GOLD DEVELOPMENT: Strike Minerals secures Edwards mine financing

ONTARIO – Waterton Global Value and Strike Minerals of Toronto have agreed to terms giving Strike $3.5 million with which to bring the Edwards gold mine near Wawa into production. Strike will repay the loan between March 2013 and February 2015 with cash or gold. The loan is secured by the assets of the Edwards project.

A portion of the first advance of financing will be used to repay the $350,000 bridge loan previously advanced to Strike by Waterton. In connection with the new financing, Waterton will be issued 14 million warrants that are exercisable at a price of $0.10 for a period of three years.

Strike has separately entered into a mine gold and silver supply agreement with Waterton, pursuant to which the company will sell gold and silver produced at the Edwards mine to Waterton based on certain agreed terms and conditions.

The underground workings of the Edwards mine have been dewatered to the 120-metre level, and development has begun on the 60-metre and 90-metre levels. Strike intends to return the mine to production by the end of 2012.

Further information is available at StrikeMinerals.com.