Strike Graphite Corp.
TSX VENTURE : SRK

Strike Graphite Corp.

April 26, 2012 16:57 ET

Strike Announces $3,000,000 Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 26, 2012) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Strike Graphite Corp. (TSX VENTURE:SRK) (the "Company" or "Strike") announces that it has entered into an engagement letter with Union Securities Ltd. (the "Agent"), whereby the Agent will act as agent for the Company in relation to a private placement of securities on a commercially reasonable efforts basis, to raise gross proceeds of up to $3,000,000 (the "Offering").

The Offering will consist of 2,777,778 flow-through units (each, a "FT Unit") at a price of $0.36 per FT Unit for total flow-through proceeds of $1,000,000. Each FT Unit will consist of one common share of the Company and one-half of one non-transferable share purchase warrant, each whole warrant (a "FT Warrant") exercisable into one non flow-through common share of the Company for a period of 18 months from the date of issue at a price of $0.45 per share.

The Offering will also include 6,666,667 non flow-through units (each, a "NFT Unit") at a price of $0.30 per NFT Unit for total gross proceeds of $2,000,000. Each NFT Unit will consist of one common share and one-half of one non-transferable share purchase warrant, each whole warrant (a "NFT Warrant") exercisable into one common share of the Company for a period of 18 months from the date of issue at a price of $0.45 per share.

The Agent will have the option (the "Over Allotment Option") to sell an additional number of NFT Units equal to up to 15% of the total number of FT Units and NFT Units sold under the Offering, at a price of $0.30 per additional NFT Unit, which option must be exercised within five business days after the final closing date.

The Agent will receive a cash commission equal to 8% of the gross proceeds from the sale of the FT and NFT Units (collectively, the "Units"), including Units sold pursuant to the Over Allotment Option. The Agent will also receive compensation options (each, an "Agent's Option") equal to 8% of the total number of Units sold under the Offering and Over Allotment Option. Each Agent's Option will be exercisable into one common share of the Company for a period of 24 months from the date of issue at a price of $0.30 per share.

Proceeds of the placement will be used for exploration and development of the Company's graphite assets in Saskatchewan and Quebec and for general working capital.

The Offering is subject to certain conditions including, but not limited to, receipt of all necessary approvals and the acceptance of the TSX Venture Exchange. All securities issued pursuant to the Offering will be subject to a four month hold period from the date of issue.

The Agent shall have the right of first refusal to act as agent for the Company with respect to any subsequent financing undertaken by the Company for a period of twelve months from closing of the Offering.

About the Company:

Strike Graphite Corp. is a progressive exploration company with seasoned management targeting strategic assets on a global scale. In addition to the Deep Bay East and Simon Lake graphite properties, the Company is also actively advancing its Wagon Graphite property in Quebec next to the Timcal Graphite mine. The Company also continues to advance the Satterly Lake gold project in north western Ontario, located just west of Gold Canyon Resources Inc.

On behalf of the Board of Directors,

Geoff Balderson, President

For more information on the above or to view the Company's corporate presentation on its graphite assets and opportunity, please visit the Company's website at www.strikegraphite.com.

We seek safe harbor.

Not for distribution to United States newswire services or for dissemination in the United States.

The offered securities will not be registered under the United States Securities Act of 1933, as amended, or any applicable state securities laws and may not be offered or sold in the United States absent such registration or an applicable exemption from such registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the offered securities in any jurisdiction.

"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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