ION VIDEO LTD — Interim / Quarterly Report 2012

Jul 29, 2012

Quarterly Report June 2012

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HIGHLIGHTS

• Successful completion of Joint Venture at Elephant Canyon, Utah USA (initial 51% of project)

• Surface rock samples sent to Laboratory from the Elephant Canyon porphyry project for confirmation of anticipated gold and copper mineralisation.

• Preparation underway for drilling at Elephant Canyon by September 2012.

Figure 1 Current Utah project location.

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CORPORATE

During the quarter, Firestrike Resources Limited (“ The company” or “FIE”) has successfully completed a Joint Venture with Escalante Star LLC ( “Escalante”) to acquire up to 80% of the Elephant Canyon gold copper project, Utah USA. This has been the focus for the company and the successful conclusion to the negotiations is an important step in the growth of Firestrike as a resources company.

OPERATIONAL

Elephant Canyon gold copper project (JV with Escalante Star LLC in which Firestrike Resources Limited can earn up to 80%)

The company has successfully completed a joint venture agreement in which Firestrike Resources Limited can earn up to 80% of the equity in the Elephant Canyon gold copper porphyry project in Utah USA.

• secure an initial 51% of the project by defining 500,000 ounces gold equivalent inferred JORC resource within 4 years;

• Increasing to 65% equity once a 1 million ounce resource is defined;

• Increasing to 80% on completion of a Prefeasibility study provided Firestrike continues to sole fund the project.

In exchange FIE will issue up to 7 million shares in FIE in total assuming all milestones are met. An initial payment of $US100,000 plus 1 million shares has already been made as part to the total transaction to the vendors on signing the JV.

The Company believes this project has significant potential for gold, copper plus other base and precious metals. It is geologically similar to the Rio Tinto mine at Salt Lake City (Bingham Canyon/ Kennecott), and the Tintic mining district. This mine has been in production for over 100 years and is reported to generate over 300,000 tons of copper and 400,000 ounces of gold every year. As of 2010, ore from the mine has yielded more than 19 million tons of copper, 23 million ounces of gold, 190 million ounces of silver, and 850 million pounds of molybdenum. It is one of the largest copper mines in the world[1] .

At the Tintic mining district (which lies closer to the Elephant Canyon Project) Rio Tinto is also seeking to bring the Andover Ventures Inc. Bill Hill copper Project into production, and across the state road from the Elephant Canyon project, CS Mining is seeking to reopen the Copper hill copper mine.

From within the Elephant Canyon Project over 200 rock surface samples have been collected recently and are in the process of being analysed for a suite of elements including precious and base metals. The results are expected to confirm the Company’s initial expectation of significant mineralisation throughout the project area.

To fast track further exploration work on the project, survey teams have already been engaged to complete the permitting required for drilling to commence. It is anticipated that this process should be completed within 60 days and in anticipation of this the Company is finalising contractual negotiations with suitable drilling companies capable of being on site by early September.

The initial programme of approximately 4,000 metres will be completed using reverse circulation drilling. The company’s immediate focus is upon a defined fissure zone which is traceable for over 1.2 kilometres by approximately 400 metres wide. The zone has historical mine workings along its strike length and elevated gold in historical rock chip samples collected from the workings and outcrop provides a strong indication of gold in an epithermal system at or near surface.

1 www.kennecott.com

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About Utah

Utah is understood by the Company to be a “mine friendly” state with no state royalties and minimum statutory obligations imposed upon exploration and mining. The state has significant mining activity from gold and copper through uranium and fossil fuels including coal oil and gas production (see website for state map depicting the mineral resources of Utah).

The Project area itself is close to state highways and within 2 kilometres of the township of Milford which is a major railhead for the Union Pacific Railway. In terms of infrastructure the property has electrical power and gas supply lines passing through the far eastern margin and is less than four hours travel by road from the state’s capital, Salt Lake City,

OTHER PROJECTS

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

(100% Firestrike Resources Limited)

Currently the company is still in the process of completing statutory requirements in preparation for a possible drill programme and is looking now to commencing drilling within the second half of 2012

Angelo Project, Halls Creek E80/2707

(100% Firestrike Resources Limited)

In conjunction with the ongoing work for Grants Creek, the Angelo Project is also progressing towards drilling with the anticipation that a Heritage Survey will be completed in time to allow drilling to start now within the second half of 2012. Work is progressing on completion of the statutory access requirements and provisional aircore rigs are currently being sought to meet with the company’s new timetable.

Elaine Project, Ballarat, E5133

(Firestrike Resources with an Option to acquire 100%)

Whilst the company is focused on completing the Joint Venture on the Elephant Canyon project in USA, recent exploration work on the Elaine project has continued to refine the drill target within the southern area of the tenement. In fill soil sampling has been completed and rock chip sampling along the road cutting where the vein system is exposed has refined targets within this southern area of the tenement.

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 the Company’s current Managing Director. Mr Holden is a Chartered Professional Member of The Australian Institute of Mining and Metallurgy and a Member of the Australian institute of Geoscientists , 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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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 Firestrike Resources Limited

ABN 84 149 796 332

Quarter ended (“current quarter”) 30 June 2012

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 (12 months) $A’000
	- (132) - - (130) - 42 - - -	- (332) - - (435) - 131 - - -
	(220)	(636)
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)	- (101) - - - - - -	- (101) - - - - - - -
	(101)	(101)
	(321)	(737)

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1.13 Total operating and investing cash flows (brought forward)	(321)	(737)
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)
	-	(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	(321) 2,630 -	(873) 3,182 -
	2,309	2,309

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 92 -
1.25 on-cas 2.1 2.2	Explanation necessaryfor an understandingof the transactions
	Consulting fees and salaries
	Not Applicable
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest
	Not Applicable

Non-cash financing and investing activities

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 used $A’000
	-	-
	-	-

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Mining exploration entity quarterly report

Estimated cash outflows for next quarter

stimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	400
	-
	-
	100
Total	500

Reconciliation of cash

econciliation 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)	128	68
	2,181	2,562
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	2,309	2,630

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 ofquarter	Interest at end of quarter

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Mining exploration entity quarterly report

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	32,000,000	22,400,000
	1,000,000	1,000,000
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)

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Mining exploration entity quarterly report

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: 30/07/2012 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.