STRIKE RESOURCES LIMITED — Capital/Financing Update 2021

Oct 28, 2021

Friday, 29 October 2021 ASX Code : SRK

MARKET ANNOUNCEMENT

Second Iron Ore Shipment from Peru

HIGHLIGHTS

• 15,000 tonne industrial trial of Apurimac Premium Lump DSO loaded and shipment underway to South American steel mill customer
• Steel mill's discharge port is located approximately 6 days voyage from Peru
• Significant savings in shipping due to shorter voyage time (approximately 6 days versus greater than 30 days to China)
• Shipment made on an FOB basis with a competitive market price with the high grade nature of Apurimac Lump DSO ore attracting a grade and lump premium
• Successful trial could lead to longer term regular offtake

Strike Resources Limited (ASX:SRK) (Strike) is pleased to confirm that a second shipment of 15,000 tonnes of Apurimac Premium Lump iron ore (DSO) from Strike's Apurimac Iron Ore Project has been loaded onto a ship and is currently underway to a South American steel mill (Buyer).

The shipment is to be used by the Buyer as an industrial trial for their steel manufacturing facility where the Buyer has a requirement for long term, regular supplies of ore which could be potentially met by Strike from its Apurimac Project, if the trial is successful.

The Buyer's discharge port is located approximately 6 days voyage from the loading port in Peru, which affords considerable saving in shipping costs compared to China (approximately 32 days voyage).

The shipment was made on an FOB basis with a competitive market price calculated by reference to the high grade nature of the Apurimac Lump DSO ore attracting a premium for the grade and lump composition of such ore.

Strike will now await the results of the trial shipment.

William Johnson, Managing Director:

"We are pleased to have now completed our second shipment from Peru, in this instance to a local South American customer which has afforded Strike the benefit of a significantly shorter voyage time reducing shipping costs considerably and minimising pricing risk compared to sales to customers in China.

The Apurimac Lump DSO product is a premium ore which Strike believes will continue to attract premium pricing.

We look forward to the results of the industrial trial by our customer and will work with them to ensure a stable and long term supply of iron ore"

www.strikeresources.com.au

STRIKE RESOURCES LIMITED A.B.N. 94 088 488 724

Level 2, 31 Ventnor Avenue, West Perth, Western Australia 6005 T | (08) 9214 9700 F | (08) 9214 9701 E | info@strikeresources.com.au

AUTHORISED FOR RELEASE - FOR FURTHER INFORMATION:

Farooq Khan William Johnson Executive Chairman Managing Director T | (08) 9214 9700 T | (08) 9214 9700 E | cosec@strikeresources.com.au E | cosec@strikeresources.com.au

FORWARD LOOKING STATEMENTS

This document contains "forward-looking statements" and "forward-looking information", including statements and forecasts which include without limitation, expectations regarding future performance, costs, production levels or rates, mineral reserves and resources, the financial position of the Company, industry growth and other trend projections. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "is expecting", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes", or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might", or "will" be taken, occur or be achieved. Such information is based on assumptions and judgements of management regarding future events and results. The purpose of forwardlooking information is to provide the audience with information about management's expectations and plans. Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forwardlooking information. Such factors include, among others, changes in market conditions, future prices of minerals/commodities, the actual results of current production, development and/or exploration activities, changes in project parameters as plans continue to be refined, variations in grade or recovery rates, plant and/or equipment failure and the possibility of cost overruns.

Forward-looking information and statements are based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date such statements are made, but which may prove to be incorrect. The Company believes that the assumptions and expectations reflected in such forward-looking statements and information are reasonable. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. The Company does not undertake to update any forward-looking information or statements, except in accordance with applicable securities laws.