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Mineral exploration in Peru

Message: Strait Gold Closes $1.89-Million Financing


TORONTO, ONTARIO--(Marketwire - Dec. 16, 2010) - Strait Gold Corporation ("Strait Gold" or the "Company") (TSX VENTURE:SRD) is pleased to announce that it has closed the private placement announced on December 3, 2010. The Company placed a total of 14,000,000 units for gross proceeds of $1,890,000 pursuant to the offering.

Each unit (a "Unit") consisted of one (1) common share of the Company and one (1) share purchase warrant (each a "Warrant"). Each Warrant entitles the holder to acquire an additional common share at the price of $0.25 per share for twelve (12) months following Closing. The Company paid finders fees in the amount of $122,828.40 and issued 909,840 broker warrants to a syndicate of brokers. Each broker warrant entitles the holder to purchase a common share of the Company at $0.135 per share for twelve (12) months following Closing. The securities issued bear a legend and are restricted from trading until April 16, 2011. Insiders subscribed for a total of 525,000 Units. The Company currently has 49,987,603 common shares issued and outstanding.

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 solely 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 http://www.straitgold.com/">www.straitgold.com.

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