Strategic Resource Acquisition Corporation
TSX : SRZ
TSX : SRZ.NT

Strategic Resource Acquisition Corporation

March 04, 2008 08:54 ET

SRA Announces Closing of $10 Million Convertible Note Issue

TORONTO, ONTARIO--(Marketwire - March 4, 2008) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

Strategic Resource Acquisition Corporation ("SRA" or the "Company")(TSX:SRZ)(TSX:SRZ.NT) today announced that it has closed the previously announced bought deal financing with a syndicate of underwriters led by Blackmont Capital Inc. and including Haywood Securities Inc. and Paradigm Capital Inc.

The issue consisted of unsecured subordinated convertible notes (the "Notes") in the aggregate principal amount of $10 million by way of short-form prospectus. The Notes have a face value of $1,000 with a coupon of 8.00% and maturity date of June 30, 2013, and will be convertible at any time prior to maturity at the option of the holder or the date fixed for redemption, into common shares of SRA at a price of $3.60 per common share. The Notes pay interest semi-annually on June 30 and December 31, with the initial interest payment to be made on December 31, 2008.

Proceeds of the issue will be used for capital expenditures related to the Company's Mid-Tennessee zinc mining complex, general corporate expenses and working capital.

About SRA

SRA Corporation is focused on the development of the MTM zinc project in the State of Tennessee. The MTM mining and milling complex is located approximately 80 kms east of Nashville with excellent infrastructure including roads, water, power, major airport and access to a well-trained workforce. MTM will produce one of the highest quality zinc concentrates in the world and efforts are underway to establish recovery methods for the valuable germanium and gallium contained in the concentrate. Once in full production, the Gordonsville Complex at MTM is expected to be the largest zinc producer and domestic source of germanium and gallium in the continental USA.

The Company also plans to explore and develop additional properties and redeploy cash flow to pursue a strategy of accretive acquisitions.

Cautionary Statement on Forward-Looking Information

This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects, the future price of zinc or other metal prices, the estimation of mineral resources and realization of mineral resource estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits and future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of regulatory matters. These statements reflect management's current beliefs and are based on information currently available.

Forward-looking statements involve significant risks, uncertainties and assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including those listed in the ''Risk Factors'' section of the Company's prospectus on file with Canadian provincial securities regulatory authorities. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

For further information, please email info@sra-corporation.com.

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