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

DENVER, CO and BRISBANE, AUSTRALIA and VANCOUVER, BC--(Marketwired - December 04, 2016) - The directors and management of Strata-X Energy Ltd. ("Strata-X" or the "Company") (TSX VENTURE: 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.