STRIKE RESOURCES LIMITED — Capital/Financing Update 2008

Apr 29, 2008

Wednesday, 30 April 2008

MARKET ANNOUNCEMENT

Cuzco Drilling Update

The Company is pleased to announce further progress made in advancement of its Cuzco Iron Ore Project:

• Drilling of 49 DDH holes and detailed mapping of high-grade iron ore outcrops in an area covering approximately 30% of the magnetic anomaly that defines the Cuzco Project has been completed to date in 2008.
• Drilling, geological logging of drill cores and current assay data available to date indicate that a resource target of between 250 to 300 million tonnes is achievable within the area of current drilling alone (which comprises 30% of the magnetic anomaly).1
• Product grades of 65.2% Fe to 70.2% Fe at an average of 67.9% Fe with average weight recovery of 73.35% have been confirmed through Davis Tube test work on representative diamond core samples. These results confirm very high weight recoveries compared to most magnetite projects around the world and product grades which are comparable to Brazilian iron ores.
• The most recent drilling has been an intensive campaign in a 1,000 metres x 1,000 metres area on a 200 metres x 200 metres grid around a previous thick intersection of 96 metres of high grade mineralisation at 58.26% Fe in hole CQ-012.
• Drilling to date has been highly encouraging with high-grade (+60% Fe) mineralisation at shallow depths in areas of outcropping mineralisation followed by lower grade mineralisation between 50 to 60% Fe at depth. Final assay results for all drilling are yet to be received, but preliminary assays and geological logging of drill hole cores indicate significant potential for delineation of a large resource in the Cuzco Project area.
• Drilling has encountered significant cumulative thickness of iron mineralisation of up to 110 metres. This mineralisation typically occurs as magnetite "mantos" (bedding parallel lenses). Although analytical results are still pending on most drill holes, thick lenses of magnetite have been logged in various diamond drill cores.
• Significant project upside and extension of resource target is possible as drilling has only been conducted over 30% of the magnetic anomaly that defines the Cuzco Project area.

It is noted that the target mineralisation referred to in this paragraph is conceptual in nature as there has been insufficient exploration to define a JORC compliant Mineral Resource and it remains to be ascertained if exploration will result in the determination of a Mineral Resource

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

1

Cuzco Drilling

The Company has previously outlined the objective of delineating a resource of 20 to 30 million tonnes of high grade near surface hematite mineralisation to support the Cuzco Lump Iron Ore Project (Stage 1), as a pre-cursor to the Company's main objective of developing a 40 million tonne per annum combined operation from the Apurimac and Cuzco Projects (Stages 2 and 3 respectively).

For the Stage 1 Cuzco Project, the Company is targeting sales of high grade and high value lump iron ore utilising low cost near surface mining.

Detail mapping in 2008 has outlined large areas of high-grade iron ore outcrop which provided the preliminary focus for the current drilling campaign.

A total of 4,913 metres of diamond core drilling in 49 DDH holes have been completed this year in the Cuzco Project area. Drilling is targeting high-grade shallow mineralisation around outcrops as well as deeper lower grade mineralisation centred on magnetic anomalies. This drilling follows 17 drill holes which were completed in 2007. To date, a total of 7,700 metres have been drilled in the Cuzco Project area.

Initial drilling in 2008 was focussed around hole CQ-012, where a cumulative thickness of 96 metres at 58.26% Fe was intersected. This included a 32 metre section of high-grade mineralisation from surface to 32 metres, averaging 62.91% Fe. More than 20 of the 49 drill holes completed in 2008 have been drilled around hole CQ-012 in an area of 1,000 metres x 1,000 metres on an intensive grid spacing of 200 metres x 200 metres. Complete analytical results of this drilling are pending.

In addition, detailed outcrop mapping has outlined further large areas of outcropping high-grade mineralisation south of hole CQ-012, which are being progressively drilled to extend the shallow highgrade resource for the Stage 1 Cuzco Lump Project.

Figure 1 below outlines the significant radial magnetic anomaly of approximately 4 kilometres by 4 kilometres defining the Cuzco Project area within the Cuzco concessions.

Figure 1 – Cuzco Project 2008 Planned Drilling Campaign

The Company notes that the current activity in 2008 is limited to a small portion of the overall magnetic anomaly (Figure 1) and the results outlined in this announcement are limited to such areas. Given the substantial areas of the anomaly yet to be examined, the Company expects that the potential size of the outcropping mineralisation and the potential resources discussed herein to increase significantly as its exploration effort turn towards the rest of the prospective areas in the Cuzco Project magnetic anomaly.

Figure 2 below outlines portion of magnetic anomaly Cuzco Project Area with outcropping iron mineralisation the subject of current drilling. Three large areas of manto-type mineralisation have so far been identified in the current drilling area, as shown in Figure 2.

Figure 2 - Portion of Magnetic Anomaly Cuzco Project Area with Iron Outcrop and Drill holes

Mineralisation at Depth – Drilling Core Observations

Whilst approximately 50% of the assay results for the 2008 drilling programme are still outstanding, current information from drill cores confirms the occurrence of a thick ore-body in the north of the drilling area within the red outline and a large halo of relatively thinner mineralisation in the areas outlined in blue in Figure 2 above.

Geological logging has shown thick magnetite mineralisation in several drill holes. In particular, drill holes CQ-0012, CQ-0052 and CQ-0053 show cumulative Fe mineralisation intersections of 96 metres, 67 metres and 110 metres respectively. The mineralisation appears to be generally magnetite mantos (bedding parallel lenses) typically analysing (where such results are available, as in hole CQ-0012) between 50 to 65% Fe.

The Company provides a resource target estimate of between 250 to 300 million tonnes of +50% Fe mineralisation in the areas outlined in blue in Figure 2. Within these two areas, the intensively drilled area on 200 metres x 200 metres grid in the central part provides a high degree of confidence in the availability of the target resource. Further drilling is planned to close the grid in the remaining parts of the area outlined in blue in Figure 2 and subsequently, to expand the drilling to cover the balance of the 70% of the magnetic anomaly not yet drilled in the Cuzco Project. 2

The Company believes that as the focus of works expands to the balance of the Cuzco Project area, that this resource target estimate will increase significantly.

Shallow Mineralisation

Previously, the Company had reported that the areas surrounding holes CQ1 and CQ12 appear to offer the best opportunity for delineating a high grade near surface resource to support the Cuzco Stage 1 Lump Iron Ore Project.

Recent mapping has identified large areas of continuous outcrop of high grade mineralisation. The Company proposes to focus its drilling campaign on several of these outcrop areas to define a large resource of DSO type mineralisation in the coming months.

Drill holes with High Grade Intersections for the Lump Ore for Stage I Project are summarised in Table 1.

DDH	FROM	To	TOTALLENGTH	WEIGHTEDAVERAGE Fe%	WEIGHTEDAVERAGE S%
CQ-001	0.00	11.50	11.50	63.5	0;03
CQ-012	0.00	32.00	32.00	62.9	0.005
CQ-0020CQ-0023	0.002.00	4.458.00	4.456.00	62.0064.00	0.1040.015

Table 1 - Summary Assays, Stage 1 Lump Project - Cuzco Project

Mineralisation at Depth – Davis Tube Test Work

The near surface iron mineralisation in areas of outcrop in the Cuzco Project area is generally highgrade (+60% Fe) hematite, low in sulphur, phosphorous and other chemical constituents. The mineralisation at depth in the Cuzco Project area is magnetite and relatively lower grade (generally averaging +50% Fe). This magnetite mineralisation generally produces a very high grade product with low levels of impurities.

Product grades of 65.2% Fe to 70.2% Fe at an average of 67.9% Fe with average weight recovery of 73.35% have been confirmed through Davis Tube test work on representative diamond core samples.

2

It is noted that the target mineralisation referred to in this paragraph is conceptual in nature as there has been insufficient exploration to define a JORC compliant Mineral Resource and it remains to be ascertained if exploration will result in the determination of a Mineral Resource

Most common gangue minerals associated with this mineralisation are generally soft silicates such as chlorite, epidote and some calcite and sulphur as pyrite, all of which are very soft and powder or crush easily leading to low crushing and grinding costs.

After simple magnetic separation it has also been determined that all impurities and gangue minerals are easily removed with average sulphur after first pass magnetic separation to be 0.13% S.

These results were obtained at a coarse grain size of 100% passing 75 micron by simple magnetic separation without any floatation. The product grades are expected to improve further at a finer grain size of 80% passing 45% microns with sulphur content reducing even further.

These results confirm the potential for a very high grade marketable product with high weight recoveries compared to most magnetite projects around the world and product grades which are comparable to Brazilian iron ores.

Table 2 outlined in Annexure "A" summarises the results of Davis Tube test work conducted on magnetite mineralised material from the Cuzco Project area.

Summary

Whilst the Company is still awaiting assay results for the balance of the current drilling campaign, current works show high-grade near surface mineralisation with low impurities is available for the Stage 1 Cuzco Lump Project. In addition a potentially large resource delivering a product grade of better than 67% Fe based upon head grades of +50% Fe magnetite mineralisation is achievable through simple beneficiation by magnetic separation at a coarse grain size of 75 microns.

For further information:

Shanker Madan Arran Gracie Managing Director General Manager, Corporate Affairs T | (08) 9214 9700 T | (08) 9214 9700 E | smadan@strikeresources.com.au E | agracie@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.

ANNEXURE A

TABLE 2: DAVIS TUBE TEST WORK RESULTS FROM THE CUZCO PROJECT AREA

Code	illDrhole	(m)Intalerv	Sizmiecron	Stream	wt%	FeO	Fe	SiO2	Al2O3	P	S	MgO	Cu	LOI 371	LOI 900
B	CQ-001	19.0- 20.5		Head	100.00	18.5	54.45	11.67	1.66	0.08	4.21	2.71	0.085	0.08	1.86
			75	Mags	67.50	23.2	68.51	1.92	0.68	0.005	0.13	0.5	0.006	-0.06	-2.13
				Tails	32.50	3.98	22.69	33.79	4.21	0.252	12	7.85	0.255	2.77	9.96
C	CQ-001	45.0- 45.9		Head	100.00	20.5	55.99	8.75	1.21	0.024	8.9	2.52	0.114	-0.6	4.22
			75	Mags	66.23	27.9	68.98	1.74	0.98	0.003	0.133	0.38	0.007	-0.41	-2.62
				Tails	33.77	5.39	30.74	20.07	1.53	0.06	2.87	5.98	0.034	2.07	16.74
E	CQ-002	25.7- 27.0		Head	100.00	27.2	65.50	2.97	1.87	0.006	0.94	1.87	0.016	-0.72	-1.76
			75	Mags	92.33	28.6	69.41	1.25	0.84	-0.001	0.048	0.67	-0.001	-0.46	-2.82
				Tails	7.67	-	19.12	23.62	14.34	0.076	6.32	15.5	0.306	IS	IS
FCQ-	002	50.6- 52.6		Head	100.00	20.8	50.03	14.43	3.64	0.027	1.09	5.29	0.018	-0.12	-0.47
			75	Mags	62.80	27.9	67.33	2.38	1.29	0.002	0.033	1.21	0.007	-0.34	-2.6
				Tails	37.20	5.14	13.06	40.01	8.87	0.079	2.81	14	0.092	0.63	3.61
GCQ-	002	52.0- 79.0		Head	100.00	23	58.32	7.33	2.13	0.04	4.43	2.8	0.056	-0.46	1.89
			75	Mags	74.62	29.1	68.03	1.88	1.25	0.002	0.13	1.17	0.006	-0.59	-2.58
				Tails	25.38	5.01	29.05	24.24	5.26	0.157	17.4	7.97	0.212	5.5	14.16
CH	Q-003	24.8- 26.3		Head	100.00	22.6	58.23	5.24	2.64	0.009	8.89	2.26	0.164	-0.32	4.31
			75	Mags	69.24	29.6	70.17	0.98	0.73	0.003	0.202	0.44	0.004	-0.37	-3.12
				Tails	30.76	IS	30.53	14.97	6.91	0.021	2.77	6.22	0.115	2.29	17.69
KC	Q-005	93.7-95.2		Head	100.00	25.8	60.43	5.20	0.99	0.004	0.482	0.99	0.017	-0.26	0.45
			75	Mags	85.72	30.1	68.47	1.98	0.94	-0.001	0.005	0.39	0.003	-0.38	-2.36
				Tails	14.28	3.36	9.48	24.12	1.74	0.021	3.26	4.72	0.083	0.01	16.77
N	CQ-010	64.0- 65.0		Head	100.00	19.9	52.40	10.38	2.00	0.018	8.36	2.21	0.109	-0.35	2.63
			75	Mags	64.94	27.3	65.20	4.46	1.79	0.003	0.134	0.77	0.007	-0.3	-2.22
				Tails	35.06	5.06	27.13	21.31	2.53	0.043	23.1	5.07	0.292	2.88	13.09
O	CQ-010	79.0- 80.5		Head	100.00	25	58.86	7.67	1.96	0.015	0.828	2.22	0.024	-0.19	-0.13
			75	Mags	83.31	27.9	65.33	3.74	1.87	0.002	0.011	0.89	0.004	-0.24	-1.63
				Tails	16.69	12.3	21.23	27.69	2.64	0.074	5.01	9.08	0.129	2.29	13.53
Q	CQ-011	164.5- 166.0		Head	100.00	18.9	54.83	9.52	2.26	0.009	8.81	1.09	0.023	0.1	5.17
			75	Mags	61.64	25.4	68.07	2.46	0.67	0.002	0.151	0.39	0.016	-0.81	-1.85
				Tails	38.36	7.57	31.28	21.10	4.99	0.022	24.6	2.38	0.052	4.44	15.2
R	CQ-011	202.0- 203.5		Head	100.00	20.9	55.42	8.95	2.61	0.031	4.41	3.79	0.069	-0.5	1.56
			75	Mags	72.94	26.8	67.97	2.01	1.06	0.006	0.376	0.77	0.023	-1.11	-2.17
				Tails	27.06	5.05	21.38	27.24	6.51	0.098	16.2	11.8	0.258	3.96	11.22
S	CQ-016	12.5- 14.0		Head	100.00	23.4	57.66	10.04	1.94	0.041	1.35	3.64	0.045	-0.17	-0.29
			75	Mags	78.94	26.9	67.02	2.89	1.36	0.007	0.21	1.11	0.013	-0.3	-2.33
				Tails	21.06	5.85	18.44	39.46	4.25	0.186	5.61	14.2	0.214	1.18	7.18
					%wt	FeO	Fe	SiO2	Al2O3	P	S	MgO	Cu	LOI 371	LOI 900
Avtiteheadraderage magnege				100.00	22.2	56.84	8.51	2.08	0.025	4.39	2.62	0.06	-0.29	1.62
Av5 micre 7trateeragonmagconcen				73.35	27.6	67.87	2.31	1.12	0.003	0.130	0.72	0.01	-0.45	-2.37

Davis Test Tube is a laboratory scale test to determine beneficiability of iron ores through magnetic separation.