Strait Gold Corporation

Strait Gold Corporation

April 02, 2007 09:00 ET

Strait Gold Receives Receipt for Final Short-Form Prospectus

TORONTO, ONTARIO--(CCNMatthews - April 2, 2007) - Strait Gold Corporation (TSX VENTURE:SRD) is pleased to announce that it has received a receipt for a final short form prospectus dated March 30, 2007, from the securities commissions of British Columbia, Alberta, Manitoba, Ontario and Nova Scotia. The Company is offering a minimum of 2,500,000 units and a maximum of 5,000,000 units priced at $0.40 per unit for gross proceeds of $1,000,000 for the minimum offering and $2,000,000 for the maximum offering. Each unit shall consist of one common share and one-half of a share purchase warrant with each whole warrant entitling the holder to acquire a further common share at a price of $0.60 per share for a period of 18 months from closing.

Blackmont Capital Inc. is acting as agent for the offering and will conditionally offer the units on a reasonable commercial efforts agency basis. The Company has granted Blackmont an over-allotment option, exercisable for a period of 30 days from the closing of the offering, to purchase up to an additional 750,000 units equal to 15% of the aggregate number of units sold under the maximum offering at the offering price. Blackmont will receive a commission equal to 8% of the gross proceeds, a corporate finance fee of $25,000 and an option to acquire that number of units equal to 8% of the total number of units sold under the offering including pursuant to the over-allotment option on the same terms as the offering.

Strait Gold intends to use the proceeds from the offering and any exercise of the over-allotment option to fund further exploration at its Culebrilla Project in Peru and for general corporate purposes.

The closing of the offering is expected to occur on or about April 20, 2007, and is subject to all applicable regulatory and exchange approvals.

These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirement of the 1933 Act. This news release is not an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.

About Strait Gold Corporation

Strait Gold Corporation is a Canadian mineral exploration company active in Peru. Its Culebrilla Project is located in Ancash Department, the same Peruvian jurisdiction that hosts the Pierina gold mine (Barrick Corporation), the Antamina base metals mine (BHP Billiton, Xstrata Minerals, TeckCominco and Mitsubishi) and numerous other, smaller mining operations. Surface grab samples at Culebrilla indicate widespread gold and silver mineralization, plus copper, zinc and lead, with values up to 14.4 g/t gold, 1,365 g/t silver and 8.4% copper. Based on these sampling results and previous artisanal mining on the property the Company plans to conduct the first-ever diamond drilling at Culebrilla in 2007. To find out more about Strait Gold, please visit our website at

The TSX Venture Exchange has not reviewed and does not accept responsibility for this news release.

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