Strateco Resources Inc.
TSX VENTURE : RSC

Strateco Resources Inc.

January 16, 2006 16:33 ET

RSC Announces Private Placement of CDN$1,200,000

MONTREAL, QUEBEC--(CCNMatthews - Jan. 16, 2006) - Strateco Resources Inc. (TSX VENTURE:RSC)(US SEC Registration # 0-49942)

THIS MEDIA RELEASE IS NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Strateco is pleased to announce a private placement through Quest Securities Corporation for up to 6,000,000 units at a price of $0.20 per unit to raise gross proceeds of approximately Cdn$1,200,000. Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share at a price of $0.26 per common share for a period of 24 months following the closing date.

If the trading price of the common shares of Strateco on the TSX Venture Exchange is equal or exceeds C$0.50 for 20 consecutive trading days, Strateco shall be entitled to notify the warrant holders of its intention to trigger the exercise of the warrants. Upon reception of such notice, warrant holders shall have 30 days to exercise the warrants, at which point the warrants will prematurely expire.

Quest Securities Corporation will act as agent for the placement of Cdn$1,200,000. Strateco will pay a cash commission of 8% of the gross proceeds raised under the private placement and issue broker warrants entitling the agent to purchase up to 10% of the number of units sold under the private placement at a price of C$0.20 per unit for a period of 24 months following the closing date.

In accordance with securities legislation, the shares and warrants issued under the private placement will be subject to a "hold period" of four months and one day from the closing date.

The completion of the private placement and the listing of the shares and warrants are subject to the approval of the TSX Venture Exchange.

The net proceeds of this private placement will be used for working capital of Strateco and the exploration of its uranium projects.


THE TSX VENTURE EXCHANGE (TSX) DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.

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