STRIKE RESOURCES LIMITED — Capital/Financing Update 2012

Nov 5, 2012

Tuesday, 6 November 2012

AF Shoot-out Update

Strike Resources Limited (Strike or the Company) refers to the counter-offer by D&C Pesca to purchase its shares in Apurimac Ferrum S.A. (AF) and pay the debts owed to it by AF for a total consideration of approximately US\$58.2 million (M) 1 , as announced on 17 October 2012 (the Counter-Offer).

The Counter-Offer amount, due by midnight on 5 November 2012 (Lima time) was not paid. In the initial Counter-Offer announcement Strike recommended that shareholders consider that there was a substantial completion risk relating to the counter-offer: this assessment has now been confirmed.

Strike reserves its right to pursue all remedies available to it as a result of non-payment of the Counter-Offer amount, including initiating the regime outlined in the AF Settlement Agreement (AFSA) that applies where an obligation under the Shoot-out is not honoured. Under this regime, the companies comprising D&C² are now required to purchase Strike's AF shares for US\$100 and repay its loans to AF, in the amount of approximately US\$30.8M, by 15 November 2012³ , with a further US\$4.3M repayable by AF to Strike by 31 December 2012.

Strike notes that the D&C Pesca Counter-Offer was unusual, in that it was far in excess of the other Shoot-out bids and thus far higher than required to win the Shoot-out. As Strike had expected to receive only the amount of its outstanding loans if it lost the Shoot-out, as announced on 6 August 2012⁴ , it had been treating the Counter-Offer with some reservation.

The Strike Board recommends that shareholders recognise that a completion risk remains regarding D&C's obligation to pay the amount of approximately \$30.8M on 15 November 2012.

The Company will continue to update Shareholders on developments in the Shoot-out process.

For further information:

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

¹ Comprised of approximately US\$27.5M for the purchase of Strike's AF shares and US\$30.8M to pay the amount of a debt owed to Strike by AF. AF also owes Strike a further US\$4.3M for loans advanced since May 2012. The Shoot-out result brings the date for repayment of these loans forward to 31 December 2012, such that Strike would have received approximately US\$62M in total had the Counter-Offer been honoured.

² D&C Pesca S.A.C., D&C Group S.A.C. and Ausinca Peru S.A.

³ The regime of consequences referred to constitutes Strike's principal remedy under the AF Settlement Agreement in the case of default, although it does not necessarily constitute Strike's exclusive remedy. Based on legal advice, this announcement is not intended to convey the full range of legal options that may be available to Strike in the event that has occurred. Without limiting the foregoing, Strike reserves its right to seek payment of amount of the Counter-Offer as an additional or alternative remedy.

⁴ See Strike's 6 August 2012 ASX announcement: "Strike Makes Shoot-out Price Offer".

About Strike Resources Limited

Strike Resources is an Australian-listed resources company with two principal projects in the attractive bulk commodities market.

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Strike's Apurimac and Cusco Iron-Ore Projects in Perú are large-scale iron ore projects, with Apurimac in the prefeasibility study stage. The Company is seeking to establish a 15 - 20 million tonne per annum (Mtpa) operation in Perú based on current iron ore mineral resources totalling 374 million tonnes (Mt) 5 and potential access to additional resources of 178.6Mt⁶ held by Cuervo in Cusco, all with significant exploration upside. (Strike is in a process under its joint venture agreement which, if followed by the other JV participants, is expected to lead to the divestment of its interest in these projects).

Strike also holds warrants in Canadian-listed Peruvian explorer Cuervo Resources Inc. (Cuervo) which, if exercised, would allow it to acquire up to 49% of Cuervo.

Strike holds 100% of the rights to mine a coal concession near Berau, Indonesia, subject to a royalty to the concession owner. Negotiations aimed at settling a dispute with the concession owner are at an advanced stage.

JORC Code Competent Person Statement

The information in this document that relates to exploration results and mineral resources has been compiled by Mr Ken Hellsten, B.Sc. (Geology), who is an employee of Strike Resources Ltd and is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Hellsten has sufficient experience 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 Hellsten consents to the inclusion in this document of the matters based on this information in the form and context in which it appears.

⁵ Comprised of an indicated resource of 142.2 Mt at 57.84% Fe and an inferred resource of 127 Mt at 56.7% Fe at Apurimac and an inferred resource of 104 Mt at 32.6% Fe at Cusco.

⁶ Comprised of a measured resource of 19.7 Mt at 48.3% Fe, an indicated resource of 35.9 Mt at 45.9% Fe and an inferred resource of 50.8 Mt at 43.7% Fe at the Orcopura prospect and an inferred resource of 72Mt at 52.6% Fe at the Huillque and Aurora prospects.