STRIKE RESOURCES LIMITED — Capital/Financing Update 2005

Sep 27, 2005

Wednesday, 28 September 2005

MARKET ANNOUNCEMENT

COMPANY UPDATE

1. Proposed Capital Raising

The Company is investigating various options with respect to raising funds for general working capital purposes and towards the fulfilment of a condition of the Hume Mining agreement (as announced on 20 September 2005), namely to raise a minimum of $2 million (on or before 16 December 2005).

Such capital raising may encompass one or more of the following:

• The utilisation of ASX Listing Rule 7.1, which allows the Company to undertake a $(a)$ placement of up to 15% (15,383,864 shares) of its total issued share capital in a 12 month period without shareholder approval;
• A share purchase plan within the parameters of the same permitted under the ASX $(b)$ Listing Rules and ASIC class order relief (e.g. in respect of not more than 30% of Fast Scout's total issued capital; at issue price being not more than 20% discount to the average closing market price on ASX; limited to $5,000 per eligible shareholder at the relevant record date) (without shareholder approval);
• $(c)$ An issue pursuant to a prospectus and subject to shareholder approval.

In relation to (a) and (b), the Company envisages that the capital raising will be priced at approximately 10 cents per share, based on the Fast Scout share price history to the date of the Company's request for a trading halt on 27 September 2005. It is anticipated that a capital raising pursuant to (a) and (b) will be conditional upon completion of satisfactory due diligence of the Hume Mining agreement.

$2.$ Request for Trading Halt

Before commencement of trading on 27 September 2005, the Company requested a trading halt in its shares pending the release of a market announcement in relation to the Hume Mining agreement.

Under the ASX Listing Rules, a trading halt is permitted only for a maximum period of 48 hours. The Company is in the process of finalising such announcement. If the announcement is not available for release to the market prior to the expiry of this 48 hour period, the Company will request a suspension of trading in its shares pending the release of such announcement.

www.fastscout.com

FAST SCOUT LIMITED

A.B.N. 94 088 488 724

3. Other Resource Projects

Further to the proposed change in the future direction of the Company to the resources sector pursuant to completion of the Hume Mining agreement and the Company's announcement on 20 September 2005, the Company is investigating other opportunities in this industry, particularly in relation to uranium and other prospects in the energy sector. This may include pegging of tenements, entering into joint ventures, taking options over and acquiring tenements, projects and joint venture interests. At the date of this announcement, the Company has not concluded any agreements with respect to the acquisition of tenement interests in this regard.

4. Financial Position

The Company refers to its previous recent announcements and confirms that there has been no material change in its disclosed financial position.

Further information:

Farooq Khan Chairman

Phone: (08) 9214 9700 Email: fkhan@fastscout.com