STRIKE RESOURCES LIMITED — Capital/Financing Update 2012

Jan 16, 2012

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Market Announcement

Exploration Up-date

Announcement Highlights

• President Humala’s visit to Andahuaylas prompts pro-active engagement by several communities including for key Opaban project

• Exploration programs in Peru expected to ramp-up during 2012, initially with testing new target models at Colcabamba

• Approval received for exploration programs at Colcabamba

• • Cuervo Resources gains exploration approvals for exciting Bob1 Project

Strike is pleased to announce that its Peruvian joint venture company Apurimac Ferrum S.A. (“ AF ”) has re-engaged with several communities in the Apurimac and Cusco regions to seek exploration approvals and has received approvals from the Colcabamba community to undertake exploration activities.

President Humala visits Andahuaylas in Apurimac

During late 2012 a number of protests against mining projects and illegal mining activities broke out in several regions of Peru. The most significant of these were in the Carjamarca region and focussed on the major Minas Congas project (US$4.5B), however protests also occurred elsewhere including at Andahuaylas in the Apurimac region, where protestors blocked roads for several weeks.

During this period AF halted exploration and withdrew from formal discussions with communities at their request.

The Federal Government, led by President Humala, has consistently stated that it supports responsible mining in Peru and sees mining industry revenues as crucial to the delivery of its social programs. During the protests this view was consistently delivered by both Federal and Regional Governments, including the leaders of Apurimac, with all levels of government working to address legitimate concerns of protestors while ensuring sound, responsible mining industry investments are encouraged.

In early January President Humala visited Andahuaylas to meet with regional officials and delivered a public address. During his visit he reiterated that Apurimac would benefit from a strong and sustainable mining industry, which would bring significant benefits to the region and local communities through direct and indirect employment opportunities, social programs and royalty payments.

Subsequent to the President’s visit AF has been approached by several communities to recommence formal discussions regarding approvals for exploration activities on its projects

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

in the Apurimac and Cusco regions. This includes the major Opaban project, which hosts the bulk of AF’s high-grade magnetite iron-ore.

While these discussions are at an early stage, AF expects approvals will flow progressively over the short to medium term. Accordingly AF is planning to ramp-up its exploration programs during the first half of 2012, subject to finalising funding arrangements with its shareholders. Strike has indicated its preparedness to fund its share of AF’s costs until the end of the Standstill Period in September 2012.

Colcabamba – Approvals and Exploration Drilling

Background and previous geological interpretation

The iron mineralisation at Colcabamba is hosted by regional metasomatic skarns developed in limestone roof pendants above the Andahuaylas-Yauri batholith and associated with late stage dykes within and above the intrusion. Most of the iron mineralisation occurs as magnetite within the exoskarn, which has developed in the limestone above the intrusion.

During the first half of 2011 an eight (8) hole, 2,336 metre drilling programme was completed at Colcabamba, which tested two (2) separate iron-ore anomalies defined by geological mapping and a ground magnetic survey.

The iron ore mineralisation intersected was coarse-grained magnetite, similar in style to that at the Company’s Opaban Iron-Ore Project, located 30 kilometres to the north. The most significant results recorded in the drilling program were from holes COL-007 and COL-010, which intersected several zones of high-grade magnetite with narrow intervals of low-grade mineralisation. These composite zones were broader than those seen in the previous drill holes. In COL-007 three mineralised zones with a total combined thickness of 36 metres and average grade of 56% Fe were intersected with two low-grade or internal dilution zones of less than 5 metres’ width. Likewise COL-010 intersected a composite iron-ore interval of 57m at 49% Fe or overall 61.4m at 47.8% Fe[1] .

Although high-grade magnetite mineralisation was interested in all holes, the mineralised intersections were generally narrower than expected as the mineralised zones were interpreted as steeply dipping.

A new geological model and enhanced iron ore potential

During October 2011 AF engaged the services of a geological consultant Dr Warren T Pratt, a recognized authority on Andean copper, gold and iron ore deposits, to undertake a geological review of the Colcabamba prospect.

The review consisted of the re-logging of core from the 8 diamond drill holes, with special attention given to:

• Measuring the bedding angles within the mineralised exoskarn.

• Differentiating between exoskarn (limestone hosted) and endoskarn (in the intrusive).

• Differentiating between the various igneous intrusives and timing.

The review concluded that:

• Magnetite mineralisation is mainly located within the exoskarn and is probably stratiform, following the contact between a semi-regional batholith and the overlying host limestone rock.

1 Significant drilling results at Colcabamba have previously been disclosed in full and are contained, for example, in the Company’s March and June 2011 Quarterly Activities Reports.

• Widespread (sub-horizontal) bedding has been preserved within the exoskarn.

• Magnetite mineralisation is formed as a retrograde skarn and is associated with epidote, tremolite, actinolite and chlorite mineral assemblage.

• Magnetite mineralisation has overprinted an earlier garnet and diopside skarn alteration assemblage.

Importantly, these conclusions led to an alternative geological model for the development of iron-ore mineralisation at Colcabamba. This model is that the bulk of the magnetite skarn is hosted by flat-lying limestone units rather than steeply dipping dykes. Under this model the overall potential of the mineralised system is significant and further drilling is required to confirm this potential.

The review also recognised that the elevated Cu grades (0.1 - 0.2% Cu) occurring within some of the drill hole intersections has highlighted the potential for an iron-oxide/copper/gold (IOCG) or porphyry-style copper systems. Future exploration programs will assess the prospectivity for these styles of mineralisation.

Approvals and work programs

On 8 January 2012, the Colcabamba community granted permission for AF to undertake exploration activities for an additional one-year period. AF welcomes the opportunity to continue its close working relationship and social programs with the community which commenced in November 2010 and to progress the field work.

AF has also applied for an extension to the existing environmental approval (DIA) to enable the drilling to test the new geological model. All approvals should be received for drilling to commence during second quarter 2012.

Additional work to be undertaken during the first quarter to assist in the preparation and targeting of mineralisation will include:

• Archaeological surveys covering the proposed drill sites and access roads.

• Completion of detailed geological and structural mapping.

• High-resolution ground magnetic survey.

• Drill-hole planning.

• Selection of drilling contractor.

The exploration at the Colcabamba Iron-Ore Project forms part of the Company’s business strategy in Peru, where it is planning to build on its 269 Mt high-grade JORC Resource[2] base to establish an initial 15-20 Mtpa production capability, centred on the Company’s cornerstone project at Opaban.

Cuervo Approval for Bob1 Drilling

Cuervo Resources Inc (“ Cuervo ”) has informed Strike that it has received formal approval from the relevant communities for exploration programs (including drilling) to commence at its Bob1 prospect in Cusco. Construction of the access road to Bob 1 commenced earlier and, depending on weather conditions, this is expected to be completed during March, enabling drilling to be undertaken from late March.

Bob 1 represents Cuervo’s main drilling target during its next phase of exploration. It comprises a strong magnetic anomaly extending over at least 6 kilometres of strike.

2 Comprised of a 142.2 Mt Indicated Resource at 57.84% Fe and a 127 Mt Inferred Resource at 56.7% Fe at the Opaban I and III concessions in Apurimac. AF also has a 104 Mt Inferred Resource at Cusco at 32.6% Fe.

Extensive magnetite ironstone outcrops occur over much of the magnetic trend and initial surface sampling has delivered average iron grades of >60%Fe.

Strike holds warrants over Cuervo shares which, if exercised, would give Strike over 49% of Cuervo, undiluted, or approximately 46% on a fully diluted basis.

Tuesday, 17 January 2012

For further information:

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

The information in this document that relates to mineral resources and exploration results 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.