Favorable Metallurgy Studies Completed- Gallinas Mountains REE Project

TSX.V: STI

REGINA, Nov. 9, 2012 /CNW/ - Strategic Resources Inc. ("Strategic") is pleased to advise that mineralogical and metallurgical studies have now been completed on a mini-bulk sample of rock submitted to the Saskatchewan Research Council (SRC) in Saskatoon, Canada. The objective of these studies was to provide insight into the economic characteristics of the REE bearing rock from the Gallinas Mountains project.

Thin section analyses confirmed the dominant host of Yttrium and also of the lighter REE's to be the mineral assemblage bastnaesite. The heavy REE's are associated with late stage fluorite flooding. Thin section analyses also confirmed the distinct lack of monazite, uranium and thorium all of which can be detrimental to the economics of a REE project.

The economic viability of any REE project will center on the ability to liberate the REE minerals from the host rock with a reasonable amount of crushing and grinding and on the ability to produce a marketable concentrate using techniques such as flotation, dense medium separation and magnetic separation.

A series of flotation tests were conducted to investigate the efficiency of various collector agents including L5 fatty acid known to have been used in the past by Molycorp(N:MCP) at its Mountain Pass project. Of the five collector agents examined, the L5 fatty acid delivered the best TREO recovery. SRC has now recommended further tests to investigate ways to maximize the flotation grade using this L5 collector.

Bench scale tests show that for crushed and ground material of size 150-300 um(microns), heavy liquid separation at SG=3.2 recovered 36.9% of the TREO to make a concentrate grading 16.4%. For material sized 75-150um, heavy liquid separation at SG=3.2 recovered 44.9% of the TREO to make a concentrate grading 17.16%. These results are very encouraging and bode well for the economics of the Gallinas Mountains REE project.  SRC has recommended that additional testing be done to further investigate ways to maximize recovery and grade.

Bench scale tests further show that for crushed and ground material of size 75-300um passed through a Frantz-Barrier magnetic separator, 56.7% of the TREO was recovered to produce a concentrate grading 8.73%. This is a very encouraging preliminary result and SRC has recommended additional tests to investigate ways to maximize recovery and grade. Such additional tests could possibly include combinations of heavy liquid separation and magnetic separation techniques.

Strategic Resources is very pleased with the mineralogical and metallurgical characteristics of the REE bearing rock at its Gallinas Mountains project. Permitting approvals for additional drilling in 2013 are proceeding in an orderly fashion through Government channels.

The Qualified Person for the Gallinas Mountains REE project is Tony Kovschak, M.Sc, CPG.

Strategic Resources is a Canadian based junior exploration company with a Rare Earth exploration project in Lincoln County, New Mexico. More information about the company is available on line at www.strategicresourcesinc.ca.

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Forward looking statements:
This news release may contain certain forward-looking inferences or statements.  These forward-looking inferences or statements are subject to a variety of risks and uncertainties beyond the Corporation's control or prediction and could cause actual events or results to differ materially from those anticipated in such forward-looking statements.  Although the Corporation believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these forward-looking statements.

SOURCE: Strategic Resources Inc.

Malcolm Bucholtz, President & CEO,
Tel: [phone]

[email protected]