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Strait Gold Closes First Tranche of Unit Private Placement

^{Published on 2009-12-03 13:45:57 - Market Wire}
 

TORONTO, ONTARIO--(Marketwire - Dec. 3, 2009) - Strait Gold Corporation ("Strait Gold" or the "Company") (TSX VENTURE:SRD) is pleased to announce that it has closed the first tranche of the private placement announced on November 25, 2009. The Company placed 2,689,000 units for gross proceeds of $268,900.

Each unit (a "Unit") consists of one (1) common share of the Company and one half (1/2) of a share purchase warrant (each a "Warrant"). Each full Warrant entitles the holder to acquire an additional common share at the price of $0.15 per share for eighteen (18) months following Closing. The Company paid a finder's fee of $24,390 in cash together with 243,900 broker warrants to Canaccord Capital Corporation ("Canaccord") as a finder. Each broker warrant entitles Canaccord to purchase a common share of Strait Gold at $0.10 per share for eighteen (18) months following Closing. The securities issued bear a legend and are restricted from trading until April 1, 2010. The offering will remain open until January 11, 2010, or any prior date at the Company's sole discretion. An insider subscribed for 250,000 units and insiders may subscribe for a further 750,000 units.

The proceeds from the offering will be used for working capital and to fund exploration of its Alicia Property.

About Strait Gold Corporation:

Strait Gold Corporation is a Canadian mineral exploration company active in Peru and listed on the TSX Venture Exchange. It has an option to earn a 100% interest in the Alicia copper-gold property in Cusco Department approximately 500 km southeast of Lima, the capital of Peru, and holds a 100% interest in both the Letra Rumi South copper-silver property and the Culebrilla gold-silver property, both in Ancash Department approximately 250 km north of Lima. To learn more about Strait Gold, please visit our website at [ www.straitgold.com ].

Cautionary Note Regarding Forward-Looking Statements: This Press Release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such actual results of current exploration programs, the general risks associated with the mining industry, the price of gold and other metals, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward-looking statements.

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.