Strathmore Minerals Corp.
TSX VENTURE : STM

Strathmore Minerals Corp.

August 18, 2005 17:11 ET

Strathmore Signs Letter of Intent with North American Gem Inc.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 18, 2005) - Strathmore Minerals Corp. (TSX VENTURE:STM) ("STRATHMORE") and North American Gem Inc. (TSX VENTURE:NAG) ("NAG") are pleased to report that they have signed a letter of intent whereby NAG may earn a 50 per cent interest in Strathmore's Hall Lake and Duddridge Lake Uranium projects.

Hall Lake Project:

The Hall Lake project encompasses about 400,000 acres along the south-central part of the Athabasca Basin in northern Saskatchewan. The Athabasca basin hosts several major uranium deposits, including the uniformity type deposits at Cigar Lake and McArthur River. These deposits are two of the highest-grade uranium deposits in the world. Production from the Athabasca Basin accounts for more than 30 per cent of the world's annual supply of Uranium.

The Hall Lake project is underlain at depth by rocks of the Western Granulite Domain and much of the project area is estimated to have a depth to the basement unconformity of less than 600 metres. A previous electromagnetic interpretation flown by Questor Surveys Ltd. in 1979 suggests un-altered basement at depths ranging between 300 and 800 metres at the western margin of the property (assessment report 74F15-0008). The southeastern margin of the property is on trend with the Virgin River Shear Zone, where Formation Capitol Corp. (News release, 02/07/05) reported 13.86% U3O8 over 2.5 metres.

Initial exploration anticipated for the fall of 2005, includes a MEGATEM airborne geophysical survey. It is expected that the MEGATEM survey will identify conductive zones, geologic structures and other features commonly associated with unconformity style uranium deposits within the Athabasca Basin. This is the first survey of its kind to be conducted at the Hall Lake Property.

To earn its 50 per cent interest in the Hall Lake Project, NAG must make an initial cash payment of $150,000 to STRATHMORE. Furthermore, NAG must also advance $400,000 for property exploration costs before October 15, 2005 and an additional $600,000 before September 15, 2006. Upon completion of the second year expenditures, the companies will form a joint venture to continue the exploration of the project. STRATHMORE may buy back a 1 per cent interest in the project by issuing 25,000 shares to NAG.

Duddridge Lake Project:

The Duddridge Lake project encompasses approximately 24,700 acres and is located about 100 km northwest of LaRonge, Saskatchewan.

Based upon available drill hole information, independent consulting geologist Stuart Fraser, M.Sc., P.Geol., and who is a qualified person under NI 43-101 , estimated an inferred mineral resource of 215,016 tonnes with an average grade of 2.14 lbs/tonne U3O8 for the Duddridge Lake Property. A number of historical resource estimates have previously been documented for the property. The 43-101 technical report for Duddridge Lake is available for review on SEDAR (www.sedar.com).

The Duddridge Lake Property lies within the eastern part of the Wollaston Domain, and is hosted by metasedimentary rocks of the Wollaston Supergroup. The deposit is considered a clastic-sediment hosted uranium-copper deposit. Uranium mineralization occurs in two white quartzite lenses within a 6.4 to 26.8 m thick, carbonaceous meta-arkose. Mineralization consists predominately of pitchblende or uraninite occurring as thin seams, bands and disseminations along bedding planes; tyuyamunite and cobalt bloom (erythrite) along some fractures; and to a lesser extent chalcopyrite, bornite, malachite, pyrite, annabergite and arsenides.

Previous exploration was conducted by a number of companies, including Noranda Exploration Company from 1974 to about 1994. Exploration including combined airborne magnetic and radiometric surveys, rock and soil geochemistry and diamond drilling, outlined a uraniferous boulder train along the west side of Duddridge Lake, which extends over an area of about 100 by 1600 m. Within the boulder train, typical analysis ranged from 0.1 to 0.2% U3O8, with some exceptional values of up to 9.8% U3O8, 1.6% Cu, 0.2 oz/ton Au, and 7.0 oz/ton Ag.

More than 30 drill holes were completed at the property over an approximately 1463 m strike length on the west side of Duddridge Lake. In addition several drill holes were completed at other locations throughout the property. Significant prior drill results include (Steward, 1975):



--------------------------------------------------
Hole From To Length Grade
Number (m) (m) (m) (lb/ton U3O8)
--------------------------------------------------
D-1-75 97.23 101.28 4.05 3.52
D-5-75 91.04 94.21 3.17 1.24
D-8-75 55.75 64.77 9.02 2.88
D-11-75 61.26 68.51 7.25 2.44
--------------------------------------------------
(Although believed to be accurate, the foregoing historical estimates
were completed prior to the implementation of NI 43-101 and the
Company has not done the work necessary to verify the classification
of any resource or reserve and they should not be relied upon.)


To earn its 50 per cent interest in the Duddridge Lake Project, NAG must make an initial cash payment of $150,000 to Strathmore. Furthermore, NAG must also advance $250,000 for property exploration costs before April 30, 2006 and an additional $450,000 before April 30, 2007. Upon completion of the second year expenditures, the companies will form a joint venture to continue the exploration of the project. STRATHMORE may buy back a 1 per cent interest in the project by issuing 25,000 shares to NAG.

STRATHMORE has agreed to participate in a non-brokered private placement in NAG for a total 1.5 million shares at $0.20 per share, with a share purchase warrant exercisable at $0.30 in the first year and at $0.35 in the second year.

A Finders Fee is payable by NAG on this transaction.

STRATHMORE MINERALS CORP. is a Canadian based company specializing in the strategic acquisition, exploration and development of uranium properties worldwide. STRATHMORE MINERALS CORP. Common Shares are listed on the TSX Venture Exchange under the symbol "STM".

This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

ON BEHALF OF THE BOARD

Dev Randhawa, President


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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