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Stratum Metals Limited

Stratum Metals (“Stratum”) is an exploration company with a tenement portfolio consisting of 11 exploration licences in Western Australia. Stratum’s flagship projects are focused on regions highly prospective for gold and thermal coal.

In September 2011, Stratum raised $4 million from an IPO which was oversubscribed and listed on the ASX (ASX: SXT) with EL & C Baillieu acting as lead manager. Stratum’s market capitalisation on listing was $8.2 million.

Stratum’s strategy is to leverage the possible potential for early production and positive results from its gold assets to provide Stratum with alternative options and capital to develop the more costly Canning Basin.

As Tony Featherstone wrote in the Australian Financial review 2011, “Positive early exploration results at Gidgee, if they occur, could lift Stratum’s share price and give more options to raise equity capital to develop the Canning, with less shareholder dilution”.

Gold Matters
Stratum’s 100% owned Gidgee Project is located 640 kilometres northeast of Perth on the greenstone belt and consists of exploration licences E53/1440 (Gidgee South) and E53/1494 (Gidgee North) covering 9 and 4 sub-blocks respectively and applications licences P53/1552, P53/1553 and P53/1554 to the south.

Shortly after listing Stratum finished its maiden RC drilling campaign from three prospects at Gidgee North. Gold results announced in December 2011 were excellent and showed high-grade intersections of gold (up to 60.90 g/t at shallow depths and 8m @ 8.89 g/t from 41m). Drilling indicated strong potential for mineralisation at depth and potentially along strike.

“It’s an exciting and evolving project in terms of the potential for success. To have a gold project to be open at surface, depth and along strike whilst being close to existing infrastructure is very encouraging. Having this news released to market shortly after an IPO has been very positive for the company.” Martin Holland, Stratum’s Founder and Managing Director.

Importantly, the Gidgee North Project is close to existing civil and mining infrastructure located approximately 35 kilometres from Panoramic Resources (ASX:PAN) Gidgee Gold project, including a 600,000 tonne per annum Gold Treatment Plant (currently not in operation) and is 90 kilometres north-northeast of Sandstone.

Stratum will continue to focus resources on gold projects at Gidgee North to extract maximum shareholder value. Details of a follow up drilling program will be available in due course, with a Joint Ore Reserves Committee (JORC) Code resource targeted for later in 2012.

Coal Matters
On the 15th of November 2011 Stratum incorporated Stratum Coal Pty Ltd (“Stratum Coal”). Stratum Coal will focus on acquiring thermal coal tenements in and around Western Australia’s Canning Basin.

Stratum Coal subsequently acquired two additional prospective thermal coal tenements in the Canning Basin in late November 2011 and adjacent to Stratum’s existing holdings. The Canning Basin Coal Project’s are located approximately 150 kilometres southwest of Derby in the Kimberley Region of Western Australia.

Stratum Coal’s projects are less than 20 kilometres from Rey Resources’ Duchess Paradise project, which has a 535 million-tonne JORC resource, a definitive feasibility study under way, and production slated for the end of 2013. Stratum now has rights to 700 km2 of coal prospective land located within the Canning Basin.

Stratum are confident about the outlook for thermal coal and are particularly interested in the enormous exploration and production potential from the Canning Basin. Furthermore, the proximity to major export markets in India and China and the ability to compete with Indonesian producers makes the Canning Basin an attractive region for further investment.

Stratum Coal will continue to expand its presence in the Canning Basin whilst building strong relationships with the local communities.

Strong Leadership Team
Stratum’s strength is underpinned by the breadth of experience among management and the Board. Led by Founder and Managing Director, Martin Holland, Stratum has galvanised a nimble and energetic team with widespread experience across industry in delivering value for shareholders.

Todd Axford recently joined Stratum as full-time exploration manager having previously worked with Australasian Resources Limited, Mt Gibson Iron and Cliff’s Natural Resources.

Non-Executive Chariman Mr Anthon is a managing partner of Hemming + Hart Lawyers in Brisbane and with 27 years mining resource experience has been actively involved in chairing resources related IPO’s.

Non-Executive Director Mr Addison with 20 years corporate finance experience previously worked at corporate advisor Helmsec Global Capital which managed the Carabella Resources IPO (ASX:CLR) and is currently a director and former chairman of the Queensland coal company.

The Board is leading the company in a positive direction by setting long-term goals and monitoring shareholder value. Stratum will continue to explore different routes to market via joint ventures and through acquisitions in Western Australia and Internationally.

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