ION VIDEO LTD — Interim / Quarterly Report 2011

Oct 26, 2011

Quarterly Report September 2011

Quarterly Report – September 2011 PAGE 2

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HIGHLIGHTS

• Successfully completed an Initial Public offering to raise $3,100,000 by the issue of 15.5 million shares.

• Completed initial field work of selective rock chip grab sampling which reaffirms high grade gold present at Grants Creek.

• Plans to follow up initial work, as the Company continues to meet all statutory requirements required to begin an exploration drilling programme at Grants Creek and Angelo Projects.

• Completed initial compilation of data for the Elaine Project and detailed evaluation is continuing, with a view to defining targets for drill testing in early 2012.

• Continuous review of globally opportunities to identify further projects which may add to the company’s current assets and exploration prospects.

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Current project locations

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Quarterly Report – September 2011 PAGE 3

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CORPORATE

During the period the company completed a successful Initial public Offering of shares in the company to raise 3.1 million dollars for funding exploration on the Grants Creek, Angelo and Elaine Projects.

These funds will also allow the company to continue to identify and evaluate other opportunities and acquisitions, that may lead to increasing the value of the company over time.

The company has a tight capital structure with 31,000,000 shares on issue of which 17,000,000 are quoted on the ASX with the remainder unquoted due to escrow restrictions.

OPERATIONAL

Grants Creek Project P80/1576, 1577, 1578, 1579, 1580, 1582, 1760.

(100% Firestrike Resources Limited)

Analytical results of soil and rock chip samples collected within the project area of Grants Creek have confirmed the presence of high grade gold (greater than 5g/t).

Two of the six rock chip samples (ranging from 0.0 to 33.9 g/t gold) collected from within the project area were from the Star of Kimberley Prospect where 7.8g/t was returned in assay of a sample from the main quartz vein and 33.9/t from material comprising altered rock on the vein contact to country rock. Combined sampling represents approx. 1.5 metres wide interval of vein and wall rock alteration.

In addition 0.46g.t was recorded in a single rock chip from a vein system previously unsampled and to the north of the main system at Moodys/ Perseverance prospects.

The results confirms both the potential for the known vein systems to contain high grade gold and that the spatial distribution of other parallel vein systems throughout the project area is still open.

48 Soil samples also collected peripheral to the historical sampling area support the results of the pervious sampling campaigns which had identified a corridor of gold mineralisation above a nominal background of 4 ppb. The corridor runs for over 5 kilometres through the company’s leases.

Drilling is proposed and work is underway to follow up on previous explorers and the recent high grade rock chip samples. Currently the company is in the process of completing statutory requirements in preparation for a possible drill programme. The company hopes to complete drilling at both the Grants Creek and Angelo projects contemporaneously to minimise mobilisation and ancillary costs.

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Quarterly Report – September 2011 PAGE 4

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Rock chip grab sample table :

SAMPLE	Au	Ag	As	Cu	Mo	Pb	Pb-Rp1	W	Zn	Easting	Northing
	Ppm	Ppm	Ppm	Ppm	Ppm	Ppm	%	Ppm	Ppm	Metres	metres
37233	0.00	X	7	7	1	3		X	7	389800	8029200
37234	0.03	X	9	108	X	15		X	31	389113	8029232
37235	0.26	3.3	33	846	2	465		X	633	389050	8029122
37236	7.80	39.4	19	1107	1	>12161	2.5	X	1009	386798	8027800
37237	33.90	56.6	46	1657	3	>8273	3.62	2	5935	386799	8027798
37239	0.46	2.8	X	40	X	1139		X	86	386034	8035904

Assaying for gold using aqua regia digest with Atomic Absorption finish; assay for other element using aqua regia digest with Optical Emission spectroscopy finish completed at Genalysis Laboratories, Perth WA. “X” = below detection limits

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Note bold large values relate to the sampling table above, smaller values are from historical data.

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Quarterly Report – September 2011 PAGE 5

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Angelo Project, Halls Creek E80/2707

(100% Firestrike Resources Limited)

Desk top compilation of the historical data has been provisionally completed on the project in preparation for the commencement of regional exploration drilling. The Company is confident that the soil anomaly identified from the historical data presents a valid exploration target and, coupled with drill results from the previous tenement holders, is now working to finalise the statutory requirements prior to commencing drilling.

The company seeks to have these requirements completed as soon as conveniently possible with a view to drilling prior to the onset of the wet season, however no assurances can be given that third parties responses to notification of access and activity will be in a timely manner as to allow the Company to proceed before the wet season commences.

Elaine Project, Ballarat, E5133

(Firestrike Resources with an Option to acquire 100%)

Data compilation is continuing with a view to developing exploration strategy details due for early 2012.

OTHER ACTIVITIES

The board has been actively involved in reviewing and appraising other global resource projects presented to the Company that were considered to offer the opportunity to grow shareholder wealth.

Disclaimer

The information in the report to which this statement is attached relates to Exploration Results, Mineral Resources or Ore Reserves compiled by Mr D. J. Holden, who is a Member of The Australian Institute of Mining and Metallurgy , (CP) , with over 20 years experience in the mining industry. Mr Holden has sufficient experience, as to qualify as a Competent Person as defined in the 2004 edition of the “Australian Code for Reporting of Mineral Resources and Ore reserves”. Mr Holden consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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PAGE 6

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

Name of entity
Firestrike Resources Limited
ABN 84 149 796 332	Quarter ended (“current quarter”)
84 149 796 332	30 September 2011

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows	Current quarter $A’000	Year to date (3 months) $A’000
	- (62) - - (201) - 19 - - -	- (62) - - (201) - 19 - - -
	(244)	(244)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - - - - - - -	- - - - - - - - -
	-	-
	(244)	(244)

PAGE 8 Appendix 5B

Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

1.13 Total operating and investing cash flows (brought forward)	(244)	(244)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other – Capital Raising costs Net financing cash flows	63 (199)	63 (199)
	(136)	(136)
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	(380) 3,182 -	(380) 3,182 -
	2,802	2,802

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related entities

1.2 Aggregate amount of payments to the parties included in item 1.2 1.24 Aggregate amount of loans to the parties included in item 1.10	1.2 Aggregate amount of payments to the parties included in item 1.2 1.24 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000 97 -
1.25	Explanation necessaryfor an understandingof the transactions
	Consulting fees and salaries

Non-cash financing and investing activities

2.1 2.2	Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
	The Company issued 2,000,000 shares to Pacrim Energy Limited on settlement of the tenement acquisition agreement dated 2 May 2011. The Company acquired P80/1576, P80/1577, P80/1578, P80/1579, P80/1580, P80/1582, PLA 80/1760 and E 80/2707. The Company issued 1,000,000 shares to Minico Pty Ltd on satisfaction of the condition of precedent with respect to the option agreement dated 4 May 2011. The Company has been granted an option to acquire Victorian exploration license 5133.
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest
	Not Applicable

PAGE 9 Appendix 5B

Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000 - -	Amount available $A’000 - -	Amount used $A’000
		-	-
		-	-
stimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration			$A’000
			170
			-
			-
			150
Total			320

Estimated cash outflows for next quarter

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	2,802	3,182
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	2,802	3,182

PAGE 10 Appendix 5B

Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
	P 80/1576 P 80/1577 P 80/1578 P 80/1579 P 80/1580 P 80/1582 P 80/1760 E 80/2707 E 5133	100% ownership 100% ownership 100% ownership 100% ownership 100% ownership 100% ownership 100% ownership 100% ownership Option to acquire 100% interest	Nil Nil Nil Nil Nil Nil Nil Nil Nil	100% 100% 100% 100% 100% 100% 100% 100% Option to acquire 100% interest

PAGE 11 Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs	31,000,000	17,000,000
	18,500,000	15,500,000	20 cents	20 cents
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	9,500,000 9,500,000		Exercise price 25 cents 50 cents	Expiry date 31 December 2015 31 December 2015
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

PAGE 12 Appendix 5B Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

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Sign here: ............................................................ Date: 27/10/2011 Print name: Philip Re

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.