Strike Gold Corp. is pleased to announce that it has signed an agreement to acquire a 100% interest in the Deep Bay East and Simon Lake Graphite Properties both located in northern Saskatchewan.

Geoff Balderson, President & CEO, remarks, "We are delighted to have secured these two properties and give our shareholders investment exposure in what many believe to be such a promising resource sector."

Deep Bay East Project

The Deep Bay East Project covers approximately 5,500 hectares (13,590 acres) and is located 25 kilometres east of the community of Southend, Saskatchewan and less than 15 kilometres east of the Deep Bay West Graphite Mine.

The property is noted for its potential to host a near-surface graphite deposit comprised of scarce, large-flake, high-purity graphite. The property is situated within high-grade metamorphic rocks of a sedimentary origin which is an ideal setting for the development of these types of deposits.

The property has been explored for graphite since the 1960s, with surface trenching, mapping, electromagnetic surveys and limited diamond drilling (4 holes totalling 383 metres). The historic drilling and trenching was completed on an east to northeast trending conductor along 1,600 metres of strike length.

The Deep Bay East Project was explored by Sherritt Gordon Mines Ltd. in the 1960s and later by Superior Graphite Company in the 1970s as they searched for secure sources of flake graphite. The property was discovered at the same time as the Deep Bay West Graphite Mine located about 15 kilometres to the west of Strike's Property.

The Deep Bay West Mine is currently being advanced towards production and is host to a historic non-NI 43-101 compliant resource of "1.8 million tonnes grading 10.32% C to a depth of 60 metres" (Saskatchewan Mineral Deposit Index Report #0480). The geology and grades of the Deep Bay East Project appear to be similar to the Deep Bay West Mine. Recent testing of graphite from Deep Bay West achieved greater than 95% carbon content for all flake sizes +32+50+80+100 and -100. Further treatment was able to achieve greater than 99% purity (Noble Bay Mining Development Inc.).

Simon Lake Project

The Simon Lake Graphite Project covers 3,472 hectares (8,579 acres) located approximately 280 kilometres northeast of La Ronge, Saskatchewan and is a short distance east of Highway 905. The property consists of several showings of flake graphite mineralization in historic drill holes which were discovered during the exploration of base metals. Historic Drill Hole 2-72 encountered a graphitic, biotite gneiss with visual estimates of zones containing from a few percent up to 70 percent graphite across a 68 metre interval. Approximately 5.5 kilometres to the southwest, along a conductive zone, Drill Hole 42-5 encountered a graphitic, biotite gneiss with visual estimates of graphite ranging from 5 to 70 percent across a 21 metre interval.