The Sentient Group announces closing of refinancing transaction with Strateco Resources Inc.

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES AND NOT FOR DISSEMINATION IN THE UNITED STATES/

MONTREAL, Dec. 23, 2013 /CNW Telbec/ - Sentient Executive GP IV, Limited ("Sentient IV") announces that, in connection with a refinancing transaction between The Sentient Group and Strateco Resources Inc. ("Strateco") announced on December 10, 2013 (the "Transaction"), it has granted a $3 million loan (the "Loan") to Strateco. The Loan bears interest at a rate of 10% per annum which is payable on a quarterly basis, at Strateco's option, either in cash or by the issuance of common shares of Strateco (the "Shares") at a price equal to the volume weighted average price of the Shares for the 20 trading days immediately preceding the relevant interest payment date. The Loan is not convertible into Shares and matures on December 20, 2015.

Sentient Executive GP III, Limited ("Sentient III") also announces that, in connection with the Transaction, it has amended certain terms of the $14,905,000 principal amount convertible note (the "Sentient III Note") issued to Sentient III by Strateco on January 27, 2010. The maturity date of the Sentient III Note has been extended to February 27, 2016. Sentient III has three options to extend the maturity date by one additional year each for a cumulative maximum of three additional years. The conversion right of the Sentient III Note has also been amended to allow the conversion at the lower of $0.25 per Share or the volume weighted average price of the Shares for the 20 trading days immediately preceding the conversion date.

Sentient III has control or direction over 2,689,474 Shares (representing approximately 1.46% of the outstanding Shares) and the Sentient III Note. Assuming the conversion in full of the principal amount of the Sentient III Note (at an assumed conversion price of $0.25 per Share), Sentient III would acquire control over a maximum of 62,309,474 Shares (including the 2,689,474 Shares over which Sentient III has control or direction), representing approximately 25.52% of the outstanding Shares, calculated on a partially diluted basis assuming the full conversion of the principal amount of the Sentient III Note only.

Sentient III and Sentient IV have control or direction over 26,194,241 Shares in the aggregate (representing approximately 14.20% of the outstanding Shares), the right to acquire 4,590,000 Shares through 4,590,000 share purchase warrants of Strateco (the "Sentient IV Warrants") and the Sentient III Note.  In the event all of the Sentient IV Warrants are fully exercised and assuming the conversion in full of the principal amount of the Sentient III Note (at an assumed conversion price of $0.25 per Share), these combined holdings would represent approximately 36.35% of the outstanding Shares, calculated on a partially diluted basis assuming the full exercise of the Sentient IV Warrants and the full conversion of the principal amount of the Sentient III Note only.

Sentient III and Sentient IV entered into the Transaction to allow Strateco to continue its activities and improve its difficult financial situation and not with a view of materially affecting control of Strateco.

SOURCE: SENTIENT EXECUTIVE GP III LIMITED

or to obtain a copy of the Early Warning Report filed by Sentient III and Sentient IV, please contact Sue Bjuro at [phone]