STRIKE RESOURCES LIMITED — Interim / Quarterly Report 2006

Feb 14, 2006

January 2006 Monthly Cash Flow Report

Name of entity

STRIKE RESOURCES LIMITED (formerly FAST SCOUT LIMITED) and controlled entities (SRK)

ACN or ARBN			Month Ended
088 488 724			31 January 2006
Consolidated statement of cash flows			Consolidated
		Current Month	Year to Date
		Jan 2006	7 months
	Cash flows related to operating activities	$'000	$'000
1,1	Receipts from customers		6
1.2	Payments for
	(a) staff costs	(32)	(104)
	(b) advertising and marketing
	(c) research and development
	(d) leased assets
	(e) other working capital	(243)	(682)
1.3	Dividends received		7
1.4	Interest and other items of a similar nature received	3	13
1.5	Interest and other costs of finance paid		(1)
1.6	Income taxes paid
1.7	Other (provide details if material)
	(a) Professional fees		(18)
	(b) legal and settlement costs *		(248)
	Net operating cash flows	(272)	(1,027)

* The Company incurred litigation costs (with Sofcom Limited (SOF) and Altera Capital Limited (AEA)) in relation to the 3 company's investment in Scarborough Equities Limited (formerly Rivkin Financial Services Limited) (SCB). SOF, as the major shareholder in SCB (of the three companies), had primary conduct of the payment of the costs of the litigation proceedings and legal cost settlement amounts arising therein. Such costs are shared between SOF/SRK/AEA in proportion to each company's relative interest in their collective stake in SCB (prior to the sale of SCB shares by SOF and AEA on 30 June 2005) - SOF's share is 67%; SRK's share is 18% and AEA's share is 15%. The above amount has been paid by SRK to SOF (including accrued interest owed to SOF). There are no outstanding amounts owed by SRK in this matter.

Level 14, The Forrest Centre 221 St Georges Terrace Perth, Western Australia 6000 T: (08) 9214 9700 F: (08) 9322 1515 E: info@strikeresources.com.au

		Consolidated
		Current Month	Year to Date
		Jan 2006	7 months
		$'000	$'000
1.8	Net operating cash flows (carried forward)	(272)	(1,027)
	Cash flows related to investing activities
1.9	Payment for acquisition of:
	(a)businesses (item 5)
	(b)equity investments
	intellectual property(c)
	(d)physical non-current assets
	other non-current assets(e)
			(37)
1.10	Proceeds from disposal of:
	(a)businesses (item 5)
	equity investments(b)		209
	intellectual property(c)
	(d)physical non-current assets
	(e)other non-current assets
1.11	Loans to other entities		(25)
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		184
1.14	Total operating and investing cash flows	(272)	(843)
	Cash flows related to financing activities
1.15	Proceeds from issues of shares, options, etc.*	595	1,800
1.16	Proceeds from sale of forfeited shares
1.17	Proceeds from borrowings		150
1.18	Repayment of borrowings		(150)
1.19	Dividends paid
1.20	Other (provide details if material)
	Net financing cash flows	595	1,800
	Net increase (decrease) in cash held	323	957
1.21	Cash at beginning of month/year to date	714	80
1.22	Exchange rate adjustments to item 1.20
1.23	Cash at end of month	1,037	1,037

* The Company received $0.595 million during the month from applications lodged under its Prospectus dated 23 December 2005; The Prospectus closed on 3 February 2006 with $1.5 million gross funds raised (being the full subscription amount); 7.5 million Prospectus shares were allotted and issued on 9 February 2006.

Level 14, The Forrest Centre 221 St Georges Terrace Perth, Western Australia 6000 T: (08) 9214 9700 F: (08) 9322 1515 E: info@strikeresources.com.au

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the 'n

related entities		Current Month
		Jan 2006$'000
1.24	Aggregate amount of payments to the parties included in item 1.2	(32)
1.25	Aggregate amount of loans to the parties included in item 1.11	$\overline{\phantom{a}}$

1.26 Explanation necessary for an understanding of the transactions

1. $32,371 - Directors' fees and salaries for January 2006 and superannuation in respect of period 25 July 2005 to 31 December 2005.

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

None.
Details of outlays made by other entities to establish or increase their share in businesses in which the reporting

$2.2$ entity has an interest

lone.

Financing facilities available

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

		Amt available$'000	Amount used$'000
3.1	Loan facilities	A
3.2	Credit standby arrangements	A

Disposals

(Item 1.10(a))

$\overline{a}$

$\overline{a}$

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$$^{\circ}000$
4.1	Cash on hand and at bank	1,037	714
4.2	Deposits at call
4.3	Bank overdraft
4.4	Other (Bank Bills)
	Total: cash at end of month (item 1.22)	1.037	714

Acquisitions and disposals of business entities

• $5.1$ Name of entity
• $5.2$ 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 $\overline{1}$ Corporations Law (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.
• $\overline{2}$ This statement does give a true and fair view of the matters disclosed.

13 February 2006

Acquisitions

$(Item 1.9(a))$

$\overline{a}$

$\overline{a}$

Victor Ho Company Secretary

NOTE:

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

			13-Feb-06
Company	No Shares	%	Bid Price	Market Value
Orion Equities Ltd (OEQ)	505.026	2.8%	$0.640	$323,217
Queste Communications Limited (QUE)	826.950	2.9%	$0.210	$173,660
Altera Capital Ltd (AEA)	20,002,860	32.3%	suspended
Sofcom Limited (SOF)	12,420,439	27.8%	suspended
Total				$496,876

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. SRK is in discussions with a number of parties regarding a sale of its interest in these companies. SRK's nil valuation for its shareholding in these companies does not reflect any potential "control premium" upon a possible sale of such shareholdings.