Strait Gold Corporation

Strait Gold Corporation

August 21, 2007 09:15 ET

Strait Gold Accelerates Option on Culebrilla Property

TORONTO, ONTARIO--(Marketwire - Aug. 21, 2007) - Strait Gold Corporation (TSX VENTURE:SRD) is pleased to announce it has accelerated an option agreement with Minera Rosa Mistica S.A.C. ("MRM") to earn a 100% interest (subject to a net smelter royalty) in the Culebrilla gold-silver property in Peru.

Under the terms of a 2003 option agreement, to earn a 100% interest in the property Strait Gold was required to make staged payments to MRM totaling US$530,000 in cash or shares at MRM's discretion by November 21, 2008. Strait Gold has met all its obligations to date under the original option agreement having paid a total of US$280,000 in option payments with additional option payments of US$100,000 due on November 21, 2007 and US$150,000 due on November 21, 2008. To accelerate the option, Strait Gold has issued a total of 825,496 shares to MRM in full satisfaction of its remaining option payments and provided additional consideration by issuing 800,000 warrants to MRM, each warrant exercisable for one common share of Strait Gold at $0.50 until October 20, 2008.

"With drilling in progress at Culebrilla, we are pleased to now have full ownership of this very prospective property, which includes the recently discovered Letra Rumi South copper prospect," said Strait Gold President Jim Borland. "We are also gratified that the property vendor has chosen to take an equity position in Strait Gold in order to participate in any success we may achieve."

The shares and warrants issued under the accelerated option are restricted from trading until December 18, 2007. Transfer of title to the property is subject to public registration. MRM continues to hold a 3% net smelter royalty in the Culebrilla property with Strait Gold having the right to reduce the royalty to 1% by paying US$1 million for each percentage it is reduced.

About Strait Gold Corporation:

Strait Gold Corporation is a Canadian mineral exploration company active in Peru. It holds a 100% interest in the 68-sq.-km Culebrilla property located in Ancash Department, the same Peruvian jurisdiction that hosts the Pierina gold mine (Barrick Corporation), the Antamina base metals mine (BHP Billiton, TeckCominco, Xstrata Minerals and Mitsubishi) and numerous other, smaller mining operations. Culebrilla lies between Pierina to the south and Lagunas Norte, another Barrick gold mine, to the north.

To find out more about Strait Gold Corporation, please visit our website at

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