STRIKE RESOURCES LIMITED — Capital/Financing Update 2007

Apr 10, 2007

Wednesday, 11 April 2007

MARKET ANNOUNCEMENT

Alara Uranium Limited IPO and Priority Offer to Eligible Strike Shareholders

The Company is pleased to advise that Alara Uranium Limited (Proposed ASX Code: LAR) has lodged its IPO Prospectus (dated 3 April 2007).

As previously announced on 16 February 2007, Alara is acquiring Strike's and Orion Equities Limited's uranium tenement interests (in Peru, the Northern Territory and Western Australia) and is undertaking an Initial Public Offering (IPO) of $6 million with the right to accept oversubscriptions of a further $4 million, at 25 cents per share. Completion of the minimum subscription of $4 million is a condition of the sale agreements entered into between Alara and each of Strike and Orion Equities.

Shareholders may view and download a copy of the Alara Prospectus from its website: www.alarauranium.com

Under the Alara IPO, a priority pool of up to $4 million (plus an additional $1.5 million if oversubscriptions of at least this amount is accepted) (Strike Priority Pool) has been set aside for Eligible Strike Shareholders1. This priority offer will operate as follows:

• Subject to the scale-back of applications described in (c), there is no limit on the $(a)$ number of Alara shares Eligible Strike Shareholder may lodge an application for;
• Each Eligible Strike Shareholder is entitled to apply for and be issued a minimum of $(b)$ $2,000 worth of Alara shares (a total of 8,000 Alara shares);
• If applications received from Eligible Strike Shareholders exceed the Strike Priority $(c)$ Pool, applications received in excess of $2,000 will be scaled back on a pro-rata basis (relative to the number of Strike shares held as at 5.00 pm WDT on 6 March 2007);
• Any excess shares applied for by Eligible Strike Shareholders, over and above their $(d)$ scaled back entitlement will be considered with all other applications received under the IPO.

Eligible Strike Shareholders who wish to subscribe for Alara shares under this priority offer must make an application on the personalised Green Priority Application Form which will sent out to these Strike shareholders along with a copy of the Alara Prospectus later this week.

Further information:

Victor Ho Company Secretary T | (08) 9214 9700 E | vho@strikeresources.com.au

$\mathbf{1}$ Strike shareholders holding at least 5,000 Strike shares as at 5.00 pm WDT on 6 March 2007.

www.strikeresources.com.au

STRIKE RESOURCES LIMITED

A.B.N. 94 088 488 724