Oriole Regulatory News (ORR)

Stratex International Plc / Index: AIM / Epic: STI / Sector: Mining

 9 November 2010

Stratex International plc

Inlice Feasibility Study Progressing to Finalisation and High-Grade Oxide Material Defined at Altıntepe 

Stratex International plc ('Stratex' or 'the Company'), announces a positive development update of its Inlice and Altıntepe gold projects located in Turkey, which are being advanced with its joint venture partner NTF Insaat Ticaret Ltd Sti ('NTF') with a target of first gold production by Q1 2012.

Highlights

·; Feasibility study at the Inlice gold project will be finalised by January 2011

·; Preliminary open pit planning, waste storage, plant design and related cost calculations now well advanced

·; Inlice Exploration Licence now converted to Operation Licence, clearing the way to commence the permitting process immediately after completion of the Environmental Impact Assessment Report

·; Metallurgical test work at Inlice demonstrates leach recoveries of 85% to greater than

·; Early indications of good leach recoveries from talus material overlying bedrock resource

·; Initial mine production planned at 1,000 tonnes per day with leach-heap capacity designed for 1 million tonnes - option to increase to 3 million tonnes to allow for increased production

·; High-grade oxide material at Altıntepe confirmed with best intersections of 43.00 metres averaging 5.39 g/t gold and 41.00 metres averaging 3.08 g/t gold

Stratex International's C.E.O. Bob Foster said, "As the feasibility study at our Inlice gold project draws close to conclusion we are one step closer to establishing ourselves as a gold producer in Turkey to take optimum advantage of the high gold price whilst minimising capital costs. The very positive leaching results reported here, together with the results of the other technical studies, will enable the financial modelling of this project to be completed and the final report submitted in January 2011. The ongoing Environmental Impact Assessment study is due to be completed by June 2011. Following completion of the permitting process, the processing plant will be constructed within three months, which will see Stratex move into gold production at Inlice in early 2012.

"In addition, following completion of the preliminary resource drilling of the Extension Ridge Zone at Altıntepe, we are now well-placed to revise and upgrade the previously identified resources of this much larger oxide-gold project, with a view to commencing the full feasibility study early 2011.

"Our partnership with NTF Insaat Ticaret Ltd on both projects has been highly productive and we are delighted to have identified such an appropriate local partner with considerable in-house expertise in drilling, blasting, and earth excavation. Together, we share a very real vision of developing our joint venture company NS Madencilik into a major gold mining company in Turkey and even further afield."

Detailed Information

The development of the Inlice and Altıntepe gold projects, which contain a current combined oxide gold ('Au') resource of approximately 570,000 ounces ('oz'), is being funded by the Company's joint venture partner NTF through NS Madencilik Sanayi Ticaret Anonim Sti ('NS Madencilik'), the joint-venture development company 45% owned by Stratex. 

The previously reported resource for the Inlice project comprises 262,300 oz Au utilising a geologically well defined cut-off grade of 0.1 g/t Au. The open-pittable, in situ oxide resource was 944,495 tonnes grading 2.29 g/t Au for 69,324 oz but this resource is currently being revised as an integral part of the feasibility study.

At Altintepe, the oxide resource currently stands at 472,318 oz Au, comprising 13,098,137 tonnes grading 1.12 g/t Au in all categories at a cut-off of 0.2 g/t Au and including 8.3 Mt grading 1.48 g/t Au. However this will be revised in the light of the new drilling results reported below. 

Inlice

Following the appointment of the Nevada-based international consultancy company Kappes, Cassiday & Associates ('KCA') to manage the feasibility study at the Inlice oxide gold project, 200 kg bulk samples of gold-bearing oxide material from the main Ana Zone, have been subjected to leach tests to determine the leach characteristics of both oxide and underlying mixed oxide-sulphide ('transition') material. Results indicate recoveries of 85% to greater than 90% for oxide material crushed to -19 mm, and more than 60% for mixed oxide-sulphide material. Bulk samples of the overlying mixed soil and rock material ('talus') that cover the slopes of the elevated Ana Zone have also been submitted for leach test work and, although results are still pending, KCA's initial observations are that it should leach well subject to the addition of minor quantities of cement for agglomeration purposes.

Design criteria for both the mine and the processing plant are essentially complete and are based on an initial operational capacity of 1,000 tonnes of material per day. The pit design comprises two pits, one on the Ana West Zone and a second on the nearby Ana East Zone, the two being separated by what has been named in the past as the 'Gap Zone', a 150 metre-wide low-lying area underlain by relatively high-grade gold-in-sulphide material that might be exploited at a later date.

The leach heap will initially be constructed to contain 1 million tonnes of material but is being designed such that it can easily be expanded to contain up to 3 million tonnes.

The feasibility study should be completed by January 2011 and the parallel Environmental Impact Assessment study will be completed in June 2011. Allowing three months for the permitting process and a further three months for construction of the small and semi-mobile plant, the joint venture company NS Madencilik is targeting first production during Q1 2012 at Inlice.

Altıntepe

Drilling of the Extension Ridge Zone has now been completed with the focus on the oxide material that caps the low ridge. Although the drilling invariably intersected underlying sulphide material, sometimes over significant lengths (for example 34.50 m @ 1.20 g/t Au in ER-DD-11), the programme was designed to provide data for estimation of the oxide-gold resource that has the potential to be readily exploited using the same heap-leaching technology planned for the Inlice project.

Table 1: Results from recent diamond drilling of Extension Ridge (ER) Zone

(cut-off >0.2 g/t Au)

*Transition = mixed oxide & sulphide

1lengths of intersections not necessarily representative of true thickness

The high grade oxide-gold intersections returned by holes ER-DD-07 and ER-DD-10 demonstrate the presence of a high-grade core to the Extension Ridge Zone that was first highlighted by the results released in an RNS dated 26 August 2010:

ER-DD-01: 37.90 metres from surface averaging 6.17 g/t Au

ER-DD-02: 17.00 metres averaging from surface averaging 3.47 g/t Au

Understanding the specific controls of this higher-grade mineralization will be key to determining how best to exploit the Extension Ridge resource.

About NTF Production Joint Venture Agreement

Under the terms of the agreement signed on 27 April 2010, a joint venture company, NS Madencilik Insaat Ticaret Ltd Sti was formed to manage the technical evaluation of the Inlice and Altıntepe projects, the successful outcome of which will see the projects go into production. NTF is earning-in to 55% of Inlice by funding a feasibility study up to US$2 million. On the Altıntepe project, NTF is funding a US$0.5 million scoping study with the option to earn up to a 55% interest in the project by funding a feasibility study to an additional US$2 million.

Sampling, assaying, and QA/QC

Stratex's sampling of drill core and outcropping rocks conforms to industry-wide good practice, with drill core being split using a diamond saw, and with chain of custody being observed for all samples. Analysis is undertaken by ALS Chemex at its laboratories in Johannesburg, South Africa and the Company maintains QA/QC on all analytical work via the use of certified reference materials, field duplicates, and blank samples in addition to monitoring of internal laboratory check-analyses.

C.E.O. Dr. R. Foster is a Competent Person as defined by various international instruments and takes responsibility for the release of this information.

* * ENDS * *

For further information please visit www.stratexinternational.com, email info@stratexplc.com, or contact:

Notes to editors:

Stratex International Plc is an AIM-quoted exploration and development company focussing on gold and base metal opportunities in Turkey, Ethiopia and Djibouti.

Turkey Portfolio

In Turkey, Stratex's prime objective is to move into gold production through its partnership with its Turkish partner NTF, with initial production targeted at its Inlice project by the first quarter of 2011 and at Altıntepe by early 2013. The Company also remains focussed on discovering and developing new projects through low-cost exploration, adding maximum value prior to optioning/joint venturing or selling on to a dedicated mining company.

·; Total resources stand at 1.17 million oz of gold (combined oxide and sulphide gold) and approximately 3.2 million oz of silver

·; Partnership with NTF, a technically capable and well-financed Turkish company, to rapidly develop the 542,318 oz oxide gold resources present at the Inlice and Altıntepe projects

·; An option/joint venture agreement with Centerra Exploration B.V., a wholly owned subsidiary of Centerra Gold Inc., to explore and develop the Öksüt project, a high-sulphidation gold discovery located in Central Anatolia

·; An option/joint venture agreement over the Hasancelebi project, a high-sulphidation gold project in central Turkey with Teck Madencilik Sanayi Ticaret A.S., a Turkish subsidiary of Teck Resources Limited of Canada, a major shareholder in Stratex

Stratex East Africa Ltd ('SEA') - Ethiopia and Djibouti Portfolio

·; 5.45% shareholding in PLUS-quoted exploration company Sheba Exploration (UK) plc ('Sheba')

·; A joint venture with Sheba to (i) earn-in to an initial 60% of the prospective 37 sq km Shehagne gold project in Ethiopia, and (ii) explore targets in northern Ethiopia on a 70:30 joint venture basis

·; Berahale and Gademsa EEL's cover a combined area of 1,225 sq km in northern and central Ethiopia respectively and are prospective for gold and base metals

·; 2,780 sq km land position over new epithermal gold discovery and multiple related gold targets in the Afar Depression of eastern Ethiopia and Djibouti, collectively named as the Afar Project

·; Stratex International has signed a binding Heads of Agreement with Thani Ashanti, an AngloGold Ashanti Limited joint venture company, to fast-track development of the Afar prospects. Thani Ashanti can earn 51% of the currently identified prospects (collectively the 'Afar Project') by spending US$3 million on exploration and development over two years