Strata-X Moving Forward on two new Unconventional Oil Projects in the USA

Golden, Colorado, and Edmonton, Alberta. August 27, 2012 - The directors and management of Strata-X
Ltd (“Strata-X” or the “Company”) are pleased to provide the following update on the acquisition of two new high potential oil development projects.

Leasing for oil and gas exploration rights on the first project, the Vail Oil Project, has so far yielded approximately 35,800 gross and 33,850 net acres towards a target of 50,000 acres. The Company has 100% direct working interest and operates the project.

Strata-X has also entered into a conditional agreement to acquire and operate 75% working interest of approximately 21,000 gross and 15,000 net acres over a shale oil project in Texas.

To fund the ongoing acquisition of the Vail Oil Project and the Texas shale oil project, the Company plans to raise up to $7 million through the sale of convertible debentures.

Strata-X is ‘First Mover’ on the Vail Oil Project

Strata-X completed an extensive in-house analysis of a highly productive onshore USA basin earlier this year. The results of this technical work led to the identification of an unconventional continuous oil field in a dolomitic reservoir, referred to as the Vail Oil Project, which is interpreted to extend over an area of approximately 600 square miles. The Project is located on the western flank of the basin at depths between 3,500 to 5,000 feet.

Strata-X, in-house, log analysis has interpreted oil saturations in 120 historic wells that intersected the dolomitic reservoir. The numerous oil recoveries and oil shows from the reservoir supports the log analysis.

The dolomitic reservoir target of the Vail Oil Project is immediately below a world-class source rock which is interpreted to have expelled between 300 and 1,000 billion barrels of oil. To date, the basin has produced about 4.3 billion barrels of oil primarily from structures above the source rock.

Strata-X recognizes direct analogies between the Elm Coulee Oil Field, located in the Williston Basin, and the Vail Oil Project. Elm Coulee has produced over 123 million barrels to date from a continuous, unconventional oil field from the Bakken dolomitic reservoir and is expected to ultimately produce over 250 million barrels of oil. The dolomitic reservoirs in both Vail and Elm Coulee are of the same geological age, have similar thickness and are immediately below highly generative source rocks.

Elm Coulee has about 4 million barrels of oil in place per section which is similar to Vail’s interpreted oil in place per section. Strata-X interprets the target 50,000 net acres at the Vail Oil Project contains over 240 million barrels original oil in place (OOIP).

Oil was intersected in many historic wells at Elm Coulee but, like Vail, oil flows and recoveries were subcommercial in the early vertical wells. More recent horizontal fracturing treatments at Elm Coulee have resulted in commercial oil flows with current production from the field is in excess of 30,000 barrels per day. Strata-X believes modern horizontal drilling and completion techniques on the Vail Oil Project will have similar commercial oil flows and recoveries as the Elm Coulee results.

Strata-X commenced acquiring 100% net working interests in oil and gas exploration rights in two counties in the basin in early 2012. To date, the Company has acquired approximately 35,800 gross and 33,850 net acres for the Vail Oil Project at attractive terms. The Company’s net revenue interest in the leases is 86.13% with the primary terms of the leases, including options to extend, not expiring until the middle of calendar year 2017. The average total acquisition cost so far has been $70.71 per net acre which includes all acquisition costs including labor.

Strata-X is the first mover on the Vail Oil Project. In order for the Company to continue the low cost entry advantages of being first mover, it does not plan to reveal the location of the Vail Oil Project until after the Company reaches its target of 50,000 acres. Strata-X hopes to reach this target later this year.

Strata-X signs agreement to conditionally purchase a Shale Oil Project in Texas

Strata-X has entered into a conditional agreement for an option to acquire 75% working interest of approximately 21,000 gross and 15,000 net acres and operate a shale oil project in Texas for aggregate consideration of about $2.25 million. Approximately $750,000 of the consideration will be paid through the issuance of common shares of the Company at a deemed price of $0.25 per share. Strata-X and the selling companies have until 24 Sept 2012 to meet the conditions of the agreement with all parties currently working towards fulfilling those conditions. An additional payment by Strata-X to secure 3 year leases on the acres acquired is due by 30 November 2012. More details will be made available after the acquisition is unconditional and finalized.

Strata-X to raise up to $7 million

The Company is also pleased to announce a brokered private placement to raise up to $7,000,000 through the issuance of unsecured convertible debentures (the “Debentures” or “Notes”). The Debentures shall have a term of one year. The principal amount of the Notes shall bear interest at an annual rate of 5%, which interest shall be payable semi-annually in arrears. The Debentures shall be convertible to units at a deemed price of $0.25 per unit. Each unit (a “Unit”) will be made up of one common share and one-half of a common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant shall entitle the holder to acquire one common share of the Company at a price of $0.50 per share for a period of two years. The Debentures shall automatically convert into Units at the end of term.

The Company may pay finders’ fees to eligible parties and these fees may be in the form of cash or securities.

The proceeds of the private placement will be used for work upon the Company’s existing properties including the Vail property, the completion of the shale oil project acquisition in Texas and for general working capital purposes. The private placement is subject to approval of the TSX Venture Exchange

Strata-X is a Edmonton, Alberta and Golden, Colorado based company and is engaged in the business of oil and gas exploration and development with a variety of exploration opportunities in North Dakota, and production and development opportunities in California and Texas. Strata-X has 44,990,656 common shares outstanding and trades under the symbol SXE on the TSX.V

For further information, please contact:

Tim Hoops
President
Telephone: 303-550-5582
info@strata-x.com

OR

Doug Walker
Corporate Secretary
Telephone: 780-439-8995

Public documents for Strata-X Ltd. Can be found at SEDAR (www.sedar.com)

This news release contains forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, ‘may”, “will”, “project”, “should”, ‘believe”, and similar expressions are intended to identify forward-looking statements. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected and the forward-looking statements included in this news release should not be unduly relied upon. See “Risks and Uncertainties” in the Company’s Filing Statement dated August 30, 2011 available on SEDAR at www.sedar.com These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
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.