti. Selective sampling across seven of the nine holes has also been carried out to aid drill planning for further exploration programmes. We look forward to further updating shareholders as to developments at Megenta and on the greater Afar Epithermal Province, an extremely exciting Stratex discovery."

Further Information

To date, eleven drill holes have been completed at Megenta for 2,260 metres of a total 3,000 metres of a scout programme being funded by Thani Ashanti as part of their initial earn-in to these Tendaho licences. The first three drill holes were located in the Canal Zone and intersected a 53-99 metre vertical sequence of highly permeable clastic sediments overlying a thick sequence of sub-aerial basalt flows that exhibit multiple interflow rubble breccias and well-developed palaeosol horizons. The horizontally bedded sediments and breccias are both highly permeable and represent excellent passive fluid pathways. It is evident, therefore, that the mineralising fluids were not only controlled by vertical structures but also by host rock permeability and porosity with silicification observed in the sediments and forming the matrix to breccia zones - both of which host low-grade gold (>0.1 g/t Au).

Six drill holes have also been completed at the Hyena Zone, 500-1,000 metres south-west of the Canal Zone, targeting the depth-extension of high-grade surface samples. Two of these holes, MG-DD-06 and MG-DD-07, intersected several narrow silica-calcite veins and hydrothermal breccia zones 50 metres and 200 metres below gold-anomalous zones outcropping at surface. The drilling has also demonstrated that structures can be projected over 200 metres vertically downwards from outcropping zones that exhibit assay values up to 16 g/t Au.

Selective sampling was carried out across seven of the eleven drill holes to aid planning of further holes. Minor sampling and analysis delays at the start of the programme arose from problems with the core splitter, although these issues were quickly resolved and should not impact further on the 3,000 metre drilling programme. Key results to date are highlighted in Table 1.

Table 1. Key drill intersections from drill holes MG-DD-01, 02, 06, 07, 08 and 09

*N.B. most intersections include down to 0.1 g/t Au but in some intervals values

In MG-DD-01 a 50 centimetre length of core containing a 3 centimetre wide silica vein returned 1.02 g/t Au. The adjacent 1.8 metres returned values of 0.414 and 0.335 g/t Au. A continuous section from 59.8 to 101.7 metres intersected low grade gold with a maximum value of 1.98 /t Au over 0.5 metres around a 6 centimetre wide silica-calcite vein, plus a further 0.75 metre grading 1.20 g/t Au.

Mineralisation and alteration observed in the first three holes in the Canal Zone (MG-DH-01/-02/-03) indicate a distal location within the hydrothermal system, yet highlight the strong pervasive nature of the gold-bearing fluids which appear to have migrated hundreds of metres vertically and laterally.

MG-DD-06 shows a broad zone of gold mineralisation from 40.55 metres down to 61.98 metres (21.43 metres grading 0.19 g/t Au). This shows values up to 0.816 g/t Au over 0.65 metres with one zone of 9.13 metres grading 0.28 g/t Au.

MG-DD-07 is stepped back from MG-DD-06, drilling beneath intersected high-level mineralisation. Several broad zones of anomalism were intersected including; 0.23 g/t Au over 22.80 metres, 0.27 g/t Au over 14 metres and 0.32 g/t Au over 3.5 metres.

MG-DD-08 is located 50 metres southwest of MG-DD-07 and was drilled to test lateral continuity of the structures and veining observed in holes MG-DD-06 and MG-DD-07. Encouragingly, the hole intersected colloform-banded silica-calcite veining at 38.65 metres that returned 4.74 g/t Au over 0.35 metres and two other zones returned 0.28 g/t Au over 11.9 metres and 0.20 g/t Au over 6.45 metres.

MG-DD-09 is located south-west of MG-DD-08 and was drilled to test structures along strike from MG-DD-08 and under the sinter terrace towards the main controlling graben fault. It intersected extensive alteration between 44.4 and 77.7 metres including gold in thin calcite-quartz veins and within altered interflow breccias averaging 0.54 g/t Au with thin veins assaying up to 4.09 g/t Au over 0.4 metres.

To date the early-stage observations highlight the potential for both vertically and laterally extensive gold mineralisation, structurally-controlled by pervasive rift-related structures. Importantly, the Hyena Zone is showing veining in two orientations, broadly northwest- and northeast trending, and may represent a zone of significant dilation that controlled the flow of mineralising fluids. Such structural controls are of considerable importance in localising the precipitation of significant concentrations of gold, although textures observed to date indicate drilling is yet to intersect the boiling zone and thus peak gold deposition.

MG-DD-10 has tested south of hole MG-DD-9 and MG-DD-11 was drilled east of MG-DD-10 but did not reach its target depth having been abandoned at 129 m. These holes and the remaining metres will continue to test multiple structures over the wider area. Samples from holes 10 and 11 have been submitted for assay.

Additional Information - Megenta

Stratex discovered the Megenta hot spring gold system in October 2009. The Company has undertaken detailed geological and structural mapping, along with channel-chip rock sampling. Results for an area some 5,000 metres by 500 metres - from where a total of 864 rock sample results have been received (see Press Release 7 June 2010), 47 of which were QA/QC samples and are not quoted.

Of the 817 samples only 20 (2.4 %) returned non-detectable gold, 253 (31 %) returned equal or greater than 0.1 g/t Au, with further 54 (6.6 %) returning equal or greater than 0.5 g/t Au.

Sampling focused on silica structures, specifically on zones containing chalcedonic ribs and veinlets, which potentially indicate the tops of a broad coalesced vein-set at depth. The zone south of the Awash River includes the highest surface grade of 16.75 g/t Au (with 8.8 g/t Ag) from a prominent 0.5 metre silica rib.

The 500 metre long Gazelle Zone located 500 metres to the north-east contains significant values including 2.46 metres grading 2.29 g/t Au.

The broad Hyena Zone south of the Awash River appears to be related to intersecting structures defining an area of maximum dilation and hence fluid circulation - which is a common gold focus within epithermal systems.

For more information on the Megenta project, please visit:

http://www.stratexinternational.com/operations/exploration/ethiopia-djibouti/afar-project.aspx

Thani Ashanti Joint Venture

Stratex and Thani Ashanti have signed a binding Heads of Agreement with respect to five licence blocks that comprise the Tendaho EEL in the Afar Depression of Ethiopia and six EEL's in the Republic of Djibouti (collectively 'the Afar Project').

Under the terms of the Agreement, Thani Ashanti can acquire 51% of the Afar Project by expending a total of US$3 million on exploration and development over two years. Thani Ashanti is committed to expending US$1 million in the first twelve months and this will include a 3,000 metre drill programme to test the Megenta prospect in Ethiopia. Subsequently Thani Ashanti must expend a further US$2 million in the second year to earn 51% in the project.

Thani Ashanti may then earn an additional 19% (for a total of 70%) in any one EEL by further expenditure of US$4 million within four years on that EEL from the start of the Agreement.

Thani Ashanti invested US$500,000 into Stratex via a private placement. Stratex used the proceeds of the Placing to develop Stratex's Ethiopian and Djibouti portfolio not included in the Afar Project; this wider portfolio includes the Company's Shehagne, Berahale, and Tigray EEL's in northern Ethiopia and the Gedemsa EEL in the Central Ethiopian Rift.

Stratex East Africa ('SEA') holds all Stratex's Ethiopian and Djibouti assets, including the Afar Project, Blackrock, Mille-Serdo, Shehagne, Abi Adi, Berahale, Tigray and Gademsa EEL's and any new Stratex projects started in that region. Thani Ashanti has acquired 5% of SEA (and thereby 5% of all Stratex's current East African interests) having expended 50% of its first year commitment of US$1 million.

Sampling, assaying, and QA/QC

Stratex's sampling of outcropping rocks 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.

Executive Director, David J. Hall, Fellow SEG and EuroGeol, 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 and at Altıntepe 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 and well-financed Turkish company, to rapidly develop the 542,318 oz oxide gold resources present at the Inlice and Altıntepe projects

·; 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 copper and other deposit-types to be vested into an established JV

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

·; 4.93% shareholding in PLUS-quoted exploration company Sheba Exploration (UK) plc ('Sheba')

·; Ajoint venture with Sheba to (i) earn-in to an initial 60% of the prospective 29 sq km Shehagne gold project in Ethiopia, and (ii) explore targets in northern Ethiopia on a 70:30 joint venture basis

·; Berahale and Gademsa EELs 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.