Sale of Stratex's interest in Öksüt gold project

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

Stratex International Plc 

('Stratex' or 'the Company' or 'the Group')

Sale of Stratex's interest in Öksüt gold project for US$20 Million and 1% Net Smelter Royalty up to US$20 million - substantial return on investment

Stratex International Plc, the AIM-quoted exploration and development company focused on gold and base metals in Turkey, East Africa and West Africa, is pleased to announce the sale of its 30% stake in the Öksüt gold project ('the Project') in Turkey to joint-venture partner, Centerra Exploration B.V. ('Centerra'), a wholly owned subsidiary of Centerra Gold Inc.

Highlights

·; Stratex has accepted Centerra's offer to buy its 30% interest in Öksüt for up to US$40 million comprising the following:

o US$20.0 million payable in cash on completion - completion is conditional on conversion of six Exploration Licences to two Operation Licences, anticipated before end Q1 2013

o Up to a further US$20.0 million payable through a 1% Net Smelter Return ('NSR') royalty

·; The initial payment of US$20 million equates to a return of approximately 20 times investment by Stratex, which will be significantly increased by the royalty payments: Stratex only expended approximately US$1.0 million at Öksüt before bringing in Centerra as its JV partner

·; Proceeds of the sale will be utilised to advance the Company's exploration and drilling programmes in Ethiopia and Senegal (and elsewhere in West Africa), as well as new exploration initiatives in Turkey

Stratex's Chairman, Christopher Hall, said: "We are delighted to have agreed the sale of our 30% interest in the Öksüt project for up to US$40 million. The initial cash payment of US$20 million for our 30% share of the largely inferred resource is a great achievement in the current market. Together with future royalty payments of 1% on production, capped at US$20 million, this will provide the cash flow to enable growth without recourse to shareholders.

Stratex expended approximately US$1.0 million at Öksüt before bringing in Centerra as our partner and this represents a significant return on our investment, and demonstrates real progress with our policy of monetising our exploration successes.

Whilst maintaining a 30% share of what might ultimately become a substantial gold mine obviously had its attractions, it would have meant expending significant funds, on an ever increasing basis, to maintain our interest. This would have been to the detriment of projects in which we have a majority control, such as Blackrock in Ethiopia and Dalafin in Senegal. Instead we have reduced Stratex's exposure to future technical and financial risk from our interest in Öksüt, allowing us to explore and develop our other projects where we will be able to maintain a controlling interest".

Commenting further, Chief Executive Bob Foster, said: "I fully endorse what our Chairman says and would wish to reinforce the message that the monetisation of Öksüt now permits us to progress our exploration programmes as well as broaden our horizons and ensuring that we can continue to build Stratex into a significant exploration and development company over the next few years. As well as reinforcing and extending our exciting exploration programmes in the Ethiopian Rift Valley and Arabian Nubian Shield, we can look to expanding our exploration effort in Senegal and elsewhere in West Africa. In Turkey we have a sound exploration base and our project at Altıntepe, is expected to move to production later next year and this will provide further working capital for the Group. We intend to utilise our proficient Turkish operational team and our knowledgebase of the country and adjacent territories to continue building on our strong portfolio."

Further information

The Öksüt Project in Turkey contains a total JORC-compliant resource of 1.05M oz of gold (press release 15 February 2012), of which 83% (871,191 oz) is inferred and the remainder indicated. Centerra has been exploring Öksüt aggressively throughout 2012, with five drill rigs on site, and on 15 October 2012 vested its 70% interest in the Project following a total contribution of US$6 million since August 2009.

Stratex and Centerra have now signed a share purchase agreement whereby Centerra will acquire Stratex's remaining 30% interest in the Project for a total realisation of up to US$40 million.

Whilst recognising that the Öksüt resource might have been increased by the 2012 drill programme, the increased diversion of cash flows to maintain the Company's interest would have had significant development constraints on Stratex's majority-controlled programmes in Ethiopia and Senegal, where drilling is due to commence in Q1 2013. The sale has reduced Stratex's exposure to future financial and technical risk from the Project and supports the Company's strategy to monetise assets and grow the Company.

Stratex's attributable share of the current known resource is 314,000 oz and thus the maximum total payment of US$40 million equates to a return of US$127/oz. An initial cash payment of US$20 million (US$64/oz) will be made to Stratex for its 30% interest, following the conversion of six Exploration Licences to two Operation Licences at the property, a routine procedure that is expected to be completed by the end of Q1 2013. The balance will be paid as a 1% royalty out of production, capped at US$20 million. This agreement therefore provides a substantial return on Stratex's initial investment of approximately US$1 million.

Proceeds of the sale will be utilised to advance the Company's exploration and drilling programmes in Ethiopia, Senegal and elsewhere in West Africa. New exploration initiatives are to be implemented in Turkey and opportunities are also being considered in surrounding countries.

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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, with Altıntepe in Turkey currently scheduled for gold production in 2013. To date Stratex has discovered more than 2.2 million ounces of gold and 7.9 million ounces of silver.