STRIKE RESOURCES LIMITED — Interim / Quarterly Report 2005

Sep 14, 2005

15 September 2005

Australian Stock Exchange Limited Level 8 Exchange Plaza 2 The Esplanade Perth WA 6000

Attention: Mr Vickrem Naicker Companies Advisor By Email: Vickrem, Naicker@asx.com.au

Dear Mr Naicker,

AUGUST 2005 CASHFLOW REPORT

We refer to your letter dated 14 September 2005 enquiring about the financial position of the Company in light of the cashflow report lodged by the Company on 13 September 2005 in respect of the month ending 31 August 2005 and respond as follows:

As disclosed in the cashflow report referred to above, the Company had listed share $\mathbf{1}$ . investments with a market value of $483,060 (based on closing prices on 12 September 2005) in addition to its cash reserves of approximately $66,000;

Company	No Shares	%	12/09/05	Market
			Last	Value
			Closing Price
Central Exchange Limited (CXL)	543,026	3.0%	$0.585	$317,670
Queste Communications Limited (QUE)	826,950	2.8%	$0.200	$165,390
Altera Capital Ltd (AEA)	20,002,860	32.3%	suspended
Sofcom Limited (SOF)	12,420,439	27.8%	suspended
Total				$483,060

The Company regards its share investments (save for AEA and SOF) as being liquid assets to supplement its cash reserves. Accordingly, the Company advises that it has sufficient liquid assets to fund its activities beyond the next 6 months.

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 currently 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. FSL's expectation is that a sale if realised should result in receipt of a premium in excess of the nil value attributed to these investments.

As a consequence of the termination of the cash expenditure commitments owed to Data Base Systems Limited (DBS) for classifications works under a portal classification agreement (PCA) (pursuant to shareholder approval on 22 July 2005) together with a suspension of payment of directors and company secretarial fees from July 2005, the Company believes that the existing cash and liquid assets of the Company and

www.fastscout.com

FAST SCOUT LIMITED

A.B.N. 94 088 488 724

Level 14, 221 St Georges Terrace, Perth WA 6000 F | + 61 (8) 9322 1515 T | + 61 (8) 9214 9700

20050915 FSL to ASX re August Monthly Cashflow Report.doc

expected revenues from operating activities are sufficient to fund the existing operations and working capital requirements of the Company for at least the next six months.

• $2.$ We refer to note (1).
• 1. The Company's actual revenues and expenses in August 2005 were not inconsistent with the Company's anticipated revenues and expenses for the month.
• $4.$ Not applicable.
• $51$ We confirm that the Company is continuing its principal activities being the sale and marketing and on-going development of its various Internet technologies (as described in the 2005 Full Year Reports lodged on ASX on 13 September 2005),

On 19 August 2005, the Company issued 20,965,814 new shares to DBS and reduced a cash liability owed to DBS from $189,586 to $142,189, pursuant to shareholder approval on 22 July 2005 of a proposed termination and settlement of the PCA.

As noted above the Company has sufficient existing cash and liquid assets to fund the existing operations and working capital requirements of the Company for at least the next six months.

• 1. The Company confirms that it is in compliance with the ASX Listing Rules, including its continuous disclosure obligations.
• 1. In relation to the Company's compliance with Listing Rule 12.2 (adequacy of financial condition to warrant continued quotation):
  • 7.1. We refer to the Company's 2005 Full Year Reports lodged on ASX on 13 September 2005.
  • 7.2. We refer to the above.
  • $7.3.$ The Company is of the view that it is in a financial position to carry on its principal activities and that there is no issue under Listing Rule 12.2 in relation to the continued quotation of the Company's shares on ASX.

We trust this response addresses the matters raised in your letter.

The Company has no objection to the release of this response to the market.

If you have any queries regarding anything in this letter, please contact me.

Yours Faithfully,

Victor Ho Company Secretary

14 September 2005

Mr V Ho Company Secretary Fast Scout Limited Level 14 221 St George's Terrace PERTH WA 6000

Facsimile: (08) 9322 1515

Dear Victor

Fast Scout Limited (the "Company")

AUSTRALIAN STOCK EXCHANGE

I refer to the Company's Quarterly Report in the form of the Monthly Cash Flow Report for the period ended 31 August 2005 released to Australian Stock Exchange Limited ("ASX") on 13 September 2005 (the "Monthly Cashflow Report").

ASX notes that the Company has reported the following.

• $\mathbf{1}$ . Receipts from customers of $3,000
• $2.$ Net negative operating cash flows for the quarter of $58,000.
• $3.$ Cash at end of quarter of $66,000.

In light of the information contained in the, the Appendix 4C, please respond to each of the following questions.

• 1. It is possible to conclude on the basis of the information provided that if the Company were to continue to expend cash at the rate for the quarter indicated by the Monthly Cashflow Report, the Company may only have sufficient cash to fund its activities for the next quarter. Is this the case, or are there other factors that should be taken into account in assessing the Company's position?
• $2.$ Does the Company expect that in the future it will have negative operating cash flows similar to that reported in the Appendix 4C for the quarter ended 30 June 2005 and, if so, what steps has it taken to ensure that it has sufficient funds in order to continue its operations at that rate?
• 1. To what extent have the Company's actual revenues and expenses in the quarter, as reported in the Monthly Cashflow Report, matched the Company's anticipated revenues and expenses for that reporting period?

Australian Stock Exchange Limited ABN 98 008 624 691 Level 8 Exchange Plaza 2 The Esplanade Perth WA 6000

GPO Box D187 Perth WA 6840

Telephone 61 (08) 9224 0032 Facsimile 61 (08) 9221 2020 Internet http://www.asx.com.au

• $\overline{\mathbf{4}}$ If the Company's actual revenues and expenses are not substantially in accordance with the Company's anticipated revenues and expenses, when did the Company become aware that its revenues and expenses would not substantially match the anticipated revenues and expenses? You may wish to outline any circumstances that may have had an effect on the Company's revenues and expenses.
• $5-$ What steps has the Company taken, or what steps does it propose to take, to enable it to continue to meet its business objectives? If so, this should be taken into account in your response.
• Can the Company confirm that it is in compliance with the listing rules, and in 6. particular, listing rule 3.1?
• $7-$ Please comment on the Company's compliance with listing rule 12.2, with reference to the matters discussed in the note to the rule.

Listing rule 3.1

Listing rule 3.1 requires an entity to give ASX immediately any information concerning it that a reasonable person would expect to have a material effect on the price or value of the entity's securities. The exceptions to this requirement are set out in the rule.

In responding to this letter you should consult listing rule 3.1 and the guidance note titled "Continuous disclosure: listing rule 3.1".

If the information requested by this letter is information required to be given to ASX under listing rule 3.1 your obligation is to disclose the information immediately.

Your responsibility under listing rule 3.1 is not confined to, or necessarily satisfied by, answering the questions set out in this letter.

This letter and your response will be released to the market. If you have any concerns about your response being released, please contact me immediately. Your response should be sent to me on facsimile number (08) 9221 2020. It should not be sent to the Company Announcements Office.

Unless the information is required immediately under listing rule 3.1, a response is requested as soon as possible and, in any event, no later than close of business (5.00pm WST) on Thursday, 15 September 2005.

If you are unable to respond by the time requested you should consider a request for a trading halt in the Company's securities.

If you have any queries regarding any of the above, please let me know.

Yours sincerely.

Vickrem Naicker

Companies Adviser

Direct Line: (08) 9224 0032