STRIKE RESOURCES LIMITED — Capital/Financing Update 2008

Jun 1, 2008

MARKET ANNOUNCEMENT

STRIKE MOVES TO 68.15% INTEREST IN PERUVIAN IRON ORE PROJECTS

Strike is pleased to confirm it has exercised its Options to purchase a 38.5% interest in the issued capital of Apurimac Ferrum S.A. (AF) for a total cash sum of US$34.5m. AF is the 100% owner of the Cuzco and Apurimac iron ore projects in Peru (Projects).

From a pre-existing 12.5% direct interest and a 17.15% indirect interest in AF, Strike has now taken its total economic interest in AF to 68.15%.

In relation to this matter, it has come to Strike's attention from D&C Group S.A.C. (a shareholder of AF) (D&C Group) that it is taking steps to suspend, by means of a 'judicial precautionary measure' the effects of the AF Shareholders Agreement as to Strike´s right to exercise the Options.

Based on clear and unequivocal advice from highly respected Peruvian counsel, Strike believes that there is no legal basis for D&C Group's claim.

Strike regards this action by D&C Group as a commercially opportunistic claim, designed simply to secure a windfall gain, arising as a consequence of the increase in value of AF as a result of Strike's good management of AF's Peruvian iron ore projects.

Notwithstanding the D&C Group claim, Strike continues to advance the Projects for the benefit of all of AF shareholders.

FURTHER DETAILS

1. Option Exercise / Ownership Structure

As previously announced, Strike holds 12.5% of the issued share capital of AF.

Pursuant to a shareholders' agreement dated 10 November 10 2006 between Strike, Minera Los Andes y el Pacífico S.A. (MAPSA), D&C Group and AF (AF Shareholders Agreement), Strike was granted options by MAPSA and D&C Group over AF shares equivalent to 38.5% of AF's issued capital, exercisable by the payment to MAPSA and D&C Group of US$17.25 million each (US$34.5 million in total) (Options).

Exercising the Options gives Strike a 51% direct interest in AF.

In addition, Strike holds a 70% shareholding in Iron Associates Corporation (IAC) which it acquired from MAPSA and its shareholders in February 2007 (IAC Transaction). IAC's sole asset is a 24.5% shareholding in AF. Strike's indirect holding in AF, through IAC, equates to a 17.15% interest in AF.

Pursuant to the exercise of the Options, Strike's total economic interest in AF is now 68.15%.

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STRIKE RESOURCES LIMITED A.B.N. 94 088 488 724

2. Legal Dispute

Strike understands that D&C Group is taking steps to suspend, by means of a 'judicial precautionary measure' the effects of the AF Shareholders Agreement, as to Strike's right to exercise the Options. Strike notes that it has not received any formal notification of such measure.

Strike understands that, when granted, a judicial precautionary measure is an interim step available under Peruvian law which remains in force until the substantive matter of a complaint is dealt with by an arbitration panel or by a court of law. Any such order is only effective when formally notified to the affected party and before such party has had the opportunity to be heard by the granting court.

Strike has been informed by D&C Group that the substantive matter of its claim relates to Strike's acquisition in February 2007 of a 70% interest in IAC pursuant to the IAC Transaction. D&C Group's allegation appears to be that such acquisition was contrary to the terms of the AF Shareholders Agreement.

Strike has received clear and unequivocal advice from highly respected Peruvian counsel, regarded as an expert in this field, confirming that D&C Group's claims with respect to the IAC Transaction have no legal basis.

Strike strongly rejects and dismisses all assertions and claims made by D&C Group regarding this matter.

Furthermore, Strike questions the motives of the D&C Group in commencing proceedings over one year after the IAC Transaction was completed, particularly considering that the D&C Group first became aware of such transaction at the time it was being negotiated.

Strike regards this action by D&C Group as a commercially opportunistic claim, designed simply to secure a windfall gain, arising as a consequence of the increase in value of AF as a result of Strike's good management of AF's Projects.

Based upon the clear legal advice received, Strike categorically rejects D&C Group's claims and will vigorously contest all claims made by D&C Group as this matter proceeds, and has not ruled out the possibility of claiming damages against D&C Group.

3. Operational Update

Strike continues to advance the Projects for benefit of all AF shareholders. Strike will also make every effort to continue working together and in good faith with all its coshareholders in AF so that any existing differences do not affect the normal course of AF's business.

In particular, Strike is pleased to advise that the pre-feasibility study for the development of a 20 million tonne per annum iron ore mine in the Apurimac Project area is nearing completion.

In addition Strike continues to advance the 2 million tonne per annum Cuzco Lump Project from the Cuzco Project area.

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