Strait Gold Corporation
TSX VENTURE : SRD

Strait Gold Corporation

November 25, 2010 13:32 ET

Strait Gold Announces Unit Private Placement

TORONTO, ONTARIO--(Marketwire - Nov. 25, 2010) - Strait Gold Corporation ("Strait Gold" or the "Company") (TSX VENTURE:SRD) is pleased to announce that it is offering up to 5,000,000 units of the Company at a price of $0.135 per unit, for gross proceeds of up to $675,000 (the "Offering"). Each unit (a "Unit") will consist of one (1) common share of the Company and one (1) share purchase warrant (each a "Warrant"). Each full Warrant will entitle the holder to acquire an additional common share at the price of $0.25 per share for twelve (12) months following Closing. The Company may pay finder's fees of up to 8% cash plus up to 8% Compensation Options for funds raised by eligible finders. Each Compensation Option entitles the finder to purchase one common share of the Company at a price of $0.135 for twelve (12) months from Closing. Insiders of the Company may subscribe for up to a total of 500,000 Units for proceeds of up to $67,500. 

The insider private placements are exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 ("MI61-101") by virtue of the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in that the fair market value of the consideration for the securities of the Company to be issued to insiders does not exceed 25% of its market capitalization.

The proceeds from the offering will be used for working capital and to fund exploration of its Alicia Property. The financing is anticipated to close in tranches.

This transaction is subject to approval from the TSX Venture Exchange.

About Strait Gold Corporation:

Strait Gold Corporation is a Canadian mineral exploration company active solely in Peru and listed on the TSX Venture Exchange. It has an option to earn a 100% interest in the Alicia copper-gold property in Cusco Department approximately 500 km southeast of Lima, the capital of Peru, and holds a 100% interest in both the Letra Rumi South copper-silver property and the Culebrilla gold-silver property, both in Ancash Department approximately 250 km north of Lima. To learn more about Strait Gold, please visit our website at www.straitgold.com.

Cautionary Note Regarding Forward-Looking Statements: This Press Release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such actual results of current exploration programs, the general risks associated with the mining industry, the price of gold and other metals, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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