Stratex International plc, the AIM-quoted gold exploration and development company focused on Turkey, and East and West Africa, is pleased to announce its results for the year ended 31 December 2016.

The results below are extracted from the Company’s audited financial statements which will be available from today at the Company’s website: www.stratexinternational.com. Copies of the Company's Annual Report and Notice of AGM will be posted to shareholders on 24 May 2017. The Company’s AGM will be held at 3.00 pm on 27 June 2017 at the offices of Grant Thornton UK LLP, 30 Finsbury Square, London, EC2P 2YU.

Operational Highlights:

· The Altıntepe mine in Turkey, which became operational towards the end of 2015, had production of circa 35,800oz gold and 41,600oz silver for 2016. Under an agreement with our Turkish partners, Stratex would have the right to a cash distribution once the operation was profitable. We had been frustrated in enforcing our rights under our agreement with our Turkish partners and coupled with the current changes occurring in country, and the potential for protracted legal action, we commenced discussions with our partners with a view to a sale of our 45% interest in the project. Negotiations were successful and the Board accepted an offer to sell our full interest in the Altıntepe mine for an aggregate cash receipt of US$8 million net of any taxes and costs;

· Goldstone successfully raised £1 million during the year and Stratex followed its investment to maintain its interest at 33.45%. RC drilling at Akrokerri confirmed mineralisation at the AK02 prospect, and auger drilling defined a new zone of gold enrichment 100-200m to the east of AK02. At Homase, a diamond drilling programme confirmed the depth continuity of the identified mineralised zone beneath the historic pit and also highlighted the potential for identifying further parallel orebodies within the broader structural corridor;

· A low-cost exploration programme was completed at the Dalafin gold project, comprising mapping, soil sampling, and outcrop and lag sampling. Further zones of mineralisation have been identified, including a 750m extension of the Faré South prospect soil anomaly;

· Thani Stratex Resources Ltd has successfully raised US$4.5 million during the year and as a result Stratex’s shareholding interest had been diluted to 30.4% by the year-end. Drilling commenced at the Anbat gold project in Egypt, and at the Assaleyta and Pandora gold projects in Djibouti;

· An Environmental Impact Study has been submitted for the Muratdere copper-gold project in Turkey and approval is awaited before construction of the mine can commence. Stratex had not contributed during the year to the development of the project, due to our view on value, based on low copper prices. Consequently Stratex’s interest in the project has been diluted to 14.87%. As a result the investment is no longer accounted for as an associate.

Financial Overview:

· The Company and its subsidiaries (the "Group") realised a loss after tax for the year of £2.66 million which, compares with a loss in 2015 of £0.6 million. The loss in 2015 included a £3.04 million profit from the sale of the Őksűt royalty. Adjusting for this one-off gain, the loss in 2015 would have been £3.67 million;

· Administration costs amounted to £2.81 million, an increase of £0.66 million over 2016. The amount for 2016 includes certain non-cash accounting adjustments. On a like-for-like cash basis, administration cost have reduced year-over-year by £0.68 million, reflecting the continued focus on cost controls;

· The owners of the Altıntepe mine agreed to pay US$2 million, net of taxes, (approximately £1.6 million) for services related to the operation of the mine provided by the Company’s geological team based in Turkey. This forms a part of the US$8 million net consideration for the sale of Stratex’s 45% interest in the mine and has been reported as “Other Income” for the year;

· The Company’s investments in Altıntepe Madencilik, Muratdere Madencilik and Tembo Gold Corp were recategorised as they no longer meet the criteria for equity accounting. Together with the dilution of the Company’s interest in Thani Stratex Resources Limited, this change in accounting treatment has given rise to an accounting loss in 2016 of £0.7 million;

· The value of the Company’s operations in Goldstone and Dalafin, which are denominated in US Dollars and Euros respectively, have increased significantly in Sterling terms due to the weakening of Sterling against the US Dollar and Euro, following the UK vote on Brexit. This has resulted in an unrealised currency translation gain of £3.37 million, which, in accordance with International Financial Reporting Standards, has been taken directly to equity and is not reflected in the loss for the year.

Chairman’s Statement

Over the last twelve months we have made strong operational and financial progress across the business as we continue to execute the Company’s strategy of becoming a significant gold producing company. The focus of the period remained firmly on advancing our highly prospective exploration and development assets in Turkey and Africa as well as collaborating with our partner in Turkey to ramp up production at the Altıntepe gold mine. The period included the appointment of Marcus Engelbrecht as the Company’s Chief Executive Officer with which has come renewed impetus and new capabilities that will enable the Company to grow and generate meaningful value for our shareholders.

The Company’s strategy is to develop its existing exploration projects and seek to identify accretive acquisition opportunities that complement our portfolio of projects. Stratex continues to identify a number of opportunities to take this vision forward.

Our joint venture at Altıntepe commenced production in November 2015 and during the year some 35,800oz of gold and 41,600oz of silver had been recovered. Notwithstanding positive discussions with our partners in Turkey, we were continually frustrated in our attempts to enforce our contractual rights to receive a cash distribution. Although both UK and Turkish legal advice on the issue was very positive, given the climate change in Turkey we recommenced our discussions with our joint venture partners with a view to a sale of our 45% interest in the project. These discussions culminated in an offer by our joint venture partners to buy our 45% interest in the Altıntepe project for an aggregate cash sum of US$8 million, net of taxes and costs. This offer was accepted and the full amount of the consideration has now been received. Given that our financial investment in the project was less than US$2 million, this outcome is regarded as highly accretive and fully reflects the inherent value of the Group's investment in Altıntepe. The Altıntepe Gold Mine has played an important role in the historic growth of the Company and the funds released from this sale now place Stratex in a strong position to develop its strategy with respect to its advancing discussions with other companies with near or in production assets.

Thani Stratex Resources Limited (“TSRL”) continues to report encouraging exploration results at its Anbat gold project in Egypt. The Arabian Nubian Shield of Egypt represents a highly prospective yet relatively underexplored gold region that continues to be extremely positive with regard to TSRL’s progress at Anbat. The expectation is that this exploration programme will continue to be advanced during 2017. The Board is equally encouraged by TSRL’s exploration activity in Djibouti and looks forward to further updates from the Assaleyta and Pandora gold projects. Marcus Engelbrecht has been appointed as Stratex’s representative on the board of TSRL.

Emma Priestley has now been confirmed as Chief Executive Officer of Goldstone. This company raised £1 million during the year to enable it to progress its Homase-Akrokerri project in Ghana. Stratex followed its investment to maintain its interest at 33.45%. This project hosts an existing 600,000oz gold JORC compliant resource.

Stratex is nearing completion of a review of its 85% owned Dalafin gold exploration project in Senegal. The Company and its Senegalese partner, Energy and Mining Corporation S.A., have concluded a significant in-country cost reduction initiative and will be jointly defining a strategic approach to funding and progressing the planned exploration programme. This follows a drilling programme earlier in the year, which showed encouraging results. Stratex remains committed to the project and believes the exploration carried out to date shows significant up-side potential.

In light of commodity price pressures, the Group’s interest in the Muratdere copper-gold project has been diluted to 14.87% following the Board’s decision in February 2016 not to commit further funds to the project. The Board will continue to monitor the Group’s interest in Muratdere as the copper price changes.

The period saw some significant changes in the management structure of Stratex. In September our Chief Executive Officer, Dr Bob Foster, who had been a founder director of the Company, retired from the Board after more than ten years. Bob was instrumental in the development of the Company and Stratex owes him a huge debt of gratitude. The Board is fortunate that his knowledge and experience in the industry continue to be available on a consultancy basis. He has been replaced as Chief Executive Officer by Marcus Engelbrecht who brings a wealth of industry experience and contacts that will enable to Company to execute its next phase of stated growth strategy. Marcus is a senior executive with some 30 years’ experience in the global mining industry and has demonstrated an ability to articulate a strong corporate vision and to build and motivate effective management teams. With his proven experience developing and building successful resource based companies, Marcus will lead Stratex’s quest for rapid growth by acquisition.

Emma Priestley, who joined the executive Board in 2014, became a Non-Executive in November 2016 upon taking up her role as Chief Executive Officer of Goldstone Resources Limited, a company in which Stratex holds a significant interest.

At the end of 2016 our former Chairman, Christopher Hall, announced his retirement. Christopher had been on the Board since 2008 and had been appointed Chairman in 2011. The Board is extremely grateful to Christopher for his leadership and the valuable contribution he has made to the Company.

As an experienced non-executive director and chairman, I replaced Christopher as Chairman on 1 January 2017, having joined the Board of the Company in 2008. I had practiced as a solicitor for some 20 years and subsequently provided corporate finance advice to a wide range of companies in the UK and Ireland.

Looking forward to the current year, Stratex is now well placed financially to take advantage of the opportunities available in the mining sector. The Company continues to work towards its strategic vision of acquiring high-quality near or in production mining projects and is currently advancing a number of discussions with companies and asset owners over prospective projects which would be complementary to Stratex's strategic goals. As and when these discussions reach fruition, appropriate announcements will be made to shareholders and the market.

On behalf of Stratex’s executive and management team I would like to express my appreciation and thanks to all our employees for their efforts and hard work during the past year.

Peter Addison

Non-Executive Chairman

15 May 2017

Financial Statements

Statement of consolidated comprehensive income

			Year ended 31 December 2015
	Year ended 31 December 2016

	£	£
Continuing operations
Revenue	-			-
Administration expenses	(2,807,931)			(2,145,128)
Project impairment	(121,019)			-
Other income	1,174,174			2,770,522
Operating (loss)/profit	(1,754,776)			625,394
Finance income	16,185			22,839
Share of losses in equity-accounted investments	(162,261)			(1,368,351)
Loss on change of ownership status (note 4)	(743,323)			(70,818)
Loss before income tax	(2,644,175)			(790,936)
Income tax (charge)/credit	(18,078)			153,380
Loss for the year	(2,662,253)			(637,556)
Other comprehensive income for the year
Items that may be subsequently reclassified to profit or loss
Share of comprehensive income of investments accounted for using the equity method	-		246,457
Exchange differences on translating foreign operations	3,371,047		286,492
Other comprehensive income for the year, net of tax	3,371,047		532,949
Total comprehensive loss for the year	708,794		(104,607)
Loss for the year attributable to:
Owners of the Parent Company	(2,105,671)		(402,050)
Non-controlling interests	(556,582)		(235,506)
Loss for the year	(2,662,253)		(637,556)
Total comprehensive loss for the year attributable to:
Owners of the Parent Company	727,807		90,114
Non-controlling interests	(19,013)		(194,721)
Total comprehensive loss for the year	(708,794)		(104,607)

Earnings per share from losses from continuing operations attributable to the equity holders of the Company (expressed in pence per share).


- basic	(0.45)		(0.09)
- diluted	(0.45)		(0.09)

Statement of consolidated financial position

		As at 31 December 2015
	As at 31 December 2016
	As at 31 December 2016
	£	£
ASSETS
Non-Current Assets
Property plant and equipment	13,874	32,240
Intangible assets	10,490,725	8,323,340
Investments in equity-accounted associates (note 5)	5,757,578	7,645,184
Available-for-sale financial assets (note 6)	2,912,829	227,082
Trade and other receivables	1,358,639	1,322,135
Deferred tax asset	257,380	274,907
	20,791,025	17,824,888
Current Assets
Trade and other receivables	1,740,208	873,697
Cash and cash equivalents	1,688,619	4,132,073
	3,428,827	5,005,770
Total Assets	24,219,852	22,830,658
EQUITY
Equity attributable to owners of the Company
Share capital	4,673,113	4,673,113
Share premium	20,426,431	20,426,431
Other reserves	2,588,762	(125,714)
Retained earnings	(6,757,042)	(4,807,122)
Total equity attributable to owners of the Company	20,931,264	20,166,708
Non-controlling interest	2,860,169	2,251,732
Total Equity	23,791,433	22,418,440
LIABILITIES
Non-Current Liabilities
Employee termination benefits	35,710	27,013
Deferred tax liabilities	2,691	275
	38,401	27,288
Current Liabilities
Trade and other payables	390,018	384,930
Total Liabilities	428,419	412,218
Total Equity and Liabilities	24,219,852	22,830,658

Statement of consolidated changes in equity

	Attributable to owners of the Company					Non-Controlling Interest
	Share Capital	Share Premium	Other Reserves	Retained earnings	Total	Non-Controlling Interest	Total Equity
	£	£	£	£	£	£	£
Balance at 1 January 2015	4,673,113	20,426,431	(643,305)	(4,415,707)	20,040,532	2,446,453	22,486,985
Share-based payments	-	-	36,062	-	36,062	-	36,062
Share options exercised and cancelled	-	-	(10,635)	10,635	-	-	-
Total contributions by and distributions to owners of the Company	-	-	25,427	10,635	36,062	-	36,062
Comprehensive income for the year:
- loss for the year	-	-	-	(402,050)	(402,050)	(235,506)	(637,556)
- other comprehensive income	-	-	492,164	-	492,164	40,785	532,949
Total comprehensive income for the year	-	-	492,164	(402,050)	90,114	(194,721)	(104,607)
Balance at 31 December 2015	4,673,113	20,426,431	(125,714)	(4,807,122)	20,166,708	2,251,732	22,418,440
Share-based payments	-	-	36,749	-	36,749	-	36,749
Share options cancelled	-	-	(155,751)	155,751	-	-	-
Total contributions by and distributions to owners of the Company	-	-	(119,002)	155,751	36,749	-	36,749
Transaction with non-controlling interest	-	-	-	-	-	627,450	627,450
Comprehensive income for the year
- loss for the year	-	-	-	(2,105,671)	(2,105,671)	(556,582)	(2,662,253)
- other comprehensive income	-	-	2,833,478	-	2,833,478	537,569	3,371,047
Total comprehensive income for the year	-	-	2,833,478	(2,105,671)	727,807	(19,013)	708,794
Balance at 31 December 2016	4,673,113	20,426,431	2,588,762	(6,757,042)	20,931,264	2,860,169	23,791,433

Statement of consolidated cash flows

		Year ended 31 December 2015
	Year ended 31 December 2016
	Year ended 31 December 2016
	£	£
Cash flow from operating activities:
Net cash used in operating activities	(2,089,929)	(2,774,182)
Cash flow from investing activities:
Purchase of property, plant and equipment	(2,436)	(8,149)
Purchase of intangible assets	(780,139)	(816,962)
Investment in associate company (note 5)	(189,208)	(35,090)
Investment in available-for-sale financial assets (note 6)	(25,377)	-
Interest received	16,185	22,839
Net cash used in investing activities	(980,975)	(837,362)
Cash flow from financing activities:
Funds received from issue of shares by subsidiary company	627,450	-
Funds received from sale of royalty interests	-	3,036,659
Net cash generated from financing activities	627,450	3,036,659
Net decrease in cash and cash equivalents	(2,443,454)	(574,885)
Cash and cash equivalents at beginning of the period	4,132,073	4,706,958
Cash and cash equivalents at end of the period	1,688,619	4,132,073

Notes to the consolidated financial statements

1. Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU), IFRIC interpretations and those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention as modified by the measurement of certain investments at fair value and have been prepared on a going concern basis.

The financial information set out in this announcement does not constitute the Group's statutory accounts for the year ended 31 December 2016 or the year ended 31 December 2015 under the meaning of Section 434 the Companies Act 2006 but is derived from those accounts. The annual report and financial statements for the year ended 31 December 2016 were approved by the Board of Directors on 15 May 2017 along with this announcement, but have not yet been delivered to the Registrar of Companies. The annual report and financial statements will be delivered to the Registrar of Companies following the Company's Annual General Meeting. The statutory accounts for the year ended 31 December 2015 have been filed with the Registrar of Companies. The auditor’s reports on the statutory accounts for the years ended 31 December 2015 and 31 December 2016 were unqualified and do not contain a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006.

It is the prime responsibility of the Board to ensure the Company and the Group remains a going concern. At 31 December 2016 the Group had cash and cash equivalents of £1,688,619 and no borrowings. In April 2017, US$8 million was received from the sale of the Company’s 45% interest in the Altıntepe Gold Mine. The major forecast expenditure in 2016 is likely to be the further exploration at Homase-Akrokerri and at Dalafin. The Company and the Group have minimal contractual expenditure commitments and the Board considers the present funds sufficient to maintain the working capital of the Company and Group for a period of at least 12 months from the date of signing the annual report and financial statements based on the forecasts of the Directors. For these reasons the Directors continue to adopt the going concern basis in the preparation of the financial statements.

2. Accounting Policies

Except as described below the accounting policies applied in preparing these financial statements are consistent with those that have been adopted in the Group’s 2015 audited financial statements.

New and amended standards adopted by the Group

The following IFRSs or IFRIC interpretations were effective for the first time for the financial year beginning 1 January 2016. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements:

Standards /interpretations	Application
IFRS 11 amendment	Accounting for acquisitions of interest in Joint Operations
IAS 16 & IAS18	Clarification of acceptable methods of depreciation and amortisation
IAS 27 amendment	Equity method in separate financial statements
Annual Improvement Cycle 2012-2014	Amendments to: IFRS 5 Non-current assets held for sale and Discontinued Operations, IFRS 7 Financial instruments: Disclosures, IAS19 Employee benefits and IAS34 Interim Financial Reporting.
IAS1	Disclosure initiative

New and amended standards not yet adopted by the Company

Standards /interpretations	Application
IAS 7 amendments	Results of the Disclosure Initiative: Effective 1 January 2017*
IAS 12 amendments	Recognition of Deferred tax assets for Unrealised losses: Effective 1 January 2017*
IFRS 2 amendments	Measurement of share based payment transactions: Effective 1 January 2018*
IFRS 9 amendments	Financial Instruments: Effective 1 January 2018*
IFRS 15	Revenue from contracts with customers: Effective 1 January 2018*
IFRS 16	Leases: Effective 1 January 2019*
Annual Improvements	2014 – 2016 Cycle: Effective 1 January 2017/1 January 2018*
	*Subject to EU endorsement

IFRS 15 requires a quantitative impact of the application of IFRS 15 to be included within the financial statements. The Directors are reviewing the impact of IFRS 15 and will report accordingly thereon in the interim statements.

There are no other IFRS’s or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Company.

3. Segment reporting

The Group's main exploration operations are located in Turkey, East Africa and West Africa. The Group's head office is located in the UK and provides corporate and support services to the Group and researches new areas of exploration opportunities. The management structure and the management reports received by the Directors and used to make strategic decisions reflect the split of operations.

a) The allocation of assets and liabilities by segment is as follows:
	Exploration													UK support & other		Group
	Turkey		East Africa				West Africa									Total
	£		£				£							£		£
At 31 December 2016
Intangible assets	-				-				10,490,725			-				10,490,725
Property, plant and equipment	7,020				-				6,641			213				13,874
Investment in associate companies	-				5,757,578				-			-				5,757,578
Cash and other assets	4,378,490				406,868				1,562,867			1,609,450				7,957,675
Liabilities	(128,634)				-				(49,373)			(250,412)				(428,419)
Inter-segment	(2,530,803)				-				(10,345,516)			12,876,319				-
Net assets	1,726,073				6,164,446				1,665,344			14,235,570				23,791,433
		Exploration											UK support & other		Group
		Turkey		East Africa				West Africa							Total
		£		£				£					£		£
At 31 December 2015
Intangible assets		-				-				8,323,340	-				8,323,340
Property, plant and equipment		10,706				-				15,914	5,620				32,240
Investment in associate companies		549,524				7,095.660				-	-				7,645,184
Cash and other assets		696,389				-				1,378,997	4,754,508				6,829,894
Liabilities		(115,920)				-				(42,355)	(253,943)				(412,218)
Inter-segment		(3,353,103)				-				(9,285,166)	12,638,269				-
Net assets/(liabilities)		(2,212,404)				7,095,660				390,730	17,144,454				22,418,440

The capitalised cost of the principal projects and the additions during the year are as follows:

		Capitalised cost			Additions in year
			2016	2015		2016	2015
			£	£		£	£
West Africa
	Dalafin		6,283,126	5,138,892		323,787	469,120
	Homase/Akrokerri		4,207,599	3,075,349		456,352	262,758
	Other		-	109,099		-	85,084
Total Intangible assets			10,490,725	8,323,340		780,139	816,962	816,962

b) The allocation of profits and losses for the year by segment is as follows:

	Exploration						UK support & other	Group
	Turkey	East Africa		West Africa				Total
	£	£		£			£		£
2016
Revenue	-		-		-	-			-
Administration expenses	(171,376)		(1,793)		(966,603)	(1,649,990)			(2,789,762)
Depreciation charge	(4,655)		-		(8,084)	(5,430)			(18,169)
Other income/(losses)	2,784,431		(1,901,739)		(106,827)	13,480			789,345
Share of associate company profits/ (losses)	7		(162,268)		-	-			(162,261)
Exchange gains/(losses)	(249,426)		-		(37,944)	(175,958)			(463,328)
Inter-segment charges	(232,759)		-		(631,625)	864,384			-
Income tax.	(18,078)		-		-	-			(18,078)
Profit/(loss) for year	2,108,144		(2,065,800)		(1,751,083)	(953,514)			(2,662,253)

	Exploration						UK support & other	Group
	Turkey	East Africa		West Africa				Total
	£	£		£			£		£
2015
Administration expenses	(258,274)		(124,049)		(551,220)	(1,175,888)			(2,109,431)
Depreciation charge	(5,156)		-		(11,699)	(18,842)			(35,697)
Other income/(losses)	42,777		-		11,552	3,060,070			3,114,399
Share of associate company losses	(119,371)		(1,248,980)		-	-			(1,368,351)
Exchange gains/(losses)	(375,527)		-		11,624	(27,953)			(391,856)
Inter-segment charges	(193,244)		-		(457,631)	650,875			-
Income tax.	153,380		-		-	-			153,380
Profit/(loss) for year	(755,415)		(1,373,029)		(997,374)	2,488,262			(637,556)

4. Loss on change of ownership status

	2016	2015
	£	£
Carrying value at date of change of ownership	(3,349,527)	70,818
Fair value of interest retained in former associates	2,606,204	-
Net loss for year	(743,323)	70,818

a) The Company’s shareholding interest in Muratdere Madencilk Sanayi ve Ticaret AS was reduced from 30% to 14.87% as a result of not participating in the share placing of 22 February 2016. The Company’s investment no longer meets the requirements for equity accounting. A fair value of £429,826 equal to the original cost of the investment has been attributed to the remaining investment. The resulting net loss is £319,414.

b) Dr Bob Foster, the former CEO of Stratex, resigned from the board of the Tembo Gold Corporation on 5 May 2016 and Stratex is no longer involved in the management of the company and the investment no longer meets the requirements for equity accounting. A fair value of £381,492 has been attributed to its 11.6% investment based on the market price of the Tembo shares at the time of the change in accounting treatment. The resulting net loss is £1,069,267.

c) Thani Stratex Resources Limited has undertaken share placings in which the Company has not participated, and has issued shares to employees. As a result, the Company’s shareholding interest has reduced from 40% to 30.4%. This has given rise to a net loss of £832,472.

d) During the year the Company ceased to have a significant influence in the operating of the Altıntepe mine and as such the investment no longer meets the requirements for equity accounting. A fair value of £1,794,886 has been attributed to the Company’s 45% interest in Altıntepe Madencilik Sanayi ve Ticaret AŞ, the owners of the mine. This is based on an evaluation of operations since it commenced production in November 2015. This has given rise to a net gain for the Company of £1,477,830.

5. Investment in equity-accounted associates

	Group		Company
	2016	2015	2016	2015
	£	£	£	£
At 1 January	7,645,184	8,806,548	680,958	645,868
Exchange movements	1,135,737	242,715	-	–
Share of losses	(162,261)	(1,368,351)	-	-
Additions	189,208	35,090	189,208	35,090
Disposals	(3,050,290)	(70,818)	-	-
Write-offs	-	-	(19,800)	-
At 31 December	5,757,578	7,645,184	850,366	680,958

a) During the year Stratex International plc invested a further £189,208 (2015: £35,090)in Thani Stratex Resources Limited through conversion of the existing loan, however it did not participate in all of the share placings undertaken by the company and as a result Stratex’s shareholding interest has reduced from 40% to 30.4%. See note 4 for further details.

b) Altıntepe Madencilik Sanayi ve Ticaret AŞ, Muratdere Madencilk Sanayi ve Ticaret AS and Tembo Gold Corporation no longer meet the requirements for equity accounting and are now accounted for as Available-for-sale Financial Assets. See notes 4 and 6 for further details. .

6. Available-for-sale financial assets

	Group		Company
	2016	2015	2016	2015
	£	£	£	£
At 1 January	227,082	227,082	227,082	227,082
Exchange movements	54,166	-	-	-
Additions	25,377	-	-	-
Transfer from Investments in equity-accounting associates	2,606,204	-	-	-
At 31 December	2,912,829	227,082	227,082	227,082

The investment in Muratdere Madencilk Sanayi ve Ticaret AS, Tembo Gold Corporation and Altıntepe Madencilik Sanayi ve Ticaret AŞ , which previously were accounted for as associates, no longer meet the requirements for equity accounting and have been recategorised as Available –for –sale Financial Assets. Tembo Gold Corporation is quoted on the Toronto stock exchange and Stratex’s investment has been valued at £406,868 under level 1 of the fair value hierarchy. Stratex’s investment in Altıntepe Madencilik Sanayi ve Ticaret AŞ has been valued under level 2 of the fair value hierarchy based on an evaluation of the operations of the Altıntepe mine since start of production in November 2015. All other available-for-sale financial assets are valued under level 3 of the fair value hierarchy, taking into account the early stage of development of the exploration projects and lack of a JORC-compliant resource to enable a value-in-use calculation to be performed.

7. Contingencies

In common with many UK-based companies in the resource sector HMRC have conducted a review into the right of Stratex International plc and its UK registered wholly-owned subsidiaries to reclaim input VAT. They have ruled that the provision of management services and interest bearing loans by the Company is not an economic activity for VAT purposes and the right of recovery has been disallowed. They have issued a tax assessment for the repayment of VAT reclaimed during the past 4 years amounting to £390,202 plus interest. We strongly disagree with the decsion of HMRC and have requested a second review of their decision.

For further information please visit www.stratexinternational.com, email [email protected], or contact:

Stratex International Plc	Tel: +44 (0)20 7830 9650
Marcus Engelbrecht / Claire Bay
Grant Thornton UK LLP	Tel: +44 (0)20 7383 5100
Philip Secrett / Samantha Harrison / Daniel Bush
Hannam & Partners	Tel: +44 (0)20 7907 8500
Neil Passmore/ Andrew Chubb
Camarco	Tel: +44 (0)20 3757 4980
Gordon Poole / Nick Hennis

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").

Notes to Editors:

Since listing in 2006, Stratex has discovered more than 2.2 million ounces of gold and 7.09 million ounces of silver, as well as 186,000 tonnes of copper. The Company owns 15% of a copper-gold project at feasibility stage and an exciting exploration project in Senegal. The Company also has significant interests in Goldstone Resources Ltd, Thani Stratex Resources Ltd and Tembo Gold Corp. for their exploration projects in Ghana, Djibouti and Egypt, and Tanzania respectively.

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