Proposal to sell the Inlice Project

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

16 November 2012

Stratex International Plc - Turkey Update

('Stratex' or 'The Company')

Proposal to Sell the Inlice project

Following the positive independent review of the Inlice project economics (announced on 9 October 2012), Stratex's joint-venture partner, NTF Insaat Ticaret Ltd Sti (NTF), has proposed that both parties monetise their respective investments in the Inlice holding company, NS Madencilik Sanayi ve Ticaret Ltd Sti ('NS'), by the sale of NS to a third-party company wishing to take the project to production in the shortest possible timeframe. 

Highlights

·; Agreement by Stratex to NTF's proposal for both parties to sell the Inlice project

·; Several offers received following the invitation of a number of Turkish and international companies to bid

·; NTF has agreed that Stratex should be closely involved in the invitation and evaluation process

·; Previously reported project economics significantly improved

o All equity, post-tax IRR substantially increased to 178% based on US$1,397/oz gold

o Net present value increased - US$17.5 million (10% discounted)

o Potential for extension of current resource base by including non-oxide resources

Stratex Chairman, Christopher Hall, commented: "We were very pleased with the results of the review of the 2011 feasibility study which indicated a significant improvement in project economics by mining the deposit over a shorter, two-year period. It did not come as a surprise, however, that our partner, NTF, has now proposed a sale of the project. Following its decision last August not to proceed with Altıntepe, Stratex's other gold development project that has since been joint-ventured with Bahar Mining, it became clear to us that NTF, a successful engineering and construction company, had undergone a shift in business strategy. NTF has now confirmed that it does not wish to become a gold mine operator in the foreseeable future. 

"Whilst an early disposal was not our original strategy, the robust project economics and early interest from a number of appropriate prospective purchasers, indicate that a sale could be concluded rapidly and on advantageous terms with the gold price at its currently high level. The proceeds of a near-term sale, together with the removal of future technical risk, would clearly be a positive outcome for the Company. We will be working closely with NTF to ensure that the outcome of any potential sale will be mutually beneficial."

Further Information

In June 2012, Inlice Madencilik A.S., the joint-venture company in which Stratex holds a 45% equity interest, commissioned UK-based GBM Minerals Engineering Consultants Limited ('GBM') to undertake a review of both the 2010 Feasibility Study on the Inlice project by Kappes, Cassidy (KCA) and the contents of an Environmental Impact Assessment (EIA) prepared by AECOM in March 2012

Incorporating a revised capital cost of US$25.9 million, the all-equity, post-tax NPV at a 10% discount rate is US$17.5 million and the IRR is 178% on a mine life of two years. This return was based on a reserve of 59,600 oz comprising 0.63 Mt oxide ore at a grade of 2.36 g/t Au and 0.47 Mt of unconsolidated talus ore at a grade of 0.79 g/t Au.

After receiving the preliminary results of the GBM study, NTF, which manages the project with a 55% interest, started to investigate sources of development finance in Turkey for the project. During this process a number of approaches were received from Turkish companies expressing an interest in acquiring the project.

 Following these expressions of interest, Stratex agreed with NTF to invite formal submissions from those and other companies that may be interested. NTF has agreed that Stratex should be closely involved in the invitation and evaluation process.

Stratex will now look to receive proceeds from the disposal, on a timescale yet to be determined, instead of operating cash flow from Inlice in 2013, although despite the expressions of interest and several early offers, it must be noted that sale on satisfactory terms cannot be guaranteed.

Stratex is still planning to be in production during H2 2013 at its Altıntepe project, where the Company is carried to production by partner Bahar Mining.

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

Notes to editors:

Stratex International is an AIM-quoted exploration and development company focussed on gold and high-value base metals in Turkey, East Africa and West Africa.Since listing on AIM in 2006, Stratex has had an impressive track record of successful exploration supported by joint-venture partnerships, both with major international mining companies and local companies to maximise the potential of its discoveries.

It currently has a substantial portfolio of projects, and to date Stratex has discovered more than 2.2 million ounces of gold and 7.9 million ounces of silver.