STRIKE RESOURCES LIMITED — Capital/Financing Update 2021

Jul 27, 2021

MARKET ANNOUNCEMENT

Maiden Iron Ore Shipment in Peru Imminent Vessel Chartered and Ore Moving to Port for Loading

HIGHLIGHTS

• First shipment of (up to) 35,000 tonnes of Apurimac Premium Lump DSO from Peru now imminent
• Bulk Carrier Vessel chartered for arrival at Port of Pisco on 11 August
• Transportation of ore from near port stockpile facility into Pisco Port Terminal underway ahead of ship loading
• The targeted 65% Fe Apurimac Premium Lump DSO product expected to deliver a significant premium over 62% Fe Benchmark Price
• Estimated FOB cost of ~US\$80 per tonne
• Continued ramp up of production logistics to increase annualised output
• Multiple repeat shipments planned targeting near term annualised production of ~250,000 tonnes

Strike Resources Limited (ASX:SRK) (Strike) is pleased to confirm that it has chartered a Bulk Carrier Vessel for its first shipment of up to 35,000 tonnes of Apurimac Premium Lump direct shipping iron ore (DSO) sourced from its Apurimac Project in Peru.

The chartered vessel is scheduled to arrive at the Port of Pisco on or around the 11 August. Ore is currently being transported by trucks from a local stockpile area into a dedicated storage area within the Pisco Port Terminal. Haulage of the ore to the Port will be completed in advance of the vessel's scheduled arrival with loading of approximately 30,000 to 35,000 tonnes of Apurimac Premium Lump on to ship expected to take approximately 4 days. The ore will be exported to China pursuant to Strike's Offtake Agreement with Good Importing International Pty Limited.¹

The high grade (~65% Fe) Apurimac Premium Lump DSO product is expected to provide a significant premium to the 62% Fe benchmark price, which is currently ~US\$215 per tonne; the current Lump premium of ~US\$0.50 per dry metric tonne unit translates to an additional ~\$US30 per tonne over the current benchmark price.

Following this first shipment, Strike is targeting multiple repeat shipments with the objective of securing annualised sales in the near term of ~250,000 tonnes from the Apurimac Project. Strike is continuing to advance securing additional crushing and transport capacity to meet this annualised target.

Given the current strong demand and premium prices for high grade Lump Iron Ore there is a clear opportunity for Strike to generate significant near-term cashflows from this operation.

¹ Refer Strike's ASX Announcement dated 14 April 2021: Peru Iron Ore Offtake Agreement Signed with US\$2 Million Prepayment

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 William Johnson, Managing Director:

The scheduling of the first shipment of iron ore from the Port of Pisco is a key milestone in the development of Strike's 100% owned high grade Apurimac Iron Ore Project.

Strike is now focussed on building its local infrastructure in Peru to support an increased annualised production rate in the near term.

Loading Apurimac Premium Lump DSO for Transport to Pisco Port

Trucks lining up to collect Apurimac Premium Lump Ore for Transport to Pisco Port

Trucks loaded with Apurimac Premium Lump DSO arriving at Pisco Port

Pisco Port, Peru

Apurimac Iron Ore Project – JORC Mineral Resource

The Apurimac Project (Strike – 100%) has a JORC Code (2012 Edition) compliant Mineral Resource of 269.4 Mt, consisting of:

• a 142.2 Mt Indicated Mineral Resource at 57.8% Fe; and
• a 127.2 Mt Inferred Mineral Resource at 56.7% Fe.

Category	Concession	Density t/m3	Mt	Fe%	SiO2%	Al2O3%	P%	S%
Indicated	Opaban 1	4	133.71	57.57	9.46	2.54	0.04	0.12
Indicated	Opaban 3	4	8.53	62.08	4.58	1.37	0.07	0.25
Inferred	Opaban 1	4	127.19	56.7	9.66	2.7	0.04	0.2
Total Indicated and Inferred			269.4	57.3	9.4	2.56	0.04	0.16

Refer Strike's ASX Announcement dated 20 January 2015: Apurimac Mineral Resources Updated to JORC 2012 Standard.

In addition to the current JORC Mineral Resource, there is significant exploration potential given the deposits are open at depth and along strike (with very promising drill results including 154m @ 62% Fe) with extensive undrilled gravity and magnetic anomalies.

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

ABOUT STRIKE RESOURCES LIMITED (ASX:SRK)

Strike Resources Limited is an ASX listed resource company which is developing the 1.5Mtpa Paulsens East Iron Ore Project in Western Australia. Strike also owns the high grade Apurimac Iron Ore Project in Peru where it has commenced mining of high-grade surface deposits and entered into an offtake agreement with an international ironore trading firm to export the "Apurimac Premium Lump" DSO product of ~65% Fe. Strike has a 43% shareholding in Lithium Energy Limited (ASX:LEL), which was recently spun-out of Strike under a \$9m IPO. Lithium Energy is developing battery minerals related assets - the Solaroz Lithium Brine Project in Argentina and the Burke Graphite Project in Queensland.

JORC Code (2012) Competent Person's Statement

The information in this document that relates to Mineral Resources and other Exploration Results in relation to the Apurimac Iron Ore Project (Peru) is extracted from the following ASX market announcement made by Strike Resources Limited on:

• 20 January 2015: Apurimac Mineral Resources Updated to JORC 2012 Standard.

The information in the original announcement that relates to these Mineral Resources and other Exploration Results (as applicable) is based on, and fairly represents, information and supporting documentation prepared by Mr Ken Hellsten, B.Sc. (Geology), who is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Hellsten was a principal consultant to Strike Resources Limited and was also formerly the Managing Director of Strike Resources Limited (between 24 March 2010 and 19 January 2013). Mr Hellsten 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 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (the JORC Code). The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement (referred to above)..

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.