STRIKE RESOURCES LIMITED — Capital/Financing Update 2008

Sep 14, 2008

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Monday, 15 September 2008

MARKET ANNOUNCEMENT

PROJECT DEVELOPMENT AND COMPANY UPDATE

SUMMARY

• Completion of a strategic review for the development of the Company’s 5 near and long term mining projects;

• Positive cash flow from potential mining operations planned to commence in mid July 2009;

• Appointment of key high calibre managers to oversee the development of these projects.

The completion of a strategic review and appointment of key managers initiates the implementation of the first phase of the business development plan of the Company to fund a significant share of the equity component for the development of its flagship Apurimac Iron Ore Project from internal cash flows.

In developing its 3 near term projects (Berau Coal, Paulsens East Iron Ore and Cuzco Lump Iron Ore), the Company’s objective is to generate considerable cash flow from mid 2009 onwards to minimise new equity raisings during the proposed construction window of 2010 to mid 2012 for the Apurimac Iron Ore Project.

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www.strikeresources.com.au

STRIKE RESOURCES LIMITED

A.B.N. 94 088 488 724

ASX Code: SRK

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

E | info@strikeresources.com.au

20080915 SRK ASX Project Development and Company Update

STRATEGIC REVIEW

During the past 4 months, significant developments have occurred in the evolution of the Company from a grassroots exploration to a project development company planned to enter into production from mid 2009.

On a staged basis, the Company has the objective of bringing into production up to 5 projects in Peru, Indonesia and Australia, each with an expectation of generating significant revenues for the Company:

1. Berau Thermal Coal (Indonesia)

2. Cuzco Lump Iron Ore (Peru)

3. Paulsens East Iron Ore (Western Australia)

4. Apurimac Iron Ore (Peru)

5. Cuzco Stage 2 Iron Ore (Peru)

The Apurimac Project alone has the potential to generate up to US$1.4 billion in free cash flow in its first full year of production based on a detailed pre-feasibility study as announced by the Company on 22 July 2008.

The bringing into production of potentially up to 5 projects requires a significant commitment of resources and effort for a company the size of Strike.

A strategic review recently completed by the Company was undertaken to determine the means by which the commercialisation of these projects might occur in the shortest time possible to build Strike into a self sustaining and growing world class mining company, taking advantage of current commodity (iron ore and thermal coal) prices.

This exercise included the identification of resources (both financial and human) and the creation of key project milestones.

The Company recognises that it has flagship assets in its Apurimac and Cuzco Stage 2 Projects which have the potential to become world class iron ore mines. The development of projects of such magnitude require considerable capital and the Company believes that if near term cash flow generating projects can be brought into production, this can have significant benefits for the funding of its Apurimac and Cuzco Stage 2 Projects by reducing the need to rely on the injection of fresh capital which dilutes the interests of existing shareholders.

One key challenge in bringing near term projects into production is to ensure that management is not diverted from the development of the Company’s longer term flagship projects.

Part of the strategic review was therefore devoted to developing and identifying an operational structure and process by which the Company’s near term projects could be brought into production without delaying the development of its Apurimac and Cuzco Stage 2 Projects.

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20080915 SRK ASX Project Development and Company Update

APPOINTMENT OF KEY MANAGERS

The Company is pleased to announce the appointment of various key high calibre managers in Peru and Australian to develop its various near term Berau Coal, Paulsens East Iron Ore and Cuzco Lump Iron Ore Projects and longer term Apurimac and Cuzco Stage 2 Projects, as follows:

(1) Maxwell Hobson

Max Hobson has been appointed Project Director of the Apurimac and Cuzco Projects with the responsibility for bringing these projects into production. Max was previously a Project Manager of Sinclair Knight Merz (SKM ) leading the team conducting the prefeasibility study ( PFS ) for the Apurimac Project and the concept study for the Cuzco Lump Project. Max is a senior engineer with over 35 years of project management experience in managing feasibility studies and Engineering, Procurement, Construction and Management ( EPCM ) projects. As Project Manager for the Apurimac PFS and Cuzco concept study, Max developed a firsthand and deep insight into and a detailed knowledge of the Apurimac and Cuzco Projects. His acceptance of this role brings to the Company a high calibre project manager and engineer from an elite world leader in project management and also someone who is personally acquainted with all facets of Strike’s Peru projects. Max will be based in Peru.

(2) Michael Lowry

Mike Lowry has been appointed General Manager, Projects, with responsibility for developing the Berau Coal and the Paulsens East Iron Ore Projects. Mike was previously a Chief Executive Officer of Griffin Energy and Griffin Coal in Western Australia and worked at the Griffin group for 18 years. Prior to that, he was a Manager at Robe River’s iron ore operations at Pannawonica and Cape Lambert. Mike’s significant industry experience will be important in the development of the Company’s coal and Western Australian iron ore projects. Mike will be based in Australia.

(3) Arran Gracie

Arran Gracie has been appointed Project Manager with responsibility for developing the Cuzco Lump Iron Ore Project. Arran who previously acted for the Company as General Manager, Corporate Affairs, has now altered his role to Project Manager to capitalise on his 14 years experience as a mining engineer with Kimberley Diamond Company, BHP (Yandi Iron Ore Mine) and Anaconda Nickel. Arran will be based in Peru.

(4) Soumitra Chakraborty

Soumitra Chakraborty has been appointed Project Manager in Peru. He is an engineer with 28 years operations and management experience including with Orica in Australia, New Zealand and Indonesia. Soumitra will have a hands on operational role in the development of the Apurimac Project. Soumitra will be based in Peru.

(5) Juan Carlos Toro

Juan Carlos Toro has been appointed Exploration Manager leading the exploration team in Peru. He is a geologist with over 30 years exploration, mining and project management experience in South America, Africa, Australia and Papua New Guinea. Juan Carlos will be based in Peru.

With the appointment of these key managers, an important step identified in the strategic review has now been completed. The development and bringing into production of up to 5 projects contemplated by the Company will obviously require the addition of further key personnel to implement these objectives and the Company believes that it will be able to continue to attract high calibre personnel based upon its high quality projects and development plans.

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20080915 SRK ASX Project Development and Company Update

UPDATE ON OTHER CORPORATE MATTERS

(1) Entry into S&P/ASX 300 Index

The Company is please to advise that it has been included in the S&P/ASX 300 Index (effective from close of trade on 20 September 2008), as announced by Standard & Poor’s Index Services on 5 September 2008. The Company believes this will increase the profile of Strike in the investment community and lead to greater liquidity in trading in Strike shares on ASX.

(2) Status of “D&C” Dispute

The Company has been advised by its Peruvian lawyers that the Lima Chamber of Commerce has compiled a list of proposed Arbitration Panel members, which includes a foreign citizen as Chairman. The Panel, once formally installed, will set a timetable for the future conduct of the Arbitration proceedings between Strike and “D&C”.

The Company remains confident (based on a number of clear legal opinions from leading Peruvian lawyers) that D&C’s claims and allegations have no merit.

(3) Status of Gallagher Tranche 2 Investment

As announced on 28 August 2008, Gallagher Holdings Limited is scheduled to declare the results of its due diligence for the second A$53.4 million tranche of its agreement to subscribe for 19,412,471 shares in Strike at A$2.75 per share, on or before 22 September 2008.

The Company notes that its strategic review and project development plans outlined above is not subject to completion of Gallagher’s second tranche placement.

Strike currently has cash and liquid assets of ~A$70 million.

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

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