Long Form Farm-in Agreement Signed and First Tranche of Capital Raising Completed for Serowe CSG Project - Seite 2

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.