STRIKE RESOURCES LIMITED — Capital/Financing Update 2011

Jul 18, 2011

==> picture [274 x 56] intentionally omitted <==

Market Announcement

Strategic option to acquire major stake in Peruvian iron ore explorer

Announcement Highlights

• Financing arrangement provides Strike with the right to acquire up to 49% of Canadian listed explorer, Cuervo Resources Inc. (“Cuervo”)

• Staged loan of up to $15,000,000 Canadian (“C$”) to Cuervo to complete agreed advanced exploration work on its Peruvian concessions

• Cuervo has current iron-ore resources of 106 million tonnes (“Mt”) at 45.3% Fe with significant potential for extensions[1]

• Up to ten (10) kilometre long iron ore target to be drill tested in Stage 1 work program

• Strike to nominate two directors to Cuervo’s board

• Major step in the Company’s consolidation strategy for iron ore in the Apurimac and Cusco regions of Peru

• Strong potential for copper/gold mineralisation

Strike Resources Ltd (“ Strike ”) is pleased to announce that it has executed an agreement with Canadian mineral explorer Cuervo Resources Inc. (“ Cuervo ”), which gives Strike the right to acquire a major stake in Cuervo. This transaction provides Strike with exposure to Cuervo’s Peruvian concession holdings which are complementary to Strike’s own interests in Peru, held through its 56% shareholding in Apurimac Ferrum S.A. (“ AF ”). Strike recently announced it had increased its shareholding in AF from 44% to 56% by purchasing Iron Associates Corporation’s minority shareholding in AF.

This transaction forms part of the Company’s strategic objective of consolidating its position as the major holder of high-quality iron ore concessions in the Apurimac and Cusco regions. The Cuervo resource, when combined with AF’s existing Apurimac and Cusco project resources[2] , represents a substantial proportion of the resource necessary to support an ironore operation producing 15 – 20 Mtpa of product. In addition there is excellent exploration potential for iron ore within the more than 700 square kilometres held under concessions by AF and the 140 square kilometres held through the Cuervo concessions. Based on the current resources, the defined targets and exploration prospectivity within these concessions Strike believes that, subject to reasonable exploration success, there is potential to establish an iron ore operation within the Apurimac and Cusco regions.

Strike’s modelling indicates that a resource of 600Mt at grades similar to those at the Apurimac Project’s Opaban deposit, or 800Mt at 40% Fe or above, will support a mining operation producing 20Mtpa of iron ore product per annum.

1 Comprised of 19.7 Mt measured at 48.3% Fe, 35.9Mt indicated at 45.9% Fe and 50.8 Mt inferred at 43.7% Fe.

2 AF’s Apurimac resource was first announced on 11 February 2010 – a copy of the ASX announcement is at Appendix 2 . AF’s Cusco resource was first announced on ASX on 17 June 2011 – a copy of the ASX announcement is at Appendix 3 .

Strike Resources Limited (ABN 94 088 488 724) Level 8, 221 St Georges Terrace Perth Western Australia 6000 Tel: +61 8 9324 7100 Fax: +61 8 9324 7199

Web: www.strikeresources.com.au Email: info@strikeresources.com.au

Cuervo Financing Arrangement

The key terms of the deal with Cuervo are set out below:

• Strike to loan Cuervo up to C$15 million in two loan tranches. The loans will be in the form of zero-coupon promissory notes secured by a mortgage over Cuervo’s Peruvian concessions and a pledge over the shares of the Peruvian holding company through which Cuervo owns the concessions.

• As interest consideration for the loans Cuervo will grant Strike two warrants[3] to purchase common shares of Cuervo. If both warrants are exercised Strike will own over 49% of Cuervo’s issued common shares (approximately 46% of Cuervo on a fully-diluted basis).

• The Tranche 1 Loan of C$5.25m will be advanced on the pre-registration of the mortgage and will have a term of three years from the execution date of the financing agreements.

• The Tranche 2 Loan of C$9.75m is at Strike’s election. This loan will be in the form of a zero-coupon promissory note with a term of 3 years from the execution date of the financing agreements.

• The Tranche 1 Warrant will give Strike the right to purchase 17,500,000 common shares in Cuervo (32.5% of Cuervo, un-diluted) at an exercise price of C$0.30 and have a term of 3 years, subject to adjustment in certain circumstances. This warrant will be issued on the advance of the Tranche 1 Loan.

• The Tranche 2 Warrant will give Strike the right to purchase up to 17,727,273 common shares in Cuervo (49.2% of Cuervo cumulative on the Tranche 1 Warrant, un-diluted) at an exercise price of C$0.55 and have a term of 3 years. This Warrant will also be issued on the advance of the Tranche 1 Loan and will terminate if Strike elects not to advance the Tranche 2 Loan (C$9.75m) to Cuervo.

• The Warrants will be required to be exercised on the occurrence of any of the following events:

• Cuervo’s shares trade for 20 consecutive days above C$1.00, with a minimum 20day trading volume of 1.5 million shares; or

• Cuervo files a National Instrument 43-101[4] compliant mineral resource estimate of at least 700Mt of iron ore with a grade of 40% Fe or above.

• If the Loans are outstanding the Warrants may be exercised by forgiving the Loans.

• During the term of the Tranche 1 Loan Strike has the right to nominate two (2) directors to Cuervo’s board and will have the right to nominate a further director if Strike advances the Tranche 2 Loan or exercises the Tranche 2 Warrant. Strike’s Acting Chairman, Professor Malcolm Richmond and Managing Director, Mr. Ken Hellsten, will be Strike’s initial nominees to Cuervo’s Board.

3 Warrants are similar in nature to share options and give the holder the right but not the obligation to purchase shares in the issuer. 4 National Instrument 43-101 (“NI 43-101”) is a mineral resource classification and reporting scheme used by Canadian reporting companies for the public disclosure of information on resource properties, and is comparable to the 2004 JORC code used by ASX-listed entities for Resources.

2

About Cuervo Resources Inc.

Cuervo Resources Inc. (CNSX code: FE) is a Canadian mineral explorer listed on the Canadian National Stock Exchange (“ CNSX ”) and also trades on the Frankfurt Stock Exchange. Cuervo is active in exploration for iron ore in Perú, most particularly at its whollyowned Cerro Ccopane project, 65 km south of Cuzco in southern Perú (see Figure 1 , on page 7) where it has delineated four zones of magnetite mineralisation. These zones host the prospects of Aurora, Orcopura, Huillque and Bob 1 (see Figure 2 on page 8).

The Cerro Ccopane property covers 14,000 ha (140 square kilometres) of largely contiguous mineral concessions. At Cerro Ccopane ( Figure 2 ) drilling in 167 holes in four zones has identified high-grade magnetite mineralisation. The Orcopura Zone has a reported JORCCode compliant mineral resource estimate of 106.4 million tonnes at 45.3%Fe which is detailed in Table 1 below.

Table 1 – Cerro Ccopane Iron-Ore Project – Resource Inventory as at April 2009

Prospect	Classification	Mt	Fe%	S%
Orcopura	Measured	19.7	48.3	2.4
Orcopura	Indicated	35.9	45.9	2.6
Orcopura	Sub-total (Measured + Indicated)	55.6	46.8	2.5
Orcopura	Inferred	50.8	43.7	3.1
Orcopura	Total	106.4	45.3	2.8

The mineral resource estimate has used a database consisting of the assay results of sampled intervals from 121 diamond-drill holes totalling 15,725 metres.

The Orcopura mineralisation has been tested over a strike length of approximately 800 metres and remains open along strike and down dip in several areas.

These resources exhibit a strong geophysical expression with strong magnetic and gravity anomalies coincident with the iron-ore mineralisation.

In addition, limited initial drill testing of the magnetic anomalies at the Huillque and Aurora prospects has intersected broad zones of iron-ore mineralisation, however insufficient drilling has been undertaken to deliver a resource estimate at this time. Better results from drilling at these zones include:

Table 2 - Selected intercepts from Huillque and Aurora prospects

Hole ID	Interval (m)	Width (m)	True Width	Fe%	S%	P%	Prospect
HDH – 01	62.7 – 138.5	78.85	53	62.09	0.80	0.03	Huillque
HDH – 03	129.80 – 228.50	98.70	69	54.55	4.14	0.04	Huillque
HDH – 12	130.25 – 181.10	50.85	35	53.66	1.51	0.05	Huillque
HDH – 17	21.20 – 132.30	110.60		49.92	2.27	0.05	Huillque
ADH – 01	8.70 – 87.20	78.50	55	50.77	3.64	0.03	Aurora
ADH – 01	17.70 – 59.70	42.00	29	58.73	3.71	0.02	Aurora
ADH – 06	35.50 – 114.00	78.50	68	51.05	3.46	0.03	Aurora

The full list of significant intercepts from these zones is provided in Appendix 1.

3

Ground geophysical surveys (magnetic and gravity) have also identified two additional target zones on the property. These are known as Bob 1 and Huillque Norte (see Figure 2 ) both of which are considered high-priority drilling targets, with the following significant features:

• At Bob 1 coincident magnetic and gravity anomalies have been identified over 6 kilometres (km) of strike with strong indications of at least 10 km of strike potential. This compares with the Orcopura magnetic anomaly (1.5km) and the approximately 600 metre strike length of the current resource. The strength and extent of the geophysical anomalies are very impressive and the presence of outcropping massive magnetite ironstones above the anomaly means this represents an exciting drilling target. Bob 1 will be the initial focus for the Stage 1 drilling program.

• Huillque Norte has a strong gravity anomaly with sporadic magnetic highs which lies immediately north of the Huillque mineralised zone. Further detailed surveying and mapping is required prior to drill testing. At this time Cuervo believes this area has potential for copper and gold mineralisation as well as iron ore but further work is required to define specific drilling targets.

Cuervo has also completed high-quality studies on the Cerro Ccopane project including metallurgical testwork, transport studies and concept-level project assessment. The results are consistent with the outcomes from similar work by AF on its Apurimac and Cusco concessions.

Mineral processing studies have shown that standard grinding and magnetic separation will produce a high-grade (i.e. 67% to 71% Fe) magnetite ore concentrate containing acceptable levels of impurities in the majority of samples. Iron recoveries to the concentrate are very high, with average mass recoveries of 75%, which is similar to that seen for AF’s high-quality Opaban deposit. Similarly to AF’s projects, there is evidence the coarse-grained nature of the mineralisation will enable good-quality concentrates to be delivered with grind sizes up to <1mm. Further work is planned to determine the best way to capitalise on this characteristic. Coarse grinding provides potential for significant operating and capital cost savings relative to iron-ore projects which require energy-intensive, fine grinding prior to beneficiation.

As the Orcopura iron ore contains sulphur and copper, typically present at concentrations of 2.5% S and 0.10% Cu, these must be removed to deliver an attractive product for the steel industry. In some concentrate samples the copper and sulphur levels were higher than the target range, therefore sighter tests were undertaken to determine the best way to reduce these elements to acceptable levels. Initial tests indicate this can be achieved by further grinding and either magnetic or floatation separation. Additional studies carried out by Cuervo have also shown the resulting concentrates are amenable to the production of commercial-grade pellets.

Two transportation studies to date have shown that there are no unique logistical challenges that would prevent the conceptual development of a mining project. The construction of a direct slurry pipeline to tidewater was identified as the most cost-effective alternative for bulk transport.

Preliminary concept-level studies for a 20Mtpa operation have produced capital and operating cost estimates similar to those from AF’s studies for Apurimac and indicate a robust business can be established based on 15 – 20 years’ operational life.

4

Resource Potential

Iron Ore

The Cerro Ccopane Iron-Ore Project overlies the contact zone between the Tertiary-age Apurimac Pluton and an older outlier of limestones belonging to the Arcurquina Formation of Cretaceous age. This geological setting is highly prospective for the discovery of additional iron skarn mineralisation along the geological contact as well as hydrothermal iron mineralisation within host intrusives.

Ground geophysical surveys (magnetic and gravity) have been successful in the targeting of the magnetite mineralisation. The three mineralised zones delineated by drilling to date at the Cerro Ccopane property all exhibit the same geophysical expression with strong magnetic and gravity highs. While caution must be used in interpreting gravity data in steep terrain such as seen in the Peruvian Andes, the mineralisation identified to date also has a strong magnetic signature (see Figure 2 ). Cuervo intends to continue to use both magnetic and gravity data to screen their concessions and identify drilling targets.

To date exploration and diamond drilling has been undertaken at the Aurora, Orcopura and Huillque prospects; however resource estimates have only been completed at the Orcopura Prospect. Successful drilling campaigns targeting the geophysical anomalies have been completed at the Aurora and Huillque prospects, where significant intervals of magnetite mineralisation have been intersected. The Aurora prospect is defined by a geophysical anomaly similar in size to the Orcopura Prospect. The magnetite mineralisation at Aurora and Huillque prospects remains open along strike and down dip. At both prospects there is good potential to extend the mineralisation targeting the untested portions of the geophysical anomalies. Further drilling is scheduled to improve the geological understanding of these prospects.

Of particular interest is the significant geophysical magnetic and gravity anomaly located in the northern portion of the property, which delineates the Bob 1 target zone. This geophysical anomaly is over 6 km long and remains open to the south (see Figure 2 ) with strong indications of at least 10 km of strike potential. Recent field work has mapped extensive magnetite outcrops at Bob 1 typical of the known zones of mineralisation at Orcopura, Huillque and Aurora.

In addition, regional appraisals based on satellite imagery and regional geology have highlighted several areas in the western half of the Cuervo concessions which warrant detailed exploration including geological mapping and ground geophysics.

Base Metals

The Cerro Ccopane property is situated within the tectonic Andahuaylas-Yauri belt and metallogenic province which hosts a number of world-class porphyry copper deposits (see Figure 1 ). This belt is the northern portion of the Andean copper belt which extends through Chile and is the world’s largest producer of copper.

Until the 1980’s the province was mainly known for its copper-bearing magnetite skarn deposits such as Tintaya, Atalaya and Las Bambas, however, during the 1990’s important discoveries of economic porphyry copper style deposits such as Antapaccay, Los Chancas and Cotabambas were made.

Copper mineralisation has been observed during exploration at the Cerro Ccopane Iron-Ore Project. Copper sulphide minerals such as chalcopyrite and chalcocite have been observed in the diamond drill core and are present as replacement mineral and as veinlets crosscutting the magnetite mineralisation.

5

Exploration will remain focussed on growing the iron-ore resources within the Cerro Ccopane property, however, the potential of this geological setting to host porphyry style copper mineralisation will also be investigated. As an initial step it is planned to undertake base and precious (gold and silver) metal analyses of selected previous drilling to determine whether exploration targets can be generated in the short term.

Other Concessions

In addition to the Cerro Ccopane property Cuervo holds several concessions within Northern and Southern Peru.

The Northern group of concessions have access to excellent infrastructure, being located close to the Pacific coast and the Pan-American Highway. They are also located at relatively low altitudes in arid areas which allows for year-round access. Small-scale mining operations have occurred on some of these concessions in the past. Iron mineralisation consists of massive magnetite, hematite or goethite. The most advanced of the Cuervo properties in northern Peru is the Chimbote concession group. These concessions are located approximately 40 km from the steel foundry of Siderperu located at Chimbote, Ancash.

Cuervo continues to carry out reconnaissance field activities to evaluate these concessions.

Cuervo Board and Management

Cuervo has an impressive board and management team with extensive, relevant experience in both North American capital markets and in exploration in South America.

Cuervo’s CEO, Mr. Brian Berner, has over 12 years’ experience in the resources sector as a corporate advisor. Mr. Berner is the owner of Berner & Co. Inc., a corporate advisory firm in Canada which provides advice on financing and corporate strategy to junior resource companies.

Mr. John Siriunas, a director of Cuervo, holds degrees in engineering and geology. He has over 35 years’ experience in the resource sector and is responsible for the management of Cuervo’s exploration program in Peru. Mr. Siriunas is an experienced company director with over 13 years’ resource company board experience.

Mr. Velasquez Spring is a geologist with over 50 years’ experience in the resources industry, with extensive experience exploring for minerals in South America for both large and small resource companies. Mr. Spring has experience in planning and managing exploration programs through to feasibility stage and supervises Cuervo’s exploration programs in Peru.

Mr. Gordon Watts is a mining engineer with over 45 years’ experience in the resource industry. Mr. Watts has experience in exploration and mine design and specialises in economic modelling and analysis of resource projects. Mr. Watts previously served as a company director of Baffinland Iron Mines Corporation, a TSX-listed Canadian iron ore explorer prior to its recent takeover by a consortium led by Arcelor Mittal.

With its accumulated experience in the resources industry in both Canada and South America, Strike believes that Cuervo’s board provides Cuervo with a solid foundation for the future development of its Peruvian mineral concessions.

Further information on Cuervo can be found on its website at www.cuervoresources.com.

JORC Code Competent Person Statement

The information in this document which relates to mineral resources and exploration results at Cuervo Resources’ Cerro Ccopane iron-ore project in the Cusco district, Peru, has been compiled by Mr Sam J Shoemaker, B. Sc., who is a member of the Australasian Institute of Mining and Metallurgy and is an employee of Micon International Limited. Mr Shoemaker has sufficient experience which is relevant to the style of

6

mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify 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 Shoemaker consents to the inclusion in this document of the matters based on his information in the form and context in which it appears.

Figure 1 - Regional plan showing Cuervo (blue) and AF (red) concessions and major Cu/Au deposits.

==> picture [455 x 545] intentionally omitted <==

----- Start of picture text -----

Las Bambas (Xstrata)
1,132Mt @ 0.77% Cu
Tintaya (Xstrata)
117Mt @ 1.15% Cu
----- End of picture text -----

7

Figure 2 - Magnetic image of Cerro Ccopane Project showing existing drilling, prospects and targets

©

Not included within Cuervo concessions.

8

Appendix 1 - Huillque and Aurora Drill Intersections

HUILLQUE ZONE – SUMMARY OF REPORTED DIAMOND DRILL INTERSECTIONS

HDH – 01	Total depth 174.40 m, -45° to grid east, 3642 m AMSL (HDH - 02, 03, 04, 05, 06)	Total depth 174.40 m, -45° to grid east, 3642 m AMSL (HDH - 02, 03, 04, 05, 06)	Total depth 174.40 m, -45° to grid east, 3642 m AMSL (HDH - 02, 03, 04, 05, 06)	Total depth 174.40 m, -45° to grid east, 3642 m AMSL (HDH - 02, 03, 04, 05, 06)	Total depth 174.40 m, -45° to grid east, 3642 m AMSL (HDH - 02, 03, 04, 05, 06)	Total depth 174.40 m, -45° to grid east, 3642 m AMSL (HDH - 02, 03, 04, 05, 06)	Total depth 174.40 m, -45° to grid east, 3642 m AMSL (HDH - 02, 03, 04, 05, 06)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	29.80 - 34.50	4.70	3	58.72	3.46	0.05	0.05	0.07
Other	62.70 - 138.55	75.85	53	62.09	0.80	0.03	0.07	0.09
HDH – 02	Total depth 183.65 m, vertical, 3642 m AMSL (HDH - 01, 03, 04, 05, 06)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	25.60 - 47.60	22.00	22	53.87	3.23	0.02	0.07	0.11
Other	70.40 - 164.75	94.35	94	53.37	3.75	0.04	0.08	0.11
HDH – 03	Total depth 235.40 m, -45° to grid north,			3642 m AMSL	(HDH - 01, 02, 04,		05, 06)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	38.80 - 91.40	52.60	37	49.37	2.38	0.06	0.08	0.12
Other	129.80 - 228.50	98.70	69	54.55	4.14	0.04	0.09	0.12
HDH – 04	Total depth 210.25 m, -45° to grid south, 3642 m AMSL (HDH - 01, 02, 03, 05, 06)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	75.40 - 103.75	28.35	20	49.10	4.07	0.05	0.11	0.11
Other	118.00 - 130.00	12.00	8	54.80	4.42	0.07	0.11	0.12
Other	142.00 - 200.50	58.50	41	54.52	4.21	0.05	0.12	0.12
HDH – 05	Total depth 82.70 m, -45° to grid west, 3642 m AMSL (HDH - 01, 02, 03, 04, 06)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	No Samples
HDH – 06	Total depth 308.35 m, -60° to grid west,			3642 m AMSL	(HDH - 01, 02, 03,		04, 05)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	32.35 - 73.95	41.60	36	54.95	4.72	0.07	0.10	0.13
Other	107.00 - 119.00	12.00	10	54.71	3.23	0.04	0.13	0.09
Other	180.50 - 199.95	19.45	16	50.86	4.14	0.02	0.08	0.13
Other	205.80 - 253.80	48.00	41	53.16	4.62	0.06	0.07	0.10
Other	272.80 - 288.35	15.55	13	54.94	2.44	0.03	0.08	0.07
HDH – 07	Total depth 112.10 m, vertical, 3721 m AMSL (HDH - 08, 09, 10, 11, 12)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	24.10 - 66.00	41.90	41	49.10	3.35	0.03	0.10	0.09
Other	76.50 - 87.80	11.30	11	53.76	4.27	0.04	0.10	0.11
HDH – 08	Total depth 137.00 m, -45° to grid east, 3721 m AMSL (HDH - 07, 09, 10, 11, 12)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	26.35 - 40.00	13.65	9	48.75	3.34	0.07	0.10	0.09
Other	49.00 - 63.20	14.20	10	54.45	3.50	0.07	0.10	0.09
Other	69.30 - 117.30	48.00	33	49.17	3.75	0.06	0.12	0.09
HDH – 09	Total depth 204.00 m, -45° to grid south, 3721 m AMSL (HDH - 07, 08, 10, 11, 12)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)

Appendix 1 - Huillque and Aurora Drill Intersections

	69.80 - 112.65	42.85	30	44.63	3.06	0.05	0.12	0.09
Other	165.30 - 183.70	18.40	13	54.34	4.93	0.03	0.12	0.10
HDH – 10	Total depth 111.40 m, -60° to grid north, 3721 m AMSL (HDH - 07,					08, 09, 11, 12)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	25.30 - 28.10	2.80	2	51.45	4.84	0.04	0.07	0.13
HDH – 11	Total depth 129.15 m, -45° to grid west,			3721 m AMSL	(HDH - 07,	08, 09,	10, 12)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	No Samples
HDH – 12	Total depth 208.00 m, -45° to northeast, 3721 m AMSL (HDH - 07,					08, 09, 10, 11)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	51.20 - 77.00	25.80	18	49.92	3.44	0.06	0.15	0.09
Other	97.75 - 104.75	7.00	4	53.98	3.92	0.02	0.12	0.05
Other	130.25 - 181.10	50.85	35	53.66	1.51	0.05	0.12	0.07
HDH – 13	Total depth 72.00 m, -45° to grid east, 3766 m AMSL (HDH - 14)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	No Samples
HDH – 14	Total depth 134.70 m, -45° to northeast, 3766 m AMSL (HDH - 13)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	No Samples
HDH – 15	Total depth 63.80 m, -45° to grid south, 3782 m AMSL (HDH – 16,					HDH –	17, HDH –	18, HDH – 1
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	34.40 – 59.90	25.40		48.21	2.59	0.06	0.08	0.09
HDH – 16	Total depth 136.00 m, vertical, 3782 m AMSL (HDH – 15, HDH – 17, HDH – 18, HDH – 19)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	24.70 – 50.20	25.50		50.99	0.16	0.05	0.11	0.08
	70.80 – 118.30	47.50		50.05	3.23	0.05	0.08	0.09
HDH – 17	Total depth 160.30 m, -60° to grid south, 3781 m AMSL (HDH – 15, HDH – 16, HDH – 18, HDH –
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	21.20 – 132.30	110.60		49.92	2.27	0.05	0.11	0.09
HDH – 18	Total depth 61.00 m, -45° to grid north, 3782 m AMSL (HDH – 15, HDH – 16, HDH – 17, HDH - 19
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	No Samples
HDH – 19	Total depth 70.10 m, -45° to grid south, 3781 m AMSL (HDH – 15,					HDH –	16, HDH –	17, HDH – 1
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	23.80 – 35.00	11.20		44.35	2.91	0.05	0.11	0.09
	42.50 – 48.50	6.00		40.48	3.43	0.06	0.10	0.12
HDH – 20	Total depth 117.30 m, -45° to grid north, 3771 m AMSL (HDH – 21)

Appendix 1 - Huillque and Aurora Drill Intersections

		INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
		50.70 – 84.20	33.50		55.55	4.28	0.04	0.06	0.09
HDH –	21	Total depth 128.60	m, -45° to	grid west,	3771 m AMSL	(HDH – 20)
		INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
		23.40 – 30.40	7.00		54.21	2.92	0.07	0.08	0.08
		61.90 – 97.50	35.60		55.54	4.41	0.05	0.08	0.15

• TVD – approximate total vertical depth from top to bottom of intersection

Appendix 1 - Huillque and Aurora Drill Intersections

AURORA ZONES – SUMMARY OF REPORTED DIAMOND DRILL INTERSECTIONS

AURORA ZONE

ADH – 01	Total depth 129.50 m, -45° to grid south, 4070 m AMSL (ADH – 02)	Total depth 129.50 m, -45° to grid south, 4070 m AMSL (ADH – 02)	Total depth 129.50 m, -45° to grid south, 4070 m AMSL (ADH – 02)	Total depth 129.50 m, -45° to grid south, 4070 m AMSL (ADH – 02)	Total depth 129.50 m, -45° to grid south, 4070 m AMSL (ADH – 02)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	8.70 - 87.20	78.50	55	50.77	3.64	0.03	0.08	0.12
Incl.	17.70 - 59.70	42.00	29	58.73	3.71	0.02	0.08	0.12
ADH – 02	Total depth 59.60 m, vertical, 4070 m AMSL (ADH – 01)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	7.50 - 35.70	28.20	28	37.86	0.60	0.11	0.12	0.03
Incl.	25.30 - 35.70	10.40	10	43.02	0.70	0.17	0.09	0.02
ADH – 03	Total depth 145.50 m, vertical, 3642 m AMSL			(ADH - 04)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	2.95 - 48.40	45.45	45	43.69	3.68	0.06	0.11	0.11
Incl.	24.50 - 39.60	15.10	15	52.36	4.02	0.05	0.13	0.12
Incl.	42.50 - 48.40	5.90	5	57.31	3.75	0.05	0.11	0.13
ADH – 04	Total depth 100.00 m, -45° to grid south, 3642 m AMSL (ADH - 03)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	2.40 - 67.00	64.60	45	42.69	3.65	0.05	0.09	0.12
Incl.	2.40 - 15.50	13.10	9	52.79	3.65	0.05	0.13	0.12
Incl.	24.50 - 30.50	6.00	4	56.77	4.06	0.05	0.09	0.14
ADH – 05	Total depth 103.00 m, -45° to grid south, 3642 m AMSL
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	20.80 - 23.80	3.00	2	60.19	1.20	0.07	0.07	0.06
Other	53.50 - 71.10	17.60	12	53.20	4.61	0.03	0.10	0.16
ADH – 06	Total depth 132.10 m, -60° to grid south, 4125 m AMSL
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	35.50 - 114.00	78.50	68	51.05	3.46	0.03	0.12	0.13
ADH – 07	Total depth 145.30 m, vertical, 4100 m AMSL			(ADH - 08)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	27.50 - 95.00	67.50	67	49.46	4.11	0.02	0.18	0.12
Other	107.00 - 123.50	16.50	16	49.71	3.38	0.02	0.10	0.11
ADH – 08	Total depth 123.00 m, -50° to grid south, 4100 m AMSL (ADH - 07)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	13.00 - 21.70	8.70	6	50.65	4.31	0.02	0.13	0.12
Other	59.00 - 83.30	24.30	18	55.60	3.74	0.01	0.08	0.13
ADH – 09	Total depth 64.05 m, vertical, 4100 m AMSL (ADH - 10)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)

Appendix 1 - Huillque and Aurora Drill Intersections

No intersections of mineralization

ADH – 10	Total depth 88.80 m, -50° to grid south, 4100 m AMSL (ADH - 09)	Total depth 88.80 m, -50° to grid south, 4100 m AMSL (ADH - 09)	Total depth 88.80 m, -50° to grid south, 4100 m AMSL (ADH - 09)	Total depth 88.80 m, -50° to grid south, 4100 m AMSL (ADH - 09)	Total depth 88.80 m, -50° to grid south, 4100 m AMSL (ADH - 09)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	31.50 - 56.50	25.00	19	52.15	3.87	0.03	0.12	0.11
			AURORA "B" ZONE
ADH – 11	Total depth 129.10 m,	-50° to grid south, 4250		m AMSL (ADH - 12)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	38.10 - 73.40	35.30	27	51.10	3.73	0.09	0.17	0.12
ADH – 12	Total depth 77.20 m, vertical, 4250 m AMSL (ADH - 11)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	42.90 - 56.00	13.10	13	38.63	3.47	0.10	0.10	0.12
ADH – 13	Total depth 63.60 m, -45° to grid south, 4287 m AMSL
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	24.70 - 38.20	13.50	9	52.90	2.60	0.06	0.18	0.06
Other	47.80 - 58.80	11.00	7	53.47	5.81	0.12	0.18	0.15
ADH – 14	Total depth 55.80 m, vertical, 4325 m AMSL (ADH - 15)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	21.50 - 42.50	21.00	21	48.13	5.18	0.33	0.22	0.10
ADH – 15	Total depth 63.60 m, -50° to grid east, 4325 m			AMSL (ADH - 14)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	22.70 - 27.70	5.00	3	47.93	4.50	0.01	0.20	0.10
ADH – 16	0 m, vertical, 4320 m AMSL (ADH - 17)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	2.20 - 5.50	3.30	3	45.10	14.48	0.01	0.17	0.41
ADH – 17	Total depth 30.20 m, vertical, 4320 m AMSL (ADH - 18)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	8.00 - 17.00	9.00	9	45.61	7.84	0.02	0.17	0.17
ADH – 18	Total depth 36.70 m, vertical, 4310 m AMSL
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	14.00 - 20.00	6.00	6	54.52	3.87	0.05	0.15	0.09
ADH – 19	Total depth 74.20 m, vertical, 4450 m AMSL (ADH - 20, 21, 22)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
	34.50 - 62.30	27.80	27	49.83	3.61	0.02	0.36	0.10
ADH – 20	Total depth 39.60 m, -45° to grid east, 4450 m			AMSL (ADH - 19, 21, 22)
	INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)

Appendix 1 - Huillque and Aurora Drill Intersections

		9.40 - 29.00	19.60	13	50.91	4.92	0.06	0.24	0.18
ADH –	21	Total depth 90.00 m,	-45° to grid north, 4450 m AMSL (ADH			- 19, 20, 22)
		INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
		40.50 - 62.50	22.00	15	54.34	3.64	0.06	0.30	0.13
ADH –	22	Total depth 41.90 m,	-50° to grid west, 4450 m AMSL (ADH - 19, 20, 21)
		INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
		13.20 - 18.30	5.10	4	34.13	2.50	0.01	0.62	0.10
ADH –	23	Total depth 31.60 m,	vertical, 4425 m AMSL (ADH - 24)
		INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
		No intersections of mineralization
ADH –	24	Total depth 49.70 m,	-50° to grid south, 4425 m AMSL (ADH - 23)
		INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
		4.00 - 34.70	30.70	23	56.50	5.50	0.06	0.13	0.37
ADH –	25	Total depth 61.00 m,	vertical, 4410 m AMSL
		INTERSECTION (m)	WIDTH (m)	TVD (m)	Fe (%)	S (%)	P (%)	Mn (%)	Cu (%)
		0.00 - 33.00	33.00	33	43.76	4.43	0.03	0.18	0.11

• TVD – approximate total vertical depth from top to bottom of intersection

Appendix 2 - Apurimac Resource Announcement - 11/2/10

Thursday, 11 February 2010

MARKET ANNOUNCEMENT

Peruvian Apurimac Iron Ore Project Resource Increased to 269 Million Tonnes

Resource Increase

The Company is pleased to advise that the iron ore Mineral Resources at the Opaban 1 and Opaban 3 concessions in the Apurimac Iron Ore Project[1] have been increased from a total of 133.5 million tonnes ( Mt ) Indicated Mineral Resource at 59.4% Fe[2] to a total of 269.4 Mt, consisting of:

• a 142.2 Mt Indicated Mineral Resource at 57.84% Fe; and

• a 127.2 Mt Inferred Mineral Resource at 56.7% Fe.

The new Mineral Resources estimate for Opaban 1 was carried out by international consulting firm SRK Consulting Pty Ltd[3] in conjunction with Strike Resources Limited ( Strike ) geologists.

Basis for Resources Increase

The previous Mineral Resource estimate was based on the assumption of a limited projection of mineralisation of approximately 25m to 70m from drill-hole intersections. This limited projection resulted in the deposit being interpreted as a series of isolated pods, rather than a continuous ore body.

Since the previously-announced Mineral Resource estimate, considerable additional work has been undertaken on the Opaban 1 resources model, including:

• relogging of all diamond core and RC drill chips;

• mapping of lithological domains;

• preparation of revised cross sections;

• reassessment of gravity and magnetic geophysical data; and

• a detailed geostatistical analysis of the deposit.

1 Strike holds a 44% interest in this project through its 44% shareholding in the project owner, Peruvian company Apurimac Ferrum S.A. ( AF ). Strike has the potential to increase its interest in AF and hence in this project to 100% via a “shoot-out” mechanism, which is explained in detail in Strike’s 2009 Annual Report at pages 79 - 80.

• 2 See Strike’s ASX Announcement Pre-Feasibility Results Confirm World Class Prospects for Apurimac Project in Peru dated 23 July 2008.

• 3 SRK Consulting Pty Ltd is not related to Strike Resources Limited.

Appendix 2 - Apurimac Resource Announcement - 11/2/10

This analysis has shown that the depiction of the Opaban 1 deposit as several isolated pods is inconsistent with the:

• near-continuous, high-gravity response from the deposit (Figure 1);

• strong correlation between drill-hole intersections and gravity anomalies;

• absence of any negative drill holes between drill hole intersections; and

• detailed variography on the data confirming a long geostatistical continuity (approximately 325m).

Considering the above, SRK Consulting completed a revised estimate of Mineral Resources for Opaban 1 using 100m projections from known drill hole intersections, rather than the 25m to 70m projections previously used, on the basis that such projections be constrained within the gravity anomaly.

The net result of the revised estimates is that, whereas the Indicated Resources remain almost unchanged from the previous estimate, significant additional Inferred Resources are now estimated for Opaban 1. Figures 1 and 2 below illustrate the difference between the previous estimate and the new estimate with respect to drilling and the gravity anomaly.

==> picture [451 x 339] intentionally omitted <==

Figure 1 – Indicated Resource blocks used in previous Resource estimate at Opaban 1

Appendix 2 - Apurimac Resource Announcement - 11/2/10

==> picture [429 x 321] intentionally omitted <==

Figure 2 – Outline of the current Indicated and Inferred Resource estimate at Opaban 1

Figure 3 below shows the distribution of the new Indicated Resource and Inferred Resource blocks at Opaban 1.

==> picture [429 x 321] intentionally omitted <==

Figure 3 – block distribution of Indicated and Inferred Resources at Opaban 1

Appendix 2 - Apurimac Resource Announcement - 11/2/10

The following table shows the grade and tonnages of the iron ore in the new Mineral Resources estimate at a 40% Fe cut-off grade for Opaban 1.

Opaban 1 (40% Fe cut-off)

Category	Density t/m 3	Mt*	Fe%	SiO2 %	Al 2O3 %	P%	S%
Inferred	4	127.19	56.7	9.66	2.7	0.04	0.20
Indicated	4	133.71	57.57	9.46	2.54	0.04	0.12
Totals 260.90 57.15 9.56 2.62 0.04 0.16

• million dry metric tonnes.

Contained within the above Mineral Resources at Opaban 1, with a 54% Fe cut-off grade, is a potential Direct Shipping Grade ( DSO ) component of 198.7 Mt; comprising a 104.48 Mt Indicated Mineral Resource at 59.43% Fe and a 94.2 Mt Inferred Mineral Resource at 58.52% Fe. The DSO material is shown in the table below. The balance of the iron ore comprised in the Mineral Resource requires minimal beneficiation to upgrade to a 68% Fe concentrate.

Opaban 1 (54% Fe cut-off)

Category	Density t/m 3	Mt*	Fe%	SiO2 %	Al 2O3 %	P%	S%
Inferred	4	94.2	58.52	8.45	2.34	0.04	0.19
Indicated	4	104.48	59.43	8.11	2.16	0.04	0.11
Totals 198.68 59.00 8.27 2.24 0.04 0.15

• million dry metric tonnes.

There is no change in the Mineral Resource on the Opaban 3 concession at this time. The Opaban 3 concession is presently estimated to contain an Indicated Mineral Resource of 8.53 Mt at 62.08% Fe within an envelope of 55% Fe.

Combined Mineral Resources for Opaban 1 (at a 40% Fe cut-off grade) and Opaban 3 are summarised in the table below.

Combined total Mineral Resources for Opaban 1 and Opaban 3

Category	Density t/m 3	Mt*	Fe%	SiO2 %	Al 2O3 %	P%	S%
Inferred	4	127.19	56.7	9.66	2.7	0.04	0.20
Indicated - Opaban 1(40% Fe cut-off)	4	133.71	57.57	9.46	2.54	0.04	0.12
Indicated - Opaban 3 (within 55% Fe envelope)		8.53	62.08	4.58	1.37	0.07	0.25
Totals 269.43 57.30 9.40 2.56 0.04 0.16

Proposed Additional Drilling

A 19,000 m, reverse-circulation drilling campaign is planned for the Opaban 1 and Opaban 3 concessions, with the aim of increasing and upgrading the current Mineral Resources. The process of obtaining community and environmental approvals for the planned drilling campaign is underway. This drilling campaign is expected to commence in May/June 2010.

Target Mineralisation

The target iron ore mineralisation for the 2010 drilling campaigns (including existing Mineral Resources) has now been revised upwards from 300 - 350 Mt to 370 – 450 Mt at Opaban 1, Opaban 3, Cristoforo and Pampachiri - as detailed below.

Appendix 2 - Apurimac Resource Announcement - 11/2/10

Opaban 1 and 3 - The previous target iron ore mineralisation for these concessions was 210 - 260 Mt. This target has now been realised. The Company has revised its mineralisation target for the Opaban 1 and Opaban 3 concessions to 300 - 350Mt of iron ore at 56% to 62% Fe, including existing Mineral Resources.

The existence of a number of drill holes terminating in mineralisation (including drill hole OP1-42 which terminated in high-grade ore after 154m of continuous iron ore mineralisation) leads to a significant likelihood of the extension of mineralisation at depth at Opaban 1. Detailed logging shows that the mineralisation extends not only within the relatively-flat Ferrobamba Formation limestone, but also within the intruding granodiorite stock. Hydrothermal breccias in the latter show the mineralisation in granodiorite to be steeply dipping, thus increasing the likelihood of additional mineralisation.

The target iron ore mineralisation for these concessions is based on prospects of the extension of mineralisation at depth, to the west adjacent to existing mineralisation, in additional gravity and magnetic anomalies and in outcropping mineralisation yet to be drilled.

Pampachiri and Cristoforo - The Company has a target of 70 to 100 Mt of iron ore mineralisation at 56% to 62% Fe at the Pampachiri and Cristoforo concessions. AF proposes to conduct a 10,000 metre drilling campaign on these concessions during 2010. The potential mineralisation target is based on reconnaissance geological surveys and surface sampling.

Other Concessions - A detailed assessment of potential iron ore mineralisation in the remaining 68 Apurimac concessions is also underway. Surface sampling has shown high-grade outcrops in numerous locations. This process has the potential to identify substantial additional iron ore in the Apurimac project.

(The potential quantity of the target iron ore mineralisation in this section of this announcement is conceptual in nature. There has been insufficient exploration to define an additional Mineral Resource in relation to that target iron ore or to justify an increase in the category of the existing Mineral Resources. It is uncertain whether further exploration will result in the determination of an additional Mineral Resource in relation to that target iron ore or any upgrade in the category of existing Mineral Resources.)

Pre-feasibility Studies

In July 2008 Strike announced the completion of a Pre-Feasibility Study ( PFS ) for the Apurimac Iron Ore Project.

The PFS focused upon the development of a 20 million tonne per annum ( Mtpa ) mining operation with iron ore concentrate transported to the coast for shipment via a slurry pipeline. The proposed 20 Mtpa operation was based on mining 26 Mtpa run-of-mine iron ore at 57.5% Fe, with a 70% average recovery by weight to produce a 68.02% to 68.28% Fe concentrate.

The PFS confirmed that the Apurimac Project has the potential to become a highlyprofitable, world-class iron ore operation, with:

• average operating costs of approximately US$ 14.50 per tonne;

• total capital cost of approximately US$ 2.3 billion; and

• a high-quality product grading of +68% Fe; very low in alumina, phosphorous and other impurities.

AF is now in the process of undertaking further studies to examine the viability of production and infrastructure alternatives, including 10 and 15 Mtpa slurry pipelines and the option of transporting iron ore to the coast by railway. The results of these studies are

Appendix 2 - Apurimac Resource Announcement - 11/2/10

expected in the second half of 2010[4] . The purpose of these studies is to determine the optimum balance between production profiles, transport methods and capital expenditure, as a precursor to a bankable feasibility study.

For further information:

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

The information in this document that relates to Mineral Resources at the Opaban 1 concession has been jointly compiled by Mr Bruce Sommerville, (BAppSc, BSc (Hons)) who is a member of the Australasian Institute of Mining and Metallurgy and is an employee of SRK Consulting Pty Ltd (which is unrelated to Strike Resources Limited) and Mr Hem Shanker Madan (M. Sc (Appl. Geol.) who is a Member of The Australasian Institute of Mining and Metallurgy and is the Managing Director of Strike Resources Limited. Mr Madan is responsible for data collection and data quality in respect of the Opaban 1 concession and Mr Sommerville is responsible for Mineral Resource estimation in respect of the Opaban 1 concession. The information in this document that relates to Mineral Resources at the Opaban 3 concession has been solely compiled by Mr Hem Shanker Madan. Information which relates to exploration targets has been compiled by Mr Hem Shanker Madan. Messrs Sommerville and Madan have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking, to qualify as Competent Persons as defined in the 2004 Edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code).” Messrs Somerville and Madan consent to the inclusion in this document of the matters based on their information in the form and context in which it appears.

4 Further details of these proposed additional studies are contained in Strike’s December 2009 Quarterly Report.

Appendix 3 - Cusco Resource Announcement - 17/6/11

==> picture [274 x 56] intentionally omitted <==

Market Announcement

Cusco Project – Resource Estimate

The Company is pleased to announce the completion of an initial JORC mineral resource estimate for the Santo Tomas concessions within the Cusco Iron Ore Project located in the Southern Highlands of Peru (see Appendix A - Figure 1 ) by international consulting firm SRK Consulting[1] in conjunction with Apurimac Ferrum (“ AF ”) geologists.

Announcement Highlights

• Inferred Resource of 104.4 million tonnes (Mt) at an average grade of 32.6% Fe, 21.7% SiO2, 3.19% Al2O3, 0.53% S, 0.04% P and 0.23% LOI.

• Additional potential iron ore mineralisation identified from current drilling of 23 to 26 Mt at similar grades to the Inferred Resource. ( The potential quantity and grade of the target iron ore is conceptual in nature. There has been insufficient exploration to define an additional mineral resource in relation to that target iron ore. It is uncertain whether further exploration will result in the determination of an additional mineral resource in relation to that target iron ore. )

• Potential for higher-grade, lower-sulphur, near-surface haematite zones identified in logging.

• Significant potential for further iron ore mineralisation through extensions along strike and testing of remaining geophysical targets.

Detailed Results

The Cusco Iron Ore Project lies in the Southern Highlands of Peru within the highly-prospective Andahuaylas-Yauri Cu/Fe Belt (see Appendix A - Figure 2 ). The AF concessions comprise 22 concessions in three separate blocks, covering approximately 175 square kilometres. The initial area tested by drilling falls within the Santo Tomas concessions, which lie at approximately 4300m above sea level and 200 kilometres to the south east of the Opaban resource.

The Santo Tomas Project was identified in 2007 as an area highly prospective for iron ore, with a large circular magnetic anomaly in the order of two (2) kilometres in diameter and several associated major structural zones. The circular feature is interpreted as a late-stage intrusive at depth. These intrusives are commonly the source of the hydrothermal fluids which form the iron ore mineralisation within the region as well as large copper (and gold) porphyry systems.

Surface mapping and gravity surveys identified gravity highs and outcropping ironstones containing both haematite and magnetite coincident with much of the magnetic anomaly. Approximately 40% of the target area was subject to an initial, broadly-spaced drilling program in 2007 and 2008, comprising 168 holes for 16,935 metres of reverse circulation (RC) and diamond drilling.

The haematite-rich material was noted from the geological mapping to be relatively high-grade (>50% Fe) and containing modest sulphur grades. Hence, the focus of the initial exploration and study programs was on testing these zones to evaluate opportunities to establish a low-tonnage, lump product business involving trucking of the ore to Imata followed by rail transport to the port of Matarani for export. While this option is technically feasible the requirement for significant capital and lead time to up-grade the transport legs and port facilities and the dispute between AF’s shareholders at that time led to this option being shelved in 2008.

With the settlement of the shareholder dispute in 2009 and the subsequent restart of exploration the AF team revisited the Santo Tomas area while awaiting approvals to commence work on the

1 SRK consulting is unrelated to Strike Resources (ASX code: SRK)

Appendix 3 - Cusco Resource Announcement - 17/6/11

Apurimac project. This involved re-logging of the drill holes with a focus on understanding the key material types and styles to assist with determining the future exploration direction at Santo Tomas and the Cusco area in general.

This work highlighted several key findings, namely;

• Three (3) key iron ore material types were present (see Appendix A - Figure 3 ):

• Haematite-rich material which formed a superficial cap on the deeper, magnetite-rich mineralisation;

• Massive magnetite zones in the core of the primary mineralisation; and

• Magnetite breccias, which tend to form the margins of the deposits.

• The mineralisation remains open in most areas due to the relatively-coarse drill hole spacing.

• Iron ore grades tend to be highest near surface and reduce with depth.

• The magnetite mineralisation is similar in style to Opaban, with relatively coarse-grained magnetite, which is hence expected to be amenable to up-grade at relatively coarse grind sizes (0.5 – 1mm).

• The magnetite mineralisation contains significant pyrite and some chalcopyrite which will require removal to produce a suitable iron ore product.

Inferred Resource Estimate

The Santo Tomas JORC Mineral Resource estimate is set out in Table 1 below, with additional details of the resource set out in Appendix B .

Table 1 – Santo Tomas Project – June 2011 Inferred Resource Estimate – 0% Fe Cut off

Tonnes (Mt)	Fe (%)	S (%)	Al2O3 (%)	LOI (%)	P (%)	SiO2 (%)
104.4	32.62	0.528	3.19	0.21	0.035	21.66

The tonnage and grade sensitivity for the both material types is presented in Appendix A - Figure 4 .

Further Iron Ore Potential

As noted above, the Santo Tomas drilling has identified iron mineralisation which is not sufficiently well defined to be included in the Inferred Resource estimate due to the relatively broad spacing of some of the drilling. SRK Consulting has estimated that an additional 23 to 26 Mt of potential iron ore mineralisation at a similar grade to the Inferred Resource has been identified by the current drilling.

( The potential quantity and grade of the target iron ore is conceptual in nature. There has been insufficient exploration to define an additional mineral resource in relation to that target iron ore. It is uncertain whether further exploration will result in the determination of an additional mineral resource in relation to that target iron ore. )

In addition SRK Consulting has reviewed the geophysical and geological data for the Santo Tomas concessions and identified several areas with strong potential to identify additional iron mineralisation. These include extensions to current resources, identified potential and the remainder of the major magnetic anomaly and structural zones associated with the margin of the interpreted late stage intrusion. These targets are shown in Appendix A - Figure 5 .

Precious and Base Metal Potential

Importantly, the Santo Tomas mineral resource lies within the tectonic Andahuaylas-Yauri belt and metallogenic province, which hosts a number of world-class polymetallic deposits (see Appendix A - Figure 2 ). The Andahuaylas–Yauri belt is situated in south-eastern Peru and is a rapidly emerging porphyry copper province.

Until the 1980s the province was mainly known for its copper-bearing magnetite skarn deposits such as Tintaya, Atalaya and Las Bambas, however, during the 1990s, important discoveries of economic porphyry copper style deposits such as Antapaccay, Los Chancas and Cotabambas were made.

Appendix 3 - Cusco Resource Announcement - 17/6/11

A recent review by AF geologists has recognised similar association between the porphyry copper style alteration assemblages and the magnetite +/- sulphides mineralisation occurring within the Santo Tomas project area.

Also of significance, broad zones of anomalous copper, silver and molybdenum values have now been identified within historical drill samples. While this work is at an early stage it has substantially raised the project’s potential to host precious and base metals. Further assessment of this potential is continuing, with a specific geological mapping and sampling programme in progress. This work, combined with the outcomes from the review of previous geological and drilling programs, is due for completion in the September Quarter, with the aim of identifying precious and base metal exploration targets for detailed geophysical surveys and a preliminary drilling program within the Santo Tomas concessions.

JORC Code Competent Person Statement

The information in this document which relates to Mineral Resources has been compiled by Mr George Even, who is a member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists and is an employee of SRK Consulting (Chile) S.A. Mr Even has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify 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 Even consents to the inclusion in this document of the matters based on his information in the form and context in which it appears.

Friday 17 June, 2011

For further information:

Malcolm Richmond Ken Hellsten Acting Chairman Managing Director T | +61 8 9324 7100 T | +61 8 9324 7100

Appendix 3 - Cusco Resource Announcement - 17/6/11

Appendix A - Figures

Figure 1: Apurimac Iron-Ore Project and Cusco Iron Ore Project

==> picture [478 x 281] intentionally omitted <==

----- Start of picture text -----

Apurimac Iron-Ore Project
Opaban
Project
Cusco Iron-
Ore Project
Colcabamba Santo Tomas
Prospect Project
Apurimac Ferrum Tenements Status
----- End of picture text -----

Figure 2: Andahuaylas-Yauri Metallogenic Province showing AF concessions and nearby polymetallic deposits

==> picture [358 x 321] intentionally omitted <==

----- Start of picture text -----

117Mt @ 1.15% Cu
Las Bambas
1.132Mt @ 0.77% Cu
Tintaya
117Mt @ 1.15% Cu
----- End of picture text -----

Appendix 3 - Cusco Resource Announcement - 17/6/11

Figure 3: Typical cross section at Santo Tomas showing haematite (pink), magnetite (MT, dark brown) and hydrothermal breccia (HB, light brown) zones

==> picture [445 x 137] intentionally omitted <==

Figure 4: Grade tonnage curve for Inferred Resources

==> picture [496 x 284] intentionally omitted <==

Appendix 3 - Cusco Resource Announcement - 17/6/11

Figure 5: Total magnetic field image showing mineralisation envelopes (inferred resources and potential) and target areas (black circles) yet to be drill tested.

==> picture [386 x 425] intentionally omitted <==

Appendix 3 - Cusco Resource Announcement - 17/6/11

Appendix B

Santo Tomas – Resource Parameters

Appendix B Santo Tomas – Resource Parameters	Appendix B Santo Tomas – Resource Parameters	Appendix B Santo Tomas – Resource Parameters	Appendix B Santo Tomas – Resource Parameters	Appendix B Santo Tomas – Resource Parameters
Resource Estimation Criteria
Background
Resource Date	June2011
Project Name	SantoTomasIronOreProject
Ownership	ApurimacFerrum
Concession Status	Name		Area (km~~2~~)
	El Pacifico II		10.2
	DeliaEsperanza		10.2
	FlordeMaria		9.1
Geographic Coordinate System	PSAD56Zone19S
Resource Category	Inferred
Resource Location	LocatedwithintheDepartment ofCusco southern Peru
Resource Dimensions	Easting	181250mE		187500mE
	Northing	8422000mN		8425600mN
	RL	3800m		4400m
Geological Description
Genetic Type	Andean Porphyry Fe-Cu system. Structurally control emplacement withsome supergene enrichment.
Geological Setting	The Andahuaylas–Yauri metallogenic Cu-Fe-Au-Mo belt. Iron mineralization associated with amphibole–(±biotite-bearing) dioritic intrusions belonging to the Andahuaylas-Yauri batholith. Emplacement and mineralisation occurred during the Middle Eocene toEarly Oligocene epoch.
Responsibilities
Data Collection	ApurimacFerrum
Data Management	ApurimacFerrum
Data Integrity	ApurimacFerrum
Geological Interpretation	ApurimacFerrum
Resource Modelling	SRKConsulting (Chile)
Competent Person	GeorgeEven -Corporate Consulting Geologist
_Independent Technical Review _	SRKConsulting (Perth)

Data Management ApurimacFerrum Data Integrity ApurimacFerrum Geological Interpretation ApurimacFerrum Resource Modelling SRKConsulting (Chile) Competent Person GeorgeEven -Corporate Consulting Geologist Independent Technical Review SRKConsulting (Perth)	Data Management ApurimacFerrum Data Integrity ApurimacFerrum Geological Interpretation ApurimacFerrum Resource Modelling SRKConsulting (Chile) Competent Person GeorgeEven -Corporate Consulting Geologist Independent Technical Review SRKConsulting (Perth)
Geological and Geochemical Data Base
Insitu Bulk Density	None collected: Densities derived from a regression formula provided by SRK based on iron projects with similar geological and material type characteristics. Density= Total Fe%x(0.0305)+2.5125
Analytical Laboratory	ALS ChemexCanada
Number of samples analysed	8170
Sample preparation	Certifiedmethod:Crushing, drying, pulverising, splitting
Analytical Methods
X RayFlorescence (XRF)	ME-XRF1: Fe and other Metaloxides: LOIdetermined at1000~~0~~C
Induced CoupledPlasma (ICP)	ME-ICP61: fouracid digestion with33 element analysis
Quality Assurance/Control	Standards1 in50;Duplicates1 in 25,Blanks1 in 25
Geological Modelling Parameters
Geological Software	MapInfo
Geological Interpretation	25 geological cross sections: Variable line spacing; 100m and 200m
Lithological boundaries	Defined by geological mapping,logging and chemicalanalysis
Mineralisation envelop	Defined by geological logging and chemicalanalysis
Material Type	Defined by geological logging and chemicalanalysis
Hydrothermal breccia	Fragments of altered diorite magnetite in a matrix of magnetite ± pyrite,with magnetite up to 95% content.

Appendix 3 - Cusco Resource Announcement - 17/6/11

Massive Magnetite Massive lensoid magnetite body along nearly vertical intrusive contact with the intrusive.

Massive Magnetite	Massive lensoid magnetite body along nearly vertical intrusive contactwiththeintrusive.	Massive lensoid magnetite body along nearly vertical intrusive contactwiththeintrusive.	Massive lensoid magnetite body along nearly vertical intrusive contactwiththeintrusive.	Massive lensoid magnetite body along nearly vertical intrusive contactwiththeintrusive.
	Drilling Specifications
Drilling Method	Number of Holes		Total Metres
Diamond Drilling	68 HQ/BQ		649.40
Reverse Circulation	100		10481.60
Surveying Methods
Collar	Hand held Garmin and Leica GPX1230/ SR 9500 DGPS
Downhole	None
Sampling Method
Reverse Circulation	Sub sampling byriffle splitting: Variable samplingintervals
DiamondDrilling	Halfcore diamond sawcutting: Variable samplingintervals
	Block Model Parameters
Modelling Software	VULCAN,LEAPFROG, GEMS
Estimation Method	Ordinary kriging using omni-directional variograms to define element parametres
	X(m)	Y(m)		Z(m)
ParentBlocksize	10	10		5
Composites	Allsamplesregularised to2 mcomposites
Massivemagnetite	1335 composites2m in length
Breccia	657composites2m in length
Attributes
HB	Hydrothermalbreccia
MT	Massivemagnetite overgrowth
Fe	Total Fe% grade
S	Sulphurgrade
Cu	Coppergrade
Al2O3	AluminiumOxide grade
LOI	Loss on Ignition
P	Phosphorous grade
SiO2	Silica Oxide grade