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TORONTO, ONTARIO--(Marketwire - May 12, 2010) - Strait Gold Corporation (TSX VENTURE:SRD) is pleased to report that it has signed a community agreement to start drilling at its Alicia copper-gold property in Peru.

Under the terms of the option agreement with Panoro Minerals Ltd., announced September 29, 2009, the anniversary date for work commitments and option payments at Alicia is established by execution of an agreement with the local community to permit drilling.

"This agreement means that the community has given us its support and the green light to start drilling as planned," said Strait Gold President Jim Borland. "Alicia is shaping up as an exceptional project, and our agreement with the community establishes a good foundation for ongoing work. We are committed to conducting exploration in a socially responsible manner and the informed consent of the community is something that we have worked diligently to obtain."

More than three-quarters of samples at Alicia from a recent program conducted by the Company returned values greater than 1% copper (see news release of March 23, 2010). One set of samples from a new zone returned 5.65% copper, 0.95 g/t gold, and 45.25 g/t silver over 6.0 metres and resampling of one trench returned 2.35% copper, 0.38 g/t gold and 15.14 g/t silver and 0.015% molybdenum over 16.5 metres.

The Company is conducting a two-phase exploration program at Alicia. Phase 1 consists of community engagement, surface mapping, sampling and an induced-polarization geophysical survey to identify drill targets. Phase 2 will consist of drilling to test for mineralization at depth. Baseline environmental studies and preparation of an inventory of old mine workings on the property are also being conducted as required for issuance of a drilling permit.

The Alicia Project is located within the Andahuaylas-Yauri Belt, which stretches across much of southern Peru. This highly prospective belt hosts numerous porphyry and skarn deposits, including Xstrata's Las Bambas deposit (1.1 billion tonnes grading 0.77% copper), Antapacay deposit (720 million tonnes grading 0.56%) and Tintaya Mine (78 million tonnes of reserves grading approximately 1.1% copper and 0.16 grams per tonne gold).

The option agreement with Panoro allows Strait Gold to earn a 100% interest in the Alicia property, subject to a 2% NSR royalty. Execution and formalization of the community agreement concluded on April 26, 2010, and is now in the process of being registered with Peruvian authorities. For the purposes of the Panoro agreement, the anniversary date is February 10, 2009, the date the agreement was initially signed.

Dr. Roger Moss, P.Geo., is the Qualified Person as defined by NI 43-101 for the purpose of this press release and has reviewed its technical content.

About Strait Gold Corporation:

Strait Gold Corporation, a Canadian mineral exploration company active solely in Peru, is 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 ].

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.