STRIKE RESOURCES LIMITED — Capital/Financing Update 2009

Nov 24, 2009

Wednesday, 25 November 2009

MARKET ANNOUNCEMENT

Recommencement of Exploration and Development in Peru

The Company is pleased to announce the commencement of a 2 year, US$12 million exploration and development program on its 44% owned Apurimac Project in Peru.

The key objectives of the exploration and development program are to:

• Expand the existing JORC resource at the Apurimac Project from 133 million tonnes (Mt) at 59.4% Fe to 300 - 400Mt by the end of 2011; 1 and
• Determine the optimal production profile and infrastructure configuration for the proposed iron ore mine at Apurimac.

Background

Strike currently has a 44% interest in Apurimac Ferrum S.A. (AF), which holds the Apurimac Project in Peru, South America. AF completed a Pre-Feasibility Study (PFS) on its Apurimac Iron Ore Project in 2008, which focused on the development of a 20 million tonnes per annum (Mtpa) mining operation with iron ore concentrate transported by slurry pipeline to the coast of Peru. The PFS confirmed that the Apurimac Iron Ore Project has the potential to become a highly profitable iron ore operation, with:

• Average operating costs of approximately US$14.50 per tonne;
• Total capital cost of approximately US$2.3 billion; and
• High-quality product grading of +68% Fe; very low in alumina, phosphorous and other impurities.

Resolution of partner disputes in August 2009 has now cleared the way for the resumption of project development. Consequently, the AF board has now approved a 2 year, US$12m work program to be managed by Strike which includes:

• 29,000 m of drilling, which seeks to increase the current JORC Indicated Resource from 133Mt at 59.4% Fe to potentially 300-400Mt at a similar grade;
• A pre-feasibility study on a 10 and 15 Mtpa pipeline operation; and
• A pre-feasibility study on a railway operation transporting direct shipping ore.

1 The potential quantity and grade of the target iron ore mineralisation referred to in this announcement is conceptual in nature. There has been insufficient exploration to define a mineral resource in relation to that target iron ore. It is uncertain if further exploration will result in the determination of a mineral resource in relation to that target iron ore. The grade of the target iron ore is the same as that of the existing JORC Indicated Resource – 59.4% Fe.

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

Level 14, 221 St Georges Terrace, Perth WA 6000 ASX Code: SRK T | +61 8 9214 9700 F | +61 8 9322 1515 E | info@strikeresources.com.au

Exploration Program

AF has a target mineralisation of 210Mt to 260 Mt of iron ore at 59.4% Fe on the Opaban I and Opaban III concessions in the Apurimac Project (including the existing JORC Indicated Resource of 133.5 Mt at 59.4% Fe). The potential target is based on the existence of undrilled gravity and magnetic anomalies on these concessions. Once community approvals are obtained (expected in May 2010) AF will commence a 19,000m drilling program on these two concessions.

There are additional iron ore targets in satellite concessions forming part of the Apurimac Project area. A 10,000m drilling program is planned for these concessions, which will be conducted concurrently (subject to receipt of community and environmental approvals) with the drilling at Opaban I and III.

Studies

AF completed a PFS on its Apurimac Iron Ore Project in 2008, which focused on the development of a 20 Mtpa mining operation with iron ore concentrate transported by slurry pipeline to the coast of Peru.

Economic conditions in the context of the recent global financial crisis have indicated to Strike that it is prudent to examine various developmental options which may be more cost efficient.

AF will therefore undertake two new studies, to determine the economics of:

• a 10 or 15Mtpa slurry pipeline operation; and
• a railway from the mine to the coast.

With the results of these studies and the conclusion of the 2 year exploration program outlined above, AF will be in a position to commission a full bankable feasibility study on the preferred option.

Funding

Strike has agreed to sole-fund the first year of this exploration and development program. Strike's determination on second-year funding will be made once the first year's results are reviewed.

Strike's funding will occur through provision of a secured loan to AF in accordance with the AF Settlement Agreement, previously announced to the market.

Strike Chairman John Stephenson said: "Strike looks forward to the continuation of an exploration program to advance the Apurimac Project towards a bankable feasibility study."

The information in this announcement relating to exploration results and target mineralisation 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 the minimum 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 report of the matters based on his information in the form and context in which it appears.

For further information:

Shanker Madan Managing Director T | +61 8 9214 9700 E | smadan@strikeresources.com.au