STRIKE RESOURCES LIMITED — Capital/Financing Update 2008

Oct 26, 2008

==> picture [316 x 52] intentionally omitted <==

==> picture [316 x 52] intentionally omitted <==

Monday, 27 October 2008

MARKET ANNOUNCEMENT

COMPANY UPDATE

As shareholders will be aware, turmoil and volatility in world financial markets is causing significant negative effects on the market value of most resource companies. Strike has not been immune from these events; the Company’s current market capitalisation of $48 Million (being a closing share price on 24 October of $0.37 per share with 130,034,268 shares on issue) has fallen well below the Company’s cash position of approximately $72 million.

Strike wishes to reassure shareholders that it remains in a sound financial position, with excellent projects and experienced management. Over the last year, the Company has made considerable progress towards its goal of developing a number of income producing mining projects, including:

• (1) Completing 2 capital raisings totalling $82m to institutional investors.

• (2) Completing a Pre Feasibility Study for the Apurimac Iron Ore Project in Peru.

• (3) Completing 14,733 metres of drilling (151 drill holes) in Peru.

• (4) Securing additional exploration concessions in the Apurimac district in Peru.

• (5) Increasing its controlling, economic interest in Apurimac Ferrum S.A., (the Peruvian company that holds the Apurimac and Cuzco Projects) to 68.15%.

• (6) Completing the acquisition of 100% of the Berau Coal Project in Indonesia and the Paulsens East Iron Ore Project in the Pilbara, Western Australia.

• (7) Establishing local offices in Jakarta and Berau (Indonesia) to progress development of the Berau Coal Project.

• (8) Recruiting experienced industry professionals to lead dedicated teams for the Peru iron ore and Berau coal projects.

In light of the extremely tight credit and capital markets, the Company intends to progress the development of its various mining projects in a manner consistent with achieving the greatest value from its existing cash reserves.

In the short term, the principal focus of the Company is to bring its Berau Coal Project into production, which is expected to generate significant recurring cash flow for the Company.

With regard to its operations in Peru, the Company has determined to focus its efforts on advancing the short term cash flow opportunities afforded by the Cuzco Lump Project and to reduce its other expenditure in Peru until the dispute with its local partner is resolved and/or credit and capital markets show clear signs of recovery.

In summary, whilst the Company is disappointed with the recent decline in its share price, in particular to a value below its cash position per share, the fundamentals of the Company remain sound. The Company holds significant cash reserves and an excellent mix of projects. These projects hold the prospect of generating significant cash flow for the Company in the near term, which may be used to support the advancement of its Peruvian iron ore assets, once market conditions improve.

For further information:

Dr John Stephenson Shanker Madan Chairman Managing Director T | +61 8 9214 9700 T | +61 8 9214 9700 E | jstephenson@strikeresources.com.au E | smadan@strikeresources.com.au

==> picture [51 x 51] intentionally omitted <==

www.strikeresources.com.au

STRIKE RESOURCES LIMITED

A.B.N. 94 088 488 724

Level 14, The Forrest Centre, 221 St Georges Terrace, Perth, Western Australia 6000 T | +61 8 9214 9700 F | +61 8 9322 1515 E

ASX Code: SRK

E | info@strikeresources.com.au