Strategic Resource Acquisition Corporation

Strategic Resource Acquisition Corporation

July 09, 2007 16:26 ET

SRA: MTM Zinc Project on Track as Workforce Hiring Accelerates

TORONTO, ONTARIO--(Marketwire - July 9, 2007) - Strategic Resource Acquisition Corporation (TSX:SRZ)(TSX:SRZ.NT)("SRA" or the "Company) is pleased to report that good progress is being made on all fronts at its Middle Tennessee Zinc Mining Complex ("MTM"). The Company is on track to commence mining in the fourth quarter of 2007 with the objective of achieving full production in early 2008 at an annual rate of 2.4 million tons of ore containing approximately 147 million pounds (125 million pounds recoverable) of zinc in concentrate. Once in 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 Phase I plans include the refurbishment and procurement of stationary and mobile equipment, dewatering and rehabilitation of the mines, including the mill and concentrator at Gordonsville. Since late February 2007, Dynatec Mining Corporation ("Dynatec"), the contract operator engaged by SRA, has been expediting the start-up engineering and rehabilitation work with a growing team of on-site staff.


Recruiting efforts have commenced for the permanent workforce. Currently over 100 workers are now on site with 79 contracted workers and another 30 reporting today, well on target. The aggressive recruitment campaign, led by the Manager of HR, is attracting high numbers of qualified individuals. The local communities have expressed support for the project, sponsoring education programs for former and potential new mine employees which have been well received.

A Mill Superintendent, Mine Superintendent and Mining Engineer reported to the site at the end of June and an experienced underground Operating Manager and open-pit Mining Engineer joined the team in early July. Production from the MTM is envisioned on two 10-hour shifts, seven-day work week to provide operational consistency and flexibility at a rate of 2.4 million tons per year at full production.

The Company has retained an independent marketing consultant to review and coordinate its negotiations with various smelters and metal trading companies who have expressed interest in purchasing or processing the zinc concentrate. The mine has historically produced one of the highest quality concentrates in the world with 64.5% contained zinc concentrate together with by-products germanium, gallium, aggregate and agricultural lime.

In addition, ongoing progress at the mine and mill facilities continues.

Gordonsville Mine

Multiple ventilation studies have been shown to exceed all air standards. Natural air flow between the Gordonsville and Elmwood Mines is increasing rapidly with design and development of a long term ventilation system by Agapito Associates, a global engineering firm with expertise in underground mine systems. Access to some of the Gordonsville resource blocks has been achieved. Rehabilitation of the Gordonsville underground maintenance shop is now complete while hoist room clean-up and refurbishment is ongoing. Extended rehabilitation of service water and air lines in addition to road beds continues to make good progress.

Gordonsville Mill

BESCO is completing the mill rehabilitation as planning, budgeting and scheduling are being reviewed. The purchased mill is expected to be on site in August.

Elmwood Mine

The Elmwood No. 2 head frame has been dismantled to allow for installation of additional dewatering pumps.

Cumberland Mine

A 500 HP 1,000 GPM vertical turbine pump has been installed at Cumberland Shaft #8, with a second pump scheduled for installation in late July.

To date, approximately 278 million gallons of water have been dewatered from the MTM complex at an average rate of 4.8 million gallons per day.

About SRA

SRA Corporation is focused on the development of the MTM zinc project in the State of Tennessee. The MTM project has 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. The Company's goal is to become a producer of zinc commencing in late 2007 through the re-opening of the MTM zinc mines comprised of five historic producing underground zinc mines (Elmwood, Gordonsville, Carthage, Stonewall and Cumberland) as well as the undeveloped East Carthage zinc deposit. The MTM mining and milling complex is located approximately 80 kms east of Nashville. The district is situated amid excellent infrastructure including roads, water, power, major airport with access to a well-trained workforce. Demand for zinc used largely in galvanizing steel has doubled in recent years becoming increasingly in short supply. The Company also plans to explore and develop additional properties and redeploy cash flow to pursue a strategy of accretive acquisitions.

A technical report dated May 10, 2007 prepared by Watts, Griffis and McOuat Limited in accordance with the standards adopted by the CIM and compliant with National Instrument 43-101 is available on the Company's filings on

The Company's common shares are listed on the TSX under the symbol SRZ and the Company's Notes are listed on the TSX under the symbol SRZ.NT.

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, and that reflects management's expectations regarding the Company's future growth, results of operations, performance and business prospects and opportunities. These statements reflect management's current beliefs and are based on information currently available to management. 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.

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