It is the Directors' intention that the activities of Stratex be directed exclusively to the search for and delineation of high-value mineral resources, primarily gold, silver, copper, molybdenum, zinc, and nickel. The Directors believe that the lack of funding directed to exploration over the past decade has created a serious imbalance in the projected supply-demand equation for a number of commodities over the next few years.

Stratex's business model is to identify prospective gold projects with a view to developing them with a joint venture partner through to production, whilst continuing to explore for new discoveries. The strength of this business model has been proved through a joint venture partnership with NTF. The definitive agreement, when signed, will see NTF earning up to 55% in both Inlice and Altıntepe by financing them to completion of feasibility studies. Furthermore, Stratex's ability to discover and define new areas of gold mineralization has been further recognised by Centerra, culminating in the signing of an agreement to advance the development of our highly prospective Öksüt gold project in central Anatolia. Centerra can earn up to a maximum of 70% of the Öksüt project by financing exploration to a total of US$ 6 million, with a commitment to an initial US$ 500,000 of expenditure in the first year. Stratex have also signed a JV with Teck Resources Limited, whereby Teck can earn up to a maximum of 70% bof the Hasançelebi projectby financing exploration to a total of US$ 5 million, with a commitment to an initial US$ 500,000 of expenditure by 31st December 2010. These strategic partnerships allow the projects to be fast-tracked with limited risk or cost to the Company.

The Company's strategic intent is to maximize shareholder value through the continuing development of this focused portfolio. Revenues will be generated by:-

• Developing defined gold resources into mines via a production joint-venture agreement with Turkish civil engineering and contract mining company NTF; or
• Discovery of major new gold projects via joint-venture agreements with companies that have the technical and financial capabilities to put large resources into production. Those projects not meeting the +1 million oz gold resource requirements of  major companies would be spun into the NTF JV, thus ensuring growth of the NTF-driven company into a significant gold producer; or
• Ongoing go-it-alone exploration to define new targets using the innovative exploration philosophies and techniques that have proved so successful to date and selling resulting new discoveries to a third-party company whilst retaining a royalty payment based on future metal production.