Strateco Resources Inc.
OTC Bulletin Board : SRSIF

Strateco Resources Inc.

December 22, 2006 12:31 ET

Strateco Intersects 2,1%U308 Over 12,4 Metres on Matoush and Allocates a $12 Million Budget for 2007

MONTREAL, QUEBEC--(CCNMatthews - Dec. 22, 2006) - Strateco Resources Inc. ("Strateco") (TSX VENTURE:RSC)(FRANKFURT:RF9)(OTCBB:SRSIF)is pleased to announce the completion of 38 drill holes by one drill rig on the Matoush property in 2006 for a total of 13,668 metres. The Matoush property is wholly-owned by Strateco. Drilling covered a 730-metre section of the Matoush structure, which has been traced over a distance of more than eight kilometres. Most of the drilling, 17 holes, targeted the AM-15 zone. Strateco has received the results of 15 additional holes from the Saskatoon Research Centre (SRC), with analyses for 12 holes still pending. The best results for the new holes (holes MT-06-14 to 21, MT-06-27 to 29, MT-06-30) were from Hole MT-06-30, which returned a grade of 2.1 % U3O8 over 12.4 metres representing 42 lbs/tonne U3O8 over 41 feet; this includes 4.7 % U3O8 over 3.3 metres (94 lbs per ton) and 16.6 %U308 over 0.3 metres (332 lbs per ton). This is the best intersection obtained to date on the property. A pound of U3O8 presently sells for US $72. Hole MT-06-30 lies in the northern extension of the AM-15 zone, at the upper contact of the ACF facies. It is the first of a series of holes with strong potential for high grades, including holes MT-06-31, 32, 33 and 37 drilled the length of the AM-15 zone going north and above hole MT-06-16, which intersected low U3O8 values (see location map on the website at

Holes MT-06-14, 15 and 16 all returned values of U3O8, albeit low values for Matoush. Results for Hole MT-06-18, located 175 metres north of AM-15, included 0.27% over 2 metres, but it should be noted that a 3-metre section of the fault was not recovered.

Of the most recent holes drilled on the AM-15 zone for which chemical results were not available, Hole MT-06-35 is of particular interest. This hole in fact intersected a section strongly mineralized in pitchblende and uranophane over 15.1 metres, with up to 65,000 counts per section (cps).

Exploration holes (MT-06-20 to MT-06-27) drilled on a 100-metre grid to the north all intersected the fault with typical alteration, with radiometry indicating weak to moderate values of up to 2,500 cps.

The following table shows mineralized intersections for which chemical results have been received, as well as the radiometry in holes for which chemical results are still pending.

The table is available at the following address:

The true width of the mineralized intersections has not yet been determined.

A preliminary budget of CAN $12 million has been allocated for work on the Matoush property in 2007. Most of this budget will be used for drilling. The objective for 2007 is to define resources sufficient to warrant a feasibility study for a 2 million pound U3O8 annual mining operation with a mine life of 8 to 10 years. Beginning in January 2007, a drill rig will begin testing the sediment/bedrock contact (unconformity), expected at a vertical depth of about 900 metres. The first hole will establish the stratigraphy of the sediments and the number of ACF-type sediment units with high potential uranium grades that have been discovered to date on the Matoush property. It is known that in the Athabaska Basin, where there are perched zones with similar grades to those found at Matoush, the richer deposits lie at or near the sediment/bedrock unconformity contact.

As soon as the ice on the lake near the camp is thick enough, a second drill will be moved approximately 250 metres south of AM-15 to drill a high-priority target.

This target area corresponds to the best intersection obtained in 1984 by Uranerz Exploration and Mining in the ACF facies near surface, namely a grade of 0.29% U3O8 over 4 metres in Hole AM-09. In comparison, Hole AM-06, located above AM-15, intersected 0.30% U3O8 over 0.55 metres. The potential of this area is enhanced by the presence of numerous sub-angular blocks discovered recently by Strateco's prospecting team about one kilometre south of the target area. Repeated high radiometry readings of 20,000 to 30,000 cps were obtained on these blocks, which represent a fuschite alteration typical of the Matoush project uranium zones.

By the end of February, 2007, Strateco plans to have three or four drills on the site. The 2007 budget also provides for the installation of a camp large enough to house 45 people, including various technical personnel, drill operators, prospecting crews and the various consultants involved in collecting the data required for an environmental impact study.

Strateco has retained the services of Mr. Robert Menard, Ing. He joined the team as a consultant and he is responsible for selecting and supervising the consultants and contractors for the Matoush project. Mr. Menard was Vice President, Projects and Construction for Cambior Inc. for over 12 years. In particular, he was responsible for all the company's projects, acquisitions and studies, including scoping, prefeasibility and feasibility studies, as well as site construction, start-up and reclamation, related to surface installations.

Strateco is presently well funded in terms of the work planned for 2007, with about $10 million in cash and the possibility of adding $5.4 million by forcing the exercise of 3.6 million warrants at $1.50, with the conditions required for exercise have already been met.

Qualified Person

Jean-Pierre Lachance, geologist, is the qualified person as defined by National Instrument 43-101. He has over 30 years of experience in mining exploration.

Forward-Looking Statements

This press release contains forward-looking statements subject to certain risks and uncertainties. There can be no assurance that these statements will prove to be correct, and actual results and future events could differ materially from those implied by such statements. These risks and uncertainties are discussed in the annual report filed with the securities commissions of Alberta, British Columbia and Quebec, and in the 10-KSB annual report filed with the US Securities and Exchange Commission. The Company does not undertake to publicly revise or update any such statements on the basis of new information, future events or any other event.


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