STRIKE RESOURCES LIMITED — Interim / Quarterly Report 2008

Nov 2, 2008

SEPTEMBER 2008 QUARTERLY REPORT

For the 3 months to 30 September 2008

CONTENTS

Report from Board 2
Company Profile 3
Project Locations 4
Company Projects:
1. Berau Thermal Coal Project 5
2. Cuzco Project
3. Apurimac Project 9
4. Paulsens East Project 10
5. King Sound Project 10
Corporate 11
Peruvian Concessions 16
Australian Tenements 20
Securities Information 21

Appendix 5B Mining Exploration Entity Quarterly Report .................. 23

Date: 31 October 2008

For further information:

Shanker Madan Managing Director T | +61 8 9214 9700 E | smadan@strikeresources.com.au

Level 14, The Forrest Centre 221 St Georges Terrace Perth, Western Australia 6000

Local T | 1300 762 678 T | +61 8 9214 9700 F | +61 8 9322 1515 E | info@strikersources.com.au W | www.strikeresources.com.au

SUMMARY

• 31 October 2008 Strong cash position of ~$73.5 million compared with market capitalisation of $65 million (based on 31 October closing price of $0.50).
• 28 October 2008 JORC Inferred Resource at Berau Thermal Coal Project increases to 8 million tonnes – with average calorific value 5,800 kcal/kg and low ash (5.6%), low sulphur (0.64%) and low Inherent Moisture content of 14%.
• 27 October 2008 In light of tight credit and capital markets, Strike announces it intends, in the short term, to focus on bringing the Berau Coal Project into production and advancing the Cuzco Lump Project in Peru. It intends to reduce its expenditure at Paulsens East and in Peru until the dispute with its local partner (D&C) is resolved and/or credit and capital markets show clear signs of recovery.
• September/October 2008 – Key managers appointed to oversee development of Berau Thermal Coal and Peru Iron Ore Projects.
• 22 September 2008 Gallagher does not proceed with A$53.4 million second tranche share placement at $2.75 per share due to uncertainty created by international financial crisis. Gallagher remains largest shareholder (14%).
• 5 September 2008 – S&P's Index Services includes Strike in S&P/ASX 300 Index.
• 11 August 2008 – Acquisition of outstanding interests in Berau Thermal Coal Project and Paulsens East Iron Ore Project (both now 100% owned by Strike) in consideration for the issue of 9.5 million shares.
• 1 August 2008 Maiden JORC Inferred Resource of 4.6 million tonnes of thermal sub-bituminous coal defined at Berau Thermal Coal Project.
• 29 July 2008 Mr Farhad Moshiri appointed to the Board as a Non-Executive Director. Mr Moshiri appoints Mr Mark Horn as his Alternate Director.
• 29 July 2008 $49.7 million share placement to Gallagher Holdings Limited at $2.75 per share; A$53.4 million second tranche subject to due diligence, Strike shareholder and FIRB approvals.
• 23 July 2008 Completion of Pre-Feasibility Study (PFS) on Apurimac Iron Ore Project - which focuses on the development of a 20 million tonnes per annum mining operation with iron ore concentrate transported by slurry pipeline to the coast.

Registered Office: A.B.N. 94 088 488 724 Share Registry:

ASX Codes: SRK Advanced Share Registry Services Suite 2, 150 Stirling Highway Perth, Western Australia 6009

T | +61 8 9389 8033 F | +61 8 9389 7871 E | admin@advancedshare.com.au W | www.advancedshare.com.au

REPORT FROM BOARD

As shareholders will be aware, turmoil and volatility in world financial markets is causing significant negative effects on the market value of most resource companies. Strike has not been immune from these events; Strike's current market capitalisation of $65 million (being a closing share price on 31 October of $0.50 per share with 130,034,268 shares on issue) has fallen well below Strike's cash position of approximately $73.5 million.

Strike wishes to reassure shareholders that it remains in a sound financial position, with excellent projects and experienced management. Over the last year, Strike has made considerable progress towards its goal of developing a number of income producing mining projects, including:

• (1) Completing 2 capital raisings totalling $82 million to institutional investors.
• (2) Completing a Pre Feasibility Study for the Apurimac Iron Ore Project in Peru.
• (3) Completing 14,733 metres of drilling (151 drill holes) in Peru.
• (4) Securing additional exploration concessions in the Apurimac district in Peru.
• (5) Increasing its controlling, economic interest in Apurimac Ferrum S.A., (the Peruvian company that holds the Apurimac and Cuzco Projects) to 68.15%.
• (6) Completing the acquisition of 100% of the Berau Coal Project in Indonesia and the Paulsens East Iron Ore Project in the Pilbara, Western Australia.
• (7) Establishing local offices in Jakarta and Berau (Indonesia) to progress development of the Berau Coal Project.
• (8) Recruiting experienced industry professionals to lead dedicated teams for the Peru iron ore and Berau coal projects.

In light of the extremely tight credit and capital markets, Strike intends to progress the development of its various mining projects in a manner consistent with achieving the greatest value from its existing cash reserves.

In the short term, the principal focus of Strike is to bring its Berau Coal Project into production, which is expected to generate significant recurring cash flow for Strike.

With regard to its operations in Peru, Strike has determined to focus its efforts on advancing the short term cash flow opportunities afforded by the Cuzco Lump Project and to reduce its other expenditure in Peru until the dispute with its local partner (D&C) is resolved and/or credit and capital markets show clear signs of recovery.

In summary, whilst Strike is disappointed with the recent decline in its share price, in particular to a value below its cash position per share, the fundamentals of Strike remain sound. Strike holds significant cash reserves and an excellent mix of projects. These projects hold the prospect of generating significant cash flow for Strike in the near term, which may be used to support the advancement of its Peruvian iron ore assets, once market conditions improve.

COMPANY PROFILE

Strike Resources Limited (ASX Code: SRK) is an Australian-based mineral development company with a diversified asset portfolio including a thermal coal project in Indonesia, hematite and magnetite iron ore projects in Peru and hematite and minerals sands projects in Australia:

PROJECTS		LOCATION	Interest Held by Strike
(1)	Berau Thermal Coal	East Kalimantan, Indonesia	100%
(2)	Cuzco Lump Iron Ore	Cuzco District, Peru	68.15%
(3)	Apurimac Iron Ore	Apurimac District, Peru	68.15%
(4)	Cuzco Iron Ore	Cuzco District, Peru	68.15%
(5)	Paulsens East Iron Ore	West Pilbara, Western Australia	100%
(6)	King Sound Mineral Sands	West Kimberley, Western Australia	30%

Strike has a 3 stage project development programme target for Peru:

• (a) Cuzco Lump: up to 2 million tonnes per annum lump ore production from the Cuzco Project;
• (b) Apurimac: An additional 20 million tonnes of concentrate production from the Apurimac Project;
• (c) Cuzco Stage 2: An additional 20 million tonnes of concentrate production from the Cuzco Project.

On 23 July 20081 Strike announced the results of the Pre-Feasibility Study (PFS) on its Apurimac Iron Ore Project, which focuses on the development of a 20 million tonnes per annum mining operation with iron ore concentrate transported by slurry pipeline to the coast. The PFS has confirmed that the Apurimac Iron Ore Project has the potential to become a highly profitable world class iron ore operation, with:

• Average operating costs (OPEX) of approximately US$14.50 per tonne
• Total capital cost (CAPEX) of approximately US$2.3 billion
• High quality product grading +68% Fe, very low in alumina, phosphorous and other impurities
• Operating cash surplus of approximately US$1.44 billion forecast for first full year of production (based on iron ore concentrate prices of ~US$94 per tonne FOB).

JORC Resources

1. Apurimac Iron Ore Project

The resource estimate by Snowden Group (completed as part of the PFS) has provided a significant re-rating of the resource on two Apurimac concessions, from a JORC Inferred Iron Ore Resource of 172 million tonnes at 62.28% Fe2 to a JORC Indicated Resource of 133.5 million tonnes at 59.40% Fe:

Concession	Tonnes	Fe%	AI2O3%	SiO2%	P%	S%
Opaban I	125,000,000	59.26	2.12	7.87	0.04	0.14
Opaban III	8,530,000	62.08	1.37	4.58	0.07	0.25
Total/Average	133,530,000	59.40	2.07	7.66	0.04	0.15

2. Berau Thermal Coal Project

JORC Inferred Resource of 8 million tonnes of sub-bituminous thermal coal3 with an average calorific value of 5,800 kcal/kg and low ash (5.6%), low sulphur (0.64%) and low Inherent Moisture content of 14 %:

Resource(tonnes)	CalorificValue AirDried Basis	CalorificValue DryAsh Free	Sulphur	Ash	InherentMoisture	TotalMoisture AsReceived	FixedCarbon	VolatileMatter	HardgroveGrindabilityIndex
8,000,000	5,800	7,200	0.64%	5.6%	14%	17%	40%	40%	50

1 23 July 2008 ASX market announcement entitled "Pre-Feasibility Results Confirm World Class Prospects for Apurimac Project in Peru"

2 Refer 23 August 2006: ASX market announcement titled "Peru Iron Ore Update on Apurimac Project"and 19 July 2007: ASX market announcement titled "Apurimac Project - JORC Resource Statement"

3 Refer 28 October 2008 ASX market announcement entitled "Company Update – Berau Coal JORC Upgrade"

PROJECT LOCATIONS

Berau Thermal Coal Project

(100%, East Kalimantan, Indonesia)

The project concession is located 40 kilometres south-west of Tanjungredeb (Berau) and 350 kilometres north of Balikpapan (the capital city of Kalimantan).

Apurimac Project:

(68.15%, Apurimac District, Peru)

This project comprises 71 concessions totalling 58,709 hectares located 16 kilometres from Andahuaylas, the capital of the Apurimac Province, in Peru's southern Andes.

Cuzco Project:

(68.15%, Apurimac District, Peru)

This project comprises 15 concessions totalling 12,363 hectares located 130 kilometres south-east of the Apurimac Project area and 80 kilometres south of the city of Cuzco. Two small towns, Santa Tomas and Colquemarca, are located within a few kilometres of the project area.

Paulsens East Iron Ore (100%, West Pilbara, WA)

The two project tenements cover a total area of 19.64 square kilometres. The tenements are located 140 kilometres west of Tom Price (close to bitumised road) and eight kilometres east-

King Sound Mineral Sands

(30%, West Kimberley, WA)

Australia.

The three project tenements (applications pending grant) covers a total area of 652 square kilometers and is located 10 kilometres south-west of the port town of Derby in the West Kimberley region of Western Australia.

1. Berau Thermal Coal Project

(100%, East Kalimantan, Indonesia)

Strike now holds a 100% interest in this project, having acquired a 70% interest from its joint venture partner on 11 August 2008.4

Strike's focus is on the development of a relatively low-cost strip mining operation producing 1.5 million tonnes per annum initially and increasing to 3 million tonnes per annum. This project, upon commencement of production, has the potential to generate substantial cash flows for Strike to assist in the development of Strike's other projects.

JORC Resource

A JORC Inferred Resource of 8 million tonnes of sub-bituminous thermal coal with a calorific value of ~5,800 kcal/kg has been estimated for the project.5 The coal has low ash (~5.6%), low sulphur (~0.64%) and Inherent Moisture of ~14 %. The table below provides a summary of the quality of the Berau Coal Resource:

	Inferred Resource
Coal Tonnes	8,000,000
CVADB = Calorific Value Air Dried Basis	5,800
IMADB = Inherent Moisture Air Dried Basis	14%
TSADB = Total Sulphur Air Dried Basis	0.64%
AADB = Ash Air Dried Basis	5.6%
FCADB = Fixed Carbon Air Dried Basis	40%
VMADB = Volatile Matter Air Dried Basis	40%
CVAR = Calorific Value As Received	5,600
TMAR = Total Moisture As Received	17%
CVDB = Calorific Value Oven Dried	6,800
CVDAF = Calorific Value Dry Ash Free	7,200
HGI = Hardgrove Grindability Index	50

The calorific value of this coal together with its relatively low levels of ash and sulphur means that it is ideally suited for use as a fuel for power utilities in both domestic (Indonesia) and international markets.

Coal of this quality is currently selling for US$80 to $90 per tonne FOB barge Berau.

Resource Expansion

The current JORC Inferred Resource of 8 million tonnes of thermal coal along a 2.5 kilometre strike length is located within a 200 hectare area forming part of the total concession area of 5,000 hectares.

Outcropping coal seams have been mapped intermittently by Strike along a further strike length of 4 kilometres southeast of the current JORC Inferred Resource. These outcrops appear to be extensions of coal seams comprising the current JORC Resource. This possible extension of the resource along strike affords the potential to increase the JORC Inferred Resource by a further 5 to 10 million tonnes to a total of 13 to 18 million tonnes.

The potential quantity of the target mineralisation of an additional 5 to 10 million tonnes of coal is conceptual in nature. There has been insufficient exploration to define a mineral resource in relation to that target coal. It is uncertain if further exploration will result in the determination of a mineral resource in relation to that target coal. The potential quality of the target mineralisation coal has not been ascertained at this stage, and no assurance can be given that the target mineralisation will have a similar quality to the current JORC Inferred Resource.

4 Via the acquisition of Strike Indo Operations Pty Ltd (formerly Orion Indo Operations Pty Ltd)) from its joint venture partner, Orion Equities Limited (Orion). A total of 7.75 million Strike shares were issued to Orion as consideration for this acquisition. Refer also 11 August 2008 ASX market announcement entitled "Acquisition of Outstanding Interests in Berau Coal and Paulsens East Iron Ore Projects"

5 Refer footnote 3

Strike has therefore recently commenced a 5,000 metre drilling campaign which is expected to be completed by December 2008.

The objectives of this campaign are to:

• convert the current JORC Inferred Resource of 8 million tonnes to an Indicated/Measured JORC category; and
• delineate an additional resource outside of the currently drilled area.

Capital and Operating Costs

The Berau Thermal Coal Project has the potential to generate substantial cash flows for Strike.

Based upon the previously-announced JORC Inferred Resource of 4.6 million tonnes of thermal coal6 , Strike had earlier commissioned an independent study by GMT Indonesia to determine approximate operating costs for a mining operation based upon a proposed annualised production of 1 million tonnes per annum.

For a 1 Mtpa owner-operated mine, GMT Indonesia estimated an operating cost of approximately US$40 per tonne (including royalties) and a total capital cost of US$23 to US$25 million. Given the current sale price of between US$80 and $90 per tonne FOB barge for coal of this quality at Berau, this provided a forecast gross operating margin of US$40 to $50 per tonne.

Subsequent to an increase in the JORC Inferred Resource to 8 million tonnes referred to above and the identification of additional target mineralisation of between 5 and 10 million tonnes, Strike is undertaking more detailed capital and operating cost estimates with respect to a larger production profile of 3Mtpa. Strike expects final capital and operating cost estimates to be settled within the first quarter of 2009 pursuant to the conclusion of a competitive bid process for mining and infrastructure contracts.

At this stage Strike estimates that total capital required to develop a 3Mtpa mining operation (using contract mining) is not expected to exceed US$30 million.

Resource and Infrastructure Studies

6 A low-cost strip mining operation is planned of 1.5 Mtpa initially, increasing to 3Mtpa. It is proposed that the coal will be trucked and barged to the coast for transport to buyers in Asia.

Strike has recently engaged a number of international and local Indonesian consulting firms to undertake the following resource and infrastructure studies:

• a resource review and development of a mine plan (Minarco-MineConsult);
• a detailed transportation study from mine site to loading facilities (approximately 35km from the proposed mine site) (GeoIndo Survey Services); and
• a detailed mine and port infrastructure study (Trans Tek Engineering).

The engagement of these firms is a significant step forward in the progression of mine development and will provide Strike with greater confidence and certainty in terms of project economics and the efficient development of a mining operation.

Refer 1 August 2008 ASX market announcement entitled "JORC Inferred Coal Resource of 4.6Mt at Berau Project"

Offtake Agreements

Given current uncertainty in world financial markets Strike believes that it is important to secure firm and binding offtake agreements for coal produced from this project prior to proceeding with any significant expenditure in mine development. Strike may also seek, in conjunction with such offtake agreements, project financing for the whole or part of the capital costs involved in mine development.

Strike is currently in discussions with various parties to secure firm coal offtake agreements and is also discussing various project financing options.

Indonesian Offices

In order to advance the development of this project, Strike has established local offices in Jakarta and Berau (Indonesia) together with 3 local support staff.

2. Cuzco Iron Ore Project

(68.15%, Cuzco District, Peru)

Strike has two areas of focus within this project:

• (1) Cuzco Lump: The development of a two million tonnes per annum lump iron ore operation mining high grade (+60% Fe) near surface hematite mineralisation with the direct shipping ore (DSO) being transported to the existing port of Matarani using trucks and Peru Rail; and
• (2) Cuzco Stage 2: The development of a second 20 million tonnes per annum mining operation and second slurry pipeline to integrate with the 20 million tonnes per annum mining operation proposed at Apurimac with the concentrate product being transported to the coast through the connection of a second slurry pipeline to the first slurry pipeline.

Lump Ore Project

Strike is conducting a scoping study on the mining and transportation of 1.2 million tonnes initially, expandable to 2 million tonnes, per annum of high-grade (+60% Fe) lump iron ore from its Cuzco Project area through to the existing port of Matarani.

Preliminary findings indicate that the ore could be trucked 275 kilometres through to a railhead near the town of Imata and thererafter loaded onto trains and railed 312 kilometres through to Matarani port using Peru Rail.

Exploration and Geology

Lump Testwork – Assays and Metallurgy

Two 456 kilogramme bulk samples (mined to a depth of 8 metres) and core samples from the last diamond drilling campaign were assessed for metallurgical properties during the September quarter.

The test work results showed a product grade at approximately 66.8% Fe, 1.5% SiO2, 0.8% Al2O3, 0.03% P and 0.05% S with low MgO, K2O and Na2O.

Lump proportion in the mineralised body from both pit samples varied from 53.7% to 69.5% and in the diamond core samples between 38.3% and 64.2%.

The table below summarises assay data for the lump product from the pit sample adjacent to drill hole CQ041.

Table: Sample processing – Assay Results for CQ041 Pit Sample

	LUMP SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample
SCREEN	Wt.	Fe	SiO2	Al2O3	TiO2	MnO	CaO	P	S	MgO	K2O	Na2O	Zn	FeO		LOI-371 LOI-1000
(mm)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)
+31.5	0.0
-31.5+25.0	20.8	66.94	1.48	0.76	0.044	0.04	0.09	0.025	0.052	0.21	0.014	0.010	0.001	1.88	1.32	1.57
-25.0+20.0	18.1	66.69	1.60	0.83	0.044	0.04	0.09	0.027	0.047	0.24	0.016	0.010	0.001	2.39	1.34	1.57
-20.0+15.0	21.3	66.97	1.50	0.82	0.047	0.04	0.09	0.025	0.048	0.22	0.016	0.010	0.001	2.15	1.32	1.54
-15.0+10.0	21.2	66.79	1.53	0.83	0.044	0.04	0.09	0.027	0.049	0.21	0.015	0.010	0.001	2.36	1.36	1.56
-10.0+8.0	7.6	66.76	1.55	0.84	0.046	0.04	0.09	0.029	0.051	0.22	0.015	0.005	0.001	2.42	1.45	1.69
-8.0+6.3	9.1	66.63	1.59	0.87	0.047	0.04	0.09	0.029	0.052	0.22	0.016	0.005	0.001	2.21	1.45	1.72
-6.3	2.0	65.78	1.90	1.05	0.048	0.04	0.08	0.035	0.059	0.22	0.014	0.010	0.001	1.77	1.83	2.20
Calc'd HEAD	100.0	66.80	1.54	0.82	0.045	0.04	0.09	0.027	0.050	0.22	0.015	0.009	0.001	2.20	1.36	1.60
ASSAY HEAD		66.72	1.53	0.83	0.044	0.04	0.09	0.027	0.051	0.21	0.015	0.010	0.001	2.20	1.40	1.63

	FINES SIZE ASSAY ANALYSIS - CQ0041-PM-08 Pit Sample
SCREEN	Wt.	Fe	SiO2	Al2O3	TiO2	MnO	CaO	P	S	MgO	K2O	Na2O	Zn	FeO		LOI-371 LOI-1000
(mm)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)
+6.3	0.0
-6.3+4.0	26.9	66.52	1.65	0.92	0.046	0.03	0.08	0.034	0.055	0.20	0.014	0.010	0.001	2.10	1.61	1.89
-4.0+2.0	29.6	66.30	1.79	1.02	0.048	0.03	0.08	0.035	0.056	0.21	0.014	0.005	0.001	2.03	1.70	2.00
-2.0+1.0	14.5	65.85	1.96	1.14	0.049	0.03	0.07	0.038	0.063	0.20	0.014	0.010	0.001	1.92	1.87	2.25
-1.0+0.50	8.3	65.19	2.23	1.32	0.053	0.03	0.07	0.042	0.066	0.19	0.013	0.005	0.001	1.91	2.01	2.42
-0.50+0.25	6.0	64.72	2.56	1.46	0.055	0.03	0.06	0.043	0.067	0.20	0.013	0.005	0.001	1.64	2.06	2.56
-0.25+0.150	4.2	64.23	3.00	1.58	0.055	0.04	0.06	0.045	0.066	0.23	0.013	0.005	0.007	1.45	2.07	2.63
-0.15+0.063	6.7	63.70	3.43	1.75	0.059	0.04	0.05	0.046	0.072	0.30	0.013	0.005	0.009	1.38	2.20	2.85
-0.063	3.8	61.43	4.69	2.44	0.071	0.04	0.05	0.056	0.092	0.40	0.014	0.005	0.013	1.18	3.01	3.96
Calc'd HEAD	100.0	65.66	2.13	1.19	0.050	0.03	0.07	0.038	0.061	0.22	0.014	0.007	0.002	1.90	1.85	2.23
ASSAY HEAD		65.75	2.04	1.14	0.050	0.03	0.07	0.038	0.060	0.22	0.014	0.005	0.001	1.93	1.76	2.12

Samples were tested for standard ISO lump ore metallurgical characteristics:

• Strength: Tumble Index and Abrasion Index
• Thermal Resistance: Decrepitation Index
• Reduction Resistance: Reduction Degradation Index
• Reducibility: Reduction Index

The metallurgical testwork results are shown below (with typical Marra Mamba (MM) lump quality from the Pilbara Region of Western Australia shown for comparison):

	Pit samples
Metallurgical test results	CQ-041	CQ-001	Typical MM
Tumble Index	83.8	72.6	>80
Abrasion Index	13.0	23.4	<12
Decrepitation Index	0.3	0.2	<7
Reduction Degradation Index	18.3	34.2	<30
Reduction Index	40.4	39.3	>55

The lump quality from pit sample CQ 041 is superior to Pilbara lump.

The lump material from pit sample CQ001 was slightly softer than the Marra Mamba lump but produced a chemical grade similar to other areas at Cuzco.

Drilling

Environmental and community approvals have been granted for a 296-hole drilling programme. Strike confirms that there are currently two drilling rigs in operation at the Cuzco Lump Project area. The objective of the current drilling campaign in this area is to define a JORC resource sufficient to support a 1 – 2 million tonne per annum DSO mining operation. At the date of this report, approximately one third of the planned drilling campaign has been completed.

Strike refers to earlier drilling within the Cuzco Lump Project area completed in June 2007. The current drilling campaign is being conducted principally within the same area but with a focus on the shallower high grade iron ore.

As previously announced, the Cuzco Project area comprises shallow, high grade iron ore beneath which there is located a larger but lower grade iron ore resource. All of the Cuzco drilling campaigns to date has consisted of deeper holes targeting the larger resource beneath the high grade near surface resource.

Strike has determined that it is appropriate to aggregate the results from the June 2007 drilling programme with those from the current drilling campaign, to define a JORC resource for both discrete mineralised zones.

It is therefore expected that a JORC resource encompassing both drilling campaigns will be available once the current drilling campaign is completed and all assay results have been received and compiled.

3. Apurimac Iron Ore Project

(68.15%, Apurimac District, Peru)

Strike is planning to develop a 20 million tonnes per annum mining operation with iron ore concentrate transported by slurry pipeline to a new port at Tres Hermanas, near the town of San Juan.

As discussed in the "Report from Board" section of this report (at page 2), with regard to its operations in Peru, Strike has determined to focus its efforts on advancing the short term cash flow opportunities afforded by the Cuzco Lump Project and to reduce its other expenditure in Peru until the dispute with its local partner (D&C) (refer "Corporate" section of this report at page 11)) is resolved and/or credit and capital markets show clear signs of recovery.

Feasibility Study

Strike will continue to advance, within this reduced expenditure context, a Feasibility Study to support a 20 million tonnes per annum mining operation at the Opaban I and III concessions in Apurimac. This process will be accelerated if the abovementioned circumstances change – i.e. the dispute with D&C is resolved and/or credit and capital markets show clear signs of recovery.

Strike has received the results of a Railway Transportation Preliminary Engineering Study (as an alternative to the slurry pipeline central case under the PFS) and report on the key findings as follows:

• CAPEX for the railroad option is estimated at ~US$2.167 billion (excluding contingencies and Engineering, Procurement and Construction Management (EPCM) costs).
• The total length of the railway from Apurimac to the preferred port site at Tres Hermanas on the Pacific coast is estimated at 558 kilometres.
• The slurry pipeline option therefore, is the most cost effective means of transporting iron ore from Apurimac to the coast.

Exploration and Geology

During the June 2008 quarter, Strike completed a 2,105 line kilometre helicopter-borne geophysical survey in the Apurimac Project area. Anomalies highlighted from preliminary data have been followed up by surface reconnaissance surveys. The results and analysis from these surveys are inconclusive. It is therefore proposed to conduct drilling to test the cause of each major anomaly when the drilling programme recommences in the Apurimac region.

Community approvals and environmental permits are being sought for drilling in the Apurimac region, including in-fill drilling at the Opaban I and III concessions to expand the JORC Indicated Resource of 133.53 million tonnes at 59.40% Fe.

The commencement of major drilling campaigns in the Apurimac Project area will occur if the abovementioned circumstances change.

4. Paulsens East Iron Ore Project

(100%, West Pilbara Region, Western Australia)

Strike now holds a 100% interest in this project, having acquired a 25% interest from its joint venture partner on 11 August 2008.7

Strike has been investigating the feasibility of a targeted 1 to 1.5 million tonne per annum mining operation from this project with direct shipping (DSO) quality iron ore being trucked to an existing port on the Pilbara coast.

The results and analysis from a 2,724 metre, 58-hole, RC drilling campaign completed in August 2008 are as follows:

• The + 60% Fe resource is distributed in narrow steep dipping lenses varying in thickness from 1m to 10 metres with cumulative thicknesses varying from 2 metres to 13 metres. The average thickness of the hematite beds is 4.5 metres. The hematite lenses are enclosed within shale and sandstone beds and extend over strata thickness of greater than 20 metres.
• A preliminary review suggests that the waste to ore ratio for the +60% Fe resource will be high.

As discussed in the "Report from Board" section of this report (at page 2), in light of the extremely tight credit and capital markets, Strike intends to progress the development of its various mining projects in a manner consistent with achieving the greatest value from its existing cash reserves. In the short term, the principal focus of Strike is to bring its Berau Coal Project into production and advance the short term cash flow opportunities afforded by the Cuzco Lump Project in Peru.

Accordingly, Strike has determined not to spend any further monies on the Paulsens East Project until a more detailed assessment suggests otherwise.

5. King Sound Mineral Sands Project

(30%, West Kimberley Region, Western Australia)

Strike has, through a joint venture with ASX listed Alara Uranium Limited (Alara), a 30% interest (freecarried until decision to mine) in the King Sound Mineral Sands Project.

The joint venture has identified the King Sound area as being prospective for the accumulation of heavy minerals, such as zircon, rutile and ilmenite.

The King Sound joint venture intends to conduct extensive sampling for test work to produce and characterise the heavy minerals, upon the grant of these tenements. This will determine an effective processing pathway and develop a conceptual work flow sheet as part of an overall scoping study on the feasibility of the project.

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves has been compiled by Mr Hem Shanker Madan who is a Member of The Australian Institute of Mining and Metallurgy. Mr Madan is the Managing Director of the Company. Mr Madan has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code)." Mr Madan consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

7 Via the acquisition of Strike Australian Operations Pty Ltd (formerly Central Exchange Mining Ltd)) from its joint venture partner, Orion. A total of 1.75 million Strike shares were issued to Orion as consideration for this acquisition. There is an existing 2% royalty on production payable to Orion, which remains in place. Refer also 11 August 2008 ASX market announcement entitled "Acquisition of Outstanding Interests in Berau Coal and Paulsens East Iron Ore Projects"

Capital Raising

On 25 July 2008, Strike entered into a share subscription agreement with Gallagher Holdings Limited (Gallagher) for a $103 million capital raising at $2.75 per share8 .

Gallagher has advised that it is one of the investment holding companies for the interests of Mr Alisher Usmanov, who is a leading Russian businessmen. Mr Usmanov is the founder and principal shareholder of Gallagher and Metalloinvest. Metalloinvest is a large mining and metals company in Russia. It is comprised of the biggest Commonwealth of Independent States (CIS) iron ore producer, has large iron ore reserves globally and is one of the leading steel producers within Russia. Metalloinvest and its affiliated companies also have interests in telecommunications, media and leisure. The Gallagher/Metalloinvest groups have previously invested in ASX listed companies Mount Gibson Iron Limited (MGX) and Aztec Resources Ltd (AZR) and currently has a shareholding in Medusa Mining Limited (MML).

The placement was to occur in two tranches: A$49.7 million and A$53.4 million9 . The first tranche was completed on 29 July 2008 with completion of the second tranche being subject to completion of due diligence by Gallagher, Foreign Investment Review Board (FIRB) approval and Strike shareholder approval.

On 22 September 2008, Gallagher advised that its due diligence investigations under the share subscription agreement in relation to the tranche 2 investment of A$53.4 million had not been satisfied as a result of the uncertainty created by the international financial crisis.10 Gallagher also advised that its extensive due diligence into the merits of the D&C claims lead it to believe that such claims have little or no merit.

The parties engaged in good faith negotiations to replace tranche 2 with an alternative investment mechanism into Strike as Gallagher had indicated to Strike that it was still desirous of making a further investment into Strike.

However, on 8 October 2008, Gallagher advised Strike that, due to the significant down turn in international capital and credit markets, it did not wish to proceed with a further investment into Strike to replace tranche 2.11

Gallagher remains the largest shareholder of Strike with 14% of Strike's total issued share capital and has advised Strike that it is a strategic long term shareholder and can assist Strike with sharing its technical expertise as a part of a large mining and metals group.

Arbitration and "D&C" Claims

Strike refers to Note 26 (Contingent Assets and Liabilities) of the notes to its financial statements for the year ended 30 June 2008 (at pages 79 and 80 of Strike's 2008 Annual Report) for a detailed summary and status (as at 30 September 2008) of this matter.

Strike also refers to its market announcements on this matter:

• 2 June 2008 entitled "Strike Moves to 68.5% Interest in Peruvian Iron Ore Projects";
• 18 June 2008 entitled "Update Regarding Strike's Interest in Peruvian Iron Ore Assets";
• 18 July 2008 entitled "Update Strike's Interest in Peruvian Iron Ore Assets";
• 24 July 2008 entitled "General Company Update";
• 28 August 2008 entitled "Company Update"
• 15 September 2008 entitled "Project Development and Company Update"
• 9 October 2008 entitled "Company Update"

8 Refer 28 July 2008 ASX market announcement entitled "$103 Million Capital Raising".

9 The first tranche was for 18,068,086 shares raising A$49,687,237 (gross); the second tranche was to be for 19,412,471 shares to raise A$53,384,295 (gross).

10 Refer 23 September 2008 ASX market announcement entitled "Update on Gallagher Share Placement"

11 Refer 9 October 2008 ASX market announcement entitled "Company Update"

Strike provides the following update to the matters disclosed in the 2008 Annual Report and the above market announcements:

• (1) Strike's arbitration request is pending the formation of an arbitration panel (by the Arbitration Centre within the Lima Chamber of Commerce (LCC)), which will then set a timetable for the future conduct of the matter. Strike's Peruvian lawyers have advised that LCC had appointed three Arbitration Panel members, which includes a foreigner (non-Peruvian) as Chairman but D&C had filed an objection against the selection of one proposed member and the proceeding to deal with such challenge has been initiated;
• (2) D&C's allegations of irregularities associated with Strike's exercise of the options (over shares in Apurimac Ferrum S.A.) are, as far as Strike is aware, still under investigation by the relevant authorities. Strike's Peruvian lawyers have advised that the Peruvian Criminal Prosecutor has assumed conduct of investigating the D&C complaints after considering the initial report of the Peruvian Police to be insufficient. The Prosecutor has ordered a new Police investigation by another investigative team.

Strike will provide further updates on this matter as developments arise in relation to the arbitration proceedings and D&C's allegations.

Summary of Capital Changes

1. Shares Capital Changes

Date	Description	Issue Price	No. Shares	Value of Issue	Running Balance ofIssued Share Capital
30/06/2008	Balance				102,444,482
8/7/2008	Conversion of listed $0.178 (30 June2008) Options	$0.178	21,700	$3,863	102,466,182
29/7/2008	Share Placement to Gallagher	$2.75	18,068,086	$49,687,237	120,534,268
11/8/2008	Share issue to vendor	Note (A)	7,750,000	Note (C)	128,284,268
11/8/2008	Share issue to vendor	Note (B)	1,750,000	Note (C)	130,034,268

Notes:

(A) Pursuant to acquisition of Strike Australian Operations Pty Ltd (formerly Central Exchange Mining Ltd) (SAO), which holds a 25% interest in the West Australian Paulsens East Iron Ore Project from Orion Equities Limited (Orion);

(B) Pursuant to acquisition of Strike Indo Operations Pty Ltd (formerly Orion Indo Operations Pty Ltd) (SIO), which holds a 70% interest in the Indonesian Berau Coal Project from Orion.

(C) The value of the 9.5 million shares issued to Orion under (A) and (B) above is based on the market price of Strike shares on ASX as at the date of issue, which was $1.97 per share.

3. Options

(a) Listed $0.178 (30 June 2008) Options

Subsequent to the end of the financial year, a further 21,700 options have been exercised raising $3,862.60. All unexercised $0.178 (30 June 2008) options expired on 30 June 2008.

(b) Unlisted Employee's Options

The following employee's options were issued since 1 July 2008:

Date ofIssue	Description ofUnlisted Options	ExercisePrice	Expiry Date	Vesting Criteria12	No. ofOptions
14 October2008	$2.75 (13 October2013) Employee'sOptions	$2.75	13 October2013	83,334 on 13 January 200983,333 on 13 June 200983,333 on 13 October 2009	250,000

On 30 October 2008, 150,000 unlisted employee's options (with an exercise price of $1.178 each and expiring on 5 October 2011) lapsed. These options were held by a former employee and lapsed as they were not exercised within 30 days of cessation of employment, as required under the terms of issue.

(c) Other Unlisted Options

On 29 July 2008, Strike issued 903,404 unlisted options to a third party as part remuneration for brokering the $49.7 million share placement by Gallagher Holdings Limited. The exercise price of each option is $2.75 and the term is 3 years from date of issue.

Director Appointments

On 29 July 2008, Mr Farhad Moshiri was appointed to the Board as a Non-Executive Director. Mr Moshiri appointed Mr Mark Horn as his Alternate Director.

Mr Moshiri was appointed upon the completion of the $49. million tranche one share placement to Gallagher. Mr Moshiri is Chairman of Gallagher and Metalloinvest.

Mr Moshiri's and Mr Horn's qualifications and experience are as follows:

A. Farhad Moshiri	Non-Executive Director
Appointed	29 July 2008
Qualifications	B.Econ (Hons), FCCA
Experience	Farhad Moshiri graduated from the University of London with an honours degree in Economics andStatistics and subsequently qualified as a Chartered Certified Accountant (FCCA). He worked for anumber of the major accounting firms, latterly focusing on financial services. He joined GlobalNatural Energy, a London listed company with energy and commodity interests, where he was theChief Executive for eight years. He helped set up Gallagher Holdings Limited, where he has beeninstrumental in developing and acquiring its various interests in mining and metals, including itsholding in Metalloinvest, a leading Russian mining and metals group where he is ExecutiveChairman. Farhad Moshiri sits on a number of other Boards.
Relevant interest insecurities	Nil
Other currentdirectorships in listedentities	None
Former directorshipsin other listed entitiesin past 3 years	None

12 Options which have vested may be exercised at any time thereafter, up to their expiry date

Mark P. M. Horn	Alternative Director for A. Farhad Moshiri
Appointed	29 July 2008
Qualifications	B.A.(Hons) (First Class), M.A. (Rhodes), LLB(Hons) (London), Dip.B.Admin (Manchester), FSI(dip)
Experience	Mark Horn holds a B.A.(Hons) (First Class), M.A. (Rhodes), LLB(Hons) (London), Dip.B.Admin(Manchester), FSI(dip). He is also qualified as a Barrister of the Honourable Society of Lincoln'sInn. He is the CEO of M. Horn & Co., an FSA authorised corporate finance boutique based in theUK specialising in international mining and energy. He has worked in the City of London since1987 as a fund manager, analyst and corporate financier, and has been a rated mining and oilanalyst.
Relevant interest insecurities	Nil
Other currentdirectorships in listedentities	None
Former directorshipsin other listed entitiesin past 3 years	Mount Gibson Iron Limited (MGX) (between 1 July 2007 and 1 May 2008)

Appointment of Key Managers

Strike has appointed various key high calibre managers in Peru and Australian to develop its various projects, as follows:

(1) Maxwell Hobson

Max Hobson has been appointed Project Director of the Apurimac and Cuzco Projects in Peru. Max was previously a Project Manager of Sinclair Knight Merz (SKM) leading the team conducting the pre-feasibility study (PFS) for the Apurimac Project and the concept study for the Cuzco Lump Project. Max is a senior engineer with over 35 years of project management experience in managing feasibility studies and Engineering, Procurement, Construction and Management (EPCM) projects. As Project Manager for the Apurimac PFS and Cuzco concept study, Max developed a firsthand and deep insight into and a detailed knowledge of the Apurimac and Cuzco Projects. His acceptance of this role brings to Strike a high calibre project manager and engineer from an elite world leader in project management and also someone who is personally acquainted with all facets of Strike's Peru projects. Max will be based in Peru.

(2) Michael Lowry

Mike Lowry has been appointed General Manager, Projects, with responsibility for developing the Berau Coal Project. Mike was previously a Chief Executive Officer of Griffin Energy and Griffin Coal in Western Australia and worked at the Griffin group for 18 years. Prior to that, he was a Manager at Robe River's iron ore operations at Pannawonica and Cape Lambert. Mike's significant industry experience will be important in the development of Strike's coal project. Mike will be based in Australia.

(3) Soumitra Chakraborty

Soumitra Chakraborty has been appointed Project Manager for the Berau Coal Project. He is an engineer with 28 years operations and management experience including with Orica in Australia, New Zealand and Indonesia. Soumitra will have a hands on operational role in the development of the Berau Coal Project. Soumitra will be based in Indonesia and Australia.

(4) Juan Carlos Toro

Juan Carlos Toro has been appointed Exploration Manager leading the exploration team in Peru. He is a geologist with over 30 years exploration, mining and project management experience in South America, Africa, Australia and Papua New Guinea. Juan Carlos will be based in Peru.

(5) Arran Gracie

Arran Gracie has been appointed Project Manager with responsibility for developing the Cuzco Lump Iron Ore Project. Arran who previously acted for Strike as General Manager, Corporate Affairs, has now altered his role to Project Manager to capitalise on his 14 years experience as a mining engineer with Kimberley Diamond Company, BHP (Yandi Iron Ore Mine) and Anaconda Nickel. Arran will be based in Peru.

Entry into S&P/ASX 300 Index

Strike has been included in the S&P/ASX 300 Index (effective from close of trade on 20 September 2008), as announced by Standard & Poor's Index Services on 5 September 2008.

On-Market Share Buy Back

On 25 September 2008, Strike announced that it intended to conduct an on-market share buy back within the "10%/12 month limit" permitted under section 257B(4) of the Corporations Act 2001 (Cth).

On 9 October 2008, Strike announced that the Directors had determined that it was no longer appropriate for Strike to be undertaking this buy back as a consequence of the Gallagher tranche 2 investment not occurring and the current turbulent market conditions.13

No shares have been bought back by Strike under this mechanism between these 2 announcements.

13 Refer 9 October 2008 ASX market announcement entitled "Company Update"

APURIMAC PROJECT

CONCESSION NAME	AREA	DISTRICT	PROVINCE	NATIONAL	CODE	TILE	FILE
	(hectares			CHART			NUMBER
	)			REFERENCE
Opaban I(1)	999.00	Andahuaylas	Andahuaylas	Andahuaylas(28-P).	05006349X01	No. 8625-94/RPMdated December 16,1994	20001465
Opaban III(2)	990.00	Andahuaylas	Andahuaylas	Andahuaylas(28-P).	05006351X01	No. 8623-94/RPMdated December 16,1994.	20001464
Los Andes I(3)	999.00	Andahuaylas	Andahuaylas	Andahuaylas(28-P).	05006372X01	No. 0134-95-RPMdated January 31,1995.	200001481
Pitumarca II(4)	1,000.00	Pampachiri	Andahuaylas	Andahuaylas(28-P).	05006385X01	No. 8686-94-RPMdated December 22,1994.	20001478
Lucrecia(5)Esperanza	66.43	Pampachiri	Andahuaylas	Chalhuana(29-P).	01-00649-99	No. 00623-2001-INACC/J dated July26, 2001.	11032475
Nueva(6)Oropampa 6	400.00	Pampachiri	Andahuaylas	Chalhuana(29-P).	01-00860-99	No. 04043-2000-RPMdated October 13,2000.	11032603
Mapsa 2001(7)	800.00	San Jerónimo /Pacucha	Andahuaylas	Andahuaylas(28-P).	01-01204-01	No. 00590-2002-INACC/J dated April8, 2002.	11032600
Coriminas II(8)	1,000.00	Pampachiri /Sañayca / Capay	Andahuaylas	Chalhuana(29-P).	01-01624-99	No. 02760-2000-RPM,dated July 25, 2000.	11032965
Coriminas V(9)	1,000.00	Pampachiri	Andahuaylas	Chalhuana(29-P).	01-01626-99	No. 0936-00-RPMdates March 16, 2000.	20003140
(10) Ferrum 1	965.06	Andahuaylas /San Jerónimo	Andahuaylas	Andahuaylas(28-P).	01-02983-04	No. 00228-2005-INACC/J datedJanuary 19, 2005.	11053798
(11) Ferrum 2	1,000.00	San Jerónimo	Andahuaylas	Andahuaylas(28-P).	01-02984-04	No. 00227-2005-INACC/J datedJanuary 19, 2005.	11053836
(12) Ferrum 3	1,000.00	Andahuaylas /San Gerónimo	Andahuaylas	Andahuaylas(28-P).	01-02985-04	No. 00229-2005-INACC/J datedJanuary 19, 2005.	11053807
(13) Ferrum 4	1,000.00	San Jerónimo /Lucre	Andahuaylas/ Aymaraes	Andahuaylas(28-P).	01-02986-04	No. 00230-2005-INACC/J datedJanuary 19, 2005.	11053810
(14) Ferrum 5	959.43	Lucre	Aymaraes	Andahuaylas(28-P).	01-02987-04	No. 00323-2005-INACC/J datedJanuary 25, 2005.	11053816
(15) Ferrum 7	437.00	San Juan deChacña	Aymaraes	Andahuaylas(28-P).	01-02989-04	No. 00396-2005-INACC/J datedJanuary 27, 2005.	11053822
(16) Ferrum 8	900.00	Andahuaylas /Talavera	Andahuaylas	Andahuaylas(28-P).	01-02990-04	No. 00232-2005-INACC/J datedJanuary 19, 2005.	11053827
(17) Ferrum 9	1,000.00	Lucre / San Juande Chacña	Aymaraes	Andahuaylas(28-P).	01-02991-04	No. 00324-2005-INACC/J datedJanuary 25, 2005.	11053830
(18) Ferrum 10	1,000.00	San Juan deChacña	Aymaraes	Andahuaylas(28-P).	01-02992-04	No. 00325-2005-INACC/J datedJanuary 25, 2005.	11053833
(19) Ferrum 11	1,000.00	Lucre / San Juande Chacña	Aymaraes	Andahuaylas(28-P).	01-02993-04	No. 02512-2005-INACC/J dated June12, 2005.	11053835
(20) Ferrum 13	600.00	Andahuaylas /Pacucha / SanJerónimo /Talavera	Andahuaylas	Andahuaylas(28-P).	01-03139-06	No. 4416-2006-INACC/J datedOctober 16, 2006	11061068
(21) Ferrum 26	827.51	Andahuaylas	Andahuaylas	Andahuaylas(28-P).	01-02274-07	No. 000853-2007-INGEMMET/PCD/PMdated September 07,2007.	11073793
(22) Ferrum 27	1,000.00	Pacucha / SanJerónimo /Andahuaylas	Andahuaylas	Andahuaylas(28-P).	01-02629-07	No. 000581-2007-INGEMMET/PCD/PMdated September 05,2007.	11073799
(23) Ferrum 36	1,000.00	San Jerónimo /Andahuaylas	Andahuaylas	Andahuaylas(29-P).	10553307	Feb. 29, 2008RP. 0176-2008-INGEMMET/PCD/PM	11075418
(24) Cristoforo 22	379.52	Andahuaylas /San Jerónimo	Andahuaylas	Andahuaylas(29-P).	01-01656-02	Dec. 13, 2007RP2849-2007-INGEMMET/PCD/PM	11067786

CONCESSION NAME	AREA(hectares)	DISTRICT	PROVINCE	NATIONALCHARTREFERENCE	CODE	TILE	FILENUMBER
(25) Ferrum 28	1,000.00	San Jerónimo	Andahuaylas	Andahuaylas(29-P).	10507407	Mar, 07, 2008RP0601-2008-INGEMMET/PCD/PCM	11075423
(26) Ferrum 29	1,000.00	San Jerónimo	Andahuaylas	Andahuaylas(29-P).	10507507	Mar, 07, 2008RP0365-2008-INGEMMET/PCD/PM	11075419
(27) Ferrum 30	963.20	Tumay Huaraca	Andahuaylas	Chalhuana(29-P).	10525907	May, 05, 2008PP 1024-2008-INGEMMET/PCD/PM	11076757
(28) Ferrum 31	327.24	Andahuaylas	Andahuaylas	Andahuaylas(29-P).	10552807	May, 12, 2008RP 1266-2008-INGEMMET/PCD/PM	11076509
(29) Ferrum 32	900.00	San Jerónimo	Andahuaylas	Andahuaylas(29-P).	10552907	Mar, 07, 2008RP0402-2008-INGEMMET/PCD/PM	11075425
(30) Ferrum 33	900.00	San Jerónimo	Andahuaylas	Andahuaylas(29-P).	10553007	Mar, 07, 2008RP0547-2008-INGEMMET/PCD/PM	11075421
(31) Ferrum 34	800.00	San Jerónimo	Andahuaylas	Andahuaylas(29-P).	10553107	Apr. 17, 2008RP0764-2008-INGEMMET/PCD/PM	11075427
(32) Ferrum 35	1,000.00	San Jerónimo /Kishuara	Andahuaylas	Andahuaylas(29-P).	10553207	Mar, 07, 2008RP0347-2008-INGEMMET/PCD/PCM	11075426
(33) Ferrum 37	695.34	Andahuaylas /Kishuara /Talavera	Andahuaylas	Andahuaylas(29-P).	10621507	May, 12, 2008RP 1164-2008-INGEMMET/PCD/PM	11076534
(34) Ferrum 56	1,000.00	Andahuaylas	Andahuaylas	Andahuaylas(29-P).	10133508	Jun 19, 2008RP 1971-2008-INGEMMET/PCD/PM	11077123
(35) Ferrum 57	1,000.00	Andahuaylas	Andahuaylas	Andahuaylas(29-P).	10133608	Sept. 9, 2008RP 3279-2008-INGEMMET/PCD/PM	in process
(36) Ferrum 58	1,000.00	Andahuaylas	Andahuaylas	Andahuaylas(29-P).	10133708	Jun 27, 2008RP 2206-2008-INGEMMET/PCD/PM	11077127
(37) Ferrum 59	1,000.00	Andahuaylas	Andahuaylas	Andahuaylas(29-P).	10133808	Jun 27, 2008RP 2272-2008-INGEMMET/PCD/PM	11077122
(38) Pacunco 1	800.00	Kishuara	Andahuaylas	Andahuaylas(29-P).	10019508	May 29, 2008RP 1806-2008-INGEMMET/PCD/PM	11076523
(39) Minas Huaycco	800.00	Circa	Abancay	Abancay(28Q)	10168708	Aug. 08, 2008RP 2541-2008-INGEMMET/PCD/PM	in process
(40) Cassio 100	400.00	Tumay Huaraca	Andahuaylas	Chalhuana(29-P).	10182808	Sept. 10, 2008RP 3321-2008-INGEMMET/PCD/PM	in process
(41) Cristoforo 14	1000	Pampachiri	Andahuaylas	Andahuaylas(29-P).	01-02327-99	No. 02693-2000 RPMdated 24 July 2000	11034702
(42) Cristoforo 28	500	Toraya	Aymaraes	Chalhuanca(29-P)	01-00152-05	No. 01824-2005INACC/J dated 4 May2005	11064280
(43) Ferrosa 29	400	Tumay Huaraca	Andahuaylas	Andahuaylas(29-P).	01-00473-05	No. 01709-2005 RPMdated 21 April 2004	11064281
(44) Ferrum 38	800.00	Turpo/Andahuaylas	Andahuaylas	Andahuaylas(29-P).	10015205	May, 12, 2008RP1288-2008-INGEMMET/PCD/PM	11064280
(45) Ferrum 39	1,000.00	Andahuaylas /Turpo	Andahuaylas	Andahuaylas(29-P).	10047605	May 29, 2008RP 1573-2008-INGEMMET/PCD/PM	11064281
(46) Ferrum 40	1,000.00	Andahuaylas	Andahuaylas	Andahuaylas(29-P).	10623507	Aug 19, 2008RP 2905-2008-INGEMMET/PCD/PM	11076528
(47) Ferrum 41	1,000.00	Andahuaylas	Andahuaylas	Andahuaylas(29-P).	10131408	Jun 19, 2008RP 1965-2008-INGEMMET/PCD/PM	11076755
(48) Ferrum 42	1,000.00	Andahuaylas	Andahuaylas	Andahuaylas(29-P).	10131508	Jun 19, 2008RP 1975-2008-INGEMMET/PCD/PM	in process
(49) Ferrum 43	1,000.00	Andahuaylas	Andahuaylas	Andahuaylas(29-P).	10131608	Sept. 9, 2008RP 3243-2008-INGEMMET/PCD/PM	11077113
(50) Ferrum 44	1,000.00	Andahuaylas	Andahuaylas	Andahuaylas(29-P).	10131908	Jun 19, 2008RP 1934-2008-INGEMMET/PCD/PM	11077115

CONCESSION NAME	AREA(hectares)	DISTRICT	PROVINCE	NATIONALCHARTREFERENCE	CODE	TILE	FILENUMBER
(51) Ferrum 45	1,000.00	Andahuaylas	Andahuaylas	Andahuaylas(29-P).	10132008	Jun 27, 2008RP 2283-2008-INGEMMET/PCD/PM	11077116
(52) Ferrum 46	1,000.00	Tumay Huaraca/ Turpo /Andahuaylas	Andahuaylas	Andahuaylas(29-P).	10132108	Aug. 08, 2008RP 2523-2008-INGEMMET/PCD/PM	in process
(53) Ferrum 47	1,000.00	Andahuaylas /Tumay Huaraca	Andahuaylas	Andahuaylas(29-P).	10132208	Jun 18, 2008RP 1908-2008-INGEMMET/PCD/PM	11077117
(54) Ferrum 48	1,000.00	Andahuaylas	Andahuaylas	Andahuaylas(29-P).	10132308	May 29, 2008RP 1756-2008-INGEMMET/PCD/PM	11076584
(55) Ferrum 49	1,000.00	Andahuaylas /Tumay Huaraca	Andahuaylas	Andahuaylas(29-P).	10132408	Jun 19, 2008RP 2000-2008-INGEMMET/PCD/PM	11077118
(56) Ferrum 50	900.00	Andahuaylas	Andahuaylas	Andahuaylas(29-P).	10132508	Jun 19, 2008RP 1922-2008-INGEMMET/PCD/PM	11077120
(57) Ferrum 51	1,000.00	Andahuaylas	Andahuaylas	Andahuaylas(29-P).	10132608	Jun 18, 2008RP 1893-2008-INGEMMET/PCD/PM	11077121
(58) Ferrum 52	1,000.00	Andahuaylas	Andahuaylas	Andahuaylas(29-P).	10132708	Aug 18, 2008RP 2803-2008-INGEMMET/PCD/PM	in process
(59) Ferrum 53	1,000.00	Andahuaylas	Andahuaylas	Andahuaylas(29-P).	10132808	Aug. 08, 2008RP 2550-2008-INGEMMET/PCD/PM	in process
(60) Ferrum 54	700.00	Colcabamba	Andahuaylas	Andahuaylas(29-P).	10132908	Aug. 19, 2008RP 2899-2008-INGEMMET/PCD/PM	in process
(61) Ferrum 55	800.00	Andahuaylas	Andahuaylas	Andahuaylas(29-P).	10133408	Aug. 19, 2008RP 2951-2008-INGEMMET/PCD/PM	in process
(62) Ferrum 60	200.00	Abancay	Abancay	Abancay(28Q)	10073208	Aug. 19, 2008RP 2986-2008-INGEMMET/PCD/PM	in process
(63) Ferrum 62	900.00	Lambrama	Abancay	Abancay(28Q)	10073408	Sept . 8, 2008RP 3177-2008-INGEMMET/PCD/PM	in process
(64) Ferrum 63	300.00	Curpahuasi	Grau	Abancay(28Q)	10073008	Aug. 28, 2008RP 3040-2008-INGEMMET/PCD/PM	11076586
(65) Pichirhua 1	800.00	Pichirhua	Abancay	Andahuaylas(29-P).	10151708	TBA	in process
(66) Pichirhua 2	400.00	Pichirhua	Abancay	Andahuaylas(29-P).	10151808	Sept . 8, 2008RP 3183-2008-INGEMMET/PCD/PM	in process
(67) Colcabamba 1	600.00	Lucre/Colcabamba	Aymaraes	Andahuaylas(29-P).	10212308	Aug. 19, 2008RP 2986-2008-INGEMMET/PCD/PM	in process
(68) Colcabamba 2	500.00	Lucre/Colcabamba	Aymaraes	Andahuaylas(29-P).	10212408	Sept . 8, 2008RP 3177-2008-INGEMMET/PCD/PM	in process
(69) Colcabamba 3	900.00	Colcabamba/Toraya	Aymaraes	Andahuaylas(29-P).	10217208	Aug. 28, 2008RP 3040-2008-INGEMMET/PCD/PM	in process
(70) Sillaccassa 1	700.00	Santa Maria deChicmo	Andahuaylas	Chincheros(28- O)	10212608	in process	in process
(71) Sillaccasa 2	400.00	Santa Maria deChicmo	Andahuaylas	Chincheros(28- O)	10212508	Sept . 8, 2008RP 3183-2008-INGEMMET/PCD/PM	in process

CUZCO PROJECT

CONCESSIONNAME	AREA(hectares)	DISTRICT	PROVINCE	NATIONALCHARTREFERENCE	CODE	TILE	FILENUMBER
Flor de(1)María	906.94	Santo Tomás	Chumbivilcas	Livitaca (29-S).	05006521X01	No. 7078-95-RPMdated December29, 1995.	20001742
Delia(2)Esperanza	1,000.00	Santo Tomás	Chumbivilcas	Livitaca (29-S).	05006522X01	No. 0686-95-RPMdated March 31,1995.	20001743
Julia(3)Clara	1,000.00	Colquemarca	Chumbivilcas	Livitaca (29-S).	05006523X01	No. 4600-95/RPMdated September26, 1995.	20001744
El(4)PacíficoI	618.95	Cápacmarca	Chumbivilcas	Livitaca (29-S).	05006536X01	No. 7077-95/RPMdated December29, 1995.	20001785
El(5)PacíficoII	1,000.00	Santo tomás	Chumbivilcas	Livitaca (29-S).	05006524X01	No. 7886-94/RPMdated November25, 1994.	20001746
Ferrum(6)14	268.40	Chamaca	Chumbivilcas	Livitaca (29-S).	01-03047-05	No. 05032-2005-INACC/J datedNovember 30,2005.	11053842
Ferrum(7)15	992.13	Chamaca /Colquemarca	Chumbivilcas	Livitaca (29S)	10494906	Mar. 05, 2007RJ. 0753-2007-INACC/J	11073796
Ferrum(8)17	500.00	Colquemarca	Chumbivilcas	Livitaca (29S)	10026607	Oct. 30, 2007RP. 1815-2007-INGEMMET/PCD/PM	11073794
Ferrum(9)18	800.00	Quiñota /Haquira	Chumbivilcas/Cotabambas	Santo Tomas(29R)	10026707	May 29, 2008RP 1761-2008-INGEMMET/PCD/PM	11076514
(10) Ferrum72	1,000.00	Ccapi	Paruro	Cotabamba(28R)	10408208	in process	in process
(11) Ferrum73	1,000.00	Ccapi	Paruro	Cuzco(28S)	10409608	in process	in process
(12) Ferrum74	1,000.00	Ccapi	Paruro	Cuzco(28S)	10408208	in process	in process
(13) Ferrum75	302.85	Ccapi	Paruro	Cotabamba(28R)	10409808	in process	in process
(14) Ferrum76	973.83	Capacmarca	Chumbivilcas	Cotabamba(28R)	10409908	in process	in process
(15) Ferrum77	1,000.00	Ccapi	Paruro	Cotabamba(28R)	10408108	in process	in process

AUSTRALIAN TENEMENTS

Project	Status	ApplicationNo	Grant /ApplicationDate	ExpiryDate	Area(Blocks)	Area(km²)	Location /PropertyName		StateCompany'sInterest
Paulsen East(West Pilbara	Granted	EL47/1328	05/10/06	04/10/11	6	18	Paulsen East	WA	100%
Region)	Granted	PL47/1170	27/03/06	26/03/11	164hectares	1.64	Paulsen East	WA	100%
King Sound(West	Application	ELA04/1657	26/02/07	N/A	43	141	King Sound	WA	100%
KimberleyRegion)	Application	ELA04/1658	26/02/07	N/A	58	190	King Sound	WA	100%
	Application	ELA04/1659	26/02/07	N/A	98	321	King Sound	WA	100%

SECURITIES INFORMATION as at 31 October 2008

Issued Securities

	Quoted	Not Quoted
	on ASX	on ASX	Total
Fully paid ordinary shares	130,034,268	-	130,034,268
$0.178 (9 February 2011) Unlisted Options	-	1,833,333	1,833,333
$0.278 (9 February 2011) Unlisted Options	-	1,666,667	1,666,667
$0.938 (20 July 2011) Directors' Options	-	4,600,000	4,600,000
$0.938 (12 September 2011) Unlisted Director's Options		500,000	500,000
$2.078 (6 March 2012) Unlisted Director's Options		500,000	500,000
$2.788 (6 March 2012) Unlisted Directors' Options		3,300,000	3,300,000
$2.878 (30 April 2012) Unlisted Employees' Options		133,000	133,000
$2.878 (4 September 2012) Unlisted Employee's Options		200,000	200,000
$2.878 (16 November 2012) Unlisted Employee's Options		250,000	250,000
$3.978 (2 December 2012) Unlisted Directors' Options		4,000,000	4,000,000
$2.878 (3 March 2013) Unlisted Employee's Options		250,000	250,000
$2.75 (29 July 2011) Unlisted Options		903,404	903,404
$2.75 (13 October 2013) Unlisted Options		250,000	250,000
Total	130,034,268	18,386,404	148,420,672

Distribution of Ordinary, Fully-Paid Shares

Spread	of	Holdings	Number of Holders	Number of Units	% of Total Issue Capital
1	-	1,000	645	372,311	0.286
1,001	-	5,000	1,791	5,672,952	4.363
5,001	-	10,000	679	5,403,782	4.156
10,001	-	100,000	838	25,163,881	19.352
100,001	-	and over	94	93,421,442	71.844
Total			4,047	130,034,268	100%

SECURITIES INFORMATION as at 31 October 2008

Top 20 Ordinary Fully-Paid Shareholders

Rank	Shareholders		Total Shares	%IssuedCapital
1	ANZ NOMINEES LIMITED		18,068,086	13.895
2	ORION EQUITIES LIMITED		13,190,802	10.144
3	DATABASE SYSTEMS LIMITED		9,377,090	7.211
4	ANZ NOMINEES LIMITED		8,444,787	6.494
5	CITICORP NOMINEES PTY LIMITEDCITICORP NOMINEES PTY LIMITED	8331376227Sub total	8,331,603	6.407
6	HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITEDHSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED – GSCO ECAHSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED – A/C 2HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED – A/C 3	1,461,61720,0001307015559071
		Sub total	7,171,389	5.515
78	QUECHUA INVESTMENTS LIMITEDNATIONAL NOMINEES LIMITED		4,839,6572,307,854	3.7221.775
9	TAYSCRIP NOMINEES PTY LTD		1,060,197	0.815
10	PATER INVESTMENTS PTY LTD		1,000,000	0.769
11	SANDINI PTY LTD		970,000	0.746
12	PAN AUSTRALIAN NOMINEES PTY LIMITED		906,996	0.698
13	MR GORDON ANTHONY		800,000	0.615
14	MR GEORGE BRYANT MACFIE		634,846	0.488
15	FAROOQ KHAN		530,010	0.408
16	MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED	322,159
17	MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED	200,000
		Sub total	522,158	0.402
18	ALARA URANIUM LIMITED		500,000	0.385
19	EMPIRE HOLDINGS PTY LTD		500,000	0.385
20	MRS ANUPAM SHOBHA MADAN & MR HEM SHANKER MADAN		500,000	0.385
Total			79,655,475	61.259%

Appendix 5B Mining Exploration Entity Quarterly Report

Name of entity

STRIKE RESOURCES LIMITED and controlled entities

	ACN or ARBN		Quarter Ended
	088 488 724	30 September 2008
Consolidated statement of cash flows			Consolidated
		Current Quarter	Year to Date
		Sep 2008	3 months
		$' 000	$' 000
	Cash flows related to operating activities
1.1	Receipts from product sales and related debtors	-	-
1.2	Payments for
	(a) exploration and evaluation	(4,344)	(4,344)
	(b) development	-	-
	(c) production	-	-
	(d) administration	(1,234)	(1,234)
1.3	Dividends received	5	5
1.4	Interest and other items of a similar nature received	541	541
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	(277)	(277)
1.7	Other (provide details if material)	-	-
	(a) Professional fees	-	-
	Net operating cash flows	(5,309)	(5,309)

Strike has prepared a consolidated cashflow report incorporating the entities that it controlled during the quarter:

(1) Apurimac Ferrum S.A. (AF), a company incorporated in Peru in which Strike gained control on 29 May 2008;

(2) Iron Associates Corporation (IAC), a company incorporated in Panama in which SRK acquired a 70% shareholding interest on 26 February 2007;

(3) Strike Operations Pty Ltd ABN 12 102 978 370 (SOPL) a wholly owned subsidiary during the whole of the financial year;

• (4) PT Indo Batubara (PTIB), a company registered in Indonesia on 8 December 2005 in which SOPL is the 100% beneficial owner;
• (5) Strike Resources Peru SAC (Strike Peru), a wholly owned subsidiary company of SOPL incorporated in Peru on 28 December 2006;

(6) Ferrum Holdings Limited (FHL), a wholly owned subsidiary company incorporated in British Anguilla on 29 May 2008;

(7) Strike Australian Operations Pty Ltd ACN 119 438 265, which was acquired from Orion Equities Limited (Orion or OEQ) on 11 August 2008;

(8) Strike Indo Operations Pty Ltd ACN 124 702 245 (SIOPL), which was acquired from Orion on 11 August 2008; and

(9) PT Orion Indo Mining (PTOIM), a company registered in Indonesia in which SOIPL is the 100% beneficial owner.

Current QuarterYear to DateSep 20083 months$' 000$' 000
(5,309)(5,309)1.8Net operating cash flows (carried forward)
Cash flows related to investing activities
1.9Payment for purchases of:
--(a)prospects
--(b)equity investments
(78)(78)(c)other fixed assets--
1.10Proceeds from sale of:
--(a)prospects
--(b)equity investments
--(c)other fixed assets
--1.11Loans to other entities
--1.12Loans repaid by other entities
--1.13Other (provide details if material)
--Net cash inflow from acquisition of controlled entity
--
(78)(78)Net investing cash flows
(5,387)(5,387)1.14Total operating and investing cash flows
Cash flows related to financing activities
49,69249,6921.15Proceeds from issues of shares, options, etc.
--1.16Proceeds from sale of forfeited shares
--1.17Proceeds from borrowings
--1.18Repayment of borrowings
--1.19Dividends paid
--1.20Other (provide details if material)
(2,544)(2,544)Payment for share issue and options costs
47,14847,148Net financing cash flows
41,76141,761Net increase (decrease) in cash held
24,86524,8651.21Cash at beginning of quarter/year to date
1,7511,7511.22Exchange rate adjustments to item 1.20
68,37768,3771.23Cash at end of quarter

	Payments to directors of the entity and associates of the directorsPayments to related entities of the entity and associates of the
	related entities	Current Quarter
		Sep 2008
		$' 000
1.24	Aggregate amount of payments to the parties included in item 1.2	(222)

• 1.25 Aggregate amount of loans to the parties included in item 1.10
• 1.26 Explanation necessary for an understanding of the transactions

(1) $221,935 - Directors' fees, salaries and superannuation for the quarter. (2) $3,611 - Salaries and fees paid by controlled entity, Apurimac Ferrum, to its Director.

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

1. On 11 August 2008, the Company acquired a 70% interest in the Indonesian Berau Coal Project (via the acquisition of Strike Indo Operations Pty Ltd (formerly Orion Indo Operations Pty Ltd)) and a 25% interest in the West Australian Paulsens East Iron Ore Project (via the acquisition of Strike Australian Operations Pty Ltd (formerly Central Exchange Mining Ltd)) from its joint venture partner in these projects, ASX listed Orion Equities Limited (Orion). A total of 9.5 million Strike shares were issued to Orion as consideration for these transactions.

2. On 29 July 2008, the Company issued 903,404 unlisted options to a third party as part remuneration for brokering the $49.7 million share placement by Gallagher Holdings Limited. at $2.75 per share. The exercise price of each option is $2.75 and the term is 3 years from date of issue.

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity

None.

	Financing facilities available	Amount available$' 000	Amount used$' 000
3.1	Loan facilities	-	-
3.2	Credit standby arrangements	-	-

Estimated cash outflows for next quarter	Next Quarter$' 000
4.1	Exploration and evaluation	3,000
4.2	Development	-
	Total	3,000

Reconciliation of cash		Consolidated
Reconciliation of cash at the end of the month (as shown in the consolidatedstatement of cash flows) to the related items in the accounts is as follows		CurrentQuarter$' 000	PreviousQuarter$' 000
5.1	Cash on hand and at bank	2,732	10,413
5.2	Deposits at call	65,645	14,452
5.3	Bank overdraft	-	-
5.4	Other (Bank Bills)	-	-
	Total: cash at end of quarter (item 1.22)	68,377	24,865

Changes in interests in mining tenements

		Tenementreference	Nature of interest(note (4))	Interest at beginningof quarter	Interest at end ofquarter
6.1	Interests in miningtenements relinquished,reduced or lapsed		Refer to Quarterly Activities Report
6.2	Interests in miningtenements acquired orincreased		Refer to Quarterly Activities Report

Issued and quoted securities at end of current quarter p p

				pp	ppp
		Total number	Number quoted	security (see note 5)(cents)	security (see note 5)(cents)
7.1	Preference securities+	n/a
7.2	Changes during quarter
(b)	(a) Increases through issuesDecreases through returnsof capital, buy-backs,redemptions
7.3	Ordinary securities+	102,444,482	102,444,482
7.4	Changes during quarter
	(a) Increases through issues
	Issue under $49.7 M SharePlacement (at $2.75 pershare)	18,068,086	18,068,086	275 cents	N/A
	Share issue to vendor	7,750,000	7,750,000	Note (7)	N/A
	Share issue to vendor	1,750,000	1,750,000	Note (8)	N/A
(b)	Decreases through returnsof capital, buy-backs
7.5	Convertible debt securities+
7.6	Changes during quarter
(b)	(a) Increases through issuesDecreases through securitiesmatured, converted
7.7	Options			Exercise price	Expiry date
	Vendor options	1,833,333	1,833,333	17.8 cents	8 February 2011
	Vendor options	1,666,667	1,666,667	27.8 cents	8 February 2011
	Directors' options	4,600,000		93.8 cents	20 July 2011
	Director's options	500,000		93.8 cents	12 September 2011
	Employee's options	150,000		117.8 cents	5 October 2011
	Director's options	500,000		207.8 cents	6 March 2012
	Directors' options	3,300,000		278.8 cents	6 March 2012
	Employee's options	100,000		287.8 cents	30 April 2012
	Employees' options	133,000		287.8 cents	30 April 2012
	Employee's options	200,000		287.8 cents	4 September 2012
	Employee's options	250,000		287.8 cents	16 November 2012
	Directors' options	4,000,000		397.8 cents	2 December 2012
	Employee's options	250,000		287.8 cents	3 March 2013
7.8	Issued during quarter
	Unlisted Options	903,404		275 cents	29 July 2011
7.9	Exercised during quarter
7.10	Expired during quarter
7.11	Debentures (totals only)
7.12	Unsecured notes

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
• 2 This statement does give a true and fair view of the matters disclosed.

31 October 2008

Victor Ho Director

+ See Chapter 19 for defined terms

NOTES

1) The Company currently holds the following share investments:

			31-Oct-08
Company	No Shares	%	Last Bid Price	Market Value
Alara Uranium Limited (AUQ)	12,750,000	15.8%	$0.029	$369,750
Alara Uranium Limited Options (AUQO)	21,562,500	35.7%	$0.002	$43,125
Orion Equities Limited (OEQ)	505,026	2.8%	$0.370	$186,860
Queste Communications Ltd (QUE)	826,950	2.9%	$0.110	$90,965
Total				$690,699

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

• 2) The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note
• 3) The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent
• 4) Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
• 5) The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
• 6) Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.
• 7) Pursuant to acquisition of Strike Australian Operations Pty Ltd (formerly Central Exchange Mining Ltd) (SAO), which holds a 25% interest in the West Australian Paulsens East Iron Ore Project from Orion Equities Limited (Orion).
• 8) Pursuant to acquisition of Strike Indo Operations Pty Ltd (formerly Orion Indo Operations Pty Ltd) (SIO), which holds a 70% interest in the Indonesian Berau Coal Project from Orion