Long Form Farm-in Agreement Signed and First Tranche of Capital Raising Completed for Serowe Project

Progressing the Serowe CSG Project


The directors and management of Strata-X Energy Ltd. (“Strata-X” or the “Company”) (TSX-V:SXE) (ASX:SXA) are pleased to announce the Company has entered into a legally binding long form farm-in agreement with Magnum Gas and Power Ltd (ASX:MPE), cementing the Company’s rights to earn up to 75% of the Serowe CSG project located on the Kalahari Basin CSG Fairway in Botswana, Africa. The key terms of deal are as announced on November 14, 2016.

The signing of the long form farm-in agreement was the last precondition to the settlement of the first tranche of the A$2 million capital raising being undertaken by Lead manager, Bizzell Capital Partners Pty Ltd (BCP) as announced on November 14, 2016 (Placement).  Gross proceeds of A$435,000 have been raised in the first tranche of the capital raising via the placement of 8,700,000 CDIs (representing 8,700,000 common shares) at a price of A$0.05 per CDI to sophisticated investor clients of BCP utilizing the Company’s available placement capacity under the ASX Listing Rules (Tranche 1 Placement). The remainder of the Placement to raise gross proceeds of up to A$1,565,000 is to be settled subject to shareholder approval at the December 9, 2016 AGM.

Each CDI issued under the Placement will represent one common share of Strata-X and will rank equally with existing CDIs. All CDIs issued pursuant to the Placement are to be tradeable and listed on the Australian Securities Exchange. The Tranche 1 Placement represents approximately 14.8% of the Company’s issued capital (pre Placement). Quotation of the CDIs on the ASX will occur on December 5, 2016 (Australian time). The Placement is subject to exchange (TSX-V) acceptance.  
To the extent the Placement participants elect to convert their holdings to common shares, the securities will have a hold period in Canada expiring on April 3, 2017.

For its Serowe CSG project, located in the Republic of Botswana, Strata-X is farming in to earn up to a 75% working interest in the project and has recently certified 1075 PJ of recoverable Prospective Resources(1), net to its interest. The Company is currently completing desorption and related analysis of previously acquired coal cores as well as regional and detailed integration of all available data before commencing drilling operations. Two core well tests are planned in early 2017 over the farm-in tenements, with a contingent completion test pending the desorption analysis results of the cores collected from the two planned test wells.

 ASX disclosure note - 5.28.2 - The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

Ron Prefontaine, Strata-X's Chairman, stated, “I am excited about this new project and believe Strata-X can find the recipe to commercialize the large prospective gas resource we recently had certified.  Immediate and expanding domestic electricity demand in Botswana offers potential near term foundation projects with a variety of industrial markets and fuel substitution offerings once this domestic gas supply is established.

Of significance is that the economics of this project are not directly dependent on fluctuating world oil prices but are dependent on local electricity prices which are currently strong and should continue to be strong as demand increases.

Having carried out successful CSG projects in the past, I believe the technical risks for the Serowe CSG project are manageable.  Combining this with the low sovereign risk of a stable republic with strong gas fired electricity demand and to fuel industrial growth in southern Africa, the project offers substantial upside potential for Strata-X shareholders. To demonstrate my confidence in the project, I have agreed to take 15% of the current placement, subject to shareholder approval at the upcoming AGM.”

About Strata-X
Strata-X is a Denver, Colorado (USA) based company and is engaged in the business of oil and gas exploration and development with a variety of exploration opportunities in the States of California and Illinois in the United States of America, Western Australia and the Republic of Botswana. Strata-X has 58,775,195 common shares outstanding and trades under the symbol "SXE" on the TSX-V and "SXA" on the ASX.

(1) Prospective Resources figures are from an audit report prepared by MHA Petroleum Consultant dated 26 October 2016 following their audit of the available technical data including the geological interpretation, information from relevant nearby wells, analogous reservoirs and the proposed program for the Project, prepared and presented to MHA by Strata-X. Stated Prospective Resource figures are Best Estimate – undiscovered natural gas quantities and net of a 6% royalty and are shown at a 75% working interest in the Project that Strata-X will only earn upon completing the farm-in program. For addition information see Strata-X November 2016 Presentation.

For Further information please contact:

Tim Hoops (USA)    
+1 855-463-2400    

This announcement was made in Canada for the TSX.V and in Australia for the ASX.

Public documents for Strata-X Energy Ltd. can be found at SEDAR (Canada) (www.sedar.com) and ASX.com.au (Australia).

CAUTIONARY STATEMENT By definition of the COGE Handbook - "Undiscovered resources are those quantities of oil and gas estimated on a given date to be contained in accumulations yet to be discovered." Further the Handbook states - Caution (per NI 51-101/5.9(2)(v)(B)) - "There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources." In addition, per NI 51-101/5.6 "the estimated values disclosed do not represent fair market value."

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 27 September 2016 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