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Sentient sells interest in Strateco Resources to Toro Energy

The Sentient Group, a private equity firm based in the Cayman Islands and with an office in Montréal, has agreed to sell a large portion of its debt and equity investment in Strateco Resources Inc (TSX: RSC) to Australian uranium business Toro Energy Ltd. The acquired assets included a 19.8 percent equity interest in Strateco, convertible notes, a senior secured loan and a 25 percent equity interest in Strateco subsidiary SeqUr Exploration Inc. Following the transaction, Sentient will retain an 8 percent stake in the company as well as convertible notes. With headquarters in Boucherville, Québec, Strateco is a uranium mining company with exploration projects in northern Quebec.

PRESS RELEASE

Sentient and Toro Energy Sign an Agreement Regarding Strateco

BOUCHERVILLE, QUEBEC–(Marketwired – Nov. 3, 2014) – Strateco Resources Inc. (“Strateco”) (TSX:RSC)(FRANKFURT:RF9) is pleased to announce that it has given its consent to a transaction between The Sentient Group (“Sentient”) and Toro Energy Limited (“Toro”), an Australian public company with uranium exploration projects in Australia, including the Wiluna project set to become Western Australia’s first ever uranium mine following final environment approvals granted April 2013. The transaction involves, among other things, the sale of a substantial portion of Sentient’s holdings in Strateco and in SeqUr Exploration Inc. (“SeqUr”), a subsidiary of Strateco, in exchange for shares of Toro.

Toro has acquired from Sentient:
19.8% equity interest in Strateco;
C$14.1M of secured Convertible Notes receivable in Strateco;
C$3M senior secured first ranking loan receivable in Strateco;
5,000,000 common shares of SeqUr, representing 25% equity interest in SeqUr.

Subsequent to the transaction, Sentient, which held 27.13% of Strateco’s share capital, retains approximately an 8% stake in the share capital of Strateco and 800 convertible notes representing an amount of $800,000 secured by a hypothec on Strateco’s assets.

Commenting on the transaction, Guy Hébert, President and CEO of Strateco, said that: “We see the arrival of Toro as major shareholder of Strateco as a very positive development. Toro has shown clear interest in the Matoush project, as well as in SeqUr’s uranium projects in Saskatchewan. Toro’s experience going through permitting the Wiluna project, in an area formerly under moratorium, will certainly be an asset for Strateco”.

This news release contains “forward-looking statements” subject to certain risks and uncertainties. There can be no assurance that these statements will prove to be correct. Actual results and future events could differ significantly from those implied by such statements. These risks and uncertainties are discussed in Strateco’s annual information form filed with the securities commissions of British Colombia, Alberta, Ontario and Quebec.

CONTACT INFORMATION
Strateco Resources Inc.
Guy Hebert
President and Chief Executive Officer
450.641.0775 or 1.866.774.7722
450.641.1601 (FAX)
ghebert@strateco.ca

Strateco Resources Inc.
Jean-Pierre Lachance
Executive and Exploration Vice President
450.641.0775 or 1.866.774.7722
450.641.1601 (FAX)
jplachance@strateco.ca
www.strateco.ca

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