STRIKE RESOURCES LIMITED — Capital/Financing Update 2006

Oct 8, 2006

Monday, 9 October 2006

MARKET ANNOUNCEMENT

Peru Iron-Ore Projects - Declaration of Due Diligence

The Company refers to its recent announcements regarding its investment in the Apurimac and Cuzco Iron-Ore Projects (the Projects) in Peru through the acquisition of a 51% or greater shareholding in Apurimac Ferrum S.A. (Apurimac Ferrum), a Peruvian company that will hold both Projects.

The Company is pleased to report that it has now completed and is satisfied with its due diligence investigations into Apurimac Ferrum and the Projects.

The Company is also pleased to confirm that title to the project tenements previously held by Minera los Andes y el Pacifico S.A. (MAPSA) (a shareholder in Apurimac Ferrum) has been transferred to Apurimac Ferrum. The Company expects to make its initial equity investment into Apurimac Ferrum upon receipt of confirmation that the transfer of such titles has been officially recorded in the Cuzco Public Registry in the name of Apurimac Ferrum. Such recording of the transfer of title is expected to be completed within 2 to 6 weeks.

"This investment is very significant for Strike and has the potential to transform the Company into a major iron-ore producer. The underlying resources defining these projects are world class and comparable with the best in the Pilbara, Western Australia, in terms of grade and potential tonnages. Peru is a country with a well-established mining culture and offers favourable investment conditions. Major multinational mining companies have long been active in Peru producing a range of commodities, including iron ore, for world markets." Dr John Stephenson, Chairman of Strike Resources.

The funds invested into Apurimac Ferrum will be immediately applied towards an exploration and evaluation programme involving:

• additional drilling to determine a JORC compliant resource estimates within the Opaban I and the other 19 tenements in the Apurimac Project areas:
• additional drilling to gain further confidence and improve the quality of the JORC resource estimate at the Opaban III tenement in the Apurimac Project area;
• a detailed gravity survey over existing outcrops and over large known magnetic anomalies in the Cuzco Project areas followed by drilling to determine a JORC compliant resource estimate for this project area.

For further information: John Stephenson Chairman

E | jstephenson@strikeresources.com.au

Shanker Madan Managing Director T | (08) 9214 9700 E | smadan@strikeresources.com.au

www.strikeresources.com.au

STRIKE RESOURCES LIMITED

A.B.N. 94 088 488 724