Strait Gold Corporation
TSX VENTURE : SRD

Strait Gold Corporation

August 26, 2010 17:11 ET

Strait Gold Closes Final Tranche of Working Capital Offering

TORONTO, ONTARIO--(Marketwire - Aug. 26, 2010) - Strait Gold Corporation ("Strait Gold" or the "Company") (TSX VENTURE:SRD) is pleased to announce that it has placed 8,494,668 working capital units (the "WC Units"), including 2,800,000 WC Units placed in a first tranche previously announced in a news release dated July 23, 2010, priced at $0.06 per WC Unit for gross proceeds of $509,680. Each WC Unit consists of one (1) common share (a "WC Share") and one half (1/2) of a share purchase warrant (a "WC Warrant"). Each full WC Warrant entitles the holder to acquire a further common share of the Company at a price of $0.15 per share until the earlier of: (i) the date which is twenty-four (24) months following the closing; and (ii) in the event that the closing price of the common shares on the TSX Venture Exchange is at least $0.30 for ten (10) consecutive trading days, and the 10th trading day (the "Final Trading Day") is at least four (4) months from the Closing Date, the date which is thirty (30) days from the Final Trading Day (the "Trigger Date"). A cash fee of $11,760 and 196,000 broker warrants to acquire common shares at a price of $0.10 per share for 24 months from closing were paid to Loeb Aron & Co Ltd of London, England, in respect of the closing of the first tranche of the offering and a cash fee of $5,578 and 92,960 similar broker warrants were paid to Union Securities of Vancouver in respect of the closing of the final tranche of the offering. All of the securities referred to herein are legended and restricted from trading until November 24, 2010, in the case of the first tranche, and until December 25, 2010, at the earliest in the case of the final tranche. An Insider of the Company subscribed for 150,000 WC Units for proceeds of $9,000.

The proceeds from the financing will be used for working capital and to fund initial drilling and further exploration at the Alicia copper-gold project in Peru.

About Strait Gold Corporation:

Strait Gold Corporation is a Canadian mineral exploration company active solely in Peru. It has an option to earn a 100% interest in the Alicia copper-gold property approximately 500 km southeast of Lima, the capital of Peru, and holds a 100% interest in both the Letra Rumi South copper-silver property and the Culebrilla gold-silver property, approximately 250 km north of Lima. To learn more about Strait Gold, please visit our website at www.straitgold.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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