Positive Feasibility Study for Inlice Gold Project

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

4 April 2011

Stratex International plc

Positive Feasibility Study for the Inlice Gold Project

Stratex International plc ('Stratex' or 'the Company') is pleased to announce the receipt from its joint venture partner NTF Insaat Ticaret Ltd Sti ('NTF'), of the results of the Inlice Feasibility Study commissioned by NS Madencilik Insaat Ticaret Ltd Sti ('NS Madencilik') and undertaken by Kappes Cassidy & Associates of Reno, Nevada ('KCA'), with DAMA Engineering of Ankara, Turkey ('DAMA').

Highlights

v Total mineral reserves of 1,095,000 tonnes grading 1.69 g/t gold ('Au') comprising 629,000 tonnes of in situ material averaging 2.36 g/t Au and 466,000 tonnes of talus material averaging 0.79 g/t Au, for 59,600 oz of contained gold

v Estimated total cash operating costs of US$412 per ounce of gold produced and a life-of-project gold production of 50,150 oz

v Projected after-tax internal rate of return ('IRR') of 22.9% using US$1,100/oz gold price, increasing to a projected IRR of 31.8% at US$1,200/oz

v Use of NTF mining fleet leads to after-tax IRR of 36.9% at a gold price of US$1,100/oz and 47.9% at US$1,200/oz

v Upside from growth of resource and savings in operating costs not factored into base case

v Leach pad designed for 3x expansion to include additional exploitable resources not included in current reserves

v Metallurgical test work to be commissioned on underlying 164,000 oz sulphide resource

v Good progress with early-stage permitting discussions with local, provincial, and government agencies

v Work is continuing to optimise the economics of the operation including increasing the effective capacity of the operation from one to two or three shifts per day but should not delay Engineering, Procurement, Construction Management ('EPCM') process and eventual production

v Targeted mining to commence at the end of Q1 2012 with first gold production end of Q2 2012

Stratex CEO Bob Foster said, "To date the feasibility study has demonstrated that the relatively small Inlice gold deposit is economically viable and can be put into production rapidly. Work remains to optimise the economics, including exploitation of the reserve over a shorter period by moving to a two or even a three shift operation. These improvements, combined with a relatively low cash operating cost of US$412 per ounce of gold, are expected to result in an even more robust project that we regard as the first step towards building a substantial gold-producing company in Turkey. As a 45% shareholder in the operating company NS Madencilik, Stratex would like to acknowledge the important input to the study provided by our joint-venture partner NTF, which has coordinated much of the relevant activities in Turkey; the input of its mining team has been critical to the successful outcome of the feasibility study. Going forward, this permits us to focus on discovering and developing further gold projects that can contribute to the future success of NS Madencilik. Additionally the learning curve of moving to production is going to considerably underpin future development projects."

Detailed results

Kappes, Cassiday & Associates, in collaboration with Turkish partners Dama Muhendislik, were tasked to review the feasibility of exploiting the Inlice deposit by open-pit mining and heap-leaching of the oxide material. The consultancy team worked in close liaison with NS Madencilik, the Inlice operating company that is 55% owned by Turkish company NTF and 45% by Stratex.

Using a cut-off grade of 0.3 g/t Au, the total proven mineral reserves are 629,000 tonnes of in-situ oxide material averaging 2.36 g/t Au plus 466,000 tonnes of talus material averaging 0.79 g/t Au, for a total gold reserve of 59,600 oz Au. The average stripping ratio for the total mine life is 0.76, reflecting the fact that a significant amount of the stripped material is mineralised overburden ('talus') that will be delivered to the leach pad.

Additional resources of oxide and transition material (containing partially oxidised sulphide material) have been identified and the report states that these are likely to be mined at a profit. Higher production from the talus material can also be anticipated given that it is not possible to mine this mix of eroded rock and soil to a specific cut-off value. The report also notes that significant sulphide resource will be exposed during the mining of the oxide material and recommends that exploitation of this material be evaluated. The underlying sulphide resource was estimated by ACA Howe in 2008, to be 164,000 oz Au grading 1.78 g/t Au (see press release dated 4 July 2008). For this reason the leach pad has been designed with an initial capacity of 1.1 million tonnes but this can be expanded to contain up to 3 million tonnes.

The material will be crushed to

Total cash operating cost per ounce of gold is projected to be US$412, with a state royalty of 4% and projected capital expenditure on construction of US$13.85 million. Using even a baseline conservative gold price of US$1,100, the project economics are positive with an after-tax IRR of 22.9% and NPV(10) of US$ 4.0 million, increasing to 31.8% and US$ 6.9 million at a gold price of $1,200. However, NS Madencilik proposes to use shareholder NTF's mining fleet on a contract basis at the identified working costs, leading to improved project economics that are particularly robust:

Sensitivity analysis demonstrates that the project is most sensitive to gold price (see table above) followed by gold recovery, features that are typical of open-pit heap-leach gold projects.

The report notes that there are operational opportunities to enhance the project economics, including further reductions in capital costs using locally sourced plant and equipment and running two shifts (mining and crushing) per day instead of the modeled one shift, and these are currently being evaluated by NS Madencilik. Total life-of-project gold production is estimated to be 50,150 oz gold, based on the modeled gold reserve but, as noted above, there is considerable likelihood of additional gold being produced that does not fall within the reserve category. Significant future developments and feasibility updates will be reported.

The technical capabilities of major shareholder NTF, with a proven track record in all aspects of earth moving and open cast mining, have proved essential to the advancement of the feasibility study, and use of the company's mining fleet and personnel will ensure that open-pit mining of the orebody by NS Madencilik is undertaken rapidly, efficiently, and to the highest international standards.

As reported in the press release of 23 February 2011, NS Madencilik personnel have held meetings with a considerable number of local, provincial, and government agencies and received positive support from all parties. Covering letters from all these agencies will be incorporated within the Environmental Impact Assessment Report that is in the final stages of compilation and this will be submitted to the appropriate government department for review and approval in mid-year.

In the meantime EPCM tenders are being invited to ensure that construction can proceed immediately once the permitting process has been completed. It is estimated that construction will only take approximately three months and that, subject to permitting, mining will commence at the end of Q1 2012 and first gold production is now projected to be towards the end of Q2 2012.

The technical content of this news release has been reviewed by Dr R P Foster, CEO of Stratex International, and by Mr Bugra Berkun, CEO of Inlice Madencilik.

For more information on the Company's Inlice project, please see http://www.stratexinternational.com/operations/development/turkey/inlice.aspx

** 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.

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. 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 1.31 million oz of gold (combined oxide and sulphide gold) and approximately 3.2 million oz of silver

·; 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

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 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 EELs cover a combined area of 1,225 sq km in northern and central Ethiopia respectively and are prospective for gold and base metals

·; 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.