Strateco Resources Inc.
OTC Bulletin Board : SRSIF

Strateco Resources Inc.

August 29, 2007 08:15 ET

Strateco Locks into 9.0 Million Pounds of Uranium

MONTREAL, QUEBEC--(Marketwire - Aug. 29, 2007) - Strateco Resources Inc. ("Strateco")(TSX:RSC)(OTCBB:SRSIF)(FRANKFURT:RF9) is very pleased to announce that it has just increased its uranium assets by about 9.0 million pounds of U3O8 with the signature today of a formal agreement with Virginia Mines ("Virginia") on the Apple property in the James Bay region of northern Quebec.

The agreement is effective immediately, and provides for Strateco to acquire 100% of the Apple uranium property, wholly owned by Virginia, in consideration of 3,250,000 shares of Strateco. The agreement also provides for a 2% NSR royalty payable to Virginia, half of which can be bought back for CAN $1.0 million. The agreement is subject to regulatory approval.

The Apple property consists of 88 claims covering 4,446 hectares located 80 km southeast of Radisson in the James Bay region. The property is accessible by a 40 km winter road from km 510 on the paved James Bay road. In summer, the property can be accessed by boat from the Trans-Taiga road.

The project covers a portion of the Apple Formation, which came to light in the early 1970s with the discovery of several extensive uranium-pyrite matrix, quartz pebble conglomerate zones.

The Apple uranium deposit was in fact discovered in 1971 during an airborne survey. The International Nickel Company of Canada Limited ("INCO") and James Bay Development Corporation subsequently conducted an extensive joint exploration program from 1972 to 1975, with INCO as the operator. A total of 65 holes were drilled for a total of 14,000 metres, and the uranium conglomerates were traced over a distance of eight kilometres along an East-West axis.

In 1974, INCO performed a resource estimate on a one-kilometre section covering seven subvertically-dipping zones. The non-43-101-compliant estimate yielded 9,365,000 tons grading 0.054% U3O8 or 1.08 lb/ton for a total of 10.1 million pounds (GM 57894). This resource includes 4.3 million tons categorized as proven and probable and 5.0 tons categorized as possible. The literature (Robertson et al. 1986) reports a resource of 8.5 million tons grading 0.052% U3O8 (8.8 million pounds of U3O8) contained in a six-metre by one-kilometre wide envelope extending to a depth of 300 metres, and remaining open at depth. A correlation was established between the highest uranium grades and the pyrite content. INCO dropped the property in 1975, and it has not been explored for uranium since.

Virginia took over the property in 1998 to assess the gold potential. Very interesting showings were discovered but no holes were drilled. In June 2006, a magnetic and radiometric helicopter-borne survey was performed on a portion of the property. Among other things, the survey revealed a radiometry anomaly to the south of the property that went unnoticed in the 1970s.

On August 23, 2007, two Strateco representatives visited the property as part of a due diligence process, accompanied by two representatives of Virginia and guided by Mr. Jean-Francois Ouellette of Geonordic Technical Services Inc. ("Geonordic") and Mr. Michel Gauthier, Ph.D., a Professor at UQAM and Liege University in Belgium. Mr. Gauthier is very familiar with the geological context of the Apple property and has extensive experience in the uranium of the James Bay region, having been involved there since the 1970s.

During the field visit, two outcrops 2.9 km apart belonging to the same formation were seen. The strength and size of the system were also witnessed. Mr. Gauthier, who has visited the Witwatersrand in South Africa, noted the similarity between the Apple pyrite uranium conglomerate and those of the Witwatersrand, recognized worldwide for their very high tonnage of over 100 million pounds of U3O8. The second outcrop, which corresponded to the radiometry anomaly that led to the Apple discovery, is exposed over about 75 metres along strike. Readings of from a few thousand to 10,000 counts per second were taken during the visit. The potential for substantially increasing the existing resource of about 9.0 million pounds of U3O8 appears very good.

Following the field visit, Virginia (through Geonordic) and Strateco, with the participation of Mr. Gauthier, applied to stake 104 additional claims that are also covered by the agreement. This staking will enable most of the favourable portion of the Apple formation to be covered. Strateco plans to conduct a helicopter-borne radiometry survey over the entire project in the coming months.

"While all of Strateco's resources are focused on the Matoush property, known for its very high uranium grades, Strateco jumped on the opportunity to acquire the Apple property, which is a prime asset given its geological similarity with the Witwatersrand deposits and the uranium pounds already identified by INCO," declared Guy Hebert, President of Strateco.

Strateco's Liquid Assets

As at June 30, 2007, Strateco had working capital of CAN $28 million. Strateco's funds are not exposed to asset-backed commercial paper.

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. Mr. Jean-Pierre Lachance approved this press release.

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.

Contact Information