STRIKE RESOURCES LIMITED — Capital/Financing Update 2007

Aug 12, 2007

Monday, 13 August 2007

==> picture [229 x 53] intentionally omitted <==

MARKET ANNOUNCEMENT

Commencement of Pre-Feasibility Studies

The Company refers to its market announcement dated 19 July 2007 where it provided an updated JORC Inferred Resource of 172 million tonnes grading 62.28% Fe from its Apurimac Iron Ore Project in Peru.

Based upon that resource announcement and upon internal modeling conducted by the Company with respect to the remaining undrilled iron deposits within the Apurimac Project area, the Company has reached a confidence level such that it considers it appropriate to commence pre-feasibility studies to support a 20 million tonne per annum mining operation from its Apurimac Project area.

The Company is therefore pleased to announce that it has commissioned the following pre-feasibility studies in relation to the development of mining operations and the transportation of iron ore by slurry pipeline to a selected port site to be developed on the Pacific coast:

STUDY	STUDY	STUDY GROUPS	STUDIES TO INCLUDE	STUDIES TO INCLUDE
(1)	Geology and Resource	Snowden Group	•	Geology – Local and regional geology and quality
	Study			control procedures
		CSIRO	•	Geotechnical considerations
		(Commonwealth Scientific andIndustrial Research Organisation)	••	Quantitative mineralogyDevelopment of resource model
(2)	Mining Study	Snowden Group	•	Conceptual mine design
			•	Production schedules
(3)	Mine Feasibility Study	Sinclair Knight Merz	•	Mineralogy testwork
			•	Metallurgical testwork
			•	Process flowsheet development
			•	Process plant and major equipment
			•	Mine site infrastructure
			•	Power infrastructure
			•	Water infrastructure
			•	Environmental impacts
			•	Social/Community programme
			•	Models for project development
			•	Estimated preliminary operational and capital
				expenditure requirements
			•	Preliminary risk assessment
			•	Implementation strategy
(4)	Transportation Study	Pipeline Systems	•	Pipeline corridor/route options
		Incorporated (PSI) (via its Peruvian	•	Particle size determination
		joint venture PSI-JRI Peru SAC)	•	Hydraulic design
			•	Overall systems design
			•	Infrastructure requirements
			•	Schedule for phases of work
			•	Estimated preliminary operational and capital
				expenditure requirements
(5)	Port Study	Sinclair Knight Merz	•	Evaluation of alternative port locations
		/ Cosapi SA	•	Footprints, layouts and sizing
			•	Methods for water recovery at port site
			•	Identifyregulatoryissues

==> picture [52 x 52] intentionally omitted <==

www.strikeresources.com.au

STRIKE RESOURCES LIMITED

A.B.N. 94 088 488 724

Level 14, 221 St Georges Terrace, Perth WA 6000 T | (08) 9214 9700 F | (08) 9322 1515

ASX Code: SRK

E | info@strikeresources.com.au

20070813 SRK ASX Commencement of Pre-Feasibility Studies.doc

The Board expects these pre-feasibility studies to be completed in the January to March 2008 quarter.

The study groups will be supervised by Director, Malcolm Richmond, who has extensive experience in the development of large scale iron ore projects with the Rio Tinto Group.

In addition, the Company has also commenced studies in relation to sales and marketing of its proposed high grade iron product to the Chinese and Japanese markets. To date this work has been conducted principally inhouse with preliminary discussions having been instituted with significant purchasers in both markets. The response has been extremely positive with the view having been expressed that such purchasers are seeking suppliers able to deliver large quantities of high quality iron ore fines and/or concentrate over the long term.

These discussions are ongoing and will expand to include other consumers of iron ore as the pre-feasibility studies continue. As the chemical and physical characteristics of Strike's end product becomes better defined, Strike will work with these purchasers to formulate a product mix best suited to their individual blast furnace operations.

In parallel with these activities, the Company continues to promote an active community relations programme to help advance both the exploration phase and the eventual commencement of mining operations.

For further information:

Shanker Madan Victor Ho Managing Director Company Secretary T | (08) 9214 9700 T | (08) 9214 9700 E | smadan@strikeresources.com.au E | vho@strikeresources.com.au

The information in this market announcement that relates to exploration results has been compiled by Mr Hem Shanker Madan who is a Member of The Australian Institute of Mining and Metallurgy. Mr Madan is the Managing Director of the Company. Mr Madan has in excess of 5 years experience which is relevant to the style of mineralisation under consideration and qualifies as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code).” Mr Madan consents to the inclusion in this market announcement of the matters based on his information in the form and context in which it appears.

• 2 -