Strateco Resources Inc.
OTC Bulletin Board : SRSIF

Strateco Resources Inc.

January 16, 2007 08:12 ET

Strateco Resources Announces Cdn$20 Million Bought Deal Private Placement Financing

MONTREAL, QUEBEC--(CCNMatthews - Jan. 16, 2007) -

This news release is intended for distribution in Canada only and is not intended for distribution to United States newswire services or dissemination in the United States.

Strateco Resources Inc. ("Strateco") (TSX VENTURE:RSC)(FRANKFURT:RF9)(OTCBB:SRSIF) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Orion Securities Inc. including Dundee Securities Corporation, Blackmont Capital Inc. and Sprott Securities Inc. (collectively the "Underwriters"). Under the agreement, the Underwriters will purchase, on a bought deal basis, 7,700,000 units (the "Units") of Strateco at a price of Cdn$2.60 per Unit (the "Issue Price") for gross proceeds of Cdn$20,020,000 (the "Offering"). Strateco will grant the Underwriters an option, to purchase up to an additional 1,920,000 Units (Cdn$4,992,000), exercisable at the Issue Price for a period of 48 hours prior to the closing date of the Offering (the "Closing Date").

Each Unit is comprised of one common share (a "Unit Share") of Strateco and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one common share at a price of Cdn$3.50 for a period of 24 months following the Closing Date, provided that if the closing price of the common share of Strateco is equal to or greater than Cdn$4.50 for 20 consecutive trading days at any time after four months and one day following the Closing Date, upon 30 days notice from Strateco, it may accelerate the expiry of the Warrants.

Strateco will use the net proceeds from the Offering to fund the further exploration of the Matoush and Mont-Laurier uranium projects in Quebec and for working capital purposes.

The Offering is expected to close on or about January 31, 2007 and is subject to certain conditions including the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. The Unit Shares, the Warrants and the common shares issuable on the exercise of the Warrants will not be subject to any hold or restricted period which extends beyond four months and one day after the Closing Date.

Strateco will pay the Underwriters a cash commission equal to 6.0% of the gross proceeds of the Offering. The Underwriters will also receive compensation options (the "Compensation Options") equal to 6.0% of the total number of Units sold pursuant to the Offering. Each Compensation Option will entitle the Underwriters to purchase one Unit at the Issue Price for a period of 24 months following the Closing Date.

This press release is not an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements.


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