Strait Gold Corporation
TSX VENTURE : SRD

Strait Gold Corporation

November 06, 2007 08:45 ET

Strait Gold Adds to Property Portfolio With Two Option Agreements

TORONTO, ONTARIO--(Marketwire - Nov. 6, 2007) - Strait Gold Corporation (TSX VENTURE:SRD) is pleased to announce it has signed option agreements for mineral rights on two properties in Peru's Ancash Department, approximately 40 km south of its Culebrilla Project where diamond drilling is currently under way. Both option agreements are subject to recording with the public registry in Peru.

The first agreement gives the Company the option to earn a 70% interest, subject to a 2% net smelter royalty, in the San Jorge gold-silver property by making staged payments over three years totaling $990,000 with US$25,000 of that amount payable on signing and $15,000 payable December 14, 2007, and by completing $500,000 of exploration work. The Company also has the option to increase its interest to 100%, subject to a 2% net smelter royalty, in 10% increments by paying US$500,000 for each 10%.

The second agreement gives the Company the option to earn a 100% interest, subject to a 2% net smelter royalty, in the Pallcamachay copper property by making staged payments over three years totaling $1,560,000 with US$25,000 of that amount payable on signing and $15,000 payable December 14, 2007, and by completing $500,000 of exploration work.

The Company also holds a right of first refusal on each property's 2% net smelter royalty and has agreed to negotiate with the vendor a purchase price for half of the royalty.

San Jorge is located approximately nine kilometres north of and in a similar geological environment as the recent San Luis silver-gold discovery (a joint venture of Esperanza Silver Corporation and Silver Standard Resources Inc.). Strait Gold geologists visited the property earlier this year and collected 24 chip samples across 10 exposed veins . Eight of those chip samples returned greater than 20 grams per tonne (g/t) silver, including up to 242 g/t silver over 1.3 metres and 234 g/t silver over 1.3 metres, and seven samples returned greater than 0.5 g/t gold including 1.0 g/t gold over 6.0 metres. Several other veins remain untested. An arsenic-antimony-mercury-barium geochemical association with these samples, coupled with vein textures indicate the veins are epithermal in origin.

Pallcamachay, located approximately three kilometres north of San Jorge, contains extensive phyllic (silica-sericite) alteration with local quartz-iron-oxide stockwork veining within a high-level quartz-feldspar porphyry intrusion and overlying Calipuy group volcanics, and presents a prospective buried porphyry copper target.

"We are pleased to add these two properties to our portfolio of projects in Peru," said Strait Gold President Jim Borland. "San Jorge presents an excellent epithermal target with potential to host bonanza-grade silver mineralization with gold credits while Pallcamachay holds the potential for a porphyry copper deposit that certainly warrants further investigation. Both properties feature excellent access, good infrastructure and are located in Ancash Department, a mining-friendly jurisdiction in Peru that we are familiar with from our work at Culebrilla."

Ancash is the same Peruvian jurisdiction that hosts the Pierina gold mine (Barrick Corporation), the Antamina base metals mine (BHP Billiton, TeckCominco, Xstrata Minerals and Mitsubishi) and numerous other, smaller mining operations. Strait Gold's Culebrilla precious metals project and Letra Rumi South copper project are also in Ancash Department allowing the Company to maximize its resources by focusing on four projects within one highly prospective area.

Ryan Weston, P.Geo., Exploration Manager for Strait Gold Corp. is the Qualified Person for the purpose of this news release and has reviewed its technical content.

About Strait Gold Corporation:

Strait Gold Corporation is a Canadian mineral exploration company active in Peru and listed on the TSX Venture Exchange where it trades under the symbol SRD. It holds a 100% interest in the Culebrilla gold-silver project where drilling is under way, a 100% interest in the Letra Rumi South copper project where drilling is scheduled to begin in 2008 and is earning an interest in two other projects in Peru, San Jorge and Pallcamachay. To learn more about Strait Gold Corporation, please visit our website at www.straitgold.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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