STRIKE RESOURCES LIMITED — Capital/Financing Update 2008

Aug 21, 2008

Friday, 22 August 2008

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MARKET ANNOUNCEMENT

Cuzco Lump Project Update

Strike Resources is pleased to announce the results of preliminary metallurgical test work on lump ore samples undertaken in advancement of the Cuzco Lump Project. Strike plans to develop a mining operation to produce 1 to 2 million tonnes of high grade lump ore for export to the Pacific and Asian market by the end of 2009.

Test work on drill core and a 400 kilogram sample from a surface pit dug specially for the purpose shows:

• Superior lump average grade at 66.7% Fe, low in impurities including silica, alumina, phosphorous and sulphur.

• Lump grades extremely consistent through various size ranges.

• Overall lump quality is significantly superior in grades than iron ores from Australia and comparable or superior in physical properties to Australian iron ores.

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Photos of pit location showing outcropping ore in background

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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 89322 1515 E

ASX Code: SRK

E | info@strikeresources.com.au

20080822 SRK ASX Cuzco Project Update

Two lump samples were collected from an area of the Cuzco deposit that has significant outcropping ore over an area of approximately 500 metres x 600 metres, with an estimated high grade resource potential of between 1 to 1.5 million tonnes per vertical metre.

Previous results reported from a drill hole CQ 012 in this area showed an intersection of high grade iron ore from 0 to 32 metres with an average grade of 62.9% Fe.

The most recent drilling has been an intensive campaign on a 200 metres x 200 metres grid in an area of 1000 metres x 1000 metres in and around this area.

Sample Pit and CQ 041

Metallurgical test work on samples comprising standard ISO Lump Ore Metallurgical Test Work on a drill core and a large 400 kilogram sample from a pit dug specifically for the purpose returned a very high grade product with grades as follows:

Fe:	66.72%
Al2O3:	0.83%
SiO2:	1.53%
P:	0.027%
S:	0.051%

Lump yield varied from 38.3% in the drill hole to 69.5% in the pit sample. It is more likely to be somewhere between the two.

F i

Figure 1 - Portion of Magnetic Anomaly Cuzco Project Area with Iron Outcrop and Drill holes

The assay results in Table 1 show that:

• Lump grades are very high

• Lump grades are extremely consistent through size range

• Fines grades are lower in finer size fractions – suggesting soft gangue minerals which report preferentially in ultra fines

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20080822 SRK ASX Cuzco Project Update

Table 1 - Sample processing – assay results for CQ-041 pit sample

LUMP SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	LUMP SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	LUMP SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	LUMP SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	LUMP SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	LUMP SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	LUMP SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	LUMP SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	LUMP SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	LUMP SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	LUMP SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	LUMP SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	LUMP SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	LUMP SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	LUMP SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	LUMP SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	LUMP SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample
SCREEN (mm)	Wt. (%)	Fe (%)	SiO2 (%)	Al2O3 (%)	TiO2 (%)	MnO (%)	CaO (%)	P (%)	S (%)	MgO (%)	K2O (%)	Na2O (%)	Zn (%)	FeO (%)	LOI-371 (%)	LOI-1000 (%)
+31.5 -31.5+25.0 -25.0+20.0 -20.0+15.0 -15.0+10.0 -10.0+8.0 -8.0+6.3 -6.3	0.0 20.8 18.1 21.3 21.2 7.6 9.1 2.0				0.044 0.044 0.047 0.044 0.046 0.047 0.048	0.04 0.04 0.04 0.04 0.04 0.04 0.04	0.09 0.09 0.09 0.09 0.09 0.09 0.08			0.21 0.24 0.22 0.21 0.22 0.22 0.22	0.014 0.016 0.016 0.015 0.015 0.016 0.014	0.010 0.010 0.010 0.010 0.005 0.005 0.010	0.001 0.001 0.001 0.001 0.001 0.001 0.001	1.88 2.39 2.15 2.36 2.42 2.21 1.77	1.32 1.34 1.32 1.36 1.45 1.45 1.83	1.57 1.57 1.54 1.56 1.69 1.72 2.20
		66.94 66.69 66.97 66.79 66.76 66.63 65.78	1.48 1.60 1.50 1.53 1.55 1.59 1.90	0.76 0.83 0.82 0.83 0.84 0.87 1.05				0.025 0.027 0.025 0.027 0.029 0.029 0.035	0.052 0.047 0.048 0.049 0.051 0.052 0.059
Calc'd HEAD	100.0	66.80	1.54	0.82	0.045	0.04	0.09	0.027	0.050	0.22	0.015	0.009	0.001	2.20	1.36	1.60
ASSAY HEAD		66.72	1.53	0.83	0.044	0.04	0.09	0.027	0.051	0.21	0.015	0.010	0.001	2.20	1.40	1.63

		FINES SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	FINES SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	FINES SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	FINES SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	FINES SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	FINES SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	FINES SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	FINES SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	FINES SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	FINES SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	FINES SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	FINES SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	FINES SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	FINES SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample	FINES SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample
SCREEN (mm)	Wt. (%)	Fe (%)	SiO2 (%)	Al2O3 (%)	TiO2 (%)	MnO (%)	CaO (%)	P (%)	S (%)	MgO (%)	K2O (%)	Na2O (%)	Zn (%)	FeO (%)	LOI-371 (%)	LOI-1000 (%)
+6.3 -6.3+4.0 -4.0+2.0 -2.0+1.0 -1.0+0.50 -0.50+0.25 -0.25+0.150 -0.15+0.063 -0.063	0.0 26.9 29.6 14.5 8.3 6.0 4.2 6.7 3.8	66.52 66.30 65.85 65.19 64.72 64.23 63.70	1.65 1.79 1.96 2.23 2.56 3.00 3.43	0.92 1.02 1.14 1.32 1.46 1.58 1.75	0.046 0.048 0.049 0.053 0.055 0.055 0.059	0.03 0.03 0.03 0.03 0.03 0.04 0.04	0.08 0.08 0.07 0.07 0.06 0.06 0.05	0.034 0.035 0.038 0.042 0.043 0.045 0.046	0.055 0.056 0.063 0.066 0.067 0.066 0.072	0.20 0.21 0.20 0.19 0.20 0.23 0.30 0.40	0.014 0.014 0.014 0.013 0.013 0.013 0.013 0.014	0.010 0.005 0.010 0.005 0.005 0.005 0.005 0.005	0.001 0.001 0.001 0.001 0.001 0.007 0.009 0.013	2.10 2.03 1.92 1.91 1.64 1.45 1.38 1.18	1.61 1.70 1.87 2.01 2.06 2.07 2.20 3.01	1.89 2.00 2.25 2.42 2.56 2.63 2.85 3.96
		61.43	4.69	2.44	0.071	0.04	0.05	0.056	0.092
Calc'd HEAD	100.0	65.66	2.13	1.19	0.050	0.03	0.07	0.038	0.061	0.22	0.014	0.007	0.002	1.90	1.85	2.23
ASSAY HEAD		65.75	2.04	1.14	0.050	0.03	0.07	0.038	0.060	0.22	0.014	0.005	0.001	1.93	1.76	2.12

Pit samples were tested for standard ISO lump ore metallurgical characteristics:

• Strength : Tumble Index & Abrasion Index

• Thermal resistance : Decrepitation Index

• Reduction resistance : Reduction Degradation Index

• Reducibility : Reduction Index

Results are compared in Table 2 below with typical Pilbara Marra Mamba (Pilbara iron ores of Western Australia) lump quality shown for comparison. Overall lump quality is superior to Pilbara (West Australian) Marra Mamba Ores.

Table 2 - ISO Metallurgical Test Work Results

Metallurgical Test Results	Pit Sample CQ 041	Typical Marra Mamba (Western Australia)
TumbleIndex	83.8	>80
Abrasion Index	13	<12
Decrepitation Index	0.3	<12
Reduction/Degradation Index	18.3	<30
Reduction Index	40.4	>55

For further information: Shanker Madan Managing Director T | (08) 9214 9700 E | smadan@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.

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