STRIKE RESOURCES LIMITED — Capital/Financing Update 2012

Jun 5, 2012

Market Announcement

Drilling Commences at Bob 1 Iron Ore Project

Announcement Highlight

Drilling Commences at Bob 1 Iron Ore Project

Strike Resources (Strike or the Company) is pleased to announce the commencement of a diamond drilling program on the "Bob 1" zone of the Cerro Ccopane iron ore project in southern Perú by Cuervo Resources Inc (Cuervo). The first phase of the drilling program is expected to extend over a four-month period through September 2012, with a minimum of 4,500 metres of drilling to be carried out using up to three drill rigs. Reports on initial drill results are anticipated in July of this year.

The Bob 1 zone is considered highly prospective for iron ore. It contains strong magnetic and gravity anomalies (see Figure 1, below) coincident with a broad band of magnetite outcrops extending over 3 kilometres in strike length - the largest yet identified on the Cerro Ccopane property. Rock chip samples from these outcrops averaged above 63%Fe. The Bob 1 prospect is geologically similar to the Orcopora, Huillque and Aurora areas, where previous drilling has outlined iron ore mineral resources totalling 179 million tonnes at an average grade of 48.2%Fe (refer Table 1).

Prospect	Classification	Tonnes (Mt)	HeadFe (%)	Cut-off(% Fe)
Orcopura	Measured	19.7	48.26	20
	Indicated	35.9	45.91	20
	(Measured plusIndicated)	55.6	46.75	20
Orcopura	Inferred	51	43.7	20

Table 1 – Global Resources for the Cerro Ccopane Project

OR

Prospect	Classification	Tonnes (Mt)	HeadFe (%)	Cut-off(% Fe)
Orcopura	Inferred*	46	45.8	30
Huillque andAurora	Inferred	72	52.6	30
Total	Inferred	118	50.4	30

*Showing the inferred resource at Orcopura (previously modelled using a 20 % lower cut) now using a 30% lower cut, to enable a comparison between that resource and the inferred resource previously defined at the Huillque and Aurora prospects.

Strike has funded the Bob 1 drilling program as part of Cuervo's staged exploration program at its Cerro Ccopane project. Strike has provided CAD5.25 million for the current (Stage 1) program and, in return,

Strike Resources Limited (ABN 94 088 488 724) Level 2, 160 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

holds warrants which can be converted into 32.5% of Cuervo's shares, on an undiluted basis. Strike has the option to fund Cuervo's Stage 2 exploration program with CAD9.75 million, which would give Strike warrants to acquire a further 16.7% of Cuervo1 .

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The Cerro Ccopane project lies within 20 kilometres of the Santo Tomas (Cusco) iron ore project of Strike's joint venture company Apurimac Ferrum (see Figure 2 – below). Strike and Cuervo believe that a cooperative exploration effort between them will be strategic to the development Peru's large-scale iron ore potential.

Figure 1 – Magnetic Survey of Cuervo's Cerro Ccopane Project

Concessions not held by Cuervo.

1 Being 49.2% in total if Strike also provides the Stage 2 funding, on an undiluted basis, or approximately 46% on a fully diluted basis.

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Figure 2 – Apurimac, Cusco and Cerro Ccopane Project Concessions

JORC Code Competent Person Statement

The information in this document which relates to exploration results and mineral resources has been compiled by Mr Ian Cullen, B.Sc. (Geology), who is an employee of Strike Resources Ltd and is a member of the Australasian Institute of Mining and Metallurgy. 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 this information in the form and context in which it appears.

Wednesday, 6 June 2012

For further information:

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

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Appendix A: Aurora and Huillque Prospects – Resource Parameters

Resource Estimation Criteria
Background
Resource Date	February 2012
Project Name	Aurora and Huillque Prospects – Cerro Ccopane Iron Or Project
Ownership		Cuervo Resources , Strike earning up to 49%
Concession Status	Name		Area (km2)
		Huillque Prospect: Huini II	5
		Huillque Prospect: Posada 5	6
		Aurora Prospect: Huini III	6
Geographic Coordinate System		UTM Zone 19S Datum WGS 84
Resource Category	Inferred
Resource Location	Province of Paruro's District of Omacha, (Department of Cusco)
	southern Peru
Resource Dimensions		AURORA PROSPECT
	Easting	186200mE	186700mE
	Northing	8436000mN	8437500mN
	RL	4200m	4400m
	HUILLQUE PROSPECT
	Easting	190300mE	190800mE
	Northing	8441300mN	8440600mN
	RL	3600m	3700m
Geological Description
Genetic Type	Andean Porphyry Fe-Cu system and Calcic Fe Skarn
Geological Setting	The Andahuaylas–Yauri Cu-Fe-Au-Mo metallogenic belt. Iron
	mineralization associated with amphibole–(±biotite-bearing) dioritic
	intrusions belonging to the Andahuaylas-Yauri batholith.
	Emplacement and mineralisation occurred during the Middle
		Eocene to Early Oligocene epoch

Geological and Geochemical Data Base
Insitu Bulk Density	SGS Laboratories Lima Peru using Method: SGS-MN
	ME.(Determination of Specific Gravity Method-pycnometer).
Analytical Laboratory	SGS Laboratories Lima Peru
Number of samples analysed
Sample preparation	Certified method: Crushing, drying, pulverising, splitting
Analytical Methods
	CSA24V SGS-INI-ME-01 Sulphur– LECO sulphur analyser
	CLA01A SGS-MN-ME-59: Fe Total (Volumetric titration method).
	ICP40B SGS-MN-41: ICP 40B
Quality Assurance/Control	Standards 1 in 50; Duplicates 1in 25, Blanks 1 in 25 Company
	Standard Operating Procedures
Geological Modelling Parameters
Geological Software	MapInfo and Encom Discover validation software
Geological Interpretation	Geological cross sections: Variable line spacing;
Lithological boundaries	Defined by geological mapping, logging and chemical analysis
Mineralisation envelop	Defined by geological logging, magnetics and chemical analysis
Material Type	Defined by geological logging, magnetics and chemical analysis
	Altered diorite with magnetite ± pyrite, with magnetite up to 95%
	content.
Drilling Specifications (Aurora Prospect)
Drilling Method	Number of Hole	Total Metres
Diamond Drilling	25 HQ/NQ/BQ	1985.20

	Prefix: ADH 1 -25
Core Recoveries	Satisfactory. Overall 96% within mineralisation
Surveying Methods
Collar	Hand held Trimble 400SSI with Total Station final collar survey
Downhole	None
Sampling Method
Diamond Drilling	Half core diamond saw cutting: Variable sampling intervals.Completed using Standard Company Operation Procedures

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Drilling Specifications (Huillque Prospect)
Drilling Method	Number of Hole	Total Metres
Diamond Drilling	21 HQ/NQ/BQ	3040.20
	Prefix: HDH 1-21
Core Recoveries	Satisfactory. Overall 96% within mineralisation
Surveying Methods
Collar	Hand held Trimble 400SSI with Total Station final collar survey
Downhole	None
Sampling Method
Diamond Drilling	Half core diamond saw cutting: Variable sampling intervals.
	Completed using Standard Company Operation Procedures

Block Model Parameters
Estimation Method	Polygonal Method using geological cross sections. Volumes
	determined between the sections. The end section volumes were
	determined by projecting, off grid, the sectional area for a distance
	equal to the midpoint to the adjacent section. Grade was
	determined by length weighted averages according to the sectional
	area of influence of each drill hole.