STRIKE RESOURCES LIMITED — Capital/Financing Update 2011

Jun 30, 2011

Strategic Acquisition – Apurimac/Cusco Iron Ore Projects

Announcement Highlights

• Purchase of additional 12% of Apurimac Ferrum S.A. (AF) shares from Iron Associates Corporation (IAC)
• Strike shareholding in AF increases to 50 – 56%
• Consideration of US$1.2 million and 9 million SRK shares (6.3% undiluted)
• Exclusivity Agreement signed with D&C Group to negotiate potential purchase of remaining AF shares on similar terms

IAC Share Purchase and Loan Assignment

Strike Resources Ltd is pleased to announce that it has executed an agreement with Iron Associates Corporation ("IAC") to purchase IAC's interest in Apurimac Ferrum S.A. ("AF"), the Peruvian company through which Strike holds its interest in the Apurimac and Cusco iron-ore projects in Peru. As a result of this strategic transaction SRK's shareholding in AF has increased from 44% to up to 56%.

Strike has been in discussions with the AF shareholders over the past year to explore opportunities to increase its shareholding in AF. This transaction is the first stage in the Company's strategy to simplify the AF shareholding structure and increase and consolidate its presence in the prospective Apurimac and Cusco regions of Peru.

Key Terms

The key terms of the agreement are:

• o Strike has acquired IAC's 12% shareholding in AF.
• o IAC to assign to Strike a loan of US$ 5.245 million (including interest) owed by AF to IAC. This loan is convertible to shares in AF in 2012 under the terms of the Settlement Agreement between the AF shareholders.
• o IAC held a right, in certain circumstances, to convert its AF shareholding to a royalty from AF's future production. This royalty right has now been extinguished.
• o Strike paid IAC US$1.2m in cash on the execution of the agreement and will issue IAC 9 million Strike shares as consideration under the agreement. These shares will represent 6.3% of Strike's issued capital.

The Company believes this transaction will provide significant benefits for shareholders in both the short and longer term. Initially, the simplification of the AF shareholding structure will improve operational efficiency and reduce risks during the exploration and project execution phases. In addition, over the longer term it enhances the ability to attract strategic partners to develop the Apurimac and Cusco iron ore projects.

IAC Buy-Out Option and Exclusivity Agreement

Strike has also signed an agreement with the other major AF shareholder, the D&C Group, giving Strike negotiating exclusivity for 90 days. Under this agreement the parties agree to negotiate in good faith the potential acquisition of D&C's share in AF on pro rata terms to the IAC acquisition.

If agreement can be reached then Strike will move to 100% ownership of AF. If the parties do not agree terms then D&C will have 10 working days to exercise its right to purchase from Strike 50% of the AF shares which Strike acquired from IAC on equivalent terms. In this case Strike and D&C will each hold 50% of AF.

Friday, 1 July 2011

For further information:

Malcolm Richmond Ken Hellsten Acting Chairman Managing Director T | +61 8 9324 7100 T | +61 8 9324 9700