Strait Gold Corporation
TSX VENTURE : SRD

Strait Gold Corporation

December 16, 2010 09:48 ET

Strait Gold Closes $1.89-Million Financing

TORONTO, ONTARIO--(Marketwire - Dec. 16, 2010) - Strait Gold Corporation ("Strait Gold" or the "Company") (TSX VENTURE:SRD) is pleased to announce that it has closed the private placement announced on December 3, 2010. The Company placed a total of 14,000,000 units for gross proceeds of $1,890,000 pursuant to the offering.

Each unit (a "Unit") consisted of one (1) common share of the Company and one (1) share purchase warrant (each a "Warrant"). Each Warrant entitles the holder to acquire an additional common share at the price of $0.25 per share for twelve (12) months following Closing. The Company paid finders fees in the amount of $122,828.40 and issued 909,840 broker warrants to a syndicate of brokers. Each broker warrant entitles the holder to purchase a common share of the Company at $0.135 per share for twelve (12) months following Closing. The securities issued bear a legend and are restricted from trading until April 16, 2011. Insiders subscribed for a total of 525,000 Units. The Company currently has 49,987,603 common shares issued and outstanding.

The proceeds from the offering will be used for working capital and to fund exploration of its Alicia Property. 

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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