STRIKE RESOURCES LIMITED — Interim / Quarterly Report 2006

Nov 13, 2005

October 2005 Monthly Cash Flow Report

	Name of entity
	FAST SCOUT LIMITED and controlled entities
	ACN or ARBN		Month Ended
	088 488 724		31 October 2005
Consolidated statement of cash flows		Consolidated
		Current Month	Year to Date
		Oct 2005	4 months
		$' 000	$' 000
	Cash flows related to operating activities
1.1	Receipts from customers		5
1,2	Payments for
	(a) staff costs		(29)
	(b) advertising and marketing
	(c) research and development
	(d) leased assets
	(e) other working capital	(22)	(169)
1.3	Dividends received	7	7
1.4	Interest and other items of a similar nature received	3	3
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other (provide details if material)
	(a) Professional fees	(18)	(18)
	(b) Payments made pursuant to litigation cost orders		(120)
	Net operating cash flows	(30)	(321)

Please also refer to the Notes on page 4.

		Consolidated
		Current Month	Year to Date
		Oct 2005	4 months
		$'000	$' 000
1.8	Net operating cash flows (carried forward)	(30)	(321)
	Cash flows related to investing activities
1.9	Payment for acquisition of:
	(a)businesses (item 5)
	equity investments(b)
	intellectual property(c)
	(d)physical non-current assets
	other non-current assets(e)	(37)	(37)
1.10	Proceeds from disposal of:
	(a)businesses (item 5)
	equity investments(b)		209
	intellectual property(c)
	(d)physical non-current assets
	other non-current assets(e)
1.11	Loans to other entities
1.12	Loans repaid by other entities
1.13	Other (provide details if material)
	Contribution towards development costs		30
	Proceeds from return of capital		7
	Net investing cash flows	(37)	209
1.14	Total operating and investing cash flows	(67)	(112)
	Cash flows related to financing activities
1.15	Proceeds from issues of shares, options, etc.	226
1.16	Proceeds from sale of forfeited shares
1.17	Proceeds from borrowings
1.18	Repayment of borrowings
1.19	Dividends paid
1.20	Other (provide details if material)
	Net financing cash flows	226	۰
		159
	Net increase (decrease) in cash held		(112)
1.21	Cash at beginning of month/year to date	35	80
1.22	Exchange rate adjustments to item 1.20
1.23	Cash at end of month	194	(32)

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities Current Month Oct 2005 $' 000 $1.24$ Aggregate amount of payments to the parties included in item 1.2

• $1.25$ Aggregate amount of loans to the parties included in item 1.11
• $1,26$ Explanation necessary for an understanding of the transactions

All Directors and the Company Secretary have agreed to suspend receipt of their remuneration payable to them from July 2005.

$\Gamma^*_\tau$

Non-cash financing and investing activities

$2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

$2.2$ Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest

None.

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

		Amt available$.000	Amount used$$^{\circ}000$
3.1	Loan facilities
3.2	Credit standby arrangements	w

Reconciliation of cashReconciliation of cash at the end of the month (as shownin the consolidated statement of cash flows) to therelated items in the accounts is as follows		Consolidated
		CurrentMonth$'000	PreviousMonth$'000
4.1	Cash on hand and at bank	194	35
4.2	Deposits at call
4.3	Bank overdraft
4.4	Other (Bank Bills)
	Total: cash at end of month (item 1.22)	194	35

Acquisitions and disposals of business entities

$5.1$ Name of entity

Acquisitions(Item $1.9(a)$ )	Disposals(Item $1.10(a)$ )
$\tilde{\phantom{a}}$
44
44
w
$\overline{\phantom{a}}$

5.2 Place of incorporation or registration

• 5.3 Consideration for acquisition or disposal
• $5.4$ Total net assets
• 5.5 Nature of business

Compliance statement

• This statement has been prepared under accounting policies which comply with accounting standards as defined in the $\mathbf{1}$ Corporations Law (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.
• $\mathcal{L}$ This statement does give a true and fair view of the matters disclosed.

14 November 2005

Victor Ho, Company Secretary

NOTES:

The Company currently holds the following share investments: $(1)$

	14-Nov-05
Company	No Shares	%	Last Closing Price	Market Value
Central Exchange Limited (CXL)	505.026	2.8%	$0.630	$318,166
Queste Communications Limited (QUE)	826.950	2.9%	$0.190	$157.121
Altera Capital Ltd (AEA)	20.002.860	32.3%	suspended
Sofcom Limited (SOF)	12.420.439	27.8%	suspended
Total				$475,287

Share investments are regarded as liquid assets to supplement the Company's cash reserves.

The Company is the largest shareholder in AEA and SOF both of which are ASX listed companies, currently suspended awaiting a potential recapitalisation and re-admission to ASX. FSL is in discussions with a number of parties regarding a sale of its interest in these companies. FSL's nil valuation for its shareholding in these companies does not reflect any potential "control premium" upon a possible sale of such shareholdings.

• $(2)$ The Company is pleased to note that during October 2005, it received firm commitments in respect of a capital raising of $1.45 million from sophisticated and professional investors comprising:
  • (a) $229,000 immediately (in relation to the issue of 2,290,000 shares at 10 cents per share);
  • (b) $971,000 (in relation to the issue of 9,710,000 shares at 10 cents per share) subject to FSL shareholder approval;
  • (c) $250,000 under a prospectus to be issued by FSL as part of the re admission process of the Company on ASX (also subject to FSL shareholder approval).

These commitments were subject to FSL completing satisfactory due diligence under the agreement with Hume Mining NL (referred to in the FSL announcement dated 20 September 2005) which FSL notes has now been satisfied as announced on 13 October 2005.

Accordingly, on 18 October 2005, the Company issued 2,290,000 shares pursuant to completion of (a) above.

The funds received under (b) are being held by the Company in an interest bearing bank account on trust pending their issue after FSL shareholder approval.