STRIKE RESOURCES LIMITED — Capital/Financing Update 2022

Feb 3, 2022

Friday, 4 February 2022 ASX Code: SRK

MARKET ANNOUNCEMENT

Updated Paulsens East Feasibility Study - Optimised Staged Production and Lower Capex and Opex Costs

SUMMARY

• ➢ Paulsens East Iron Ore Project Feasibility Study of October 2020 has been updated to reflect a two stage development with optimised mining operations that reduces Capex and Opex and improves project economics based on current market price of iron ore:
  • Stage 1 Production will focus on surface detrital and low strip ratio materials of up to 400,000 tonnes to be shipped through the Utah Point Multi-User Bulk Handling Facility at Port Hedland.
  • Stage 2 Production at an annualised rate of up to ~2Mtpa proposed to transition from Utah Point to Port of Ashburton at Onslow (reducing trucking distance by ~365kms), with Stage 2 ramp-up expected to be partially funded by Stage 1 cash flows.
• ➢ Project economics continue to remain attractive at a Benchmark iron ore price of US$110/t or above:
  • At US$110/t, Paulsens East has a forecast net cashflow of ~$138 Million and NPV of ~$104 Million and an IRR of 132% over an initial 3.5 mine life.
  • If US$135/t (versus recent current prices exceeding US$140/t) is sustained over LOM**,** Paulsens East has the potential to generate $309 Million in net cashflows.
• ➢ Average C1 Costs of ~US$60/t for LOM and total LOM breakeven price of ~US$87/t CIF (Cost, Insurance, Freight) China (and inclusive of royalties).
• ➢ Total Production Capex required is now only ~$3.4 Million for Stage 1 Production, which could largely be funded by a prepayment for offtake or other financing facility,
• ➢ A further Capex of ~$3 Million is required to ramp up to Stage 2 full annualised production of ~2Mtpa, which is to be partially funded from Stage 1 cash flows.
• ➢ Production ramp up to ~2Mtpa over a mine life of 3.5 years is proposed, with an estimated 75% of production being DSO Lump (~62% Fe) which would attract premium pricing.
• ➢ Opportunity to extend mine life based upon surface outcropping of high grade iron ore along strike and historical drill intersection ~1.6km along the current hematite ridge at the south-eastern corner of the mining lease.
• ➢ Further opportunity to potentially increase LOM as the adoption of a lower cut-off grade of ore of >55% Fe (currently >58% Fe) increases global resource size to a JORC Indicated Mineral Resource of 12.5Mt grading 60.08% Fe - subject to further refinement in relation to pit optimisation, mining and ore upgrading.

Notes:

• The Probable Ore Reserve that underpins the October 2020 Feasibility Study/current Updated Feasibility Study has been prepared by a Competent Person, with a Competent Person's Statement included in this announcement.
• The Company has concluded that it has a reasonable basis for providing the forward‐looking statements included in this announcement. The detailed reasons for this conclusion are outlined throughout this announcement.

www.strikeresources.com.au

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

Level 1, Suite 1, 680 Murray Street, West Perth, Western Australia 6005 T | +61 8 9214 9700 F | +61 8 9214 9701 E | info@strikeresources.com.au

• ➢ All key mining approvals and permits required to commence mining have been received; permitting is currently in progress for Stage 2 Production export out of Port of Ashburton and associated road and related approvals.
• ➢ Offtake and funding discussions well advanced and will be executed at the time of a Final Investment Decision (FID) by the Company.

Strike Resources Limited (ASX:SRK) (Strike) is pleased to provide an update on the October 2020 Feasibility Study (Study) previously announced by the Company1 for its Paulsens East Iron Ore Project (the Project) located in the Pilbara, Western Australia.

The updated feasibility study (Updated Study) reflects optimisation to mining operations since the original Study, with the objective of reducing project Capex and Opex and improving Project economics based on the current market price of iron ore.

The Updated Study has confirmed the potential for the Project to generate ~$138 Million in net cashflows (pre-tax) over a 3.5 year life of mine (LOM) at an average Benchmark2 iron ore price of US$110/t for a pre-production capital cost (Capex) of $3.4M.

The Project has significant sensitivity to increases in iron ore prices. If a Benchmark iron ore price of US$135/t (versus recent current prices exceeding US$140/t) is sustained over LOM**,** the Project has the potential to generate $309 Million in net cashflows.

Total Production Capex funding required is now ~$3.4M for Stage 1 Production with a further ~$3M required to ramp up to Stage 2 full annualised production of ~2Mtpa.). It is envisaged that Stage 1 could largely be funded by a prepayment for offtake or other financing facility with discussions well advanced in this regard.

Project Economics and Assumptions

The results from the Updated Study together with key assumptions are summarised in the following tables, with further details contained within the Updated Feasibility Study - Further Details section and the Appendices to this announcement.

		Updated Study Outcomes
		Benchmark	Benchmark
		Iron Ore Price	Iron Ore Price
Financial Metrics	Unit	US$135/t3	3US$110/t
Life of Mine Revenue	A$M	1,084	892
Operating Net Cashflow	A$M	309	138
NPV4	A$M	245	104
IRR	%	284	132

Table 1: Updated Study Financial Metrics (pre-tax)

Operating Metrics	Unit	Updated Study Outcomes
Annualised LOM Production Rate	Mtpa	2
Average Strip Ratio	Waste:Ore	3.1 : 1
Initial LOM	Years	3.5
Total Tonnes Processed	Mt	6.3
Average C15 Costs	US$/t	~60
Total LOM Breakeven price CIF China6	US$/t	~87

Table 2: Updated Study Operating Metrics

1 Refer Strike's ASX Announcement dated 30 October 2020: Paulsens East Feasibility Study Demonstrates Significant Cashflow Generation and Financial Returns

2 Benchmark price for 62% iron ore Fines CFR China

3 Constant over LOM

4 At a discount rate of 8%

5 C1 Costs include mining, processing, haulage, port handling, administration and marketing, but excludes royalties, shipping, depreciation and capital charges

6 CIF means Cost, Insurance, Freight; inclusive of royalties, administration and marketing costs

		Updated Study Inputs
Key Assumptions	Unit	BenchmarkIron Ore PriceUS$135/t LOM	BenchmarkIron Ore PriceUS$110/t LOM
Benchmark Price	US$/t	135	110
Lump to Fines Ratio	Lump:Fines	75:25	75:25
Price received – Lump (62% Fe)	US$/t	141	116
Price received – Fines (59% Fe)	US$/t	94	78
US$/A$ Exchange Rate	US$/A$	0.725	0.725

Table 3: Updated Study Key Assumptions (constant over LOM)

An economic model prepared by Strike forecasts an operating net cashflow of $138 Million (pretax) and a net present value (NPV) of $104 Million (pre-tax) over an initial 3.5 year mine life, at a LOM Benchmark Price of US$110/t.

The estimated Stage 1 Production Capex is ~$3.4 Million, with the LOM Production Capex being ~$6.4 Million.

An internal rate of return (IRR) of 132% is forecast.

A constant Benchmark iron ore price of US$110/t (62% Fe Fines, delivered CFR China) (Benchmark Price) has been assumed over the LOM with a premium to the Benchmark price being expected for the Lump product produced and a discount to the Benchmark price for the Fines product produced.

If the Benchmark Price is assumed to be at US$135/t (versus recent current prices exceeding US$140/t) for the LOM, with relevant premium prices for lump and discount to fines being assumed on a pro rata basis, the forecast operating net cashflow is $309 Million, the pre-tax NPV is $245 Million and the IRR of 284%, over the 3.5 year LOM.

Average C1 cash costs free onboard (FOB) across the LOM are expected to be ~US$60/t with the approximate LOM Breakeven price CIF (Cost Insurance and Freight) China (inclusive of royalties, administration and marketing costs) being ~US$87/t.

The forecast Project financial metrics (NPV, IRR and Operating Net Cashflows) are calculated and shown net of applicable royalties but before deductions for tax. Strike will be subject to Australian corporate tax at an assumed rate of 30% on its taxable income. Any tax payable may potentially be reduced by utilising Strike's carried forward tax losses, which currently totals ~$25M7 .

Project Location

The Project is located ~10km from Northern Star Resources Limited's (ASX:NST) Paulsens Gold Mine, ~235km by road east of Onslow (and Port of Ashburton) and ~600km by road south of Port Hedland (refer Figure 1).

The Project is ~20km from the private Wyloo Station airstrip previously used by the Paulsens Gold Mine, which is suitable to support the transport of the Project's FIFO workforce (refer Figures 1 and 13).

7 Subject to compliance with Australian tax laws

Figure 1: Paulsens East Project Location, West Pilbara

Project JORC Mineral Resource and Ore Reserve

The Project consists of a ~3km long outcropping high-grade hematite ridge (refer Figure 2), containing a JORC Indicated Mineral Resource of 9.6 Million tonnes at 61.1% Fe, 6.0% SiO2, 3.6% Al2O3, 0.08% P (at a cut-off grade of 58% Fe).8

As part of the completion of the original (October 2020) Feasibility Study1 , part of the JORC Indicated Mineral Resource of 9.6 Million tonnes at 61.1% Fe, 6.0% SiO2, 3.6% Al2O3, 0.08% P (at a cut-off grade of 58% Fe) was converted to a JORC Probable Ore Reserve of 6.2 Million tonnes at 59.9% Fe, 7.43% SiO2, 3.77% Al2O3 and 0.086% P (at a cut-off grade of 55% Fe). 1

As part of the completion of the Updated Study, an additional JORC Indicated Mineral Resource of 113,000 tonnes at 60.8% Fe, 6.9%, SiO2, 3.4% Al2O3, and 0.10% P (at a cut-off grade of 58% Fe) has been delineated from the high-grade hematite rich detrital material9 at surface north of the hematite ridge (refer Figure 3).

8 Refer Strike's ASX Announcement dated 4 September 2019: Significant Upgrade of JORC Mineral Resource into Indicated Category at Paulsens East Iron Ore Project

9 Refer Strike's ASX Announcements dated 14 October 2020: Discovery of High Grade Iron Rich Detritals at Surface at Paulsens East and 15 July 2020: High-Grade Rock Chip Samples Confirm Resource Upside Potential at Paulsens East Iron Ore Project

Figure 2: Paulsens East Hematite Ridge

Project Production Details

Strike plans a production schedule of up to 2 Million tonnes per annum (Mtpa) of Direct Shipping Ore (DSO) over a ~3.5 year LOM, which is underpinned by the Probable Ore Reserve of 6.2Mt (within the current Indicated Mineral Resource of 9.6Mt).

In order to provide a capital efficient ramp up of mining operations and to de-risk any potential port constraints, Strike proposes to adopt a two-stage approach to the commencement of its mining of iron ore at Paulsens East, with the first 400,000 tonnes of planned production to be exported through Utah Point at Port Hedland and subsequent production through the Port of Ashburton at Onslow.10

Stage 1 Production and Export Through Utah Point, Port Hedland

Given the outcropping nature of the high grade Paulsens East hematite ridge, which in parts lends itself to a very low strip ratio together with the presence of high-grade surface detrital iron ore, it is proposed that initial mining operations focus on these two areas of mineralisation.

Up to 400,000 tonnes of ore will be crushed and screened from these areas to produce DSO Lump and Fines products, with an estimated average Lump product grade of ~62% Fe and Fines product grade of ~59% Fe. Metallurgical test work indicates that a 75/25 (or higher) Lump/Fines split can be expected. Lump ore typically attracts a price premium compared to Fines.

Mining, crushing and screening and haulage operations will be undertaken by specialist contractors with overall supervision and management provided by Strike's 'Owner's Team'.

The detrital ore requires no drill and blast activities and will be undertaken predominantly through very shallow trenching and screening operations.

The processed Lump and Fines products will be trucked from the mine to the Utah Point Multi-User Bulk Handling Facility at Port Hedland (Utah Point), predominantly by sealed road, where it will be stockpiled prior to being loaded directly into Ocean Going Vessels (OGV's) for export to customers.

Strike has received formal confirmation of capacity allocation from the Pilbara Ports Authority (PPA) at Utah Point for 200,000 tonnes per financial year.11

10 Refer also Strike's ASX Announcement dated 13 September 2021: Paulsens East Iron Ore Mining Operation Optimised

11 Refer also Strike's ASX Announcement dated 28 October 2021: Export Allocation Received for Paulsens East

Upon a final investment decision (FID) to commence mining operations Strike will execute a multi-user access agreement with the PPA, pursuant to which it will seek to export initial mine production from the Project. The advantage of Utah Point is that it is an existing facility that allows for early access; however, there is a relatively long (and costly) ~ 600km haulage distance from the mine to Port Hedland.

Production under Stage 1 could deliver up to 400,000 tonnes of export during CY 2022, before Strike transitions to Stage 2 exporting through the Port of Ashburton at Onslow (subject to receipt of necessary port and environmental permits and approvals), which would afford a significantly shorter haulage distance of ~235km, compared with ~600km to Utah Point.

Stage 1 will operate with minimum capital expenditure and fixed infrastructure.

Stage 2 Production and Export Through Port of Ashburton, Onslow

Stage 2 production will focus on a ramp up in annual throughput through conventional open pit mining of the high-grade hematite ridge that contains the current JORC Indicated Mineral Resource of 9.6Mt at 61.1% Fe, 6.0% SiO2, 3.6% Al2O3, 0.08% P (at a cut-off grade of 58% Fe) to an annualised production rate of 2Mtpa.

The additional Capex requirements for the Stage 2 ramp up are expected to be partly funded from cashflows generated from the Stage 1 production exported through Utah Point.

Stage 2 involves the export of ore through the Port of Ashburton at Onslow (via transhipment operations) which reduces the trucking distance from mine to Port by ~365km.

Stage 2 will also involve a scale-up of the contracted mining fleet, expansion of project personnel and additional working capital requirements to facilitate the larger annualised production rate.

The Port of Ashburton is a common user facility initially constructed for the Wheatstone Project and was recently transferred by Chevron to the control of the PPA. PPA has confirmed the use of the Port of Ashburton for export of iron ore by Strike subject to environmental permitting requirements and Port operation approvals being obtained by Strike.

All key mining approvals and permits required to commence Stage 1 mining have been received; permitting is currently in progress for Stage 2 Port of Ashburton environmental and associated road and other approvals which are expected to be completed prior to the completion of Stage 1 mining operations.

Updated Study Development

Strike has a number of highly experienced Iron Ore Executives on its Board and Management Team, whom have internally undertaken the Updated Study. Capital (Capex) and Operating (Opex) Costs have been predominantly obtained from proposals and quotations from selected experienced industry service providers and contractors, supported by detailed estimates from external consultants.

Strike has a confidence level of +/- 15% in the Project's forecast Capex and Opex.

Project Opportunities

Opportunities identified with the potential to have a materially positive impact on the value of the Project include:

• Extending the LOM; this would be underpinned by the balance of the existing JORC Indicated Mineral Resource inventory and increases in the final pit shells after optimisation studies.

In this regard, the Company notes that if a cut off grade of >55% Fe is assumed for the deposit, the total JORC Indicated Mineral Resource increases from 9.6 to 12.5Mt grading 60.08% Fe (refer Table 6). This affords the opportunity to extend the LOM in circumstances where further pit optimisation and ore upgrading studies are conducted relative to the assumed benchmark price for iron ore.

• Producing a higher grade (63 64%) product through the use of ore sorters; Metallurgical testwork completed during 2021 has confirmed significant upgrade potential from XRD (xray diffraction analysis) based technology. Engineering design has been completed for the integration of ore sorters into the current crushing and screening plant design. The Company has acquired a second hand ore sorter and associated equipment with final implementation of the same a function of available Project capital.
• Additional exploration potential based on hematite conglomerate outcrops along the surface and a drill intersection located ~1.6km along the hematite ridge at the southeastern corner of the Mining Lease previously identified by Strike12 and more recently taken surface rock-chip samples grading 64.4% - 66.2% Fe identified at multiple locations in the same area13 .

The exploration targets (referred to above) are conceptual in nature, there has been insufficient exploration to estimate a JORC Mineral Resource in respect of the same and it is uncertain if further exploration will result in the estimation of a JORC Mineral Resource in this regard.

Figure 3 - Paulsens East test pit at eastern end of outcropping hematite ridge with detritals in foreground

12 Refer Strike's ASX Announcements dated 4 December 2019: High Grade Results Located 1.6km from 9.6Mt Resource and 5 December 2019: Drilling and Surface Sampling Results at Paulsens East Iron Ore Project

13 Refer Strike's ASX Announcements dated 15 July 2020: High-Grade Rock Chip Samples Confirm Resource Upside Potential at Paulsens East Iron Ore Project

Key Project Risks

The key risks identified for the Project include:

• A significant decline in the iron ore price from recent levels of (~US$140/t) and or a decline in the premium price lump iron ore attracts.
• A significant strengthening of the Australian currency against the US currency.
• Inability to maintain grade control of iron ore production.
• Lack of supply of haulage trucks and drivers and escalation in haulage costs.
• Cost escalations for key Project inputs such as fuel, staffing and shipping costs.
• Shortages in suitable staffing/contractors due to COVID-19 related border/travel restrictions and vaccination mandates and industry wide demand.
• Uninterrupted access to nearby third-party camp and village facilities which are proposed to house project workers.
• Failure to secure necessary environmental and associated permits including road upgrade approvals for export via the Port of Ashburton.
• Cost escalations and delays in finalising the terms of engagement of a transhipment vessel suitable for operations at Port of Ashburton.
• Cost escalations and delays in finalising the terms of engagement of stevedoring services with available access to Port of Ashburton infrastructure including mobile harbour cranes and rotainers.
• Securing sufficient funding to cover anticipated bank guarantees requested by contractors to support the mobilisation of infrastructure and equipment required.

Strike Managing Director, William Johnson:

"The completion of the Updated Feasibility Study has allowed Strike to refine the business case for the production of iron ore from its Paulsens East Iron Ore Project.

Based upon the revised staged approach to production, the Project continues to demonstrate the potential to generate very significant cashflows at current and recent iron ore pricing levels.

The Project breakeven price provides downside protection against any further weakening in the iron ore price over the life of mine.

The work done around reduction of Project capex into a staged development approach has also assisted in enhancing the overall value of the Project and made it more manageable for a company of the size of Strike.

Furthermore, the Project has additional upside potential with opportunities identified to potentially improve iron ore grades and extend the mine life".

UPDATED FEASIBILITY STUDY – FURTHER DETAILS

1. Introduction

The Updated Study has been prepared internally by Strike as an update of the October 2020 Feasibility Study (overseen by engineering consultancy Engenium) (Study) 1 . Updates to the original Study have been based primarily upon quotations from potential contractors and/or estimates provided by experienced industry participants.

2. Tenement Status and Location

The Project is beneficially owned by Paulsens East Iron Ore Pty Ltd (ABN 96 643 291 230) (PEIOPL), being a wholly-owned subsidiary of Strike.

The Project's tenements comprise a Mining Lease M 47/1583 and various Miscellaneous Licences to allow for the construction of a main access corridor to connect the mine to the Nanutarra-Munjina Road (Nanutarra Road) and an access corridor and site for a potential mining camp.

The registered holder of M 47/1583 and the Miscellaneous Licences is Orion Equities Limited (ABN 77 000 742 843) (ASX:OEQ) (Orion), which holds the same on bare trust for PEIOPL. The Project's original tenements were acquired by the Strike Group from the Orion Group in 2005 and 2008.14

Tenement Type and No.	Grant Date	Expiry Date	Area (Hectares)
Mining Lease M 47/1583	4/9/2020	3/9/2041	381.87
Misc. Licence L 47/927	12/11/2020	11/11/2041	78.74
Misc. Licence L 47/938	10/12/2020	9/12/2041	95.97
Misc. Licence L 08/195	7/1/2021	6/1/2042	22.44
Misc. Licence L 08/190	15/7/2021	14/7/2024	199.60
Misc. Licence L 47/934	15/7/2021	14/7/2024	357.09
Misc. Licence L 47/980	15/7/2021	14/7/2024	62.60
Misc. Licence L 47/981	16//7/2021	15//7/2024	465.04

Table 4: Paulsens East Tenement Details

M 47/1583 (centroid 22° 34' 8" S, 116° 20' 35" E) is located in the Pilbara region of Western Australia, ~10km from the Paulsens Gold Mine (owned by Northern Star Resources Limited (ASX:NST) (NST)), ~200km west of Paraburdoo, ~235km by road from the Port of Ashburton (at Onslow) and ~600km by road from Port Hedland (refer Figure 1).

PEIOPL has also lodged Miscellaneous Licence and General Purpose Lease applications in respect of an area close to the Port of Ashburton to be used as a staging area for iron ore stockpiles prior to ship loading at the Port of Ashburton.

14 For further background details, refer to Strike's ASX Announcements dated 20 September 2005: Acquisition of Uranium Tenements and 11 August 2008: Acquisition of Outstanding Interests in Berau Coal and Paulsens East Iron Ore Projects

3. Iron Ore Mineralisation

Paulsens East consists of hematite iron ore mineralisation occurring as a ridge rising to ~60m above the valley floor and extending for ~3km West to East (refer Figures 1, 4 and 5) with hematite rich detrital material at surface north of the hematite ridge (refer Figure 3).

Figure 4: Satellite image of ~3km Paulsens East Hematite Ridge

Figure 5: Paulsens East Ridge, facing East

4. JORC Ore Reserve and Mineral Resource Estimates

Table 5 summarises the JORC Indicated Mineral Resource (from the ~3km Paulsens East hematite ridge) within a 58% Fe lower grade cut-off wireframe. The Indicated Mineral Resource extends from the surface to 75m below the deepest drill intersection or the 150m RL (reduced level), whichever occurs first.

MineralResourcesCategory	Fe%Range	MillionTonnes	Fe%	SiO2%	Al2O3%	P%	S%	LOI%
Indicated	>58	9.6	61.1	6.0	3.6	0.08	0.01	2.1

Table 5: Paulsens East Mineral Resource estimate from Hematite Ridge using a 58% Fe lower cut-off wireframe.

Of the Indicated Mineral Resource referred to above, ~3Mt of 61% Fe (with 5.9% SiO2 and 3.6% Al2O3) hematite material is estimated to occur above the base of the ridge (as defined by drill hole collars) with minimal overburden.

Table 6 shows the Paulsens East JORC Indicated Mineral Resource for a range of cut-off grades.

MineralResourcesCategory	Fe%Range	MillionTonnes	Fe%	SIO2%	AL2O3%	P%	S%	LOI%
Indicated	>60	6.75	62.1	5.21	3.37	0.080	0.01	1.92
Indicated	>59	8.15	61.6	5.56	3.53	0.082	0.01	1.99
Indicated	>58	9.62	61.1	5.97	3.64	0.085	0.01	2.13
Indicated	>57	10.54	60.8	6.27	3.7	0.087	0.01	2.20
Indicated	>56	11.73	60.4	6.86	3.69	0.088	0.01	2.27
Indicated	>55	12.50	60.01	7.22	3.67	0.089	0.01	2.35

Table 6: Paulsens East Mineral Resource estimate from Hematite Ridge using a range of lower cut-off wireframes

Table 7 summarises the JORC Probable Ore Reserve that has been converted from (and within) the JORC Indicated Mineral Resource based on the outcomes of the original Study1 (adopting a cut-off grade of 55% Fe to produce a marketable product):

Ore ReservesCategory	Fe% Range	Million Tonnes	Fe%	SiO2%	Al2O3%	P%
Probable	>55	6.2	59.9	7.43	3.77	0.086

Table 7: Paulsens East Mineral Ore Reserve estimate from Hematite Ridge using a 58% Fe lower cut-off wireframe

The Ore Reserve is derived from the Indicated Resource and the Mineral Resources outlined above in Tables 5 and 6 are inclusive of the Ore Reserve.

Table 8 summarises an additional JORC Indicated Mineral Resource delineated from high-grade hematite rich detrital material at surface adjacent to the Paulsens East hematite ridge (based on -32mm + 2.0mm material within a 58% Fe lower grade cut-off wireframe):

MineralResourcesCategory	Size	Fe%Range	TotalDetritals('000tonnes)	RecoveredDetritals('000tonnes)	Fe%	SiO2%	Al2O3%	P%
Indicated	+6.3mm	>58		97	61.36	6.73	2.98	0.099
Indicated	2.0 – 6.3mm		163	16	57.06	7.96	5.71	0.114
Indicated		Total	163	113	60.76	6.90	3.36	0.101

Table 8: Paulsens East Mineral Resource estimate from Detrital Material using a 58% Fe lower cut-off wireframe and based on -32mm + 2.0mm material Further technical details in relation to the above JORC Ore Reserve and Mineral Resource estimates are set out in Appendices A, B, C, D and E.

5. Physical Characteristics of the Iron Ore Deposit at Paulsens East

The Paulsens East iron ore deposit comprises three main bands of iron rich hematite conglomerate mappable as continuous bands along its ~3km strike length. These bands were originally deposited in the Proterozoic and formed by erosion of mineralised bedrock and its subsequent reconstitution. During reconstitution, hematite pebbles were deposited and held together in hematite matrix along land and marine interface such that the high purity heavy hematite conglomerate bands occur interbedded with ferruginous quartzites and subordinate ferruginous clay.

There is a sharp boundary at 58% Fe in the drill holes at 1m (2006 drilling) and at 0.5m sample widths (all subsequent drilling) and as such block modelling and resource estimation are based on a cut-off grade of 58% Fe.

In outcrop, however, the high-grade material (+64% Fe) stands in sharp contrast with low grade intervening siliceous material. The core of the deposit is generally very high grade and it is expected that sampling of blast holes and sharp colour contrast will assist greatly in grade control.

Figure 6: Paulsens East Rock Chip Sample

Fragments of hematite rich material and other associated lithologies have over time eroded from the hematite ridge and collected in the soils on the down-slope of the ridge and on the plain below as hematite rich colluvium (detritals).

6. Metallurgical Testwork

ALS Metallurgy Iron Ore Technical Centre (ALS IOTC) in Perth, Western Australia has conducted a series of metallurgical tests for physical properties on bulk composite samples collected from various surface locations across the entire length and width of the Paulsens East hematite ridge deposit in 2019. 15

The composite sample had a head grade of 65.6% Fe, 3.41% SiO2 and 1.44% Al2O3. The composite head grade of the testwork samples was obtained from material sourced from surface mineralisation across the entire strike length of the deposit. The nature of the deposit, being a sharp ridge defined by an outcropping steeply dipping slope face of 30 to 40m in height, means that the test samples are likely to be reasonably typical of the physical properties of the initial mined material.

Figure 7 below shows the sharp ridge-like character of the deposit.

15 Refer Strike's ASX Announcement dated 10 October 2019: Outstanding Metallurgical Testwork Results at Paulsens East Iron Ore Deposit Indicate 79% Lump Yield with Low Impurities

Figure 7: The Ridge-form hanging Wall of the Paulsens East Iron Ore Deposit

Specific gravity tests were also completed on 20 separate samples.

Subsequent to the completion of this testwork (the results of which are summarised below in Section 6.1) a Bulk Sample programme was completed from an excavated test-pit on-site during August 2020, from which ~3,000kg of representative Ore/Waste and transition material was collected and sent to ALS IOTC laboratories for further test work (refer Figure 8). 16

Figure 8: Paulsens East test pit at eastern end of outcropping hematite ridge

16 Refer Strike's ASX Announcement dated 2 September 2020: Test Pit and Bulk Samples to Advance Offtake Agreements Completed at Paulsens East

The test pit excavated for the Bulk Sample clearly exposed the multiple bands of high-grade hematite iron ore, which extend to depth and ~3km east to west along strike (refer Figure 9).

In addition to the metallurgical testwork completed by ALS, two programmes of characterisation testing and performance estimation modelling were conducted with different ore sorter manufacturers to quantify the amenability of the hematite ore to upgrade. Ore and waste representative samples were tested under similar conditions using both suppliers' processes.

The material was consistently upgraded from a feed of 57-58% Fe to a final grade of 64-65% Fe.

Engineering design has been completed for the integration of ore sorters into the current crushing and screening plant design. Strike has also acquired a second hand ore sorter and associated equipment with final implementation of the same a function of available Project capital.

Figure 9: High grade hematite iron ore bands extending from top of ridge to depth

6.1. 2019 Test Work Overview

The following results are from 2019 testwork undertaken by ALS IOTC.

Lump and Fines (Stage Crush and Drop Tower)

The stage crush and drop tower test results indicate that 79% of crushed material is likely to be classified as 'Lump' material (> 6.3mm < 32.5mm in size), which typically attracts a price premium (depending upon market factors at the time of sale) over 'Fines' material (< 6.3mm) of the same grade.

The testwork also indicates that the Lump material is likely to be ~2% Fe higher in grade than that of the Fines material, which will also potentially attract a further price premium for the Lump material.

Assays of the material taken after the drop tower test confirmed that both the Lump and Fines materials are likely to be exceptionally low in deleterious elements such as phosphorous (~0.05%) and sulphur (~0.008%), which can otherwise result in price penalties.

Crusher Work Index

The Crusher Work Indices for the samples varied from 27.4 to 6.5, averaging 15.3 kwh/tonne.

Tumble Index

Tumble Index of Lump material varied from 95.6% to 95.9%, averaging 95.8%, an excellent result indicating that there is likely to be minimal degradation of the Lump material during handling and transportation.

Specific Gravity

Specific Gravity (SG) measurements on 20 samples (averaging 65% Fe) returned a consistent result of 4.80. It should be noted that JORC Indicated Mineral Resource estimate is based on an assumed SG of 4.2, taking into account dilution and a lowgrade envelope.

Further SG measurements are planned on lower grade material and waste in outcropping areas and at depth in drill holes, for mine planning purposes and to determine the potential for an increase in resource size and a decrease in mining strip ratios.

A summary table of metallurgical testwork results is in Table 20 in Appendix E.

6.2. 2020 Test Work Overview

The completion of the Bulk Sample programme in August 2020 allowed for significantly more samples and testing to be done on the in situ ore, particularly around product quality, marketing and export safety requirements.

Blended Lump and Fines products constituting a 90:10 blend of High Grade Hematite : Waste ore were prepared for representation as potential product samples for marketing. This was in line with the expected dilution assumed in the Ore Reserve estimation process. The head-grade analyses of these samples are presented in Table 19 in Appendix E.

Different suites of tests have been completed on samples, which focused on the following key areas:

• Product quality of lumps and fines for potential customers, including full suite analysis of contaminants and detailed particle sizing analysis,
• Material characterisation for export, including flow properties, dust generation and management properties, asbestos analysis and generation of Product Safety Data Sheets, and
• Beneficiation studies on lump ore, with testing completed by two various OEM's to validate upgrade potential of ore through ore sorter technology.

7. Mining

Given the outcropping nature of the high grade Paulsens East hematite iron ore ridge, which in parts lends itself to a very low strip ratio together with the presence of high-grade surface detrital iron ore, it is proposed that initial mining operations focus on these two areas of mineralisation.

In Stage 1 of operations, up to 400,000 tonnes of ore will be crushed and screened from these areas to produce DSO Lump and Fines products, with an estimated average Lump product grade of ~62% Fe and Fines product grade of ~59% Fe. Metallurgical test work indicates that a 75/25 (or higher) Lump/Fines split can be expected. Lump ore typically attracts a price premium compared to Fines.

Mining, crushing and screening and haulage operations will be undertaken by specialist contractors with overall supervision and management provided by Strike's 'Owner's Team'.

The detrital ore requires no drill and blast activities and will be undertaken predominantly through very shallow trenching and screening operations. The detritals area sits partially over the area of the open Main Pit and as such, the mining of the surface material will assist in the development of the Main Pit during Stage 1.

Stage 1 mining and associated infrastructure development is expected to take 3 – 6 months.

Infrastructure to be established in Stage 1 includes:

• IT and site safety/communication systems;
• Mine access haul road;
• Initial crushing and screening areas including laydown areas;
• Establishment of explosives storage magazines; and
• Offices and site administration buildings, including lab facilities.

On the completion of all approvals and establishment of required infrastructure at the Port of Ashburton the Project will then transition into Stage 2, where it is proposed to mine the deposit using experienced contract mining and drill and blast operators, using conventional dieselpowered tracked excavators and off-road haul trucks. Mining will be open cut and is expected to occur above the water table, so no dewatering will be required.

The proposed Mine Schedule is based on the JORC Ore Reserve Model using a Fe cut-off grade of 55% and assuming a 10% ore loss, delivering 6.2Mt of ore to the run of mine (ROM) at an average grade of ~60% Fe over the LOM of 3.5 years.

Pre-production works for Stage 2 are estimated to take ~4 months, which will include:

• Establishing sufficient operating ramps and initial mining benches that will ensure the required mill feed will be achieved on a sustainable basis;
• Establishing the mine haul roads from the ridge and pit to the ROM pad and waste dumping areas;
• Managing the generation of mine waste to build up the Mining Operations Centre (MOC) infrastructure pads, including the associated ROM pad, waste and topsoil stockpiles and South East Waste Dump access road; and
• Building strategic ROM inventories equivalent to a minimum of four weeks of primary crusher feed, ready for commissioning of the process plant and for long-term operational risk management and supply contingency.

Iron ore mineralisation outcrops on top of the ridge, which protrudes between ~40 to 60m above its base.

It is envisaged that a 'pioneering mining fleet', comprising a small 50 tonne excavator and associated articulated dump trucks (ATD's), together with two drill and blast drill rigs, will be required initially in order to access the top of the ridge, as well as to establish and mine the initial benches.

Once the pioneering fleet has established three to four mining benches across the upper portion of the ridge surface, the production mining fleet will commence mining. The production fleet will utilise a 105 tonne excavator, with waste and ore transported to waste dumps and the ROM pad respectively using 100 tonne payload dump trucks.

Production is forecast to progressively ramp up to an annualised production rate of 2Mtpa of ore. Mining is expected to transition from day shift only to day and night shifts once pre-production and pioneering are complete. Suitable lighting will be provided in the working areas (including at dump locations) to allow safe operations at night.

Ore will be mined at 5m bench heights and 2.5m flitches to facilitate accurate grade control and minimise any impacts from mining dilution.

For the purposes of the Mining Schedule in the Updated Study, the mine has been divided into the 'Main Pit' (including Starter Pit and Final Cutback) and the 'West Pit'. The Main Pit is further divided into five 'Slices'. The Mine Schedule envisages mining commencing at the Main Pit Starter Pit, comprising Slices 1, 2 and 3 as well as the West Pit (refer Figures 10, 11 and 12).

Slice 1, Slice 2 and Slice 3 of the Main Pit Starter Pit are mined in Year 2. During the same year, the Main Pit transitions into the final cutback of the pit, which effectively mines the pit to its final depth.

Slice 4 of the Main Pit is mined in Year 1, when its upper benches are established by the pioneering fleet. At this point in time, Slice 4 would be mined independently from Slice 1, Slice 2 and Slice 3. However, in Year 2, Slice 4 catches up with the remainder of the Main Pit and is mined together with the rest of the Main Pit Final Cutback.

Figure 10: Mining Schedule Pit Design

In the first year of mining, the waste to ore ratio will average 2.7 : 1. As mining becomes progressively deeper, the waste to ore ratio will increase but the overall waste to ore ratio over the 3.5 year LOM is still expected to be relatively low at 3.1 : 1.

The pit slope is estimated to vary between 26 degrees and 44.5 degrees along the footwall and 44.5 degrees along the hanging wall (north wall). The average slope along the north wall will reduce to 40 degrees, taking into account a haul road along the north wall (refer Figure 11).

Figure 11: Mine Pit Cross Section Designs

Total waste movement is expected to be ~19Mt over LOM. Waste will be dumped in two dump locations with the main waste dump to be located south east of the pit on the southern side of the ridge (Waste Dump 1) with a second waste dump located north east of the pit (Waste Dump 2) (refer Figure 12).

Waste material is predominantly indurated ferruginous siliceous sandstones, quartzite and massive basalt. No sulphide materials have been encountered in exploration drilling and there is very low potential for any acid forming materials to be present in the dumped waste material.

A diversion channel will be constructed to divert an existing creek system around Waste Dump 1 (refer Figure 12).

ROM pad, crushing and screening infrastructure as well as truck loading, workshops and fuel depot are proposed to be located on a low-lying dolomite ridge to the east of the pit, outside a 500m blasting exclusion zone and located as close as practicable to the ore body (refer Figure 12).

20220204 SRK ASX Updated Paulsens East Feasibility Study - Optimised Staged Production and Lower Capex and Opex Costs.docx

Figure 12: Proposed Mine Layout

8. Processing

The Ore Processing Facility involves the primary and secondary crushing of ROM ore and screening over a tri-deck screen to produce separated Lump and Fines stockpiles.

The Primary (jaw) Crusher will be fed by a front-end loader from the ROM pad and will reduce (crush) the ore from -750mm to a P90 of -150mm at a rate of 500 tph (dry) of ROM ore. The Secondary (cone) Crusher will receive the primary at a rate of 500 tph (dry) of crushed ore (at - 150mm). The cone crusher settings will be designed to maximise Lump production, in preference to Fines. The ore discharged from the Secondary Crusher will be conveyed to a triple-deck screen, to segregate the Lump from the Fines ore (by size fractioning) and return any/all +32mm material back to the Secondary Crusher for re-processing.

Any ore that passes through the top two decks that does not pass through the bottom deck (being -32mm/+6.3mm ore) would be considered to represent a Lump product. The ore would be transported by a specific purpose-sized conveyor (rated for 500tph (dry) with a nominal operating rate of ~375-400 tph (dry)) and telescopic stacker, to a Lump stockpile.

Metallurgical testwork indicates that the Lump to Fines production ratio is likely to be better than 75% Lump to 25% Fines and that the Lump product is likely to be on average 2% higher grade than the Fines product (refer Table 9).

Product	Size	Proportion	LOM Average Grade
Lump	> 6.3mm < 32mm	> 75%	62%Fe
Fines	< 6.3mm	< 25%	59%Fe

Table 9: Lump and Fines Specifications.

Head Grade analyses of a 90:10 blend of high-grade hematite:waste from the August 2020 Bulk Sample confirmed that a 62% Lump product low in alumina and a 59% Fines product with a moderate level of alumina can be achieved from the Ore Reserve. 17

An ore loss of 4% has been assumed through the processing circuit.

An on-site laboratory will be established for ongoing analysis of ore samples to manage grade control and ensure consistency of product grades.

During the crushing process and prior to haulage, crushed ore will be conditioned with water to ensure that the moisture content of the ore is suitable for transport, stockpiling at the port and for shipping (~4%-5% by weight).

9. Operations Camp

Local accommodation and services will be required to cater for up to 120 persons operating onsite, including Strike personnel and contractors.

Strike has secured an agreement to utilise an existing mining camp at the Northern Star Paulsens Gold Mine, which is currently on care and maintenance and which has sufficient capacity to accommodate the Project's requirements during construction and on-going operations.

As a contingency measure, (should the Paulsens Gold Mine become unavailable), Strike has submitted plans and has approvals for the construction of a dedicated 80-person mining camp at its own site ~3km south of the mine operations area. Works are underway to modify this approval to increase the capacity of the proposed camp to 120 persons.

Communications to the mining operations area will be provided by a dedicated high bandwidth microwave service utilising existing tower infrastructure from Nanutarra. A dedicated radio network will operate at the mine site to enable efficient site communications between operations staff. Agreements have been executed for the provision of site telecommunications and Internet infrastructure.

The mine site will ultimately operate on day and night shifts. Site personnel will be working mostly on a two week on, one week off roster. The local (Wyloo Station) airstrip (previously used for charter flights to service the Paulsens Gold Mine) will be recommissioned for use by Strike, as the preferred transport solution. However, options exist whereby staff and contractors may also travel to and from site via Paraburdoo or Onslow Airports, from where they can be transported by bus to/from mine site.

Appropriate arrangements will be established in relation to site-based Emergency Response Teams, including Emergency Services Offices (ESO), an ambulance and a rapid response fire tender. ESO's will be present across the operations from the commencement of Stage 1 until mine closure.

10. Water

Water for mining operations, ore conditioning, and dust suppression will be sourced from local bores which are located within the Mining Lease.

Three water bores have been drilled on the Mining Lease with pump testing demonstrating the potential to provide sufficient water for construction and mining operations. In addition extra capacity has been identified and bores established for contingency and geographical spread across the Project. All licences and approvals for the taking of water are in place, with pump infrastructure to be installed as part of Stage 1 and Stage 2 operations as required.

17 Refer also Section 6 (Metallurgical Testwork) and Appendix E

11. Civil Works

Early civil and earth works (prior to mining operations) will be required for:

• Installation of IT and communications infrastructure.
• Construction of the haulage road from the mine site to Nanutarra Road.
• Levelling and site preparations for the MOC, ROM pad and other mine site facilities and infrastructure.
• Establishment of water bores (on sites already drilled and pump tested) and a water storage facility and fuel farm.
• Clearing and establishment of explosives magazines and storage facilities.
• Construction of access ramps and haul roads for mine operations

12. Haulage Road and Nanutarra Road intersection

A ~18km long haulage road will be constructed to connect the mine site (within Mining Lease M47/1583) to the bitumen Nanutarra Road. An intersection junction to the Nanutarra Road has been designed to accommodate the trucking fleet proposed to transport iron ore to Utah Point in Port Hedland and ultimately the Port of Ashburton in Onslow.

Figure 13: Haulage Road from Mine Site to Nanutarra Road

13. Haulage

Stage 1 Port Hedland

It is proposed that crushed ore will be loaded into standard ('quad') road trains, which will transport crushed Lump and Fines ore from the mine to Utah Point in Port Hedland.

Subject to the utilisation of allocated bunker space at Utah Point and the availability of haulage capacity to Port Hedland, ore will either be transported directly to the allocated bunker at Utah Point or to an off-site stockpile area. In the latter case, ore will be sprinted from the off-site stockpile area to the Utah Point receiving stockpile bunker once sufficient inventory has been built up and a berth slot has been secured.

Strike is in advanced discussions to utilise an existing facility for the stockpiling of its iron ore. Strike continues to review truck haulage options in a rapidly changing market.

Stage 2 Port of Ashburton

Once the proposed export operations at the Port of Ashburton has been permitted and is operational, Strike intends to pivot from the utilisation of Port Hedland's Utah Point (located ~600km from the mine) to the Port of Ashburton (which is only located ~235km from the mine).

Subject to receipt of appropriate road permits Strike proposes to use standard Quad road trains to transport the lump and fines product to an off-site stockpile located within ~22km of the Port of Ashburton from where they will be sprinted to that port upon vessel arrival or alternatively through the use of standard triple road trains for which the road (into the Port) is currently permitted.

The Port permitting application (prepared in consultation with the PPA) currently before the Department of Water and Environmental Regulation (DWER) has been made on the basis that the optimised manner of product delivery into a dedicated transhipment vessel (TSV) is through the use of covered rotaboxes which will assist in minimising any dust and other contaminant issues associated with the export of iron ore.

14. Shipping

Stage 1 Port Hedland

Stage 1 of operations will utilise the existing Utah Point facility operated by the PPA.

Utah Point was opened in 2010 and was established to provide multi-user access to port facilities and export markets, with an environmental licence to load ~24Mt of bulk material per year.

Utah Point will require no direct capital investment by Strike at the port, as there is already a well-established and operational facility present, specifically designed for the export of iron ore.

The preferred off-site stockpile area (if required) located within ~45km of Utah Point is already operating as an aggregate quarry and requires minimal preparation, other than regulatory approvals for the storage of iron ore. The facilities at Utah Point allow for direct access and unloading of ore from Quad road trains into the ore hoppers (or bunkers) at the Port stockpile area. Ore can be loaded rapidly at a rate in excess of ~4,000 wet tonnes per hour directly into the hold of vessels with cargo capacities of up to ~110,000 tonnes.

Strike has received confirmation from the PPA of a nominated allocation to export bulk iron ore through Utah Point at 200,000 tonnes per financial year. A final draft multi-user access agreement (MUA) with PPA is pending execution and would be subject to Strike making a FID for the Project, finalisation of normal logistics plans for the delivery of ore into the port and PPA site visits of mining operations once commenced.

The berth at Utah Point is suitable for ocean going vessels of up to mini cape size. The bunker allocation and storage at Utah Point will largely determine the OGV specifications used by Strike with shipments during Stage 1 expected to be limited to vessels of up to 65,000 tonne capacity due to logistical constraints at the Port and the proposed size of the trucking fleet.

Stage 2 Port of Ashburton

The Port of Ashburton, located 12km south-west of Onslow was built by Chevron as part of the LNG Wheatstone facility and control was transferred to the PPA in 2018. The Port of Ashburton is a multi-user port and a strategic industrial area and currently accommodates natural gas processing for LNG exports to overseas markets.

There are two operational berths that can support iron ore transhipment loadout using Rotaboxes as outlined in Figure 14 below.

Figure 14: Port of Ashburton Site Layout

Strike will partner with a Stevedoring company for the supply and operation of Port infrastructure. The current size of the berths and draft at the Port supports the size and scale of Strike's proposed transhipment solution.

It is envisaged that an average of 2 to 3 Ultramax (60,000 DWT) ships will be loaded per month using a dedicated transhipping vessel. The ships will be loaded at nominated anchor points located ~14 nautical miles from the Port within PPA controlled waters. Each ship will be loaded with a single product, lump or fines. The shipments will be scheduled to match mine production an enable the export of the targeted of up to 2Mtpa of production from the Project mine.

A description of the process for export of ore from the Port of Ashburton is as follows:

• Pre-conditioned ore will be trucked, via covered road trains from the mine to an off-site stockpile located near Onslow for temporary storage prior to export. The ore will continue to be conditioned to above the Dust Extinction Moistur(DEM) limit while stockpiled.
• Prior to the arrival of a ship, Rota-boxes will be loaded with the conditioned ore at the offsite stockpile and transported to the Port of Ashburton.

Figure 15: Indicative Quad Road Train Loaded with Rota-boxes

• Up to two Reach Stackers and a forklift will be utilised to unload the Rota-boxes from the road trains on to the wharf. It is proposed that Area 1 in Figure 14 will be used for this purpose.
• Area 2 in Figure 14 is proposed to be utilised for the storage of plant and equipment associated with loading activities.
• Two mobile harbour cranes or All Terrain Cranes will be used to unload the conditioned ore into a Transhipment Vessel (TV). The cranes, fitted with a Rotainer attachment (refer Figure 16) will pick up the Rota-boxes and tip directly into the open hold of the TV (refer Figure 17). The Rota-boxes are fitted with lifting rams that automatically retract the lids when tipping to minimize dust emissions.

Figure 16: An example of a Rotabox and Rotainer Crane Attachment

Figure 17: Illustrative Transhipment Vessel

• Once loaded, the TV will transport the conditioned ore offshore for loading on to an Ocean Going Vessel (OGV).
• The TV will berth alongside the OGV for loading with a boom maneuvered into position over the hold of the OGV, in preparation for the loading operation (refer Figure 18). After discharging the ore, the TV returns to Port.

Figure 18: Illustrative transshipment loading of an Ocean-Going Vessel

15. Product Marketing and Sales

The Lump and Fines products to be produced are expected to be high grade (~62% Fe and 59% Fe respectively over LOM), with some moderate levels of impurities alumina and silica reporting mainly to the Fines.

Lump iron ore typically attracts a significant price premium compared to Fines material of similar grade, which has been reflected in the economic model.

An allowance for potential discounts to benchmark prices due to grade and impurities has also been made, as well as an allowance for marketing and shipping costs.

Discussions are ongoing with multiple potential offtake parties and customers. Whilst Strike has not yet made any firm binding commitments, discussions with several parties are well advanced and Strike will enter into one or more offtake agreements as part of a FID with respect to the Project.

16. Environmental

Strike has secured key environmental regulatory approvals for the Stage 1 development of the Project, including the following:

• A Works Approval (pertaining to compliance with environmental legislation and regulations) from the WA Department of Water and Environmental Regulation (DWER), for proposed mining operations; and
• Native Vegetation Clearance Permits (pertaining to approvals pursuant to (including Commonwealth) environmental legislation and regulations) from the WA Department of Mines, Industry Regulation and Safety (DMIRS) (under delegation by DWER), for proposed mining operations.

Field work in relation to a reconnaissance flora and vegetation survey and Level 1 flora and fauna habitat assessment that was incorporated into the Mining Proposal has been approved by DMIRS.

During the field work, evidence of Northern Quoll (a protected species) was recorded on motion sensors and cameras. Strike will develop a strategy to minimise any impact the Project may have on the Quoll habitat. Further to the approval of the Mining Proposal, Strike has conducted a more detailed assessment of the habitats for the Northern Quolls, confirming limited impacts from mining operations and a baseline for local colony health.

Strike has conducted base line Flora survey during September 2021 on the proposed site for a stockpile area near the Port of Ashburton.

After consultation with the PPA, a Works Approval Application was lodged with DWER in October 2021 seeking approvals (pursuant to environmental legislation and regulations) for proposed operations at the Port of Ashburton.

Strike is also progressing other relevant and necessary environmental related approvals with DMIRS and DWER in relation to proposed Stage 2 operations at the Port of Ashburton.

17. Heritage Survey and Native Title

A Heritage Survey over the main Project area was undertaken with representatives of the Puutu Kunti Kurrama & Pinikuras (PKKP) traditional owners in March 2020, with the main hematite ridge being cleared (approved) by the PKKP for mining.

On 14 August 2020, Strike entered into a Native Title Mining Agreement (Native Title Agreement) and State Deed (for the grant of a mining lease) with the PKKP Aboriginal Corporation RNTBC (PKKPAC). The PKKPAC holds native title on trust for the benefit of the PKKP Traditional Owners.

The Native Title Agreement provides an agreed framework for Strike to undertake its mining activities at the Project in a way that minimises any impacts to Aboriginal Cultural Heritage. The agreement has a strong focus on protection of Aboriginal heritage and includes effective safeguards for the care and protection of the lands and rights of the PKKP peoples.

Strike has also agreed to provide a package of financial and business development related benefits for the PKKP, including an annual payment based on the value of iron ore sales, an annual training and development allowance for PKKP members together with opportunities for PKKP members to contract for the provision of certain support operations related to the Project.

A further Heritage Survey was completed in November 2020 to clear several remaining areas associated with infrastructure (haul road, waste dumps, camp etc).

Several additional surveys have been held during late 2021 across the Project to better understand the overall significance of the Mitala Gap, confirm exclusion zones around identified heritage areas, and to establish relationships with the local PKKP Ranger Team for future collaboration.

18. Royalties

A 7.5% Royalty on gross iron ore revenues (excluding shipping costs) to the Western Australian State Government has been factored into the economic model.

Strike also has a liability to pay Orion Equities Limited (ASX:OEQ) a royalty of 2% of gross revenues (exclusive of GST) from any commercial exploitation of any minerals from the Project – this royalty entitlement stems from Strike's acquisition of a portfolio of tenements (including the Paulsens East tenement) from Orion in September 2005.16

These royalties have been reflected in the economic model developed by Strike for the Project.

19. Capital and Operating Costs

Strike envisages using contract mining, crushing, haulage and transport operators where possible to minimise upfront Capex.

Capital Costs(Capex)	Stage 1A$M	Stage 2A$M
Mobilisation and Setup	0.3	0.5
Mining Administration Centre Setup	0.1	1.1
Ore Sorter Setup	-	0.8
Earthworks and Civils(including Haulage Road)	2.5	-
NanutarraRoad T-Junction Intersection	0.4	-
Port Cost	-	0.5
Contingency	0.2	0.1
Total Production Capex	3.4	3.0
De-Mobilisation and Rehabilitation	-	1.5
Total Capex	3.4	4.5

A breakdown of expected Capex is included in Table 10 below:

Table 10: Expected Capital and Pre-Start Costs

The Updated Study envisages that local accommodation and camp services will be available for up to 120 Strike personnel and contractors at the neighbouring NST mine camp facility, which is currently on care and maintenance.

As an alternative (should this facility be no longer available), Strike is planning for the construction of a dedicated 80 person mining camp at a site ~3km south of the mine operations area, which would add ~$2.6M in Capex to the Project.

The Port of Ashburton currently has no infrastructure to load iron ore onto a TV. Based on discussions with potential service providers, Strike envisages that the Capex relation to the TV and loading infrastructure will be borne by the service providers and amortised into the operating cost of their service. The financial model prepared by Strike for the Updated Study reflects the same.

Opex have been estimated based mainly upon proposals and/or quotations received from experienced industry participants, potential contractors and service providers with input from external consultants, with annual and average costs over LOM in Table 11 below:

Financial Metrics	Unit	Updated StudyOutcome
C1 Cost Year 1	US$/t	60.8
C1 Cost Year 2	US$/t	59.1
C1 Cost Year 3	US$/t	58.7
C1 Cost Year 4	US$/t	59.7
Average C15 Costs	US$/t	59.4

Table 11: Expected C1 Costs

20. Working Capital and Bank Guarantees

To fund Stage 1 production a total of ~$7.5M of working capital is expected to be required in addition to the funds required for Capex.

For Stage 2 Production, Strike expects that the positive cashflows generated from Stage 1 will principally fund the working capital required to expand production to an annualised rate of 2Mtpa.

In addition to the working capital requirements for Stage 1 and 2 of the Project, the Company anticipates that various service providers will require guarantees and/or security to be provided by the Company with respect to the contractual arrangements entered into by the Company with those service providers.

The quantum of guarantee/security will be a function of the ultimate commercial terms entered into by the Company and those service providers.

21. Economic Modelling

An economic model has been prepared by Strike, using inputs from various sources as summarised in Table 12 below.

Model Input–Capital and Pre-Start Costs	Principal Source
Mine Operations Establishment	Shortlisted Contractors
Haul Road Construction	Shortlisted Contractors
Civil and Earth Works	Shortlisted Contractors
Model Input –Operating Costs	Principal Source
Management and Mine Camp Operations	Strike / Contractors
Mining and Crushing Costings	Shortlisted Contractors
Haulage Costs	Contractors
Port Operations	Port Operator
Shipping Costs	Shipping Agent
Iron Ore Pricing	Published Benchmark pricing / Strike/ Consultant / Market Participants
Royalties	State Government of Western Australia
Contingency	Strike
Model Input –Mining Schedule	Principal Source
Mining Schedule	Mining Focus Consultants Pty Ltd

Table 12: Sources of Economic Model Inputs

The majority of the cost estimates used in the Updated Study are based upon proposals and/or quotations from shortlisted contractors. Strike believes that it is reasonable to attribute a +/- 15% level of confidence to the estimated capital costs and an overall +/- 15% to the operating costs.

An annualised production rate of ~400,000 tonnes (during Stage 1) and ramping to ~2Mtpa thereafter (during Stage 2) has been selected for the first 3.5 years for the LOM. This schedule has been selected taking account the physical characteristics of the deposit, the capacity and constraints of potential mining and processing contractors.

An constant Benchmark Price of US$110 per tonne (62% Fe Fines, delivered CFR China) has been assumed over the LOM.

It is assumed that during the LOM and using the Benchmark Price as a base, the average Lump price received will be at a premium price to the 62% Benchmark Price taking account of the premium expected for the Lump ore. The average price received for the Fines ore is assumed to be at a discount to the 62% Benchmark Price, taking account of assumed discounts/penalties associated with impurities and grade relative to the 62% Benchmark Price index.

Key inputs used for the economic model are highlighted in Table 13 below:

Key Inputs	Units	Value
US$/A$ Exchange Rate	US$/A$	0.725
Total Ore Production	Mt	6.3
Mine Life	Years	3.5
Peak Annual Ore Production	Mtpa	2
Lump: Fines Ratio	Lump:Fines	75:25
Processing Losses	%	4
Mining and Processing Costs	A$/t	32
Haulage and Port Costs	A$/t	50
Shipping Costs	A$/t	23
Benchmark Iron Ore Price 62% Fines CFR China	US$/t	110
Lump Premium (per dry metric tonne unit)	US$/dmtu	0.20
Price Received –Lump	US$/t	116
Price Received –Fines	US$/t	78
Discount Rate	%	8

Table 13: Economic Model Inputs

21.1. Economic Model Results

The results of the economic modelling based upon the assumptions above are summarised in Table 14 below:

		Updated Study Outcomes
		Benchmark Iron Ore Price
Model –Financial Metrics	Unit	US$135/t4	US$110/t4
Life of Mine Revenue	A$M	1,084	892
Operating Net Cash Flow	A$M	309	138
NPV	A$M	245	104
IRR	%	284	132
Capex Payback Period	Months	10	11

Table 14: Economic Model Operating and Financial Metrics (pre-tax)

The forecast Project financial metrics (NPV, IRR and Operating Net Cashflows) are calculated and shown net of applicable royalties but before deductions for tax. Strike will be subject to Australian corporate tax at the assumed rate of 30% on its taxable income. Any tax payable may potentially be reduced by utilising Strike's carried forward tax losses, which currently total ~$25 Million.7

The economic model confirms the Project has the potential to generate an attractive economic return with an operating net cashflow of $138 Million (pre-tax) and NPV of $104 Million (pretax) over a 3.5 year mine life, assuming an average Benchmark Price of US$110/t (with a premium to the Benchmark price being expected for the Lump product produced and a discount to the Benchmark price for the Fines product produced over the LOM). If the Benchmark Price is assumed to be higher at US$135/t for the LOM with the same pro rata premium for Lump product and discount for Fines product and with other assumptions unchanged, the forecast pretax operating net cashflow increases to $309 Million and NPV increases to $245 Million.

The average C1 Cost over the LOM is forecast to be US$59.4/t. The Project is expected to be able to continue to generate positive cashflow throughout the 3.5 year mine life if the Benchmark iron ore price remains above US$87/t (with recent prices exceeding US$140/t), the assumed premiums and discounts to the Benchmark Price index for product delivered remain and at an assumed constant US$/A$ exchange rate of 0.725 is maintained.

21.2. Sensitivity

A sensitivity analysis on the financial model highlights that the Project value is most sensitive to the following variables:

• Iron ore price;
• US$/A$ exchange rate;
• Lump premium price; and
• Haulage Costs.

For example, a 10% increase in the average Benchmark iron ore price to US$121/t over the LOM would result in a 59% increase in forecast NPV to ~$166M (pre-tax). Conversely, a 10% decline in the average Benchmark iron ore price to US$99/t over LOM would result in the expected NPV for the Project reducing to ~$43M (pre-tax).

Figure 19 below highlights the sensitivities of the Project NPV to changes in various inputs:

Figure 19: Sensitivity Analysis - Benchmark Iron Ore price, exchange rate and operating costs

22. Opportunities

There are clearly defined opportunities that may significantly improve the economic and operational performance of the Project as described in this Study. Such improvements, which will be the focus of ongoing analysis and testing, include the potential for:

• Extending the LOM; this would be underpinned by the balance of the existing JORC Indicated Mineral Resource inventory and increases in the final pit shells after optimisation studies .

In this regard, the Company notes that if a cut off grade of >55% Fe is assumed for the deposit, the total JORC Indicated Mineral Resource increases from 9.6 to 12.5Mt grading 60.08% Fe (refer Table 6). This affords the opportunity to extend the LOM in circumstances where further pit optimisation and ore upgrading studies are conducted relative to the assumed benchmark price for iron ore.

• ➢ Producing a higher grade (63 64%) product through the use of ore sorters; Metallurgical testwork completed during 2021 has confirmed significant upgrade potential from the XRD (x-ray diffraction analysis) based technology. Engineering design has been completed for the integration of ore sorters into the current crushing and screening plant design. The Company has acquired a second hand ore sorter and associated equipment with final implementation of the same a function of available Project capital.
• ➢ Additional exploration potential based on hematite conglomerate outcrops along the surface and a drill intersection located ~1.6km along the hematite ridge at the southeastern corner of the tenement previously identified by Strike12 and more recently taken surface rock-chip samples grading 64.4% - 66.2% Fe identified at multiple locations in the same area13 .

The exploration targets (referred to above) are conceptual in nature, there has been insufficient exploration to estimate a JORC Mineral Resource in respect of the same and it is uncertain if further exploration will result in the estimation of a JORC Mineral Resource in this regard.

23. Risks

The key risks identified for the Project include:

• A significant decline in the iron ore price from recent levels (of ~US$140/t) and or a decline in the premium price lump iron ore attracts.
• A significant strengthening of the Australian currency against the US currency.
• Inability to maintain grade control of iron ore production.
• Lack of supply of haulage trucks and drivers and escalation in haulage costs.
• Cost escalations for key Project inputs such as fuel, staffing and shipping costs.
• Shortages in suitable staffing/contractors due to COVID-19 related border/travel restrictions and vaccination mandates and industry wide demand.
• Uninterrupted access to nearby third-party camp and village facilities which are proposed to house project workers.
• Failure to secure necessary environmental and associated permits including road upgrade approvals for export via the Port of Ashburton.
• Cost escalations and delays in finalising the terms of engagement of a transhipment vessel suitable for operating at Port of Ashburton.
• Cost escalations and delays in finalsing the terms of engagement of stevedoring services with available access to Port of Ashburton infrastructure including mobile harbour cranes and rotainers.
• Securing sufficient funding to cover anticipated bank guarantees requested by contractors to support the mobilisation of infrastructure and equipment required.

24. Approvals

The following key approvals/agreements/permits are still outstanding or may be required from the relevant parties/authorities:

• DMIRS approvals, including in relation to the stockpiling of iron ore prior to loading at Utah Point (if this is required for Stage 1) and in respect of Stage 2 operations exporting out of the Port of Ashburton;
• DWER approvals in respect of Stage 2 land-based and marine/offshore operations;
• DMIRS Native Vegetation Clearing Permits in relation to proposed stockpile area(s)/Stage 2 operations;
• Main Roads WA approvals in respect of Stage 2 operations;
• Execution of formal access agreements with the PPA; and
• Grant of Miscellaneous Licence/General Purpose Lease in relation to the proposed stockpile area located outside the Port of Ashburton, including securing relevant access agreements/approvals from relevant stakeholders (eg. native title, pastoral lease, local shire).

25. Timing

Stage 1 Production is expected to commence within 1 month of making an FID on the Project.

26. Funding

There is a reasonable basis to assume the necessary funding for the Project will be obtained, for the following reasons:

• (a) Strike has been able to raise funding for its exploration and development over the past 15 years in order to progress its projects. During this time, Strike has successfully raised over $100M in equity to fund its various projects. Since 2019, Strike has raised $7.8M equity capital from professional and sophisticated investors.
• (b) The positive outcomes delivered by the Updated Study and financial models provide confidence to the Board in the ability of Strike to fund the development capital through conventional debt and/or equity financing.

There will also be a requirement for working capital and contractor security / guarantees to fund the mining of the ore shipments prior to receipt of payment. In this regard:

• (i) Strike is exploring a range of options to fund this working capital requirement including pre-sales of iron ore or vendor finance.
• (ii) Strike has held discussions with its corporate advisors regarding the ability to secure funding for the Project, as well as with iron ore traders and agents who have indicated that project funding may be available from customers in China as prepayment for supply or as a loan against a guaranteed offtake for the whole or part of the proposed production of iron ore from the Project.

The normal risks for the raising of capital will apply to Strike, such as the state of equity capital and debt markets and the risks associated with the development of the Project as outlined in Section 23.

• (c) The funding models being considered will likely be conventional debt and equity financing, but may include convertible notes, prepayment for offtake and/or other options for projects of a similar nature.
• (d) The raising of equity by Strike may be dilutive to existing shareholders, depending on the price at which the then funding is completed.

27. Next Steps

In order to advance the Project towards development, the following additional work programmes are required:

• Completion of the required outstanding permits/approvals (see Section 24).
• Completion of contract negotiations with key contractors (mining, crushing and screening, haulage, stevedoring and civil) and infrastructure providers/stakeholders (Main Roads WA; PPA).
• The entering into of one or more offtake/sales agreements.

AUTHORISED FOR RELEASE - FOR FURTHER INFORMATION:

William Johnson T | 0419 047 460

Managing Director E | md@strikeresources.com.au

ABOUT STRIKE RESOURCES LIMITED (ASX:SRK)

Strike Resources Limited (ASX:SRK) is an ASX listed resource company which is developing the Paulsens East Iron Ore Project in Western Australia. Strike also owns the high grade Apurimac Iron Ore Project in Peru where it has commenced exporting "Apurimac Premium Lump" DSO product of ~65% Fe. Strike has a 43% shareholding in Lithium Energy Limited (ASX:LEL), which was spun-out of Strike under a $9m IPO in May 2021. Lithium Energy is developing battery minerals related assets - the Solaroz Lithium Brine Project in Argentina and the Burke Graphite Project in Queensland.

JORC CODE COMPETENT PERSON'S STATEMENT

• (a) The information in this document that relates to Mineral Resources and related Exploration Results18 is based on information compiled by Mr Philip Jones (BAppSc (Geol), MAIG, MAusIMM), who is a Member of the Australian Institute of Mining and Metallurgy (AusIMM) and the Australian Institute of Geoscientists (AIG). Mr Jones is an independent contractor to Strike Resources Limited. Mr Jones has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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). Mr Jones consents to the inclusion in this document of the matters based on his information in the form and context in which it appears.
• (b) The information in this document that relates to Ore Reserves19 is based on information compiled by Mr Harry Warries (MSc – Mine Engineering, FAusIMM), who is a Fellow of AusIMM. Mr Warries is the Principal of Mining Focus Consultants Pty Ltd, a Consultant to Strike Resources Limited. Mr Warries has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. Mr Warries consents to the inclusion in this document of the matters based on his information in the form and context in which it appears.

18 Also refer Strike ASX Announcements dated 4 September 2019: Significant Upgrade of JORC Mineral Resource into Indicated Category at Paulsens East Iron Ore Project and 30 October 2020: Paulsens East Feasibility Study Demonstrates Significant Cashflow Generation and Financial Returns

19 Also refer Strike ASX Announcement dated 30 October 2020: Paulsens East Feasibility Study Demonstrates Significant Cashflow Generation and Financial Returns

• (c) The information in this document that relates to metallurgical sampling, metallurgical testing and metallurgical results undertaken during 2019 is extracted from the following ASX market announcements made by Strike Resources Limited on:
  • 10 October 2019: Outstanding Metallurgical Testwork Results at Paulsens East Iron Ore Deposit Indicate 79% Lump Yield with Low Impurities.

The information in the original announcements that relates to these metallurgical test work matters is based on and fairly represents information and supporting documentation compiled by Mr Philip Jones (BAppSc (Geol), MAIG, MAusIMM), who is a Member of the AusIMM and AIG. Mr Jones is an independent contractor to Strike Resources Limited. The information that relates to Processing and Metallurgy is based on the work done by ALS Metallurgy Iron Ore Technical Centre (ALS IOTC) on samples collected under the direction of Mr Jones and fairly represents the information compiled by him from the ALS IOTC testwork reports. Mr Jones has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of 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 (referred to above). 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).

• (d) The information in this document that relates to metallurgical sampling, metallurgical testing and metallurgical results undertaken during 2020) is extracted from the following ASX market announcement made by Strike Resources Limited on:
  • 30 October 2020: Paulsens East Feasibility Study Demonstrates Significant Cashflow Generation and Financial Returns

The information in the original announcement that relates to these metallurgical test work matters is based on and fairly represents information and supporting documentation compiled by Dr Michael J Wort (FAusIMM CP(Met)), who is a Fellow of AusIMM and a Chartered Professional Engineer. Dr Wort is an independent contractor to Strike Resources Limited. The information that relates to Processing and Metallurgy is based on the work done by ALS IOTC on samples collected under the direction of Dr Wort and fairly represents the information compiled by him from the ALS IOTC testwork reports. Dr Wort has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of 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 (referred to above). 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).

• (e) The information in this document that relates to Other Exploration Results and related Exploration Targets (as the case may be, as applicable) is extracted from the following ASX market announcements made by the Strike Resources Limited on:
  • 14 October 2020: Discovery of High Grade Iron Rich Detritals at Surface at Paulsens East;
  • 15 July 2020: High-Grade Rock Chip Samples Confirm Resource Upside Potential at Paulsens East Iron Ore Project; and
  • 4 December 2019: High Grade Results Located 1.6km from 9.6Mt Resource at Paulsens East;

The information in the original announcements that relate to these Other Exploration Results and related Exploration Targets (as applicable) is based on, and fairly represents, information and supporting documentation prepared by Mr Hem Shanker Madan (Honours and Masters Science degrees in Applied Science), who is a Member of AusIMM. Mr Madan is an independent contractor to Strike Resources Limited and was formerly the Managing Director (September 2005 to March 2010) and Chairman (March 2010 to February 2011) of Strike Resources Limited. Mr Madan has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of 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 announcements (referred to above). 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 announcements (referred to above).

The Strike ASX market announcements referred to above may be viewed and downloaded from the Company's website: www.strikeresources.com.au or the ASX website: www.asx.com.au under ASX code "SRK".

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 Strike, 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 forward-looking 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 Strike and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking 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. Strike 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. Strike does not undertake to update any forward- looking information or statements, except in accordance with applicable securities laws..

APPENDIX A

PAULSENS EAST IRON ORE PROJECT – TECHNICAL INFORMATION

Geology

Regional Geology

Paulsens East is located near the centre of the Wyloo Dome on the Wyloo 1:250,000 scale geology sheet within the crystalline basement (refer Figure 20).

Figure 20: Regional geology (Wyloo geology sheet 1:250,000 SH5010)

Pilbara Supergroup

The oldest rocks on the Wyloo 1:250,000 scale geological sheet SH50-10 are exposed in the core of the Wyloo Dome. They are a metamorphosed sequence of mafic volcanics, dolerite, gabbro, and minor chert, and are intruded by the Metawandy Granite. They are generally schistose and are unconformably overlain by rocks of the Fortescue Group.

The dolerite and gabbro occur either as individual sills and dykes or as sheeted-dyke complexes. Large enclaves of mafic schist occur in the Metawandy Granite. The mafic rocks are broadly correlated with the Pilbara Supergroup (Ap) of the northern Pilbara Block.

Within the Pilbara Supergroup is the Mount McGrath Formation, a sequence of conglomerate, arenite, wacke, mudstone, dolomitic mudstone and dolomite. This formation hosts the hematite mineralisation at Paulsens East.

Local Geology and Mineralisation

Figure 21: Paulsens East Geology Map

The Paulsens East tenement includes sediments of the Middle Proterozoic Wyloo Group which contain hematite mineralisation. The Wyloo Group rocks range from the continental Beasley River Quartzite to red beds of the Mt McGrath Formation that have been overlain by the shallow marine Duck Creek Dolomite.

The iron mineralisation found within the tenement occurs as a hematite conglomerate in the Mt McGrath Formation forming a prominent arcuate ridge up to 60m high, with cumulative average widths of ~6m and ~3,000m long. The conglomerate consists of hematite pebbles in a hematite rich matrix and cement.

The conglomerate, when it is fully mineralised, is composed of hematite clasts in a hematite matrix. When the conglomerate is "unmineralised" (i.e. below economic cut-off grade) the clasts are composed chert and often Weeli Wolli BIF (a distinctive banded red chert alternating with a siliceous hematite BIF – see clast just by point of pick in (Figure 22).

At least one of the conglomerate beds appears to grade fairly abruptly into a cherty siliceous bed along strike to the west.

A "halfway" mineralised conglomerate was also found at a few locations where the silica in the clasts has been leached out leaving vughs (refer Figure 22).

Figure 22: Close up view of "unmineralised" conglomerate with chert and BIF clasts in hematite matrix as found at Paulsens East

Earlier exploration has been conducted in the nearby areas to look for the source of hematite pebbles without success.

Figure 23: Close up view of hematite conglomerate with hematite matrix as found at Paulsens East

Figure 24: Close up view of "halfway" hematite conglomerate with vughs after chert as found at Paulsens East

Surface mapping and drilling has shown that the hematite conglomerate is usually found in three main beds of variable thickness up to ~10m, although up to five hematite beds of limited strike length have been identified along the mineralised ridge (refer Figure 25).

Figure 25: Looking east along Paulsens East ridge showing bedding

Mapping along the ridge indicates that to the west of the resource, the conglomerate clasts tend to become cherty and the matrix siliceous, with a consequent drop in Fe grade. The lower conglomerate bed also in part becomes more like a massive chert in sections to the west of the resource along the ridge.

Figure 26: Looking west along Paulsens East ridge showing bedding and massive blocky hematite conglomerate beds

Figure 27: Looking west along Paulsens East ridge showing dip slopes of hematite conglomerate beds

Over time, fragments of hematite and associated lithologies have eroded from the hematite ridge and collected in the soils on the down-slope of the ridge and on the plain below as hematite rich detritals. In general, the thickness of the detritals increases and the average grade of the clasts decreases due to mixing with other rock types mainly shales, down the slope.

Drilling and Sampling Programmes

Between 2006 and 2008, Strike conducted an extensive rock chip sampling programme across the hematite ridge and two drilling campaigns comprising 66 holes for 3,537m of reverse circulation (RC) drilling, to determine the extent and quality of the Paulsens East mineralisation.

Figure 28: Drilling at Paulsens East (North side), 2008

A summary of the drill holes comprising the database used in the Mineral Resource estimate (for the Hematite Ridge) is included in Table 15.

Type	IDs	Number	Total Drilled(m)
RC (2006)	PERC001 to PERC008	8	813
RC (2008)	PERC009 to PERC064Includes PERC029A & PERC063A	58	2,724
TOTAL		66	3,537

Table 15: Summary of holes used in Mineral Resource estimation (Hematite Ridge)

The drill hole spacing is semi-regular along the north side of the target ridge as shown in Figure 29. The drill hole spacing was controlled by drill access along the ridge. Most holes were drilled between 30 and 60 degrees from horizontal with an approximate south azimuth from sites near the base of the ridge. On most cross sections there is only one drill hole.

Figure 29: Drill hole location plan showing semi-regular spacing of holes

Sample recovery using a face sampling hammer for all the samples collected is reported to be excellent. All samples were split, mostly at 0.5m intervals with some at 1m, using a drill rig mounted rotary cone splitter with the laboratory split bagged in a pre-labelled calico bag. Proper procedures were followed when splitting and bagging the drilling samples prior to being dispatched to Ultra Trace Laboratories for chemical analysis. All drilling and field sampling were continually monitored by a site geologist who also logged the chips for each sample interval to produce geological lithology logs.

In October 2021, Strike completed a sampling programme of the high grade hematite rich detrital mineralisation at Paulsens East. A total of 50 pits were excavated and sampled along the northern side of the hematite ridge, over a strike length of ~1.5km and covering an area of ~8.1 hectares where surface detrital material was visible (refer Figure 30). Detritals were encountered in the pits varying in depth from 0.25m and up to 3m deep in places, with the depth typically increasing further away from the base of the hematite ridge.

A summary of the 50 trenches comprising the database used in the Mineral Resource estimate (for the detritals material) is included in Table 16:

IDs	Number	Total Depth(m)	MinimumDepth (m)	MaximumDepth (m)	AverageDepth (m)
PD01 to PD50	50	50.25	0.10	3.2	1.0

Table 16: Summary of Trenches used in Mineral Resource estimation (Detritals)

Figure 30: Trench location plan showing detrital depth contours

Topography

The topography was surveyed using drone photogrammetry between 29th July – 2nd August 2019. Parameters for the survey are as follows:

Collection Drone:	DJI Mavic 2 Pro
Nominal Ground Clearance:	60-70m
Drone Flight Speed:	8m/s
Photo interval:	18m
Total Flight Distance:	~125-line kilometres
Area Surveyed:	454 Hectares

The Mavic 2 Pro utilises GNSS GPS/Glonass satellite control and for the duration of the survey, 12-18 satellites were visible to the drones. Accuracy in this configuration of +/- 2-4m E-W can be expected, with elevation control not as reliable. Further accuracy can be gained by using Ground Control Points, although none were available for this survey.

Normally, the final DC Levelled Digital Elevation Model (DEM) Grid would be DC levelled against a ground control elevation, to link it into either WGS84 MASL elevation or an Australian Height Datum (AHD). This was not available for the Paulsens East area at the time of processing although may be considered at a later date. An alternative, the DC Levelled DEM Grid was referenced against the Space Shuttle Radar data (SRTM), which has a nominal ground pixel size of 30m and is the default DEM for the Google Earth Application.

All the drill collars were projected to the photogrammetry surface to generate standardised elevations.

Sampling Method and Approach

In the 2006 drilling programme, all the drill samples were dispatched for chemical analysis. In 2008, only samples logged with a high iron content were analysed.

Regular laboratory repeats and ~10% field sample duplicates were processed and showed very good correlation (refer Figure 31 and Figure 32).

Strike Field Duplicates (20 samples)

Figure 31: Field duplicate correlations

Figure 32: Laboratory repeat

The hole collars were surveyed using a hand-held GPS. The accuracy of drill hole collar surveys cannot be fully verified but were found to lie where expected on drill pads shown on the georeferenced images. Considering the large dimensions of the mineralisation, the accuracy of the collar data is sufficiently accurate for an Indicated Mineral Resource estimate. Drill-collar details are in Appendix C.

In the October 2021 sampling programme of the detritals, trenches were sampled after they were dug to basement, ensuring that the whole detritals profile was sampled evenly and collected. All trench locations were surveyed using a hand-held GPS. Two ~25kg samples from each trench were collected with 27 (retrieved from trenches with depths greater than 0.75m) samples analysed by ALS IOTC. The laboratory analysis included crushing the whole sample to -32 mm followed by wet scrubbing, screening, weighing and chemical analysis for the standard iron ore suite of elements including Fe, Al2O3, SiO2 and P of each of the head grade, -32mm+6.3 mm, 2.0-6.3 mm and -2 mm fractions. Trench and Analysis Results are in Appendix D.

Bulk Density

In relation to the Mineral Resources delineated from the hematite ridge:

• A standard bulk density of 4.2 t/m3 was used for this estimate. This bulk density is typical for hematite ore (hematite mineral = 5.26 in Australian Field Geologists' Manual – Monograph 9, AusIMM). The hematite conglomerate beds are low in goethite/ limonite and shale and as such this is reflected in low loss on ignition (LOI). The standard bulk density assumed for the estimation reflects absence of goethite, limonite and shale material commonly found in Hamersley iron ores.

In relation to the Mineral Resources delineated from the detrital material:

• The lumps in the detritals were assumed to be hematite with some waste (chert, shale) lumps included with no pore spaces. The SG for this material was assumed to be a conservative 4.8 (hematite mineral = 5.26 in Australian Field Geologists' Manual – Monograph 9, AusIMM). This SG also matches the SG measured by ALS IOTC in their A formula was used to calculate the bulk density for each +6.3 mm sample separately = [(recovery% x 4.8)+ ((100-recovery%) x 2.03)]/100. For a 50% recovery the bulk In situ density is thus 3.41. A single bulk density of 2.03 was used for the fines fraction (6.3- 2.0mm).

Resource Modelling Methodology

The Paulsens East Mineral Resources were modelled using MineMap IMS® software.

In relation to the Mineral Resources delineated from the hematite ridge:

• A polygon was created on each variably spaced drilling section, approximately perpendicular to the strike of the ridge, using a 58% Fe lower cut off with a minimum drill intersection width of 1.0m, however a few intersections less than 1.0 m were included to maintain continuity between cross sections. Some intersections of lower than cut-off material was included in the polygons as "included waste" to maintain continuity between higher-grade intersections. The 58% Fe lower cut-off grade was chosen to reflect the iron mineralisation as it produced coherent intersections on the drill holes.
• The average drill intersection width is 6.26m. Note that since most of the drill holes were designed to intersect the mineralisation approximately orthogonally, the drill intersection width in most drill holes would be only slightly longer than the true width of the mineralisation. Where the azimuth of a hole or the dip of a hole is not orthogonal to the mineralisation the drill intersection width will be longer than the true width of the mineralisation.

		Unit 1		Unit 2		Unit 3	Unit 4		Unit 5		Total
	Drill		Drill		Drill		Drill		Drill		Drill
	Interval	Fe%	Interval	Fe%	Interval	Fe%	Interval	Fe%	Interval	Fe%	Interval	Fe%
Count	51		52		41		11		4		54
Minimum	1.00		0.50		0.50		0.50		0.50		1.00
Maximum	6.00		8.50		10.00		2.50		4.00		16.00
Average	2.08	61.26	2.40	62.03	2.05	59.71	1.45	60.90	1.75	62.33	6.26	61.53
Width average		61.77		62.16		61.29		61.61		63.13		61.82

Table 17: Mineralisation width statistics

• Since there was usually only one drill hole per cross section, the few sections with multiple holes were interpreted first to get a sense of the dip. Then the rest of the sections were interpreted by linking the main mineralised drill intersection with the crest of the ridge, corresponding with the geological mapping of the mineralisation (refer Figure 33). On most sections there are three iron units separated by shales and quartzites.

Figure 33: Typical cross section (432285E) showing three main mineralised units

• The sections were then linked by wireframes to produce a 3D model. The interpreted mineralised zones on each section generally showed good continuity between sections.
• The grades were interpolated using Inverse Distance Cubed (ID3) into the model blocks using a 100m along-strike search ellipse.

In relation to the Mineral Resources delineated from the detritals material:

• Polygons representing the limit of the high grade detritals were created using the site observations and interpretation of GoogleEarth imagery around the trenches, eliminating the trenches with low grade recoverable lump (-32mm+6.3mm) <58% Fe. The head grade of the trench samples used in estimation of the resource vary from 44.5% Fe and 58.7% Fe.
• A block model with 10m x 10m cells was created with grades of the recovered product calculated for the cells within the polygons using inverse distance squared. Search radii used were 100m along strike and 50m across strike with a strike direction of 300m corresponding with the strike of the conglomerate ridge (refer Figure 34).

Figure 34: Detritals Trench Location and Recovered Product Grades

• The depth contours were then used to insert thicknesses into the cells. Between 0.0 and 0.5m contours = 0.25m, 0.5-1.0m = 0.75m, 1.0-2.0m = 1.5m, >2.0m = 2.25m.
• The detrital tonnes for each cell = 10m x 10m x thickness x bulk density. The recovered ore tonnes = detrital tonnes x recovery%. The resource grade is weighted by the recovered tonnes.

The parameters used in the Mineral Resource modelling are outlined in Table 18.

Parameters	Hematite Ridge	Detritals
	Resource	Resource
	430,350E –	431751.15 E –
East/West limits	433,350E	433410.00 E
	7,503,850N -	7503928.79 N -
North/South limits	7,505,150N	7505002.00 N
Block dimensions (metres) X (strike), Y (across	5.0m x 5.0m x	10.0m x 10.0m
strike), Z (depth)	2.0m
Algorithm	3D Ellipsoidal	3D Ellipsoidal
Inverse Distance Weighting Power	2	2
Upper RL	340.0m RL	N/A
Base RL	150.0m RL	N/A
Search Ellipse Along strike	100m	100m
Search Ellipse Across strike (to fill model,	100m	50m
mineralised bodies only several metres thick)
Search Ellipse Depth	100m	N/A
Rotation Z (dip off vertical)	o0	o0
Rotation Y (strike)	o0	60o
Rotation X (plunge)	o0	o0

Table 18: Modelling parameters used to model the Paulsens East Mineral Resources

APPENDIX B

JORC CODE (2012 EDITION) TABLE 1 – CHECKLIST OF ASSESSMENT AND REPORTING CRITERIA

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections)

Criteria	Commentary
Sampling	In relation to Mineral Resource estimate (Hematite Ridge):
techniques	•The only samples used in the resource estimate are splits of chips collected duringReverse Circulation (RC) drilling.
	•Most of the drilling was designed to penetrate the whole width of the mineralised zoneapproximately orthogonally. All the drilling samples were split with a cyclonic splitter.
	•All drilling met industry standards and used to obtain usually 0.5 m samples fromwhich 3 kg was pulverised for XRF analysis.
	In relation to Mineral Resource estimate (Detritals):
	•Trenches were dug with an excavator to bedrock. One side of the trench was scrapedwith the excavator bucket, to sample the whole of the detrital column evenly. Two,~25kg representative samples, were deposited into plastic bags from the excavatorbucket.
	•The depth and coordinates of the trench were measured and recorded.
	•The combined ~50kg sample was stage crushed to minus 32mm, split into two parts.One half (1/2) was soaked for 24 hours, scrubbed, screened at -32mm +6.3mm, -6.3mm +2mm and -2mm size fractions, each fraction weighed and a representativesample from each fraction analysed for the iron ore suite of elements. All analyseswere done by pulverising representative samples and a small representative portiontaken for XRF analysis.
Drilling	In relation to Mineral Resource estimate (Hematite Ridge):
techniques	•All the drilling used in the resource modelling was RC drilling.
	In relation to Mineral Resource estimate (Detritals):
	•No drilling was undertaken. A total of 50 shallow pits were dug and sampled using asmall excavator.
Drill sample	In relation to Mineral Resource estimate (Hematite Ridge):
recovery	•All the samples were logged by a qualified geologist and visually assessed for samplerecovery. The logging indicates that the sample recoveries were excellent.
	•The RC drilling was monitored by the site geologist and when sample recoveries werebecoming a problem, drilling was stopped.
	•There are no known relationships between grades and sample recovery.
	In relation to Mineral Resource estimate (Detritals):
	•A qualified geologist supervised the excavation and sampling. Recovery of materialwas 100%. The size of samples recovered for the proposed testwork were 2 x25kg(total 50kg) from each trench.
Logging	In relation to Mineral Resource estimate (Hematite Ridge):
	•All the drill samples were logged by a qualified geologist at a sufficient level to supportresource modelling.
	•The logging was both qualitative and quantitative.
	•Each hole was logged entirely.
	In relation to Mineral Resource estimate (Detritals):
	•All samples were logged by a qualified geologist at a sufficient level to supportresource estimation.
	•The logging was sufficiently detailed to allow prioritisation for follow up laboratorytestwork and resource estimation. Of the 50 pits excavated, 27 were sent to thelaboratory for testwork.Of these, 24 formed the basis for the estimation of theresource.
	•Each pit was logged entirely.

Criteria	Commentary
Sub-sampling	In relation to Mineral Resource estimate (Hematite Ridge):
techniques andsample	•The RC sample chips were split using a rig mounted cyclonic splitter.
preparation	•The sample collection and sub-sampling was appropriate for the mineralisation beingsampled.
	•Field duplicates and laboratory standards were used for Quality Assurance andQuality Control (QAQC).
	•To ensure the sampling is unbiased, the whole of the mineralised zone was drilledand drill holes spaced on a regular grid. The RC chips were collected and subsampled in a cyclonic splitter.
	•The samples collected and submitted for assay are of an appropriate size for the grainsize of the material being sampled.
	In relation to Mineral Resource estimate (Detritals):
	•Trenches were dug with an excavator to bedrock. One side of the trench was scrapedwith the excavator bucket to sample the whole of the detrital column evenly. Two,~25kg representative samples were deposited into plastic bags from the excavatorbucket, tagged and marked with permanent ink pen, tied using cable ties, anddispatched to laboratory.
	•The sample collection and sub-sampling was appropriate for the mineralisation beingsampled.
	•No duplicates were used for QAQC.
	•To ensure the sampling is unbiased, the whole of the mineralised zone was sampled.
	•The samples collected and submitted for assay are of an appropriate size for the grainsize of the material being sampled.
Quality of assay	In relation to Mineral Resource estimate (Hematite Ridge):
data andlaboratory tests	•The samples were analysed using XRF by an independent ISO accredited laboratoryfollowing international standard procedures to produce total assays.
	•No geophysical results are reported.
	•Field duplicates and laboratory standards were used for QAQC.
	In relation to Mineral Resource estimate (Detritals):
	•The samples were analysed using XRF by an independent ISO accredited laboratoryfollowing international standard procedures to produce total assays.
	•No geophysical results are reported.
	•Laboratory standards were used for QAQC.
Verification ofsampling and	In relation to Mineral Resource estimate (Hematite Ridge):
assaying	•No independent verification of the data was made by the Competent Person (for theMineral Resource).
	•No twinned holes have been drilled to check quality of original drilling.
	•All data collection, data entry, data verification procedures and data storage protocolsare properly documented.
	•No adjustments were made to the assay data.
	In relation to Mineral Resource estimate (Detritals):
	•No independent verification of the data was made by the Competent Person (for theMineral Resource).
	•No twinned pits have been excavated to check quality of pit samples.
	•All data collection, data entry, data verification procedures and data storage protocolsare properly documented.
	•No adjustments were made to the assay data.
Location of datapoints	In relation to Mineral Resource estimate (Hematite Ridge):
	•The drill hole collars were surveyed using a hand-held GPS. The accuracy of drillhole collar surveys cannot be fully verified but were found to lie where expected ondrill pads shown on the georeferenced images.
	•The topography was surveyed using drone photogrammetry by Yoda ConsultingAustralia Pty Ltd between 29 July – 2 August 2019. An accuracy of +/- 2-4 m E-W/NS can be expected, with elevation control not as reliable. The DC Levelled DEM Gridwas referenced against the Space Shuttle Radar data (SRTM), which has a nominalground pixel size of 30m.

Criteria	Commentary
	In relation to Mineral Resource estimate (Detritals):
	•The pit locations were surveyed using a hand-held GPS. The GPS locations lie whereexpected on tracks shown on geo-referenced images.
	•The depth of pits was measured using a hand-held measuring tape. The topographybetween pits is generally regular and planar and not undulating.
Data spacing	In relation to Mineral Resource estimate (Hematite Ridge):
and distribution	•The Competent Person (for the Mineral Resource) believes that the spacing of thedrilling on sections at ~50 - 150m spacing along with an accurate topographicphotogrammetry survey with high resolution photos and surface GPS mapping, issufficient for a low order Indicated resource estimate.
	•Since the bulk of the sampling used in the resource estimates, the RC drilling, issampled at fixed 0.5m intervals, there was no sample compositing.
	In relation to Mineral Resource estimate (Detritals):
	•The Competent Person (for the Mineral Resource) believes that the spacing of thetrenching on sections at ~50 - 100m spacing along with a planar topography as wellas data available from photogrammetry survey with high resolution photos andsurface GPS mapping, is sufficient for an Indicated Mineral Resource estimate.
	•Since whole of the pit depth constituted one sample, no compositing has beenrequired.
	•Volume estimation was done using hand drawn isopach map of detrital thickness,planimeter estimation of the area using GoogleEarth between isopach contours andmultiplication of the area with average thickness represented by the contours.
Orientation ofdata in relationto geologicalstructure	•The intersection angle of the drilling with respect to the mineralisation was variable,but generally at ~60-80 degrees, making most drill intersections longer than the truewidth of the mineralisation. The resource modelling software uses the data in 3D andso compensates for the wider apparent thicknesses.
	In relation to Mineral Resource estimate (Detritals):
	•All pits were vertical. The resource is a volume estimate between two planar surfacesor regularly varying thicknesses.
Sample security	•All the samples submitted for chemical analysis were securely transported from thefield to the laboratory.
Audits or reviews	•There have been no audits or reviews of the sampling techniques or data.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section)

Criteria	Commentary
Mineraltenement andland tenurestatus	•The resources are entirely within Mining Lease M47/1583 which is registered withOrion Equities Limited (but 100% beneficially owned by the Company), which is dueto expire in 2041.
Exploration doneby other parties	•	No other parties have carried out significant iron ore exploration at Paulsens East.
Geology	•	The iron mineralisation is a conglomerate within the Mount McGrath Formationcomposed of hematite clasts within a hematite matrix.
	•	Scree material shedding from the hill has accumulated within the soil profile along theslope and at the foot of the range.
Drill hole		In relation to Mineral Resource estimate (Hematite Ridge):
Information	Type	IDs	Number	Total Drilled (m)
	RC (2006)	PERC001 to PERC008	8	813
	RC (2008)	PERC009 to PERC064Includes PERC029A & PERC063A	58	2,724
	TOTAL		66	3,537
	•Information on the 2006 and 2008 drilling programmes, including the drill-holelocations and collar details, are included in Appendix A and C.
	In relation to Mineral Resource estimate (Detritals):
	•No drilling was undertaken. A total of 50 shallow pits were dug and sampled using asmall excavator (October 2021). Trench details and Analysis Results are included inAppendix D.

Criteria	Commentary
Data aggregation	In relation to Mineral Resource estimate (Hematite Ridge):
methods	•All intersections quoted in text are length weighted averages and all resourceestimates are tonnage weighted averages
	•No metal equivalents have been reported.
	In relation to Mineral Resource estimate (Detritals):
	•Resource estimate is tonnage weighted average.
	•No metal equivalents have been reported.
Relationship	In relation to Mineral Resource estimate (Hematite Ridge):
betweenmineralisation	•The resource modelling was carried out in 3D and all apparent widths accounted forin the estimation method.
widths andintercept lengths	•Most of the drill holes were designed to intersect the mineralisation approximatelyorthogonally. The drill intersection width in most drill holes would be only slightlylonger than the true width of the mineralisation. Where the azimuth of a hole or thedip of a hole is not orthogonal to the mineralisation the drill intersection width will belonger than the true width of the mineralisation.
	In relation to Mineral Resource estimate (Detritals):
	•The vertical excavated pits and average sample thicknesses are assumed to beorthogonal to mineralisation between isopach contours for all practical purposes.
Diagrams	•All the diagrams necessary to describe the project are included in the body of thisannouncement.
Balancedreporting	•The Competent Person (for the Mineral Resources) believes that the reporting of theExploration Results in this document is balanced.
Othersubstantiveexploration data	•No other exploration data other than local geology maps were considered in theresource estimates.
Further work	In relation to Mineral Resource estimate (Hematite Ridge):
	•Further in-fill drilling, metallurgical testwork and mining studies have beenrecommended.
	In relation to Mineral Resource estimate (Detritals):
	•The resource is relatively small and the quantum of work done is deemed adequateand reasonably detailed. No further work is recommended within the body of thedefined resource. It is recommended that more pits be excavated further down thehematite ridge slope down valley in the north eastern corner of the area within theMining Lease, to test for additional detrital mineralisation.

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in Section 1, and where relevant in Section 2, also apply to this section)

Criteria	Commentary
Database	In relation to Mineral Resource estimate (Hematite Ridge):
integrity	•Data used as received but checked for Hole ID and sample interval errors byMineMap© software. Some RC sample assays in database were checked againstlaboratory spread sheets and no errors were found.
	In relation to Mineral Resource estimate (Detritals):
	•Pit samples numbers were checked against laboratory spreadsheets and no errorswere found.
Site visits	In relation to Mineral Resource estimate (Hematite Ridge):
	•The Competent Person (for the Mineral Resource) visited the site on 17 August 2019and inspected the mineralised outcrop at various points over the whole strike lengthof the deposit and instructed the field technician on where to take the GPS readingsof the hematite outcrop.
	In relation to Mineral Resource estimate (Detritals):
	•Field work, including, excavation, sampling and rehabilitation of excavated ground aswell as selection of samples for laboratory testwork was carried out under the directsupervision of the Competent Person (for the Mineral Resource).
Geological	In relation to Mineral Resource estimate (Hematite Ridge):
interpretation	•The mineralisation is a series of conglomerate beds with hematite clasts and matrixseparated by thin shale and quartzite beds.
	•The interpretation of the mineralisation and modelling wireframes is based on surfacemapping and drilling.
	•The hematite conglomerates are sedimentary.
	In relation to Mineral Resource estimate (Detritals):
	•The detrital material is eroded and accumulated in the soil profile on the slope and atthe foot of the range along the valley floor directly below the mineralised outcrop.
	•The detritus accumulations are sedimentary.
Dimensions	In relation to Mineral Resource estimate (Hematite Ridge):
	•The outcropping mineralised conglomerate has a strike length of ~3 km and is openat depth.
	In relation to Mineral Resource estimate (Detritals):
	•The depth and quality of material on the slope and along the valley floor is expectedto vary. Pitting has identified four significant areas of detrital accumulation. Of these,the largest area is ~500m long and ~100m wide. It is located along the eastern endof the main conglomerate ridge. A small triangular area ~120m long and a maximumof 50m wide defines the western edge of haematitic detrital accumulation.
Estimation and	In relation to Mineral Resource estimate (Hematite Ridge):
modellingtechniques	The resource modelling was done with MineMap© software by interpolating grades•into a digital block model using an Inverse Distance Cubed (ID3) algorithm confinedby wire framing of the >58% Fe mineralised zones with 100m search radii along andacross strike and 100m up and down dip.
	•The Competent Person (for the Mineral Resource) considers that these modellingparameters are appropriate for an Indicated resource of the type and style ofmineralisation being modelled.
	•It is assumed that the mineralised conglomerate beds can be satisfactorily mined inan open cut to a minimum of 1 m width and beneficiation, if required, will produce aprofitable and marketable product.
	•The model cells of 5m x 5m x 2m are suitable for representing the style ofmineralisation being modelled.
	•No variable correlations were considered.
	•The wireframes confining the resource model are based on drill intercept grades>58% and correlated with the outcropping ridge.
	•No grades were cut because the Fe grades had no high-grade outliers.
	•The resource model was checked and validated visually against the drilling usingcolour coded grades.
	In relation to Mineral Resource estimate (Detritals):
	•The Competent Person (for the Mineral Resource) considers that the data density and

Criteria	Commentaryanalytical work carried out is adequate to determine the Indicated Mineral Resource
	of the type and style of mineralisation being modelled.•Laboratory testwork has shown that simple crushing and wet screening will produce
	a profitable and marketable product.
Moisture	•All tonnes and grades are on a dry basis.
Cut-offparameters	In relation to Mineral Resource estimate (Hematite Ridge):
	•The resource modelling was confined by wire framing of the >58% Fe mineralisedzones.This grade represents an approximate economic cut-off and allowscorrelations of the mineralisation between cross sections.
	In relation to Mineral Resource estimate (Detritals):
	•A minimum cut-off grade of 58% Fe for resource estimation has been considered. Anaverage product grade of a 60% Fe for the lump (-32mm +6.3mm) material wasconsidered necessary for the samples to be included in the Indicated MineralResource.
Mining factors or	In relation to Mineral Resource estimate (Hematite Ridge):
assumptions	•No mining factors were considered for the mineral resource estimate although it wasassumed that if the deposit is mined, it will be mined using the open pit miningmethodology.
	In relation to Mineral Resource estimate (Detritals):
	•No mining factors other than open pit excavation were considered for mining.
Metallurgical	In relation to Mineral Resource estimate (Hematite Ridge):
factors orassumptions	•Metallurgical tests were performed on representative samples of the mineralisationcollected in 2019 and 2020.
	In relation to Mineral Resource estimate (Detritals):
	•Pit samples were subjected to metallurgical testwork including crushing, scrubbingand screening to produce a high grade/value marketable product.
Environmentalfactors orassumptions	•No environmental factors were considered however the tenement has sufficientsuitable area to accommodate a small mining and processing operation includingprovision for waste disposal.
	•There are no obvious especially environmentally sensitive areas in the vicinity of thedeposit although the usual impact studies and government environmental laws andregulations will need to be complied with.
Bulk density	•There were no specific gravity measurements taken of the mineralisation for themineral resource models.
	In relation to Mineral Resource estimate (Hematite Ridge):
	•A bulk density of 4.2 (based on the density of hematite mineral = 5.26 in AustralianField Geologists' Manual – Monograph 9 AusIMM) was used. This value is typical ofhigh-grade hematite mineralisation.
	•Subsequent bulk density testing has confirmed a bulk density of 5.59 for the highgrade hematite (in situ), supporting the estimation for bulk density of 4.2 used in theMineral Resource modelling.
	In relation to Mineral Resource estimate (Detritals):
	•There have been no specific gravity measurements taken of the mineralisationmodelled.
	•The bulk density of each sample is calculated using the lump hematite recovery% andassumed porosity (25%) and SG of the hematite (4.8) and fines (2.7).
	•Bulk Density = [(recovery% x 4.8)+ ((100-recovery%) x 2.03)]/100.For a 50%recovery the bulk density is 3.41. A single bulk density of 2.03 was used for the fines(6.3mm-2.0mm).
Classification	In relation to Mineral Resource estimate (Hematite Ridge):
	•The resource was classified by the Competent Person (for the Mineral Resource) asIndicated based on the spacing of the drilling and quality of the data used in theestimation.
	•The Competent Person (for the Mineral Resource) believes this classification to beappropriate.
	In relation to Mineral Resource estimate (Detritals):
	•The resource was classified by the Competent Person (for the Mineral Resource) asIndicated based on the spacing of the excavated pits and quality of the data used inthe estimation.

Criteria	Commentary
	•The Competent Person (for the Mineral Resource) believes this classification to beappropriate.
Audits or reviews	•No audits or reviews of the Mineral Resource Estimates have been made.
Discussion ofrelativeaccuracy/confidence	In relation to Mineral Resource estimate (Hematite Ridge):
	•The drill hole spacing is too wide to provide sufficient confidence in the resourceestimate for a higher-level resource category. The quality of the data is consideredto be reasonable for a low order Indicated resource estimate.
	•All quoted estimates are global for the deposit.
	•No mine production has been recorded at the deposit.
	In relation to Mineral Resource estimate (Detritals):
	•The trench sample spacing is too wide to provide sufficient confidence in the resourceestimate for a higher-level resource category. The quality of the data is consideredto be reasonable for an Indicated Mineral Resource estimate.
	•All quoted estimates are global for the resource.
	•No mine production has been recorded at the resource.

Section 4 Estimation and Reporting of Ore Reserves

(Criteria listed in Section 1, and where relevant in Sections 2 and 3, also apply to this section)

Criteria	Commentary
MineralResourceestimate forconversion toOre Reserves	•The Paulsens East Mineral Resource estimate (Hematite Ridge) as described inSection 3 formed the basis for the conversion to Ore Reserves.•The Mineral Resources (Hematite Ridge) are inclusive of the Ore Reserves.
Site visits	•The Competent Person for the Ore Reserves, Mr Harry Warries, has not visited thesite.
	•Harry Warries is very familiar with the Pilbara region in general, having worked in thearea and visited many iron ore projects in the same region and with Paulsens Eastbeing a greenfield project no site visit was deemed to be necessary.
Study status	•A Feasibility Study was completed by the Company in October 2020 and updated inFebruary 2022.
Cut-offparameters	•A cut-off grade of 55% Fe was applied, which will result in the production of amarketable product.
Mining factors orassumptions	•The basis of design for the Project is predicated on crushing and screening 2 Mtpa ofcrusher feed. The average waste to ore strip ratio is ~3.1 : 1 and a maximum totalmaterial movement of up to 8Mtpa will be required.
	•Mining is undertaken by conventional open pit methods of drill and blast, followed byload and haul, utilising mining equipment comprising 105t diesel hydraulic excavatorsand 100t off-highway dump trucks as the main production fleet.However, initialmining will be completed by a "pioneering fleet" which will progress across the ridgeto 'open' the mine faces/benches. This pioneering fleet consists of a 50t excavatorand 50t articulated dump trucks.
	•Detailed pit design work was completed based on pit optimisations using Whittle FourX optimisation software.Only Indicated Mineral Resources were used in the pitoptimisation.
	•Pit slope parameters were based on a geotechnical assessment that was based oninformation contained within the resource drilling database, supplemented byadditional data sourced from the GeoVIEW.WA portal, including historical explorationreports and geological mapping. Essentially, five separate domains were identifiedalong the ~3 km strike length of the deposit. Overall pit wall slope angles rangingfrom 26º to 45º were modelled.
	•Strict grade control procedures will be implemented based on blast hole sampling andmining will be selective, mining ore on 5m benches and 2.5m flitches.
	•Some mining dilution has been incorporated as part of the resource estimationprocess and a mining ore loss of 10% was assumed.
	•A minimum cutback mining width of 30m is adopted.
	•The mine plan includes no Inferred Mineral Resources.
	•The primary infrastructure required for the project is a variety of infrastructure installedto provide basic supplies of water, power, fuel, communications, buildings and access

Criteria	Commentary
	roads, including a crushing plant, offices and workshops and other mine site relatedinfrastructure.
	•During Stage 1 Production, the Company proposes to road haul the product from themine site stockpiles to the Port Hedland Multiuser Utah Point port where it would bestockpiled before being transferred on to ships for export.
	•During Stage 2 Production, the Company proposes to road haul the product from themine site stockpiles to a stockpile area near Onslow, prior to further road haulage tothe Port of Ashburton port where it would transferred on to transhipment vessels tocarry the product to an offshore point for loading on to ships for export.
	•The Competent Person considers the proposed mining method to be appropriate,given the nature of the deposit's mineralisation and the scale of the proposedoperations.
Metallurgicalfactors or	•Processing is by conventional primary jaw crusher followed by a secondary conecrusher and screening, producing a Lump and Fines product.
assumptions	•ALS Metallurgy Iron Ore Technical Centre (ALS IOTC) in Perth, Western Australiaundertook metallurgical test work for the Project based on bulk composite samplescollected from various surface locations across the entire length and width of thePaulsens East Iron Ore deposit (Hematite Ridge).
	•The stage crush and drop tower test results indicate that 79% of crushed material islikely to be classified as 'Lump' material (> 6.3mm < 32.5mm in size), and 21% as'Fines' material (< 6.3mm).
	•The testwork indicated that the Lump material is likely to be ~2% Fe higher in gradethan that of the Fines material.
	•Assays of the material taken after the Drop Tower test confirmed that both the Lumpand Fines materials were likely to be exceptionally low in deleterious elements suchas phosphorous (~0.05%) and sulphur (~0.008%).
	•Subsequent analysis of samples taken as part of a Bulk Sample programme in August2020 served to confirm the high-grade nature of the ore as being representative of theorebody as a whole.
	•Head Grade analyses of a 90:10 blend of high-grade hematite:waste from the August2020 Bulk Sample confirmed that a 62% Lump product low in alumina and a 59%Fines product with a moderate level of alumina can be achieved from the Ore Reserveconsistent with the assumptions used in the Updated Study.
Environmental	•A reconnaissance flora and vegetation survey and Level 1 fauna and fauna habitatassessment has been completed over the Project area and formed part of the MiningProposal approved by DMIRS.
	•During the field work, evidence of Northern Quoll (Endangered EPBC Act and BC Act)was recorded on motion sensors and cameras. The Company will develop a strategyto minimise and impact the Project may have on the Quoll habitat.
	•No other significant environmental issues have been identified.
	•Total waste movement is expected to be ~19Mt over LOM. Waste will be dumped intwo dump locations with the main waste dump to be located south east of the pit onthe southern side of the ridge (Waste Dump 1) with a second waste dump locatednorth east of the pit (Waste Dump 2). Waste material is predominantly induratedferruginous siliceous sandstones, quartzite and massive basalt.No sulphidematerials have been encountered in exploration drilling and there is very low potentialfor any acid forming materials to be present in the dumped waste material.
	•A diversion channel will be constructed to divert an existing creek system aroundWaste Dump 1.
Infrastructure	•The proposed infrastructure to be built includes low‐grade and waste rock dumps,ROM pads, surface haul roads to processing plant, pumping infrastructure, workshopsand fuel storage/supply facilities, technical and administration facilities, power station,mine accommodation camp facility, explosives storage facilities and associated mineinfrastructure.
	•The ore haulage route to Port Hedland (~600km from the minesite) and Port ofAshburton (~600km from the minesite), is mostly along an existing sealed highways.An ~18km haulage road will be constructed from the mine site to the paved NanutarraRoad.
	•The ore haulage fleet will consist of high‐capacity road trains.
	•Utah Point and the Port of Ashburton is operated by the Pilbara Ports Authority (PPA).
	•The facilities at Utah Point allow for direct access and dumping of ore from road trainsinto the ore hoppers (or bunkers) at the stockpile area, with no requirement for any

Criteria	Commentary
	intermediary stockpiles or double handling of ore.
	•The Company has received formal confirmation of capacity allocation from the PPAat Utah Point for 200,000 tonnes per financial year, for up to four years. Upon a finalinvestment decision (FID) to commence mining operations Strike will execute a multiuser access agreement with the PPA, pursuant to which it will seek to export initialmine production from the Project.
	•Stage 2 of the Project which involves a ramp up in production to an annualised rateof 2Mtpa involves the export of ore through the Port of Ashburton at Onslow (viatranshipper). Once the Port of Ashburton facility has been permitted and isoperational, the Company intends to transition from the utilisation of Utah Point to thePort of Ashburton.Subject to receipt of appropriate road permits, the Companyproposes to use standard Quad road trains to transport the lump and fines product toan off-site stockpile located within 22km of the Port of Ashburton from where they willbe sprinted to that port upon vessel arrival or alternatively through the use of standardtriple road trains for which the road is currently permitted
	•All facility and port charges have been appropriately allowed for in the project financialmodel.
	•The workforce will be made up of a combination of mostly fly‐in fly‐out (FIFO)employees, contractors and management staff.The Company has secured anagreement to utilise an existing mining camp at the Northern Star Paulsens Gold Mine,which is currently on care and maintenance and which has sufficient capacity toaccommodate the Project's requirements during construction and on-goingoperations. Alternatively, Strike has submitted plans for a dedicated camp facility onsite to provide accommodation, meals and recreation facilities for FIFO workers.
	•Workers will travel to site mostly via flights to Paraburdoo on commercial carriers,from where they will be transported by bus to site.
	•The Company proposes to recommission a local (Wyloo Station) airstrip (previouslyused for charter flights to service the Paulsens Gold Mine) as an alternative transportsolution.
Costs	•The majority of the capital cost estimates used in the Updated Study are based uponproposals and/or budget estimates from suitably experienced industry participants orestimates received from external consultants.
	•Mining operating costs (drilling, blasting, loading, hauling and ore processing to mineproduct stockpile) were prepared based on pricing estimates received from suitablyqualified and experienced mining contractors.Mining operating costs were alsoreviewed by an independent consultant.
	•The main deleterious element to be considered for the Project is Alumina (Al2O3). Aprice penalty to the base product price for the Fines product has been applied in thefinancial modelling to account for levels of Alumina expected to occur in the Fines.
	•Iron Ore pricing was based on the Platts 62% Fe index (Benchmark Price) and anaverage Benchmark Price of US$110/t over the life of mine CFR China was adoptedin the Updated Study.
	•A foreign exchange rate of US$ / A$ of 0.725 was adopted for the Updated Study.
	•A Western Australia government royalty of 7.5% is applicable, as well as third partyroyalties of between 2.5% and 3.0%, dependent on the iron ore price.
	•Transport costs were derived from proposals from contractors (haulage) andestimates received from shipping brokers (shipping).
Revenue factors	•Iron Ore pricing was based on the Platts 62% Fe index and an iron ore price ofUS$110/t, over the life of mine CFR China was adopted as the base case.
	•Based on metallurgical test work, a premium was applied to the Lump product, whilsta penalty was applied to the Fines product due mainly to relatively high levels ofAlumina present in the ore which are expected to report mostly to the Fines product.
Marketassessment	•There is a transparent quoted and strongly traded market for the sale of iron ore. Themarket for Western Australian iron ore is well established and liquid.
	•For the Updated Study, Strike has forecast the Benchmark Price for iron ore to remainat a price of ~US$110/t as a base case over the 3.5 year mine life of the Project andhas assumed the lump iron ore product produced from the Project will attract apremium to the Benchmark Price whilst the Fines iron ore product produced will attracta discount to the Benchmark Price.
Economic	•The financial evaluation undertaken as part of the Updated Study indicated a positivenet present value (NPV) at an 8% discount rate.

Criteria	Commentary
	•A sensitivity analysis on the financial model highlights that the Project value is mostsensitive to the following factors:-–Iron ore price–US$ / A$ exchange rate
	–Road haulage cost
	•Illustratively, a 10% increase in the average Benchmark iron ore price to US$121/tover the LOM would result in a 59% increase in forecast NPV to ~$166 Million (pretax). Conversely, a 10% decline in the average Benchmark iron ore price to US$99/tover LOM would result in the expected NPV for the Project reducing to ~$43 Million(pre-tax).
Social	•A Native Title Agreement has been executed with the Traditional Owners of the landwhere the Mining Lease and various adjacent Miscellaneous Licences are located.
	•Access Agreements have been executed with a pastoral leaseholder and othertenement holders who are otherwise impacted by the Company's proposedoperations (for Stage 1).
	•Similar agreements are pending execution prior to the grant of MiscellaneousLicences/General Purpose Lease areas that the Company has applied for to supportStage 2 operations.
Other	•No material naturally occurring risks have been identified, other than those which aretypically encountered in mining operations in this region of Western Australia. Thearea is subject to occasional significant rainfall events, particularly in summer monthswhen the remains of cyclones can cross the area. Appropriate measures to managestormwater during and immediately after these events are planned to be in place priorto commencement of mining operations.
	•No material contracts for sale of product are in place at this point in time.
	•Draft agreements are being reviewed/negotiated with Pilbara Ports Authority andother various potential contractors and suppliers.
	•The Project is located entirely within a granted and current Western Australian mininglease (M47/1583) over which the Company has secure 100% beneficial interest.
	•A number of Miscellaneous Licences have been granted to permit the developmentof an access road to the mine site from the paved Nanutarra Road, as well as for thedevelopment of a mining village.
	•A Mining Proposal, Project Management Plan, Works Approval and Native VegetationClearing Permit (in respect of Stage 1), Water Licence and Dangerous GoodsTransport and Storage Licence have been approved/issued by DMIRS/DWER (as thecase may be).
	•Other Government permits/approvals which will be sought include:
	-DMIRS approvals, including in relation to the stockpiling of iron ore prior toloading at Utah Point (if this is required for Stage 1) and in respect of Stage 2operations exporting out of the Port of Ashburton;
	-DWER approvals in respect of Stage 2 land-based and marine/offshoreoperations;
	-DMIRS Native Vegetation Clearing Permits in relation to proposed stockpilearea(s)/Stage 2 operations;
	-Main Roads WA approvals in respect of Stage 2 operations.
	•There are reasonable grounds to expect that these and any future Governmentpermits/approvals will be granted and maintained within the necessary time framesfor successful implementation of the Project.
Classification	•Probable Ore Reserves were declared based on the Indicated Mineral Resources.
	•The Mineral Reserve estimate appropriately reflects the Competent Person's view ofthe deposit.
Audits or reviews	▪No audits or reviews of Ore Reserve estimates have been undertaken.
Discussion ofrelative	•The relative accuracy and confidence of the Ore Reserve estimate is inherent in theOre Reserve Classification.
accuracy/confidence	▪Mining dilution and ore loss should be re-evaluated once production data becomesavailable.

APPENDIX C

DRILL COLLAR DETAILS

	EAST	NORTH					STARTENDDrill
HOLE ID	MGA94_Z50	MGA94_Z50	RL	DEPTH	Azimuth	Dip	DATE	DATE	Company
PERC001	430,952	7,504,968	254	82	174	-60	6/12/2006	6/12/2006	Wallis
PERC002	431,382	7,504,939	241	64	167	-60	7/12/2006	7/12/2006	Wallis
PERC003	432,043	7,504,777	242	120	204	-63	7/12/2006	8/12/2006	Wallis
PERC004	432,322	7,504,674	238	148	202	-60	8/12/2006	8/12/2006	Wallis
PERC005	432,771	7,504,357	233	147	212	-60	9/12/2006	9/12/2006	Wallis
PERC006	432,901	7,504,228	250	100	221	-55	9/12/2006	9/12/2006	Wallis
PERC007	433,143	7,504,045	246	94	236	-55	10/12/2006	11/12/2006	Wallis
PERC008	434,149	7,502,753	229	58	160	-60	11/12/2006	11/12/2006	Wallis
PERC009	433,193	7,503,982	249	36	239	-45	31/05/2008	1/06/2008	Rock
PERC010	433,105	7,504,038	256	54	227	-29	1/06/2008	1/06/2008	Rock
PERC011	433,019	7,504,081	250	54	210	-25	2/06/2008	3/06/2008	Rock
PERC012	432,925	7,504,167	250	34.5	248	-23	3/06/2008	3/06/2008	Rock
PERC013	432,885	7,504,213	240	42.5	215	-17	4/06/2008	5/06/2008	Rock
PERC014	432,885	7,504,213	240	30.5	275	-40	5/06/2008	5/06/2008	Rock
PERC015	432,818	7,504,263	244	45.5	238	-19.5	6/06/2008	6/06/2008	Rock
PERC016	432,743	7,504,313	255	48.5	218	-15.5	6/06/2008	6/06/2008	Rock
PERC017	432,691	7,504,343	247	48.5	218	-23	11/06/2008	11/06/2008	Rock
PERC018	432,499	7,504,514	258	48.5	222	-20	11/06/2008	11/06/2008	Rock
PERC019	432,488	7,504,513	256	54.5	228	-40	12/06/2008	12/06/2008	Rock
PERC020	432,349	7,504,576	263	54.5	210	-24	13/06/2008	13/06/2008	Rock
PERC021	431,931	7,504,794	257	54.5	202	-20	14/06/2008	14/06/2008	Rock
PERC022	431,931	7,504,797	256	46.5	202	-40	14/06/2008	15/06/2008	Rock
PERC023	431,728	7,504,878	254	54.5	191	-25	16/06/2008	17/06/2008	Rock
PERC024	431,725	7,504,880	252	54.5	191	-40	17/06/2008	17/06/2008	Rock
PERC025	431,457	7,504,956	255	54.5	165	-25	19/06/2008	19/06/2008	Rock
PERC026	431,295	7,504,948	255	54.5	169	-25	19/06/2008	19/06/2008	Rock
PERC027	431,791	7,504,835	265	54.5	194	-25	23/06/2008	23/06/2008	Rock
PERC028	431,368	7,504,917	263	54.5	160	-25	24/06/2008	24/06/2008	Rock
PERC029	431,374	7,504,915	263	24.5	160	-40	24/06/2008	24/06/2008	Rock
PERC029A	431,374	7,504,915	263	54.5	160	-40	25/06/2008	25/06/2008	Rock
PERC030	431,846	7,504,816	272	54.5	219	-25	25/06/2008	25/06/2008	Rock
PERC031	430,955	7,504,964	240	54.5	142	-25	26/06/2008	26/06/2008	Rock
PERC032	430,861	7,504,942	249	42.5	166	-25	26/06/2008	26/06/2008	Rock
PERC033	430,781	7,504,939	263	48.5	174	-25	26/06/2008	26/06/2008	Rock
PERC034	430,707	7,504,942	260	54.5	170	-25	27/06/2008	27/06/2008	Rock
PERC035	430,630	7,504,931	258	54.5	168	-25	27/06/2008	27/06/2008	Rock
PERC036	431,228	7,504,936	257	54.5	178	-25	27/06/2008	27/06/2008	Rock
PERC037	431,654	7,504,883	265	45	187	-25	28/06/2008	28/06/2008	Rock
PERC038	431,585	7,504,902	258	54.5	176	-25	28/06/2008	28/06/2008	Rock
PERC039	431,523	7,504,918	258	47.5	191	-25	28/06/2008	28/06/2008	Rock
PERC040	431,075	7,504,945	257	54.5	181	-25	29/06/2008	29/06/2008	Rock
PERC041	431,131	7,504,940	256	48.5	183	-25	29/06/2008	29/06/2008	Rock
PERC042	432,036	7,504,739	255	54.5	190	-25	29/06/2008	29/06/2008	Rock
PERC043	432,122	7,504,649	255	46	198	-25	30/06/2008	30/06/2008	Rock
PERC044	432,124	7,504,650	254	35.5	198	-40	30/06/2008	30/06/2008	Rock
PERC045	432,186	7,504,620	257	42.5	201	-25	30/06/2008	30/06/2008	Rock
PERC046	432,284	7,504,580	261	51	190	-25	30/06/2008	30/06/2008	Rock
PERC047	432,380	7,504,524	269	54.5	209	-25	7/01/2008	7/01/2008	Rock
PERC048	432,535	7,504,457	262	54.5	213	-25	7/01/2008	7/01/2008	Rock
PERC049	433,197	7,503,941	233	24.5	350	-25	7/02/2008	7/02/2008	Rock
PERC050	433,190	7,503,848	249	34	190	-25	7/02/2008	7/02/2008	Rock
PERC051	433,130	7,503,952	230	48.5	24	-25	7/04/2008	7/05/2008	Rock
PERC052	433,018	7,504,029	244	38.5	40	-25	7/05/2008	7/05/2008	Rock
PERC053	432,900	7,504,126	256	38.5	40	-25	7/05/2008	7/05/2008	Rock
PERC054	432,803	7,504,206	265	39.5	25	-25	7/05/2008	7/06/2008	Rock
PERC055	432,687	7,504,296	271	27	18	-25	7/06/2008	7/06/2008	Rock
PERC056	432,614	7,504,327	276	54.5	27	-25	7/06/2008	7/07/2008	Rock
PERC057	432,438	7,504,428	282	54.5	15	-25	7/07/2008	7/07/2008	Rock
PERC058	432,279	7,504,474	285	54.5	18	-25	7/07/2008	7/07/2008	Rock
PERC059	432,102	7,504,576	262	54.5	35	-25	7/08/2008	7/08/2008	Rock
PERC060	431,360	7,504,806	287	54.5	350	-25	7/08/2008	7/08/2008	Rock
PERC061	433,312	7,503,931	235	54	196	-60	9/07/2008	9/07/2008	Rock
PERC062	433,297	7,503,881	235	54	194	-60	9/07/2008	9/07/2008	Rock
PERC063	433,245	7,503,964	244	38	195	-45	10/07/2008	10/07/2008	Rock
PERC063A	433,267	7,503,779	237	6	245	-60	10/07/2008	10/07/2008	Rock
PERC064	433,262	7,503,918	240	39	205	-45	10/07/2008	10/07/2008	Rock

APPENDIX D

TRENCHING DETAILS AND ANALYSES

SAMPLE ID	EAST	NORTH	ELEVATION	DEPTH
PD001	433042.6	7504192.1	240.2	1.7
PD002	433036.1	7504174.4	240.5	0.9
PD003	433028.8	7504156.6	241.9	0.3
PD004	433048.6	7504209.5	239.3	2.8
PD005	433053.4	7504233.0	240.9	3.2
PD006	432911.4	7504241.9	252.5	0.3
PD007	432924.2	7504253.8	248.1	0.2
PD008	432937.5	7504269.3	248.1	0.7
PD009	432949.2	7504284.6	244.1	0.8
PD010	432771.7	7504357.2	247.2	1.3
PD011	432783.9	7504372.3	243.3	0.8
PD012	432793.9	7504390.0	242.6	0.1
PD013	432583.2	7504504.8	254.6	1.3
PD014	432570.6	7504490.1	255.8	0.5
PD015	432594.0	7504515.8	250.8	2
PD016	432605.0	7504525.3	248.1	2
PD017	432504.0	7504528.5	255.6	0.3
PD018	432515.8	7504540.0	249.3	0.5
PD019	432520.9	7504553.4	243.6	1.2
PD020	432529.9	7504574.3	239.5	2
PD021	432405.9	7504570.2	253.0	0.25
PD022	432414.3	7504590.9	248.6	0.2
PD023	432420.5	7504612.5	243.8	0.4
PD024	432427.6	7504634.9	239.7	0.9
PD025	432357.6	7504593.3	257.0	0.3
PD026	432363.0	7504612.5	252.5	1
PD027	432369.5	7504630.8	247.4	1.6
PD028	432374.5	7504655.6	243.1	2.3
PD029	432212.0	7504674.3	245.5	1.2
PD030	432228.3	7504691.1	238.1	0.3
PD031	432242.3	7504714.9	235.2	0.4
PD032	432256.6	7504736.7	235.2	0.4
PD033	432128.4	7504767.3	239.7	0.6
PD034	432146.2	7504786.4	236.4	0.6
PD035	431956.6	7504866.3	242.4	0.7
PD036	431966.6	7504888.6	238.8	0.3
PD037	432880.3	7504339.2	238.1	0.8
PD038	432868.7	7504319.7	237.3	1.2
PD039	432859.4	7504301.8	239.3	1.6
PD040	432844.5	7504284.4	244.1	1.8
PD041	432832.6	7504274.4	246.5	0.7
PD042	433024.6	7504298.0	240.0	1.4
PD043	433008.2	7504291.1	238.5	2
PD044	432990.6	7504284.2	237.1	1.2
PD045	432973.9	7504272.8	238.3	1.4
PD046	432963.2	7504251.5	241.9	0.4
PD047	433114.1	7504181.1	242.1	1.6
PD048	433103.5	7504166.4	242.6	0.5
PD049	433089.4	7504152.4	243.8	0.4
PD050	433184.4	7504092.8	239.5	0.9

SAMPLE		SCREEN	WEIGHT					SCREEN	WEIGHT					SCREEN	WEIGHT
ID	DEPTH	SIZE MM	DIST'N	FE	SIO2	AL2O3	P	SIZE MM	DIST'N	FE	SIO2	AL2O3	P	SIZE MM	DIST'N	FE	SIO2	AL2O3	P
PD001	1.7	+6.3	53.53	62.12	6.27	2.34	0.106	-6.3+2.0	18.18	58.82	6.99	4.78	0.100	-2.00	28.29	30.35	36.50	12.80	0.065
PD002	0.9	+6.3	46.82	63.10	3.98	2.45	0.114	-6.3+2.0	17.06	59.03	6.79	4.67	0.103	-2.00	36.12	27.20	38.83	13.35	0.058
PD003	0.3
PD004	2.8	+6.3	61.50	63.45	4.53	1.98	0.098	-6.3+2.0	14.93	59.86	5.82	3.64	0.100	-2.00	23.57	30.75	33.20	12.50	0.064
PD005	3.2	+6.3	36.28	51.81	18.88	3.35	0.104	-6.3+2.0	10.06	51.65	14.26	5.93	0.111	-2.00	53.66	25.63	44.56	10.03	0.053
PD006	0.3
PD007	0.2
PD008	0.7
PD009	0.8	+6.3	45.07	61.10	6.68	2.50	0.114	-6.3+2.0	13.23	57.90	8.43	3.65	0.110	-2.00	41.70	23.37	46.29	11.08	0.053
PD010	1.3	+6.3	37.76	42.12	32.70	4.88	0.088	-6.3+2.0	10.13	39.30	32.90	4.96	0.093	-2.00	52.11	22.72	48.00	10.45	0.060
PD011	0.8
PD012	0.1
PD013	1.3	+6.3	63.63	61.57	4.81	4.21	0.116	-6.3+2.0	16.38	55.81	8.12	7.11	0.132	-2.00	19.98	31.12	30.40	15.65	0.075
PD014	0.5
PD015	2	+6.3	56.99	62.07	4.79	4.09	0.110	-6.3+2.0	17.77	57.45	7.58	6.55	0.120	-2.00	25.24	28.89	34.20	16.40	0.063
PD016	2	+6.3	54.60	58.99	8.77	3.88	0.100	-6.3+2.0	21.75	58.11	7.96	5.13	0.099	-2.00	23.66	30.89	35.18	12.83	0.063
PD017	0.3
PD018	0.5
PD019	1.2	+6.3	50.24	60.62	5.23	3.81	0.095	-6.3+2.0	20.22	51.44	9.94	8.87	0.112	-2.00	29.54	28.38	35.50	15.05	0.062
PD020	2	+6.3	50.29	61.60	4.98	3.59	0.091	-6.3+2.0	26.98	57.58	7.80	6.03	0.106	-2.00	22.73	31.89	35.90	12.35	0.071
PD021	0.25
PD022	0.2
PD023	0.4
PD024	0.9	+6.3	67.87	62.25	6.16	3.43	0.075	-6.3+2.0	16.13	57.60	8.43	6.03	0.092	-2.00	16.00	35.00	30.71	12.40	0.065
PD025	0.3
PD026	1	+6.3	59.12	63.54	5.14	2.56	0.069	-6.3+2.0	17.97	60.49	7.18	4.64	0.099	-2.00	22.90	33.54	35.10	10.75	0.065
PD027	1.6	+6.3	61.03	63.69	5.21	2.78	0.080	-6.3+2.0	18.71	60.43	6.14	4.24	0.092	-2.00	20.26	35.31	32.60	11.15	0.073
PD028	2.3	+6.3	70.56	62.28	6.40	2.59	0.068	-6.3+2.0	13.21	59.78	7.74	3.78	0.084	-2.00	16.23	38.68	30.94	8.31	0.071
PD029	1.2	+6.3	59.15	62.14	5.58	3.24	0.104	-6.3+2.0	11.98	57.82	7.19	5.58	0.120	-2.00	28.88	32.21	36.30	11.15	0.076
PD030	0.3
PD031	0.4
PD032	0.4
PD033	0.6
PD034	0.6	+6.3	49.75	55.05	14.65	2.36	0.114	-6.3+2.0	8.15	54.26	13.15	3.66	0.122	-2.00	42.10	23.08	48.00	11.15	0.052
PD035	0.7
PD036	0.3
PD037	0.8	+6.3	38.05	55.89	14.40	2.68	0.097	-6.3+2.0	8.88	54.38	13.53	4.50	0.114	-2.00	53.07	22.69	48.20	11.75	0.054
PD038	1.2	+6.3	80.17	61.93	7.29	2.51	0.093	-6.3+2.0	5.73	60.00	7.86	3.01	0.091	-2.00	14.10	42.41	26.50	7.71	0.094
PD039	1.6	+6.3	66.86	59.25	10.75	2.71	0.107	-6.3+2.0	10.97	56.10	9.99	5.10	0.134	-2.00	22.18	34.94	34.00	9.96	0.091
PD040	1.8	+6.3	61.04	58.25	10.98	2.83	0.111	-6.3+2.0	15.78	57.60	8.10	5.10	0.142	-2.00	23.18	34.94	32.42	10.51	0.100
PD041	0.7
PD042	1.4	+6.3	9.31	42.91	31.80	3.54	0.087	-6.3+2.0	3.13	50.37	17.62	4.41	0.111	-2.00	87.56	20.18	50.76	10.72	0.042
PD043	2	+6.3	47.29	46.67	27.70	3.09	0.078	-6.3+2.0	7.01	53.85	14.45	3.90	0.106	-2.00	45.70	25.62	45.80	10.15	0.052

SAMPLE		SCREEN	WEIGHT					SCREEN	WEIGHT					SCREEN	WEIGHT
ID	DEPTH	SIZE MM	DIST'N	FE	SIO2	AL2O3	P	SIZE MM	DIST'N	FE	SIO2	AL2O3	P	SIZE MM	DIST'N	FE	SIO2	AL2O3	P
PD044	1.2	+6.3	45.10	61.59	5.84	2.99	0.109	-6.3+2.0	16.81	56.68	7.91	5.29	0.124	-2.00	38.09	24.65	40.30	13.25	0.057
PD045	1.4	+6.3	64.47	62.69	4.39	2.60	0.105	-6.3+2.0	15.37	59.59	6.26	4.81	0.130	-2.00	20.15	33.24	28.80	14.45	0.094
PD046	0.4
PD047	1.6	+6.3	39.55	54.71	15.50	3.25	0.141	-6.3+2.0	15.18	52.74	15.85	4.97	0.124	-2.00	45.27	22.28	49.80	10.85	0.049
PD048	0.5
PD049	0.4
PD050	0.9	+6.3	38.12	60.68	6.07	2.85	0.119	-6.3+2.0	20.74	57.96	8.20	4.37	0.107	-2.00	41.14	24.79	42.90	12.30	0.051

Note: Only 27 samples (retrieved from trenches with depths greater than 0.75m) were analysed

APPENDIX E

METALLURGICAL TESTWORK RESULTS

Table 19 below shows a Summary of the Head Grade Analyses (October 2020) on Lump and Fines products constituting a 90:10 blend of High Grade Hematite : Waste ore, from a 3,000kg Bulk Sample collected from a Test Pit on the Paulsens East deposit at the eastern edge of the outcropping hematite ridge.

90:10 DILUTION - LUMP SAMPLES (AS BLENDED) - HEAD ASSAYS
LUMP SAMPLEID	Wt.Distn.(%)	FeGrade(%)	SiO2Grade(%)	Al2O3Grade(%)	PGrade(%)	SGrade(%)
HIGH GRADE COMPOSITEFERRUGINOUS SCHISTCHERTY HEMATITE	90.07.03.0	65.322.738.0	2.8545.2043.99	1.5411.301.50	0.0940.0630.048	0.0070.0160.005
HEAD ASSAY	62.4	6.04	1.73	0.088	0.006
90:10 DILUTION - FINES SAMPLES (AS BLENDED) - HEAD ASSAYS
LUMP SAMPLEID	Wt.Distn.(%)	FeGrade(%)	SiO2Grade(%)	Al2O3Grade(%)	PGrade(%)	SGrade(%)
HIGH GRADE COMPOSITEFERRUGINOUS SCHISTCHERTY HEMATITE	90.07.03.0	63.322.227.4	4.2643.2057.19	2.3613.752.36	0.1320.0780.062	0.0110.0180.006

Table 19: ALS IOTC Head Grade Analyses – Lump:Fines based on 90:10 blend of High Grade Hematite : Waste ore (October 2020)

Table 20 below shows a Summary of the Metallurgical Testwork results (September 2019) on a bulk composite sample of ~250kg recently collected from various surface locations across the entire length and width of the Paulsens East deposit on the hematite ridge.

TESTWORK RESULTS SUMMARY

Job Number:	A20317
Project	Strike Resources
Ore Type:	Iron Ore
Date:	20/09/2019

	SampleCrushing Work Index (kWh/t)
Testwork	ID	Number ofSpecimen	SG(kg/L)	Max	Min	StdDev	Average
Bond Impact Crushing WorkIndex	Composite#1	20	4.80	27.4	6.5	6.2	15.3

			Bond Abrasion Index
Testwork	Sample	Index Classification	Abrasion Index (Ai)
Bond Abrasion Index	Composite#1	Highly Abrasive	1.0003

	Sample		Mass Distribution		Assay Summary
Testwork	ID	Product	(kg)	(%)	Fe(%)	SiO2(%)	Al2O3(%)	LOI-1000(%)
Dropping		Lump	176.20	79.2	66.0	3.09	1.31	0.82
	Composite#1	Fines	46.40	20.8	64.0	4.90	1.86	1.23

			Tumble Abrasion Index
Testwork	Sample	Index	Test A	Test B	Average
Tumble Abrasion Index		Tumble Index (Ti)	95.6	95.9	95.8
	Composite#1 ADL	Abrasion Index (Ai)	2.6	2.6	2.6

Table 20: ALS IOTC Metallurgical Testwork - Summary Results (September 2019)