STRIKE RESOURCES LIMITED — Capital/Financing Update 2011

Mar 10, 2011

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Market Announcement

Apurimac Iron Ore Project - Exploration Update

The Company is pleased to present an update on exploration activities currently underway within the Apurimac Iron Ore Project[1] located in the Southern Highlands of Peru (see Figure 1 below).

Announcement Highlights

• Assay results received from two diamond drill holes testing Area A at the Colcabamba Iron-Ore Prospect.

• Significant intersections of iron mineralisation similar in style to the Opaban deposit, but with higher sulphur content, including:

• 25.7 metres at 47.8% Fe, 1.54% Al2O3, 7.24% SiO2, 3.7% S and 0.017% P from 124.60 metres in hole COL-001;

• 11.7 metres at 48.4% Fe, 2.72% Al2O3, 10.40% SiO2, 3.4% S and 0.018% P from 17.7 metres in hole COL-002; and

• 10.2 metres at 56.9% Fe, 1.35% Al2O3, 8.55% SiO2, 2.6% S and 0.003% P from 45.8 metres in hole COL-002 .

See Appendix A for a full list of intersections.

• Broad zones of alteration containing strongly anomalous copper (Cu) with sporadic silver (Ag) and gold (Au) values were intersected in both drill holes, including:

• 18 metres at 619 ppm Cu from 1.3 metres; and

• 18 metres at 1430 ppm Cu from 168 metres,

in hole COL-001; and

• 8.7 metres at 804 ppm Cu, 0.13 ppm Au and 3 ppm Ag from 9 metres;

• 16.1 metres at 415 ppm Cu from 62 metres; and

• 47.7 metres at 345 ppm Cu from 113.8 metres,

in hole COL-002.

• Geological mapping and surface rock chip sampling have identified several areas of iron-stone, including a new target area which has returned iron values up to 61.7% Fe, 1560 ppm Cu and 1.82 ppm Au in separate samples. See Appendix B for a full list of rock chip analysis results.

Detailed Results

As part of a 10-hole drilling program to test three separate iron-ore targets at the Colcabamba IronOre Prospect, the Company has now completed the three planned holes at the target known as Area A. Drilling is currently progressing on the first hole of a three drill-hole campaign at the Area C target (see Figure 2 below).

Assays have been received for holes COL-001 and COL-002, while results for COL-003 have been reported previously. Hole COL-001 intersected a series of coarse-grained magnetite zones with minor hematite and goethite up to 25 metres in (down-hole) thickness. The iron mineralisation occurs as sub-vertical lenses hosted by an intrusive complex of diorite to quartz monzonite dykes

and sills and controlled by a number of faults and hydrothermal breccias. The mineralisation also contains disseminated sulphides dominated by pyrite, with lesser pyrrhotite and chalcopyrite.

Hole COL-002 also intersected several massive to semi-massive, coarse-grained magnetite mineralised zones individually up to 11.7 metres thick (down hole).

Iron mineralisation intersected within target Area A is similar to the Company’s Opaban Iron-Ore Project, which is located 30 kilometres to the north. Geological interpretation suggests that the mineralisation intersected at Area A is narrower than previously interpreted from the surface mapping and has high sulphur content (see Figure 3 below). Although the mineralisation style is similar to the Opaban deposit, initial interpretations indicate that target Area A has limited iron tonnage potential.

Drill testing of Area B is also planned during the current program.

Significantly, extensive anomalous copper and silver intervals have been intersected within the wall rock alteration surrounding the magnetite mineralisation. Pyrite, chalcopyrite and calcite veins and veinlets have been observed cutting the massive magnetite mineralisation. The geological setting, geochemistry and associated alteration observed suggest the footprint of a porphyry style coppergold hydrothermal mineralisation and alteration system with the magnetite-rich zones representing the upper portion of the system. These base metal results are encouraging and have enhanced the exploration prospectivity within the Colcabamba area for a bulk-tonnage base metals style of deposit.

The Apurimac concessions (including the Colcabamba Prospect) lie within the tectonic Andahuaylas-Yauri Belt and metallogenic province, which hosts a number of world-class polymetallic deposits, including Las Bambas. Las Bambas contains publicly-announced resources of 1.132 billion tonnes at 0.77% Cu and is currently being developed by Xstrata Copper.

In addition, results have also been received from 28 surface rock chip samples collected during geological mapping conducted approximately 1 kilometre south-east of target Area A at Colcabamba. This area is now referred to as Area D (see Figure 2 below). Field mapping and surface rock-chip sampling is continuing with additional rock-chip results due this quarter. The results confirm the presence of outcropping coarse-grained magnetite mineralisation with minor hematite and goethite over a strike length of 250 metres. Eight samples returned values greater than 50% Fe, with a maximum value of 61.7% Fe.

Encouragingly, all samples have returned anomalous values of copper, with several also containing anomalous values of gold. The average of the 28 samples is 859 ppm Cu, with a maximum value of 1560 ppm (0.16%) Cu. Eleven samples have returned anomalous gold values (> 0.01 ppm Au) with a maximum gold value of 1.85 ppm Au.

The outcropping iron mineralisation is coincident with a strong magnetic geophysical anomaly. This new target area lies outside the current drilling programme’s scope, however, it represents a future walk-up drill target for the Company once community approvals are received.

The Company will await the results from the remainder of the Colcabamba drilling and surface sampling programmes and regional assessment before considering further exploration targeting base metal mineralisation, however the initial results are considered encouraging.

JORC Code Competent Person Statement

The information in this document which relates to exploration results at Colcabamba has been compiled by Mr Ian Cullen B.Sc. (Geology), who is a member of the Australasian Institute of Mining and Metallurgy and is an employee of Strike Resources Limited. Mr Cullen 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 Cullen consents to the inclusion in this document of the matters based on his information in the form and context in which it appears.

Friday, 11 March 2011

For further information:

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

Figure 1: Apurimac Iron-Ore Project concessions and location of the Colcabamba Iron-Ore Prospect

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Apurimac Iron-Ore Project
Opaban
Project
Cusco Iron-
Ore Project
Colcabamba Santo Tomas
Prospect Project
Apurimac Ferrum Tenements Status
Showing the Colcabamba Prospect
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Figure 2: Colcabamba Iron Ore Prospect: Target areas and drill hole locations

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
APURIMAC IRON ORE
PROJECT
COLCABAMBA IRON
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Figure 3: Drill cross sections for COL-001 and COL-002 at Colcabamba Iron-Ore Prospect showing significant intersections

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18m@619 ppm Cu
11.7m@48.4 % Fe
16.10m@415 ppm Cu
25.7m@47.8 % Fe
10.2m@56.9 % Fe
47.7m@345 ppm Cu
18m@1430 ppm Cu
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Appendix A

Colcabamba Iron-Ore Prospect Summary Diamond Drill-Hole Results – February 2011

Hole ID	PSAD56 Easting	PSAD56 Northing	Dip	Azimuth	From(m)	To(m)	Down Hole Width(m	) Fe%	Al2O3 %	SiO2 %	P %	S%	LOI %	Mineralisation Type
COL-001	688449	8452884	-55	245	108.15	116.9	8.75	35.3	1.13	8.08	0.019	3.4	4.1	Magnetite
					124.6	150.3	25.7	47.8	1.54	7.24	0.017	3.7	4.8	Magnetite
COL-002	688604	8452904	-55	250	17.7	29.4	11.7	48.4	2.72	10.40	0.018	3.4	2.1	Magnetite
					45.8	56	10.2	56.9	1.35	8.55	0.003	2.6	2.0	Magnetite
					92.3	95.5	3.2	57.5	1.02	5.65	0.008	3.6	4.3	Magnetite
					98.7	105.2	6.5	59.2	1.00	5.41	0.016	4.1	3.1	Magnetite
Intervals calculated using a 30% Fe cut-off gradefor a minimum width of 3 metre and including up to 3 metres internal waste.
All samples were analysed using an X - Ray Fluorescence Spectrometry with Loss on Ignition (LOI) determined using Thermo Gravimetric analyses at 1000 0 C
Allgrades reported here are conservative, with the occasional missing interval(due to core loss) being assigned zero valuefor the calculation of the intercept grades.

Hole ID	**PSAD56 Easting **	PSAD56 Northing	Dip	**Azimuth **	From(m)	To(m)	**Down Hole Width(m) **	Cuppm (ICP)	Auppm	Ag ppm
COL-001	688449	8452884	-55	245	1.3	19.3	18.00	619	0.00	0.10
					52.7	57.9	5.20	709	0.02	0.45
					76.6	80.1	3.50	324	0.00	0.00
					102.3	108.15	5.85	275	0.00	1.14
					116.9	124.6	7.70	218	0.14	1.21
					168.0	186.0	18.00	1430	0.02	0.47
COL-002	688604	8452904	-55	250	9	17.7	8.70	804	0.13	3.41
					35	45.8	10.80	218	0.00	0.00
					62	78.1	16.10	415	0.00	0.00
					113.8	161.5	47.70	345	0.00	0.46
Intervals calculated using a 100ppm Cu cut-off gradefor a minimum width of 3 metre and including up to 2 metres internal waste.
Copper(Cu) and Silver(Ag) analyses were determined using ICP-MS method
Gold (Au) analysis was determined using the AAS method
Allgrades reported here are conversative, with the occassional missing interval(due to core loss) being assigned zero valuefor the caluculation of the intercept grades.

Appendix B

Colcabamba Iron-Ore Prospect Rock-Chip Sampling Results

Sample ID	PSAD56 Easting	PSAD56 Northing	Fe%	Cuppm	Auppm
19003	689018	8452314	61.2	550	0.052
19004	689019	8452309	34.2	1560	0.164
19005	689027	8452307	50.0	838	ND
19006	689030	8452306	19.4	720	ND
19007	689029	8452304	35.7	700	ND
19008	689030	8452301	11.7	522	ND
19009	689051	8452289	26.6	1230	ND
19010	689051	8452286	46.3	1100	1.82
19011	689053	8452290	50.0	1320	ND
19012	689071	8452282	54.1	840	ND
19013	689074	8452282	45.1	1370	0.100
19014	689076	8452280	43.9	1440	0.064
19015	689081	8452278	28.3	1250	ND
19016	689080	8452273	11.8	479	ND
19017	689081	8452271	38.0	842	ND
19018	689107	8452261	43.4	1500	ND
19019	689126	8452227	16.4	523	ND
19020	689118	8452227	58.7	430	ND
19021	689161	8452216	43.1	1070	0.038
19022	689150	8452186	20.5	807	0.020
19023	689171	8452201	11.5	818	0.021
19024	689173	8452196	40.6	610	ND
19025	689177	8452187	50.0	779	ND
19026	689181	8452182	16.8	991	0.037
19027	689188	8452175	50.0	251	0.051
19028	689182	8452172	9.9	190	0.011
19029	689568	8452374	61.7	370	ND
19030	689574	8452394	14.3	956	-0.005
All samples were analysed using an X - Ray Fluorescence Spectrometry with Loss on Ignition (LOI) determined using Thermo Gravimetric analyses at 1000 0 C
Copper(Cu) and Silver(Ag) analyses were determined using ICP-MS method
Gold (Au) analysis was determined using the AAS method
ND: Not Determined