HALF YEAR REPORT

31 December 2007

THIS DOCUMENT SHOULD BE READ IN CONJUNCTION WITH THE 2007 ANNUAL REPORT OF THE COMPANY

Level 14, The Forrest Centre ASX Codes: SRK + SRKO 221 St Georges Terrace Perth, Western Australia 6000

T | (08) 9214 9700 F | (08) 9322 1515 E | [email protected] W | www.strikeresources.com.au

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

Advanced Share Registry Services 110 Stirling Highway Perth, Western Australia 6009

T | (08) 9389 8033

F | (08) 9389 7871

E | [email protected] W | www.asrshareholders.com

ASX Half Year Report – Results for	2	BOARD
Announcement to the Market		John F. Stephenson	Chairman
Half Year Highlights	4	H. Shanker MadanFarooq KhanVictor P H Ho	Managing DirectorDirectorDirector
Company Projects	5	William M JohnsonMalcolm R Richmond	DirectorDirector
Directors' Report	6	COMPANY SECRETARY
Auditor's Independence Declaration	20	Victor P H Ho
Condensed Income Statement	21
Condensed Balance Sheet	22	AUSTRALIAN HEAD OFFICELevel 14, The Forrest Centre221 St Georges Terrace
Condensed Statement ofChanges in Equity	23	PerthWestern Australia 6000Telephone:Facsimile:	+61 8 9214 9700+61 8 9322 1515
Cash Flow Statement	24	Email:Internet:	[email protected]www.strikeresources.com.au
Notes to Financial Statements	25
Directors' Declaration	35	PERU OFFICEStrike Resources Peru S.A.C.
Independent Review Report	36	Avenue Camino Real 348 Office 1701San Isidro, Lima 27, Perú
Information on Securities	38	Telephone:Facsimile:	+51 1 628 1606+51 1 222 4007

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CONTENTS CORPORATE DIRECTORY

Announcement to the Market John F. Stephenson Chairman H. Shanker Madan Managing Director Half Year Highlights 4 Farooq Khan Director Victor P H Ho Director Company Projects 5 William M Johnson Director Malcolm R Richmond Director COMPANY SECRETARY AUSTRALIAN HEAD OFFICE 221 St Georges Terrace Changes in Equity Telephone: +61 8 9214 9700 Facsimile: +61 8 9322 1515 Cash Flow Statement 24 Email: [email protected] Internet: www.strikeresources.com.au Strike Resources Peru S.A.C. San Isidro, Lima 27, Perú Information on Securities 38 Telephone: +51 1 628 1606 Facsimile: +51 1 222 4007 SHARE REGISTRY Advanced Share Registry Services 110 Stirling Highway Nedlands Western Australia 6009 Telephone: +61 8 9389 8033 Facsimile: +61 8 9389 7871 Email: [email protected] Internet: www.arsshareholders.com STOCK EXCHANGE www.strikeresources.com.au Australian Securities Exchange (ASX) Perth, Western Australia • Financial Reports SRKO (Options - $0.178 (30 June 2008)) AUDITOR Register your email with us to BDO Kendalls Audit & Assurance (WA) Pty Ltd announcements and releases Subiaco, Western Australia 6008

Telephone: +61 8 9380 8400

ASX HALF YEAR REPORT

Current Reporting Period: 1 July 2007 to 31 December 2007

Previous Corresponding Period: 1 July 2006 to 31 December 2006

Balance Date: 31 December 2007

Company: Strike Resources Limited ("SRK")

Consolidated Entity: SRK and controlled entities:

(1) Strike Operations Pty Ltd (SOPL) a wholly owned subsidiary during the whole of the current and previous corresponding period;
(2) PT Indo Batubara (PTIB), a company registered in Indonesia on 8 December 2005 in which SOPL is the 100% beneficial owner;
(3) Strike Resources Peru SAC (Strike Peru), a wholly owned subsidiary company of SOPL incorporated in Peru on 28 December 2006;
(4) Iron Associates Corporation (IAC), a company incorporated in Panama on 15 February 2007 in which SRK acquired a 70% shareholding interest on 23 February 2007.

RESULTS FOR ANNOUNCEMENT TO THE MARKET

Consolidated

	2007	2006	% Change	Up / Down
	$	$
Total revenues	544,987	543,847	0.2%	Up
Total expenses	(8,644,491)	(3,121,920)	177%	Up
Loss before tax	(8,099,504)	(2,578,073)	214%	Loss Up
Income tax expense	-	-
Loss after tax
attributable to members	(8,099,504)	(2,578,073)	214%	Loss Up

Basic loss per share (cents)	(10.27)	(5.16)	82%	Loss Up

Total revenues include:

(1) $532,819 interest received (Dec 2006: $101,255);
(2) $Nil unrealised gains from share investments (Dec 2006 $358,156).

Total expenses include:

(1) $2,080,000 loss on sale of share investments (arising on the disposal of 16 million shares in Alara Uranium Limited via an in specie distribution/capital return to shareholders completed on 13 December 2007) (Dec 2006: $Nil);
(2) $1,089,377 share of Associate's losses (Dec 2006: $nil);
(3) $3,538,105 personnel expenses in relation to directors' and employees options (Dec 2006: $1,233,421);
(4) $692,245 other personnel costs (Dec 2006: $335,548);

ASX HALF YEAR REPORT

(5) $590,084 consultancy and professional fees (Dec 2006: $108,530);
(6) $193,687 travel and incidentals (Dec 2006: $Nil);
(7) $86,620 resource and mining related expenditure (Dec 2006: $311,471). This amount does not include $2,618,643 invested into Apurimac Ferrum S.A. (AF) during the half year (which have been applied by AF towards mining related expenditure) which is treated as a share investment by Strike rather than as direct resource and mining related expenditure.

Please refer to the attached Directors' Report and Financial Report for further information on a review of the Consolidated Entity's operations and the financial position and performance of the Consolidated Entity and Company for the half year ended 31 December 2007.

Dividends

No dividends have been paid or declared during the financial half year.

Controlled Entities

The Company did not gain or lose control over any entity during the financial half year.

Associates and Joint Venture Entities

Strike Resources has accounted for the following investments at Balance Date as investments in an Associate entity (on an equity accounting basis):

(1) 24.61% economic (6.186% directly and 18.424% indirectly via its 70% interest in IAC) interest in Apurimac Ferrum S.A. (AF), the Peruvian company which holds the concessions comprising the Apurimac and Cuzco Iron Ore Projects (30 June 2007: 20.94%);
(2) 27.82% interest in ASX listed (but suspended) Sofcom Limited (SOF) (30 June 2007: 27.82%).

ASX listed Alara Uranium Limited (AUQ or Alara) was accounted for as an Associate entity as at 30 June 2007 as the Company held a 35.71% in AUQ. However, on 13 December 2007, the Company distributed in-specie 16 million Alara shares to eligible Strike shareholders via a return of capital, decreased its interest to 15.84%. Accordingly, Alara ceased to be regarded as an Associate entity effective from 14 December 2007.

The Company did not gain or lose an interest in any other Associate or joint venture entity during the half year.

For and on behalf of the Directors,

Victor Ho Date: 14 March 2008 Executive Director and Company Secretary

Telephone: +61 8 9214 9700 Email: [email protected]

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.

HALF YEAR HIGHLIGHTS

Strike continues to advance its operations and expects to be in a position to release a new resource statement for both the Apurimac and Cuzco deposits as new drill results become available.

Strike has a 3 stage mining programme in Peru:

Stage 1: 2 million tonnes per annum lump production from the Cuzco Project;
Stage 2: An expansion to 22 million tonnes per annum through an additional 20 million tonnes production from the Apurimac Project;
Stage 3: An expansion to 42 million tonnes per annum through an additional 20 million tonnes production from the Cuzco Project.

Strike's operations in Peru is attracting interest from a range of steel mills and traders in China and Japan that would like to secure long term iron ore contacts.

A summary of highlights for the half year are:

The continuation of an aggressive programme of works to expand the Company's operations in Peru including the expenditure (through an investment in AF) of $2.6 million on resource and mining related expenditure.
Resource upgrade: a new JORC Inferred Resource of 172 million tonnes grading 62.28% Fe from the Opaban I and III concessions in the Apurimac Project area.1
The mine planning studies underway have defined an approximate pit outline for Opaban I suggesting a mining head grade of approximately 54.5% Fe. Subsequent beneficiation is designed to produce a final product between 66% and 68% Fe at a high recovery rate.
Commencement of work to delineate, amongst other matters, project costings, coordinated by Sinclair Knight Merz and involving the Snowden Group, CSIRO and Pipeline Systems Incorporated (PSI) on the Stage 2 programme (20 million tonne per annum mining operation) in the Apurimac Project area.2 This work continues to advance across all fronts with the port and pipeline sections nearing completion.
Further CSIRO test work indicates that the Apurimac project ore is a mixture of approximately 50% hematite and 50% high grade magnetite grading at approximately 62% Fe.
Preliminary product specifications are high grade concentrate at better than 68% Fe, at coarse particles sizes of 125 and 250 microns. This high grade Fe and low impurities makes the concentrate highly desirable.
PSI has selected a preferred pipeline route from the Apurimac project to port under the Stage 2 programme. The total pipe line length is 363 kilometres and will require only two pumping stations.
Drilling is currently underway in the Apurimac and Cuzco Project areas to target a JORC iron ore resource of 600 million tonnes by the end of the September 2008 quarter. Strike plans to drill 65,000 metres in 2008.
Memorandum of Understanding signed with Peru Rail in relation to the transportation of up to 2 million tonnes of iron ore per annum from the Cuzco Project area to Matarani Port.3

1 19 July 2007: ASX market announcement titled "Apurimac Project - JORC Resource Statement"

2 13 August 2007: ASX market announcement titled "Commencement of Pre Feasibility Studies"

3 20 February 2008: ASX market announcement titled "Update On Cuzco Lump Iron Ore Project"

COMPANY PROJECTS

The Directors present their report on Strike Resources Limited (Company or Strike Resources or SRK) and its controlled entities (the Consolidated Entity) for the half year ended 31 December 2007 (Balance Date).

Strike Resources is a company limited by shares that is incorporated in Western Australia and has been listed on the Australian Securities Exchange (ASX) since 7 March 2000 (ASX Code: SRK).

Strike Resources has prepared a consolidated financial report incorporating the entities that it controlled during the half year. Controlled entities were:

(1) Strike Operations Pty Ltd (SOPL) a wholly owned subsidiary during the whole of the financial year;
(2) PT Indo Batubara (PTIB), a company registered in Indonesia on 8 December 2005 in which SOPL is the 100% beneficial owner;
(3) Strike Resources Peru SAC (Strike Peru), a wholly owned subsidiary company of SOPL incorporated in Peru on 28 December 2006;
(4) Iron Associates Corporation (IAC), a company incorporated in Panama on 15 February 2007 in which SRK acquired a 70% shareholding interest on 23 February 2007.

Strike Resources has accounted for the following investments at Balance Date as investments in an Associate entity (on an equity accounting basis):

(1) 24.61% economic (6.186% directly and 18.424% indirectly via its 70% interest in IAC) interest in Apurimac Ferrum S.A. (AF), the Peruvian company which holds the concessions comprising the Apurimac and Cuzco Iron Ore Projects (30 June 2007: 20.94%);
(2) 27.82% interest in ASX listed (but suspended) Sofcom Limited (SOF) (30 June 2007: 27.82%).

OPERATING RESULTS

Consolidated	Dec 2007$	Dec 2006$
Total revenues	544,987	543,847
Total expenses	8,644,491	3,121,920
Loss before tax	(8,099,504)	(2,209,010)
Income tax expense	-	-
Loss after tax	(8,099,504)	(2,209,010)

Total revenues include:

(1) $532,819 interest received (Dec 2006: $101,255);
(2) $Nil unrealised gains from share investments (Dec 2006 $358,156).

Total expenses include:

(1) $2,080,000 loss on sale of share investments (arising on the disposal of 16 million shares in Alara Uranium Limited via an in specie distribution/capital return to shareholders completed on 13 December 2007) (Dec 2006: $Nil);
(2) $1,089,377 share of Associate's losses (Dec 2006: $nil);
(3) $3,538,105 personnel expenses in relation to directors' and employees options (Dec 2006: $1,233,421);
(4) $692,245 other personnel costs (Dec 2006: $335,548);
(5) $590,084 consultancy and professional fees (Dec 2006: $108,530);
(6) $193,687 travel and incidentals (Dec 2006: $Nil);
(7) $86,620 resource and mining related expenditure (Dec 2006: $311,471). This amount does not include $2,618,643 invested into AF during the half year (which have been applied by AF towards resource and mining related expenditure) which is treated as a share investment by Strike rather than as direct resource and mining related expenditure.

LOSS PER SHARE

Consolidated	Dec 2007	Dec 2006
Basic loss per share (cents)	(10.27)	(5.16)
Weighted average number of ordinary sharesoutstanding during the year used in thecalculation of basic loss per share	78,861,689	49,998,291

FINANCIAL POSITION

	Dec 2007	June 2007
Consolidated	$	$
Cash	15,703,062	18,358,891
Investments in Associate entities	6,904,843	11,563,736
Other investments	3,344,356	977,877
Resource projects	7,726,189	7,681,546
Receivables	531,453	170,123
Other assets	141,708	70,396
Gross assets	34,351,611	38,822,569
Liabilities	(484,624)	(532,820)
Net assets	33,866,987	38,289,749

Contributed equity	51,216,918	51,078,281
Reserves	7,659,712	4,121,607
Accumulated losses	(25,352,500)	(17,252,996)
Parent entity interest	33,524,130	37,946,892
Minority interest	342,857	342,857
Total equity	33,866,987	38,289,749

Investments in Associate entities of $6,904,843 comprise the Company's share investment in AF.

Resource projects of $7,726,189 includes $7,258,765 representing the excess of the consideration paid to acquire a 70% shareholding interest in IAC over the net assets of IAC at the time of acquisition (refer notes 9 and 16 of the notes to the financial statements for the year ended 30 June 2007 at pages 60 and 64 respectively of the Company's 2007 Annual Report).

DIVIDENDS

No dividends have been paid or declared during the half year.

REVIEW OF OPERATIONS

1. Apurimac Iron Ore Project (Peru)

The Company continues to progress its development of a substantial iron ore mining operation in Peru

Current studies coordinated by Sinclair Knight Merz and involving the Snowden Group, CSIRO and Pipeline Systems Incorporated (PSI) commenced in August 2007 and is on-going.

1.1 Concessions

There has been an increase in concession portfolio to 69 (27 granted and 42 pending grant) in the Apurimac Project area which is consistent with its objective of expanding its operations in Peru. The total surface holding is now 58,751 hectares.

The Opaban I and III concessions comprise only a small portion of the total land area of the Apurimac Project. Most of the as yet un-drilled concessions have occurrences of high-grade outcrops of iron ore.

As a preliminary means of determining the extent of iron ore mineralisation in these concession areas, a reconnaissance mapping and sampling programme was undertaken across 8 concessions. This programme is ongoing and will upon completion provide a detailed surface outline of the majority of the 27 granted concessions in the Apurimac Project area.

The initial reconnaissance, mapping and sampling programme have been extremely encouraging, indicating the presence of numerous high grade iron mineralisation outcrops.

1.2 Resource Development

As previously announced, the Company has defined a substantial JORC Inferred Resource of 172 Million tonnes at 62.28% Fe at two of its concessions in the Apurimac region, Opaban I and Opaban III.4 The delineation of this resource in July 2007 provided the Company with the basis for commencing work on its Stage 2 operation.

The results of further drilling conducted to the north of the currently defined JORC resource at Opaban I has indicated the continued presence of high grade mineralisation.

Significant targets with high grade surface mineralisation however remain untested and accordingly 60,000 metres of further drilling is planned at Apurimac during 2008, with a target of increasing the JORC Inferred Resource base in Apurimac to at least 300 Million tonnes by the end of the September 2008 quarter.

3 diamond core rigs are now working, one in Apurimac and two in Cuzco, with 2 more rigs expected to be deployed to Apurimac later in March 2008.

There are currently 9 geologists working between the Apurimac and Cuzco Projects, which will increase as the drilling programme expands.

4 19 July 2007: ASX market announcement titled "Apurimac Project - JORC Resource Statement"

1.3 Metallurgical Testwork

The CSRIO has continued to conduct its extensive test work programme over the half year to finalise the product specifications for overseas customers.

Laboratory scale beneficiation test work has been completed on representative diamond core samples from the Opaban I deposit at Apurimac. The results of this test work show that the material will upgrade by up to 3.18% Fe with simple crushing at one millimetre and de-sliming.

In addition, Davis Tube test work on reverse circulation chip samples from Opaban I shows that the mineralised material at assay head grades of 51.17% Fe to 61.22% Fe returned product grades at coarse crushing with particle sizes of 80% passing 125 and 250 microns as follows:

Fe	68.02% to 68.28%
Al2O3	0.30% to 0.35%
SiO2	1.51% to 1.77%
P	0.01% to 0.02%

These are excellent results and suggest low energy consumption for the beneficiation process, which means lower operating costs. The Company is conducting metallurgical test work on 400 kilogramme bulk samples.

1.4 Pipeline

International pipeline consultants PSI have identified a preferred pipeline route to transport iron ore from the Apurimac mine to the coast, with a distance of 363 kilometres ((refer Appendix B of the Company's December 2007 Quarterly Report5 ). The route allows for a mostly flat to gentle downhill gradient, allowing gravity to do most of the work thereby minimising the need for pumping.

PSI's work indicates that a slurry pipeline route transporting 20 million tonnes a year will require 2 pumping stations with relatively low energy requirements which in turn leads to reduced operating costs. This reflects the relatively benign nature of the topography of the likely pipeline route, where a large portion of the pipeline will traverse the relatively flat Peruvian alti-plano before descending to the coastal plain.

The use of pipelines to transport iron ore concentrates is quite common with Samarco in Brazil pumping 18 million tonnes per annum of iron ore concentrate 396 kilometres with gradients exceeding 15% (refer Appendix A of the Company's December 2007 Quarterly Report5 ) and MMX Minas Rio in Brazil also building a pipeline approximately 525 kilometres long designed to carry 26.5 million tonnes of iron concentrates.

1.5 Port

A port location suitable for shipping 20 to 40 million tonnes of iron ore per annum has been selected. Site studies show that this site should not require any dredging and offers deep water access at 20 metres draft to load cape size vessels of larger than 150,000 tonne capacity.

These factors suggest relatively lower capital cost for building a port than previously envisaged.

5 1 February 2008: ASX market announcement titled "December 2007 Quarterly Report"

1.6 Environmental Approvals and Community Relations

AF employs a senior and experienced Environmental Manager and a Community Relations Manager in addition 6 other community relations staff across both the Apurimac and Cuzco Projects. Their effort is supported by staff from a leading Community Relations consultant group in Peru.

Under Peruvian law, approvals for drilling must first be obtained from local communities and the Ministry of Mines. The governmental approvals require companies to submit a baseline report on environmental evaluation with respect to flora, fauna, water pollution and ground disturbance activities.

During the half year, the Company has built up a strong team managing a steady stream of approvals both from local communities and Government departments.

In addition to approvals already obtained to drill more than 138 drill holes, AF has recently lodged Environmental Evaluation reports for approval to drill a further 151 drill holes in the Opaban III concession with the Ministry of Mines.

AF is also working with its Community Relations consultant on longer term objectives and policies to advance its current business operations. AF has developed strong and supportive relationship with regional elected and governmental authorities including bodies such as the Energy and Mines Regional Directory for the Apurimac Region.

2. Cuzco Iron Ore Project (Peru)

The Company's Stage 3 mining programme is to conduct a 20 million tonnes per annum mining operation in the Cuzco Project area, to take combined production from the Apurimac and Cuzco Projects from 22 to 42 million tonnes per annum.

2.1 MOU with Peru Rail

On 31 January 2008, a Memorandum of Understanding (MOU) was executed between Peru Rail S.A (Peru Rail) and AF pursuant to which the parties have jointly agreed to examine the transportation of up to 2 million tonnes of iron ore per annum from the Cuzco concession area to the Matarani Port (a distance of ~503 kilometres) utilising Peru Rail's existing infrastructure.

The MOU sets out a framework for the parties settling the terms of a binding Transportation Agreement and contemplates Peru Rail expanding its existing infrastructure to accommodate the proposed tonnages of the Cuzco Project and AF agreeing to supply a minimum quantity of iron ore to support such expansion.

Peru Rail is a privately owned rail operator between the port of Matarani on the Peruvian coast and the city of Cuzco. Peru Rail is presently transporting copper concentrate by rail to Matarani and has experience in the transportation of bulk commodities.

In addition, an initial trucking operation to the coast is presently being examined as a precursor/alternative to a rail operation.

2.2 Resource Development

The Company is conducting a programme of drilling, trenching and sampling scree deposits and shallow iron ore mineralisation (up to 10 metres deep) to confirm a resource of 30 to 40 million tonnes of high grade iron ore to supply the Stage 1 two million tonne per annum iron ore lump and fines mining operation.

Environmental Evaluation reports for approval to drill 291 holes in the Cuzco Project area have been lodged with the Ministry of Mines.

Based upon previous drilling and mapping data, the Company is focusing its activities surrounding drill holes CQ1 and CQ12.

Mineralisation surrounding holes CQ1 and CQ12 occurs as largely hematitic sheets of high grade iron ore skarn at the edge of long ridges. The mineralisation presents as surface outcrops extending along strike for approximately 1.5 kilometres and with widths of up to 200 metres. Surface topography within and surrounding the mineralisation lends itself to easy access for surface mining and a low to negligible waste to ore ratio.

Drilling intercepts in these two holes are summarised as follows:

	From (m)	To (m)	Fe (%)	Al2O3 (%)	SiO2 (%)	P (%)	S (%)
CQ1	0	11.5	63.53	1.53	3.79	0.039	0.037
CQ12	0	32.0	63.91	2.29	3.30	0.058	0.007

Two drilling rigs have been mobilised to this area to delineate the near surface resource for the Cuzco Lump Project and to test deeper mineralisation to support the larger Stage 3 20 million tonne per annum mining operation at Cuzco.

Mineralogical/metallurgical test work by CSIRO from the June 2007 scout drilling programme is also currently in progress.

3. Paulsens East Iron Ore Project (Western Australia)

The Paulsens East tenements cover a total area of 19.64 square kilometres. The tenements are located approximately 140 kilometres west of Tom Price (close to bitumised road) and eight kilometres east-northeast of the Paulsens Gold mine in the northwest of Western Australia.

The Company believes that there may be sufficient high-grade resource above the surface and at shallow depths up to 20 metres to support a small mining operation. The Company is currently investigating the feasibility of mining operations and the transportation of ore by truck to the Pilbara coast.

A close spaced sampling programme to evaluate the shallow resource is planned for the balance of the financial year.

4. King Sound Mineral Sands Project (Western Australia)

On 10 December 2007, Strike entered into a farm-in and joint venture agreement with Alara Uranium Limited (Alara) (ASX Code: AUQ) for Alara to acquire a 70% interest in the King Sound mineral sands project by funding the project to a "decision to mine".

The project comprises 3 tenement applications covering a total area of 652 square kilometres, located approximately 10 kilometres south-west of the port town of Derby in the West Kimberley region of Western Australia.

A reconnaissance survey has been conducted to collect sediment samples across the tenements to verify historical reported heavy mineral grades. A total of 50 samples from 46 locations were collected. The analysed samples are currently awaiting detailed mineralogical interpretation.

Alara's proposed exploration programme for the balance of the 30 June 2008 financial year is as follows:

(a) Review and analyse the heavy mineral sampling data and conduct petrographic analysis of the anomalous sample concentrate;
(b) Commence heritage consultation process with the Kimberley Land Council to fast track the grant of the tenements.

5. Berau Coal Project (Indonesia)

In June 2007, Strike "farmed out" a 70% interest in the Berau Coal Project to Orion Equities Limited (Orion) (ASX Code: OEQ); Strike interest is free-carried until a "decision to mine" is made by Orion.

A drilling programme comprising 21 diamond drill holes, for an aggregate advance of 1,524 metres was conducted by Orion during the half year. A total of 59 composite samples were analysed, with results indicating good quality coal.

A summary of the coal sample results representing coal seams greater than 1.5 metres is shown in the table below:

	CalorificValue(ar)	CalorificValue(adb)	CalorificValue(db)	CalorificValue(daf)	TotalMoisture%	InherentMoisture%	AshContent%	VolatileMatter%	FixedCarbon%	TotalSulphur%	HGI
Minimum	4558	4753	5357	7016	12.80	11.28	1.26	32.09	32.47	0.19	45
Maximum	6099	6286	7214	7351	23.17	17.59	21.83	44.26	45.62	2.84	55
Average	5621	5824	6798	7242	17.28	14.29	5.32	39.76	40.62	0.61	51

ar = as received; adb = air dried basis; db = dry basis ; daf = dry ash free ; HGI = Hardgrove Grindability Index (hardness)

Other exploration activities conducted within the priority area include a 1:5000 scale topographic survey, surface geological and structural mapping, and geophysical downhole logging.

A second drilling programme comprising ~40 diamond drill holes for ~3,000 metres is currently in progress to further delineate the coal resource to a JORC standard and develop a mine pit optimisation model. This programme is expected to be completed by mid March 2008 with analysis of results expected within 6 to 8 weeks thereafter.

Orion is also currently undertaking environmental and scoping/feasibility studies for the development of mining operations and transportation to the coast near Berau.

6. Banten Copper/Gold Project (Indonesia)

This project comprises a 5,601 hectare concession located approximately 100 kilometres south-west of Jakarta. Strike has conducted exploration work to identify epithermal gold veins, gold stock works and associated porphyry copper targets within the concession. Based on the results from such exploration activities, the Company has determined that this project is not a core asset and intends to divest its interest in due course.

CORPORATE

1. In Specie Distribution of 16 Million Alara Uranium Limited (AUQ) Shares To Strike Shareholders

Eligible Strike shareholders received ~0.18537 of an Alara share for every one Strike share held (as at the record date) on 13 December 2007 (In Specie Distribution Date).

The value of the Capital Return is calculated by reference to the market value of Alara shares on the In Specie Distribution Date, which was 12.0 cents per share, making the total value of the Capital Return $1,920,000 or 2.2 cents per Strike share.

2. Reduction in Exercise Price of Options

The Capital Return also had the effect of reducing the exercise price of existing Strike options which remained unexercised after the record date by the value of the value of the Capital Return per Strike share, being 2.2 cents.

SECURITIES IN THE COMPANY

1. Issued Securities

The Company had the following total securities on issue as at 31 December 2007:

	Quoted /To be Quoted	Not Quoted	Total
Fully paid ordinary shares	86,312,419	-	86,312,419
$0.178 (30 June 2008) Options	3,106,748	-	3,106,748
$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 (21 July 2011) Directors' Options	-	4,600,000	4,600,000
$0.938 (13 September 2011) Unlisted Directors' Options		500,000	500,000
$1.178 (6 October 2011) Unlisted Employee Options		150,000	150,000
$2.078 (7 March 2012) Unlisted Directors' Options		500,000	500,000
$2.788 (7 March 2012) Unlisted Directors' Options		3,300,000	3,300,000
$2.878 (1 May 2012) Unlisted Employees' Options		133,000	133,000
$2.878 (5 September 2012) Unlisted Employee Options		200,000	200,000
$2.878 (17 November 2012) Unlisted Employee Options		250,000	250,000
$3.978 (3 December 2012) Unlisted Directors' Options		4,000,000	4,000,000
Total	89,419,167	17,133,000	106,552,167

2. Summary of Share Capital Changes

A summary of share capital changes during and subsequent to the half year is as follows:

Date	Description	Issue Price	No. Shares	Value of Issue	Running Balance ofIssued Share Capital
30/06/2007	Balance				76,009,248
1/7 to 31/12/2007	Conversion of listed$0.178 (30 June2008) Options	$0.20 up to 12 December2007 and $0.178 from13 December 2007	10,303,171	$2,060,634	86,312,419
31/12/2007	Balance				86,312,419
1/1 to 7/3/2008	Conversion of listed$0.178 (30 June2008) Options	$0.178	115,635	$20,913	86,413,054

3. Options

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

During the half year ended 31 December 2007, a total of 10,303,171 listed $0.178 (30 June 2008) options were exercised and converted into shares, raising a total of $2,060,634.

Since the Balance Date (to 7 March 2008), a further 115,635 options have been exercised, raising a total of $20,913.

3,006,113 options remains to be exercised as at 7 March 2008.

(b) Directors' and Employees' Options

During the half year ended 31 December 2007, a total of 4,000,000 $3.978 (3 December 2012) Unlisted Directors' Options, 200,000 $2.878 (5 September 2012) Unlisted Employee Options and 250,000 $2.878 (17 November 2012) Unlisted Employee Options were issued:

Date ofIssue	Description ofUnlisted Options	Pre CapitalReturnExercisePrice	Post CapitalReturnExercisePrice	Expiry Date	Vesting Criteria6	No. ofOptions
5September2007	$2.878 (5September 2012)Unlisted EmployeeOptions	$2.90	$2.878	5September2012	1/3rd on completion ofprobation, 1/3rd 6 monthsthereafter and 1/3rd 6months thereafter again	200,000
17November2007	$2.878 (17November 2012)UnlistedEmployee'sOptions	$2.90	$2.878	17November2012	1/3rd on completion ofprobation, 1/3rd 6 monthsthereafter and 1/3rd 6months thereafter again	250,000
3December2007	$3.978 (3December 2012)Unlisted Directors'Options	$4.00	$3.978	3 December2012	50% on grant and 50% on3 December 2009	4,000,000

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

Since the Balance Date (to 29 February 2008), a further 250,000 $2.878 (5 March 2013) Unlisted Employee Options have been issued:

Date ofIssue	Description ofUnlisted Options	ExercisePrice	Expiry Date	Vesting Criteria	No. ofOptions
5 March2008	$2.878 (5 March2013) UnlistedEmployee Options	$2.878	5 March 2013	1/3rd on completion of probation, 1/3rd 6months thereafter and 1/3rd 6 monthsthereafter again	250,000

DIRECTORS AND COMPANY SECRETARY

There were no Board changes during the financial half year.

The experience and qualifications of current directors are as follows:

John Stephenson	Chairman
Appointed	26 October 2005
Qualifications	BSc (honours and special honours) in Geology from the University of London through the formerUniversity College of Rhodesia and a PhD in Geology from the University of Manitoba, Canada.
Experience	Dr Stephenson is a highly experienced geologist with over 37 years experience in the miningsector. He has held senior positions in large mining companies, most recently as ExplorationDirector for Rio Tinto Australasia where he led Rio Tinto's exploration activities for five and a halfyears based in Perth.
	Dr Stephenson has also during his career led and managed exploration teams for both junior andmajor mining companies in several parts of the world, mainly in Southern and East Africa, NorthAmerica and Australia exploring for gold, uranium, diamonds and base metals. He has also beeninvolved with projects in Europe, South America and India. He led teams responsible for thediscovery of a world class diamond deposit, the Diavik diamond mine in Canada's NorthwestTerritories and a high grade gold deposit, the former Golden Patricia gold mine in Ontario.
	Dr Stephenson has particular experience in the uranium sector having in the early to mid 1970'sled reconnaissance airborne and ground surveys for uranium in Canada. Between 1978-1981, DrStephenson headed the ground follow-up of a country-wide airborne radiometric and magneticsurvey for uranium and other minerals in Tanzania.In the early 90's Dr Stephenson ledexploration for a subsidiary of Rio Tinto exploring for uranium and base metals in eastern Canada.Dr Stephenson also led Rio Tinto's exploration activities in Australia in the late 90's whichincluded the search for uranium.
Relevant interest insecurities	Shares – 200,000Unlisted $0.938 (21 July 2011) directors' options – 800,000Unlisted $2.788 (7 March 2012) directors' options – 350,000Unlisted $3.978 (3 December 2012) directors' options – 500,000
Other currentdirectorships in listedentities	Chairman of Alara Uranium Limited (AUQ) (since 18 May 2007)

H. Shanker Madan	Managing Director
Appointed	26 September 2005
Qualifications	Honours and Masters Science degrees in Applied Geology
Experience	Mr Madan has had world-wide experience in the exploration and evaluation of mineral depositsfor various commodities. Mr Madan has been a Manager with Hamersley Iron, Group Leader withBHP Minerals, Chief Geologist with Hancock and Wright Prospecting and a Senior GeologicalConsultant to the Rio Tinto Group.
	Mr Madan has managed a range of mineral evaluation studies in Iran, Brazil and Western Australiafor BHP, Rio Tinto and Hamersley Iron. He has also acted as a consultant to Rio Tinto, AshtonMining and others on mineral projects in Brazil, South Africa, India, the Philippines, Fiji andUnited States, working on a range of iron ore, diamonds, gold, copper and chromite deposits.
	He has been involved in the discovery of 3 world class iron deposits in Western Australia forTexasGulf and BHP Minerals. From 1997 to 2001, Mr Madan managed the evaluation of resourceprojects for Hamersley Iron and more recently completed a resource due diligence study of thebillion-dollar West Angelas project in the Pilbara region of Western Australia.
Relevant interest insecurities	Shares – 503,846Unlisted $0.938 (21 July 2011) directors' options – 1,800,000Unlisted $2.788 (7 March 2012) directors' options – 950,000Unlisted $3.978 (3 December 2012) directors' options – 1,130,000
Other currentdirectorships in listedentities	Managing Director of Alara Uranium Limited (AUQ) (since 18 May 2007)

Farooq Khan	Executive Director
Appointed	9 September 1999
Qualifications	BJuris , LLB. (Western Australia)
Experience	Mr Khan is a qualified lawyer having previously practised principally in the field of corporate law.Mr Khan has extensive experience in the securities industry, capital markets and the executivemanagement of ASX listed companies. In particular, Mr Khan has guided the establishment andgrowth of a number of public listed companies in the investment, mining and financial servicessector. He has considerable experience in the fields of capital raisings, mergers and acquisitionsand investments.
Relevant interest insecurities	Shares - 353,340 (directly) and 2,380,996(indirectly7)Listed $0.178 (30 June 2008) options – 176,670 (directly) and 1,014,806 (indirectly11)Unlisted $0.178 (9 February 2011) options – 1,833,333 (indirectly11)Unlisted $0.278 (9 February 2011) options - 1,666,667 (indirectly11)Unlisted $0.938 (21 July 2011) directors' options – 1,400,000 (directly)Unlisted $2.788 (7 March 2012) directors' options – 700,000 (directly)Unlisted $3.978 (3 December 2012) directors' options – 950,000 (directly)
Other currentdirectorships in listed	Current Chairman and Managing Director of:(1)Queste Communications Ltd (QUE) (since 10 March 1998)
entities	Current Chairman of:(2)Orion Equities Limited (OEQ) (since 23 October 2006)(3)Bentley International Limited (BEL) (director since 2 December 2003)(4)Scarborough Equities Limited (SCB) (since 29 November 2004)
	Executive Director of:

(5) Alara Uranium Limited (AUQ) (since 18 May 2007)

Non-Executive Director of:

(6) Interstaff Recruitment Limited (ITS) (since 27 April 2006)

Held by Orion Equities Limited (OEQ); Queste Communications Ltd (QUE) is deemed to be a controlling shareholder of OEQ; Mr Farooq Khan (and associated companies) is deemed to have a deemed relevant interest in the securities in which QUE has a relevant interest, by reason of having >20% voting power in QUE.

Malcolm Richmond	Non-Executive Director
Appointed	25 October 2006
Qualifications	B. Science Hons (Metallurgy) and B. Commerce Merit (Econs) (New South Wales)
ExperienceProfessor Richmond has 30 years experience with the Rio Tinto and CRA Groups in a number ofpositions including: Vice President, Strategy and Acquisitions, Managing Director, Research andTechnology, Managing Director Development (Hamersley Iron Pty Limited) and Director of HismeltCorporation Pty Limited. He was formerly Deputy Chairman of the Australian Mineral IndustriesResearch Association and Vice President of the WA Chamber of Minerals and Energy. ProfessorRichmond also served as a Member on the Boards of a number of public and governmental bodiesand other public listed companies.
	Professor Richmond is a qualified metallurgist and economist with extensive senior executive andboard experience in the resource and technology industries both in Australia and internationally.Hisspecialinterestsincludecorporatestrategyandthedevelopmentofmarkets for internationally traded minerals and metals - particularly in Asia.
	He is currently a Visiting Professor at the Graduate School of Management and School ofEngineering, University of Western Australia, and a Fellow of the Australian Academy ofTechnological Sciences & Engineering, a Fellow of Australian Institute of Mining and Metallurgyand a Member of Strategic Planning Institute (US).
Relevant interest insecurities	Shares - 100,000 (indirectly)Unlisted $2.078 (7 March 2012) directors' options – 500,000Unlisted $2.788 (7 March 2012) directors' options – 600,000Unlisted $3.978 (3 December 2012) directors' options – 600,000
Other currentdirectorships in listedentities	Non-Executive Director of:(1)Magnesium International Limited (MGK) (since August 2001)(2)Structural Monitoring Systems Plc (SMN) (since 17 October 2006)(3)Safe Effect Technologies Limited (SAF) (since 28 August 2006)
William M.Johnson	Executive Director
Appointed	14 July 2006

Appointed	14 July 2006
Qualifications	MA (Oxon), MBA
Experience	Mr Johnson commenced his career in resource exploration and has most recently held seniormanagement and executive roles in a number of public companies in Australia, New Zealand andAsia. Mr Johnson brings a considerable depth of experience in business strategy, investmentanalysis, finance and execution.
	Mr Johnson is a director of Orion Equities Limited, a significant shareholder in Strike ResourcesLimited.
Relevant interest insecurities	Unlisted $0.938 (13 September 2011) directors' options – 500,000Unlisted $2.788 (7 March 2012) directors' options – 350,000Unlisted $3.978 (3 December 2012) directors' options – 390,000
Other currentdirectorships in listedentities	Current Director of:(1)Orion Equities Limited (OEQ) (since 28 February 2003)(2)Scarborough Equities Limited (SCB) (since 29 November 2004)(3)Drillsearch Energy Limited (DLS) (since 23 October 2006)
	Current Company Secretary of:(1)Drillsearch Energy Limited (DLS) (since 10 December 2007)

Victor P. H. Ho	Executive Director and Company Secretary
Appointed	Secretary since 9 March 2000 and Director since 12 October 2000
Qualifications	BCom, LLB (Western Australia)
Experience	Mr Ho has been in company secretarial/executive roles with a number of public listed companiessince early 2000. Previously, Mr Ho had 9 years experience in the taxation profession with theAustralian Tax Office and in a specialist tax law firm.Mr Ho has been actively involved in thestructuring and execution of a number of corporate transactions, capital raisings and capitalmanagement matters and has extensive experience in public company administration,corporations law and ASX compliance and shareholder relations.
Relevant interest insecurities	Shares - 16,667Unlisted $0.938 (21 July 2011) directors' options – 600,000Unlisted $2.788 (7 March 2012) directors' options – 350,000Unlisted $3.978 (3 December 2012) directors' options – 430,000
Other positions heldin listed entities	Current Executive Director and Company Secretary of:(1)Orion Equities Limited (OEQ) (Secretary since 2 August 2000 and Director since 4 July2003)
	Current Company Secretary of:(2)Queste Communications Ltd (QUE) (since 30 August 2000)(3)Bentley International Limited (BEL) (since 5 February 2004)(4)Scarborough Equities Limited (SCB) (since 29 November 2004)(5)Alara Uranium Limited (AUQ) (since 4 April 2007)

AUDITOR'S INDEPENDENCE DECLARATION

A copy of the Auditor's Independence Declaration as required under section 307C of the Corporations Act 2001 forms part of this Directors Report and is set out on page 20. This relates to the Independent Review Report, where the Auditors state that they have issued an independence declaration.

Signed for and on behalf of the Directors of Strike Resources Limited in accordance with a resolution of the Board,

John Stephenson Victor Ho Chairman Director

Perth, Western Australia

14 March 2008

BDO Kendalls Audit & Assurance (WA) Pty Ltd 128 Hay Street SUBIACO WA 6008 PO Box 700 WEST PERTH WA 6872 Phone 61 8 9380 8400 Fax 61 8 9380 8499 [email protected] www.bdo.com.au

ABN 79 112 284 787

14 March 2008

The Directors Strike Resources Limited Level 14, The Forrest Centre 221 St Georges Terrace PERTH WA 6000

Dear Sirs

DECLARATION OF INDEPENDENCE BY BRAD MCVEIGH TO THE DIRECTORS OF STRIKE RESOURCES LIMITED

As lead auditor for the review of Strike Resources Limited for the half-year ended 31 December 2007, I declare that to the best of my knowledge and belief, there have been:

no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Strike Resources Limited and the entities it controlled during the period.

BG McVeigh Director

BDO Kendalls Audit & Assurance (WA) Pty Ltd Perth, Western Australia

CONDENSED INCOME STATEMENT

for the period ended 31 December 2007

		Consolidated Entity
		31 Dec 07	31 Dec 06
	Note	$	$
Sales revenue	2	-	-
Cost of sales		-	297
Gross Profit		-	297
Other income	2	544,987	543,847
Personnel costs:
- Directors' and employees' options		(3,538,105)	(1,233,421)
- Cash remuneration		(575,629)	(238,390)
- Provision for employee benefits		(116,616)	(97,158)
Occupancy costs		(20,519)	(19,511)
Finance costs		(2,044)	(3,272)
Borrowing costs		(15)	(301)
Foreign exchange losses		9,688	(19,187)
Corporate costs
- Provision for impairment		(37,306)	(681,120)
- Resource projects:
Resource and mining related expenditure-		(86,620)	(311,471)
- Loss on sale of share investments	2	(2,080,000)	-
- Other		(491,038)	(398,070)
Administration costs		(616,910)	(120,316)
Share of Associates' Losses	7	(1,089,377)	-

Loss before income taxIncome tax expense		(8,099,504)-	(2,578,073)-
Loss for the half year		(8,099,504)	(2,578,073)

Loss attributable to members of the Company		(8,099,504)	(2,578,073)

Basic loss per share (cents)	4	(10.27)	(5.16)

CONDENSED BALANCE SHEET

as at 31 December 2007

31 Dec 0730 Jun 07Note$$CURRENT ASSETS515,703,06218,358,891Cash and cash equivalents531,453170,123Trade and other receivables31,403-Other16,265,91818,529,014TOTAL CURRENT ASSETSNON CURRENT ASSETS110,30570,396Property, plant and equipment63,344,356977,877Other financial assets76,904,84311,563,736Investments accounted for using equity methodIntangible assets7,258,7657,258,765- Goodwill on acquisitionResource and mining related expenditure467,424422,78118,085,69320,293,555TOTAL NON CURRENT ASSETS34,351,61138,822,569TOTAL ASSETSCURRENT LIABILITIESTrade and other payables250,513366,711185,059132,680Current provisions435,572499,391TOTAL CURRENT LIABILITIESNON CURRENT LIABILITIES49,05233,429Non current provisions49,05233,429TOTAL NON CURRENT LIABILITIES484,624532,820TOTAL LIABILITIES33,866,98738,289,749NET ASSETSEQUITY851,216,91851,078,281Contributed equity97,659,7124,121,607Reserves(25,352,500)(17,252,996)Accumulated losses33,524,13037,946,892Parent interest342,857342,857Minority equity interest33,866,98738,289,749TOTAL EQUITY		Consolidated Entity

CONDENSED STATEMENT OF CHANGES IN EQUITY

for the period ended 31 December 2007

Note	ContributedEquity	Reserves	AccumulatedLosses	MinorityInterest	Total
Consolidated Entity	$	$	$	$	$
At 1 July 2006	19,848,109	248,255	(18,394,343)	-	1,702,021
3Loss for the half year	-	-	(2,578,073)	-	(2,578,073)
Total recognised income and expense for
the half year	-	-	(2,578,073)	-	(2,578,073)-
Directors and Employee options	-	1,233,421	-	-	1,233,421
Share placement	10,419,000	-	-	-	10,419,000
Capital raising expenses	(231,196)	-	-	-	(231,196)
Option conversion ($0.20 (30 June 2008))	596,970	-	-	-	596,970
Option conversion expenses	-	(2,042)	-	-	(2,042)
At 31 December 2006	30,632,883	1,479,634	(20,972,416)	-	11,140,101

At 1 July 2007	51,078,280	4,121,607	(17,252,996)	342,857	38,289,748
Loss for the half year	-	-	(8,099,504)	-	(8,099,504)
Total recognised income and expense forthe half year	-	-	(8,099,504)	-	(8,099,504)
Directors and Employee options	-	3,538,105	-	-	3,538,105
Capital return distributionOption conversion ($0.178/$0.20	(1,920,000)	-	-	-	(1,920,000)
(30 June 2008))	2,058,638	-	-	-	2,058,638
At 31 December 2007	51,216,918	7,659,712	(25,352,500)	342,857	33,866,987

CASH FLOW STATEMENT

for the period ended 31 December 2007

		Consolidated Entity
		31 Dec 07	31 Dec 06
	Note	$	$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees		(2,199,955)	(746,806)
Payments for resource and mining related expenditure		(131,263)	(311,471)
Dividends received		12,168	19,286
Interest received		478,456	63,900
		(15)	(301)
Interest paid
NET CASH OUTFLOW FROM OPERATING ACTIVITIES		(1,840,609)	(975,392)

CASH FLOWS FROM INVESTING ACTIVITIES
Payments for plant and equipment		(49,108)	(22,900)
Payments for share and option investments		(2,834,268)	(681,120)
Proceeds from sale of investments		-	65,151

NET CASH OUTFLOW FROM INVESTING ACTIVITIES		(2,883,376)	(638,869)

CASH FLOWS FROM FINANCING ACTIVITIES
Repayment for borrowings		-	34,573
Proceeds from share issues and options		2,058,638	11,041,307
Payment for share issue cost		-	(233,239)
Payment for unmarketable parcels		(170)	-

NET CASH INFLOW FROM FINANCING ACTIVITIES		2,058,468	10,842,641

NET (DECREASE)/ INCREASE IN CASH AND CASH EQUIVALENTS HELD		(2,665,517)	9,228,380
Cash and cash equivalents at beginning of the half year		18,358,891	1,309,813
Effect of exchange rate changes on cash		9,688	-
CASH AND CASH EQUIVALENTS AT END OF THE HALF YEAR	5	15,703,062	10,538,193

for the period ended 31 December 2007

1. SIGNIFICANT ACCOUNTING POLICIES

Statement of compliance

The half-year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 'Interim Financial Reporting'. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'. The half-year financial report does not include notes of the type normally included in an annual financial report and shall be read In conjunction with the most recent annual financial report.

Basis of preparation

The condensed financial statements have been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted.

The accounting policies and methods of computation adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the Company's financial report for the year ended 30 June 2007.

2. LOSS FOR THE PERIOD

	The operating loss before income tax includes the following items of revenue and		Consolidated Entity
	expense:	Note	31 Dec 07	31 Dec 06
(a)	Revenue		$	$
	Sales revenue		-	-
	Other income
	Interest received - other		532,819	101,255
	Gain on sale of associate		-	65,151
	Unrealised gains from investments		-	358,156
	Dividends from shares		12,168	19,285
			544,987	543,847
	Total revenue		544,987	543,847
(c)	Expenses
	Cost of sales		-	(297)
	Operating expenses
	Occupancy costs		20,519	19,511
	Finance costs		2,044	3,272
	Borrowing costs - interest paid		15	301
	Foreign exchange losses		(9,688)	19,187
	Administration costs
	Communication		26,826	11,786
	Consultancy fees		590,084	108,530
	Corporate costs
	Costs related to investments		-	74,771
	Resource and mining related expenditure		86,620	311,471
	Travel and incidentals		193,687	-
	Professional Fees		45,856	141,916
	Depreciation		9,199	8,089
	Personnel costs - directors' and employees' options	3	3,538,105	1,233,421
	Personnel costs - cash remuneration		575,629	238,390
	Personnel costs - provision for employee benefits		116,616	97,158
	Provision for impairment - share investments		37,306	681,120
	Loss on sale of share investments		2,080,000	-
	Other corporate expenses		242,296	173,294
	Share of Associates' Losses	7	1,089,377	-
			8,644,491	3,121,920

* Arising on the disposal of 16 million shares in Alara Uranium Limited via an in specie distribution/capital return to Strike shareholders completed on 13 December 2007

for the period ended 31 December 2007

3. CORRECTION OF ERROR IN CALCULATION OF SHARE BASED PAYMENTS

The value of "Personnel costs – directors' and employees options" (as equity based remuneration) has been understated by $330,920 for the half year ended 31 December 2006 and $857,810 for the financial year 30 June 2007, being a total of $1,188,730. This was as a consequence of the Company applying a 25% discount in calculating the value of these options (under an options valuation/pricing model) in light of the fact that these options are unlisted, will vest in tranches and have restrictions on their transfer by the option holders. However, the Company has determined that under AASB 2, the value of unlisted options (as equity based remuneration) cannot be discounted in this manner. In accordance with this Accounting Standard, the value of equity based remuneration has been re-calculated without a discount. Accordingly, certain comparative data has been restated to reflect the correct option valuation/pricing model.

This error has the effect of understating the "reserves" and "accumulated losses" accounts by a total of $1,188,730. It also has the effect of understating "loss before income tax" and "loss after income tax" by $330,920 for the half year ended 31 December 2006 and $857,810 for the financial year ended 30 June 2007. Basic "loss per share" will increase by 0.66 and diluted "loss per share" will increase by 0.47 for the half year ended 31 December 2006.

The error has been corrected by restating each of the affected financial statement line items for the prior year (31 December 2006) described above, as follows:

				Adjusted
	Income statement	31-Dec-06	Correction	31-Dec-06
	Personnel costs - directors' and employees' options	902,501	330,920	1,233,421
	Loss before income tax expense	(2,247,153)	330,920	(2,578,073)
	Loss after income tax expense	(2,247,153)	330,920	(2,578,073)
	Basic loss per share (cents)	(4.49)	0.66	(5.16)
	Diluted loss per share (cents)	(3.19)	0.47	(3.66)
	Statements of Changes in Equity
	Reserves	1,148,714	330,920	1,479,634
	Accumulated Losses	(20,641,496)	330,920	(20,972,416)
				Adjusted
	Statement of Changes in Equity & Balance Sheet	30-Jun-07	Correction	30-Jun-07
	Reserves	2,932,877	1,188,730	4,121,607
	Accumulated Losses	(16,064,266)	1,188,730	(17,252,996)
				Consolidated Entity
4.	LOSS PER SHARE		31 Dec 07	31 Dec 06
	Basic loss per share (cents)		(10.27)	(5.16)
	Net loss		(8,099,504)	(2,578,073)
	Weighted average number of ordinary shares outstanding during the
	year used in calculation of basic earnings per share		78,861,689	49,998,291

Under AASB 133 Earnings per share, potential ordinary shares such as options will only be treated as dilutive when their conversion to ordinary shares would increase loss per share from continuing operations.

CASH AND CASH EQUIVALENTS	Consolidated Entity
	31 Dec 07	30 Jun 07
	$	$
Cash at bank	1,378,957	1,209,844
Term deposit	14,324,105	3,723,202
Bank bills	-	13,425,845
	15,703,062	18,358,891

for the period ended 31 December 2007

5. CASH AND CASH EQUIVALENTS (continued)

(a) Disclosure of Non-Cash Financing and Investing Activities

During the half year, the Company completed a reduction of share capital effected by returning to eligible Strike shareholders, in proportion to the number of Strike shares held by them as at the record date (10 December 2007), 16,000,000 Alara Uranium Limited shares held by Strike (Capital Return). Eligible Strike shareholders received ~0.18537 of an Alara share for every one Strike share held (as at the record date) on 13 December 2007 (In Specie Distribution Date). The value of the Capital Return is calculated by reference to the market value of Alara shares on the , which was 12.0 cents per share, making the total value of the Capital Return $1,920,000 or 2.2 cents per Strike share.

Options Remuneration

During the half year, the Company issued a total of 4,000,000 $3.978 (3 December 2012) Unlisted Directors' Options, 200,000 $2.878 (5 September 2012) Unlisted Employee Options and 250,000 $2.878 (17 November 2012) Unlisted Employee Options for nil consideration.

6.	FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS				Consolidated Entity
				31 Dec 07	30 Jun 07
	Investments comprise:			$	$
	Financial assets at fair value through income statement
	Shares and options in listed companies		3,036,258	632,474
	Add: net change in fair value			308,098	345,403
	Total financial assets			3,344,356	977,877
	Market value of investments at balance date
	Shares in listed companies			3,344,356	977,877

7.	INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD				Consolidated Carrying
					Amount
	Name of Associate EntityPrincipal Activity	Ownership Interest		31 Dec 07	30 Jun 07
		31 Dec 07	30 Jun 07	$	$
	Sofcom Limited (SOF)suspended from ASX	27.82%	27.82%	-	-
	Apurimac Ferrum S.A. (AF)mining activities in Peru	24.61%	20.94%	6,904,843	4,403,985
	Alara Uranium Limited (AUQmining activities in Australia and Peru	15.84%	35.71%	-	7,159,751
				6,904,843	11,563,736

Alara Uranium Limited: On 13 December 2007, the Company distributed in-specie 16 million Alara Uranium Limited (Alara) shares to eligible Strike shareholders via a return of capital. The value of the capital return was calculated based on the market value of the Alara shares on the inspecie distribution date, being 12 cents per Alara share or a total of $1.92 million. As a consequence of this in specie distribution, the Company's shareholding interest in Alara decreased from 35.71% to 15.84% and accordingly, Alara has ceased to be regarded as an Associate entity (effective from 14 December 2007).

Apurimac Ferrum S.A.: Apurimac Ferrum S.A. (AF) became an associate entity on 23 February 2007 when Strike increased its direct and indirect shareholding interest in AF to beyond 20%; This occurred upon Strike gaining a 70% interest in Iron Associates Corporation (IAC) on 23 February 2007 under the MAPSA Agreement (as IAC had a 27.6% direct shareholding interest in AF as at the date of the MAPSA Agreement). After such investment in IAC, Strike held a 1.62% direct shareholding interest and a 19.32% indirect shareholding interest in AF (via IAC), being a total interest of 20.94%. As at 31 December 2007, Strike held a 6.186% direct interest and an indirect 18.424% interest in AF (via IAC), being a total of 24.61%.

AF was incorporated in Peru on 13 September 2004 and holds the mineral concessions comprising the Apurimac and Cuzco Projects. By the AF Agreement and the MAPSA Agreement, the Company has secured the right to earn a 68.15% (or greater) interest in the Apurimac Project or the Cuzco Project or both (at the Company's election).

The AF Agreement refers to an agreement dated 2 July 2006 between Strike and Peruvian companies, AF, Minera los Andes y el Pacífico S.A. (MAPSA) and D&C Pesca S.A.C. (D&C) (and a more formal shareholders' agreement executed on 10 November 2006) pursuant to which Strike has secured the right to earn a 51% (or greater) interest in the Apurimac Project or the Cuzco Project or both (at Strike's election) through a progressive US$6.5 million investment in AF (which holds title to such projects) and the exercise of options to acquire AF shares from D&C and MAPSA (at a total cost of US$34.5 million), within a 5 year period. After such investment and acquisition, Strike will hold a 51% shareholding in AF with D&C and MAPSA each holding a 24.5% interest in AF.

During the half year, Strike invested a further US$2.3 million into AF, bringing its total investment in AF to US$5 million. A total of US$2.5 million has been capitalised into fully paid shares in AF as at 31 December 2007, giving Strike a 6.186% direct shareholding interest in AF.

After the completion of Strike's obligations to contribute a total of US$6.5 million into AF, Strike will have earned a 12.5% shareholding interest in AF. Strike's interest will increase to 51% upon exercising options to acquire an aggregate 38.5% interest from MAPSA and D&C in consideration for US$34.5 million.

for the period ended 31 December 2007

7. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (continued)

On 23 January 2008, AF shareholders approved the capitalisation of the balance of Strike's contributions to 31 December 2007, giving Strike a 9.901% shareholding interest in AF.

Subsequent to the balance date, Strike has invested a further US$1.5 million into AF and on 27 February 2008, AF shareholders approved the capitalisation of this contribution, giving Strike a 12.5% shareholding interest in AF. After this capitalisation, IAC has a 24.548% direct shareholding in AF. Accordingly, Strike currently has a 29.683% direct/indirect shareholding interest in AF.

The MAPSA Agreement refers to an agreement dated 1 February 2007 between Strike, MAPSA and shareholders of MAPSA (MAPSA Shareholders), Strike has acquired a 70% interest in MAPSA's residual interest in AF, in consideration for staged payments totalling US$10 million (being a combination of $6 million cash and the issue of 3 million Strike shares) over 2 years and a further US$10 million when production and sales from these projects first exceeds 20 million tonnes per annum.

Therefore, upon the completion of Strike's obligations under the AF Agreement, Strike will have gained a direct 51% shareholding interest in AF and a controlling 70% interest in a further 24.5% shareholding interest in AF held by IAC.

				Consolidated Carrying
			Amount
Movement in carrying amounts			31 Dec 07	30 Jun 07
			$	$
Equity accounted amount of investment at the beginning of the financial period			11,563,736	-
New listed investment during the year			-	7,187,500
New unlisted investment during the year - at cost		2,618,644	4,481,669
Share of losses after income tax			(1,089,377)	(105,433)
Reversal of AUQ share of losses			999,340	-
Reversal of investments not accounted for using equity method			(7,187,500)	-
Equity accounted amount of investment at the end of the financial period			6,904,843	11,563,736
Directors' valuation			6,904,843	4,481,699
Share of associates' profits or losses
Loss before income tax			(1,089,377)	(105,433)
Income tax expense			-	-
Loss after income tax			(1,089,377)	(105,433)
Summarised financial information of associates:		Consolidated Entity's share of
31 December 2007	Assets	Liabilities	Revenues	Loss
Sofcom Limited (SOF)	13,606	(13,291)	161	(9,805)
Apurimac Ferrum S.A. (AF)	2,250,839	(733,314)	-	(117,787)
	2,264,445	(746,605)	161	(127,592)
30 June 2007
Apurimac Ferrum S.A. (AF)	1,406,760	(529,679)	-	77,685
Alara Uranium Limited (AUQ)	5,347,748	(82,974)	53,283	27,749
Sofcom Limited (SOF)	13,919	(3,797)	946	8,181
	6,768,427	(616,450)	54,229	113,615

for the period ended 31 December 2007

ISSUED CAPITAL				Consolidated Entity
			31 Dec 07	30 Jun 07
Issued and Paid-Up Capital			$	$
Fully paid ordinary shares			51,216,918	51,078,281
Each fully paid ordinary share carries one vote per share and
the right to participate in dividends.	Date of	Number of
Movement in Ordinary Share Capital	movement	shares
At 1 July 2006		47,835,701	19,848,109	19,848,108
Option ($0.20, 30 June 2008) conversions	July - Jun 07	9,959,222	1,991,844	1,991,844
Share placement (at $1.30)	Oct - Nov 06	2,307,693	3,000,001	3,000,001
Share purchase plan issue (at $1.30)	27-Nov-06	5,706,631	7,419,000	7,419,000
Acquisition of subsidiary	05-Apr-07	3,000,000	4,884,331	4,884,331
Institutional share placement (at $2.10)	31-May-07	7,200,000	15,120,000	15,120,000
Share issue expenses		-	(1,185,005)	(1,185,004)
At 1 July 2007		76,009,247	51,078,280	51,078,280
Option ($0.20/$0.178, 30 June 2008) conversions	July - Dec 07	10,303,171	2,058,638
Capital return distribution		-	(1,920,000)
At 31 December 2007		86,312,418	51,216,918

Reduction in exercise price of options as a consequence of a in specie distribution of 16 million Alara Uranium Limited (AUQ) shares to Strike shareholders

During the half year, the Company completed a reduction of share capital effected by returning to eligible Strike shareholders, in proportion to the number of Strike shares held by them as at the record date (10 December 2007), 16,000,000 Alara Uranium Limited shares held by Strike (Capital Return). Eligible Strike shareholders received ~0.18537 of an Alara share for every one Strike share held (as at the record date) on 13 December 2007 (In Specie Distribution Date). The value of the Capital Return is calculated by reference to the market value of Alara shares on the In Specie Distribution Date, which was 12.0 cents per share, making the total value of the Capital Return $1,920,000 or 2.2 cents per Strike share. The Capital Return also had the effect of reducing the exercise price of existing Strike options which remained unexercised after the record date by the value of the value of the Capital Return per Strike share, being 2.2 cents.

				Consolidated Entity
9.	RESERVES			31 Dec 07	30 Jun 07
				$	$
	Options Reserve			7,659,712	4,121,607
	Movement in Options Reserve
	The number of unlisted options outstanding over unissued	Date of	Number of
	ordinary shares at balance date is as follows	movement	options
	Unlisted options exercisable at $0.20/$0.178; expiring 9 Feb 11	10-Feb-06	1,833,333	5,238	5,238
	Unlisted options exercisable at $0.30/$0.278; expiring 9 Feb 11	10-Feb-06	1,666,667	4,762	4,762
	Directors' Options
	Unlisted options exercisable at $0.96/$0.938; expiring 21 Jul 11	21-Jul-06	4,600,000	1,788,205	1,553,793
	Unlisted options exercisable at $0.96/$0.938; expiring 13 Sep 11	13-Sep-06	500,000	239,764	194,475
	Unlisted options exercisable at $2.10/$2.078; expiring 7 Mar 12	07-Mar-07	500,000	452,699	292,353
	Unlisted options exercisable at $2.81/$2.788; expiring 7 Mar 12	07-Mar-07	3,300,000	2,661,171	1,718,583
	Unlisted options exercisable at $4.00; expiring 3 Dec 12	03-Dec-07	4,000,000	2,069,824	-
	Employees' Options
	Unlisted options exercisable at $1.20/$1.178; expiring 6 Oct 11	06-Oct-06	150,000	120,395	93,108
	Unlisted options exercisable at $2.90/$2.878; expiring 2 May 12	01-May-07	100,000	61,894	18,011
	Unlisted options exercisable at $2.90/$2.878; expiring 2 May 12	05-Jun-07	33,000	20,416	5,940
			16,683,000	7,424,368	3,886,263
	Listed $0.20/$0.178 (30 June 2008) options	21-Apr-06	23,735,163	237,386	237,386
				(2,042)	(2,042)
	Option issue expenses	Apr 06 - Jun 06	(366,022)	-	-
	Options exercised	Jul 06 - Jun 07	(9,959,222)	-	-
	Options exercised		13,409,919	235,344	235,344
		Jul 07- Dec 07	(10,303,171)	-	-
	Options exercised		13,409,919	235,344	235,344

Total Option Reserve

7,659,712 4,121,607

for the period ended 31 December 2007

9. RESERVES (continued)

The Option Reserve records the consideration (net of expenses) received by the Company on the issue of options.

Equity based remuneration

(a) On 5 September 2007, the Company issued 200,000 unlisted employee's options with an exercise price of $2.90/2.878, a term of 5 years and a vesting period over 15 months (1/3rd on completion of probation, 1/3rd 6 months thereafter and 1/3rd 6 months thereafter again) from date of issue ($2.878 (5 September 2012) Unlisted Employee Options) to an employee.
(b) On 17 November 2007, the Company issued 250,000 unlisted employee's options with an exercise price of $2.90/2.878, a term of 5 years and a vesting period over 18 months (1/3rd on completion of probation, 1/3rd 6 months thereafter and 1/3rd 6 months thereafter again) from date of issue ($2.878 (17 November 2012) Unlisted Employee Options) to an employee.
(c) On 3 December 2007, the Company issued 4,000,000 unlisted directors' options with an exercise price of $4.00/3.978, a term of 5 years and a vesting period over 12 months (50% on grant, 50% on 3 December 2008) from date of issue ($3.978, 3 December 2012 Directors' Options) to six directors, J Stephenson, HS Madan, F Khan, W Johnson, M Richmond and V Ho.

The fair value of these options are expensed over the period from their date of grant to each respective vesting date; fair value is calculated using the binomial tree options valuation model using an assumed volatility rate of 65% for the underlying SRK shares.

10. RELATED PARTY DISCLOSURES

The following table provides the total amount of transactions that were entered into with related parties for the relevant financial period.

	Amount owed by
	related parties
Transactions with Controlled Entities	$
Strike Operations Pty Ltd	1,428,669
Strike Resources Peru S.A.C		986,365
Other related transactions between subsidiaries
Loan by Strike Operations Pty Ltd
PT Indo Batubara (subsidiary of Strike Operations Pty Ltd)		209,000
Details of the percentage of ordinary shares held in controlled entities
are disclosed below. Interest is not charged on outstanding amounts.
		Percentage of Ownership
Investment in Controlled Entities
	31 Dec 07	30 Jun 07
Strike Operations Pty Ltd (SOPL)	100%	100%
Incorporated in Australia on 28 November 2002.

PT Indo Batubara (100% beneficially owned by SOPL)	100%	100%
Incorporated in Indonesia on 8 December 2005
Strike Resources Peru S.A.C. (subsidiary of SOPL)	100%	100%
Incorporated in Peru on 28 December 2006
Iron Associates Corporation (controlled by the Company)	70%	70%
Incorporated in Panama on 15 February 2007

for the period ended 31 December 2007

11. SEGMENT REPORTING

The Consolidated Entity is based in Australia but has exposure to other resource projects in Indonesia and Peru.

		External Revenue	Operating Results
Primary Reporting- Business segments	31 Dec 07	31 Dec 06	31 Dec 07	31 Dec 06
Segment Revenues & Results	$	$	$	$
Resource projects	-	-	(287,637)	(424,645)
Internet Technologies	-	-	-	297
Investments	12,168	442,592	(3,194,515)	(671,455)
	12,168	442,592	(3,482,152)	(1,095,803)
Unallocated	532,819	101,255	(4,617,352)	(1,482,270)
	544,987	543,847
Loss before income tax			(8,099,504)	(2,578,073)
Income tax expense			-	-
Loss after income tax			(8,099,504)	(2,578,073)

		Assets	Liabilities
	31 Dec 07	30 Jun 07	31 Dec 07	30 Jun 07
Segment Assets & Liabilities	$	$	$	$
Resource projects	8,114,203	7,681,546	(160,196)	(13,218)
Investments	10,249,199	12,541,613	-	-
	18,363,402	20,223,159	(160,196)	(13,218)
Unallocated	15,988,209	18,599,410	(324,428)	(519,602)
	34,351,611	38,822,569	(484,624)	(532,820)

Secondary reporting - Geographical segments

		Segment revenues		Carrying amount ofsegment assets		Acquisitions of noncurrent segment assets

	31 Dec 07	31 Dec 06	31 Dec 07	30 Jun 07	31 Dec 07	30 Jun 07
	$	$	$	$	$	$
Australia	544,766	543,847	27,023,318	27,159,819	224,882	7,187,500
Peru	-	-	7,269,236	11,662,750	2,658,494	11,397,578
Indonesia	221	-	59,057	-	-	-
	544,987	543,847	34,351,611	38,822,569	2,883,376	18,585,078

			Consolidated
			30 Jun 07
(a)	Lease Commitments	$	$
	Non-cancellable operating lease commitments:
	Not longer than one year	27,767	24,960
	Between 12 months and 5 years	125,662	99,840
	Greater than 5 years	17,286	49,920
		170,715	174,720

The lease is the Company's share of the office premises at Level 14, The Forrest Centre, 221 St Georges Terrace, Perth, Western Australia, and includes all outgoings (exclusive of GST). The lease is for a 7 year term expiring 30 June 2013 and contains a rent review increase each year alternating between 5% and the greater of market rate or CPI + 1%.

for the period ended 31 December 2007

12. COMMITMENTS (continued)

(b) Mineral Tenement/Concession/Mining Rights - Commitments for Expenditure

Australian tenements

In order to maintain current rights of tenure to exploration tenements, the Consolidated Entity is required to outlay lease rentals and meet minimum expenditure commitments of approximately $27,500 over a 12 month period), based on Australian tenements which have been granted as at balance date. Financial commitments for subsequent periods are contingent upon future exploration and evaluation results and cannot be estimated. These obligations are subject to renegotiation upon expiry of the tenement lease or when application for a mining lease is made and have not been provided for in the accounts.

Peruvian concessions

The Consolidated Entity is required to pay annual license fees by 30 June of each year, currently charged at the rate of US$3.00 per hectare per annum.

(c) Australian Heritage Protection Agreements

These agreements facilitate the preservation of aboriginal heritage through the protection of aboriginal sites and objects upon the grant of mining tenements in Western Australia. The Heritage Protection Agreements require the Consolidated Entity to conduct aboriginal heritage surveys prior to conducting exploration that is not low impact in nature and detail procedures to be followed if an aboriginal site is identified.

(d) Agreements with Peruvian Landowners and Community Groups

Under the AF Agreement (refer note 7), the Company has an obligation to invest US$6.5 million into AF over a 5 year period; these funds have been used principally by AF in carrying on mining activities in Peru. Holding a mineral concession in Peru does not grant automatic access to the surface land. Notwithstanding an easement procedure is contemplated in Peruvian law, in practice, mining companies have to negotiate and enter into private agreements with landowners/community groups in order to have access to their land for the purposes of conducting mining activities (exploration, evaluation, development and mining). With respect to a majority of AF's concession, there are often multiple landowners/community groups who are affected by AF's proposed mining activities. To date, approvals have been sought and obtained on drilling on a programme by programme basis.

AF employs a senior and experienced Environmental Manager and a Community Relations Manager and an additional 6 community relations staff across both the Apurimac and Cuzco Projects. Their effort is supported by staff from a leading Community Relations consultant group in Peru. AF is in current and on-going consultations with communities in AF's project areas to secure permissions for drilling and conducting mining operations. The Company is also working with its Community Relations consultant on longer term objectives and policies.

The obtaining of approvals from landowners/community groups can be complicated and time consuming. AF is currently experiencing delays in dealing with certain community groups, particularly in the northern Andahuaylas district areas (where the Opaban I and III concessions are located). Accordingly drilling in several areas within the Apurimac project has been temporarily suspended whilst these consultations are being conducted and permissions finalised. AF will have to commit funds to community groups and or landowners to secure land access agreements to develop the Apurimac and Cuzco projects. There can be no guarantees as to the obtaining of such approvals or the terms upon which approvals are obtained. At this stage, it is not possible to quantify the potential financial obligation of the Consolidated Entity or AF in this regard.

for the period ended 31 December 2007

13. CONTINGENT ASSETS AND LIABILITIES

Contingent assets and liabilities exist in relation to certain resource projects of the Consolidated Entity subject to the continued development and advancement of the same.

(i) AF Agreement - Refer to Note 7 for details of the Company's obligations under this agreement.

As at 31 December 2007, the Company has satisfied US$5 million of the US$6.5 million investment commitment into AF (over a 5 year period which commenced on 9 November 2006). Subsequent to the balance date, the Company has invested a further US$1.5 million into AF and on 27 February 2008, AF shareholders approved the capitalisation of this contribution, giving Strike a 12.5% shareholding interest in AF based on a total investment of US$6.5 million into AF.

Once Strike has contributed the US$6.5 million into AF to earn a 12.5% shareholding interest but before Strike exercises any of its options to acquire a 38.5% shareholding interest from MAPSA and D&C, if further funds are required by AF to conduct any mining activity as determined by its board, then Strike may provide an additional US$5 million as an interest bearing loan to AF net of any Peruvian withholding taxes that might apply.

The loan shall either be repaid by AF within 12 months or if unpaid in whole or part, shall be capable of conversion to equity in AF by Strike in accordance with an agreed dilution formula under the AF Agreement. For example, if the full US$5 million loan is converted into equity in AF, Strike will increase its shareholding interest in AF from 12.5% to 22.2% (post loan conversion).

Subsequent to the balance date, Strike has advanced a total of US$1.8 million (A$2 million) to AF via a loan facility provided for under the AF Agreement as described above.

MAPSA Agreement - refer to Note 7 for details of the Company's obligations under this agreement. (ii)

The Company has a contingent commitment to pay the MAPSA Shareholders US$3.5 million by February 2009 and a further US$10 million when production and sales from the Apurimac and/or Cuzco projects first exceeds 20 million tonnes per annum.

Iron Associates Corporation (IAC) has a contingent royalty obligation to the MAPSA Shareholders of between US$1.00 to $1.20 per tonne based on IAC's share of AF's sales; the royalty rate depends on whether the average FOB price of iron ore sold by AF is less than US$40 per tonne (US$1.00 royalty per tonne) or greater than US$55 per tonne (US$1.20 royalty per tonne), between such amounts, the royalty is payable on a prorata basis.

(iii) West Java (Indonesia) Copper/Gold Agreement - under a cooperation agreement dated 16 March 2005 with PT Suda Miskin (Suda Miskin) in relation to the West Java Copper/Gold Project, the Consolidated Entity has a contingent commitment to pay the vendor the last staged payment of US$30,000 by April 2008. Suda Miskin is also entitled to a 19% after tax net profits royalty from production. The Consolidated Entity may withdraw from the project at any time without any further obligations after the date of withdrawal.
Cristoforo Agreement On 18 May 2007, Strike Resources Peru SAC (the Peruvian subsidiary of the Company) entered into an assignment and option agreement with a Peruvian vendor in respect of three mineral concessions in the Apurimac District totalling 1,900 hectares, being the Cristoforo 14, Cristoforo 28 and Ferroso 29 concessions. The consideration payable for the assignment of mining rights to Strike Resources Peru SAC (or assignees) for a two year period is US$200,000, of which US$70,000 was paid on execution of the agreement and US$70,000 is payable after 12 months and US$60,000 is payable after 18 months. The option to acquire these three mineral concessions is for a period of two years and the exercise price is US$3 million. (iv)

for the period ended 31 December 2007

13. CONTINGENT ASSETS AND LIABILITIES (continued)
- (v) Native Title - The Consolidated Entity's tenements in Australia may be subject to native title applications in the future. At this stage it is not possible to quantify the impact (if any) that native title may have on the operations of the Consolidated Entity.
- Government Royalties The Consolidated Entity is liable to pay royalties on production obtained from its mineral tenements/concessions. For example, the applicable Government royalties in Peru is between 1 to 3% based on the value of production. At this stage, it is not possible to quantify the potential financial obligation of the Consolidated Entity under Government royalties. (vi)
- (vii) Directors' Deeds - The Company has entered into deeds of indemnity with each of its Directors indemnifying them against liability incurred in discharging their duties as directors/officers of the Consolidated Entity. As at balance date, no claims have been made under any such indemnities and accordingly, it is not possible to quantify the potential financial obligation of the Consolidated Entity under these indemnities.

14. EVENTS AFTER BALANCE DATE

(i) During the half year, Strike invested US$2.3 million into AF, bringing its total investment in AF to US$5 million. A total of US$2.5 million had been capitalised into fully paid shares in AF as at 31 December 2007, giving Strike a 6.186% direct shareholding interest in AF.

On 23 January 2008, AF shareholders approved the capitalisation of the balance of Strike's contributions to 31 December 2007, giving Strike a 9.901% shareholding interest in AF.

(ii) Subsequent to the balance date, Strike has advanced a total of US$1.8 million (A$2 million) to AF via a loan facility provided for under the AF Agreement (refer Note 13(i)).
(iii) On 5 March 2008, the Company issued 250,000 unlisted employee's options with an exercise price of $2.90/2.878, a term of 5 years and a vesting period over 15 months (1/3rd on completion of probation, 1/3rd 6 months thereafter and 1/3rd 6 months thereafter again) from date of issue ($2.878 (5 March 2013) Unlisted Employee Options) to an employee.

No other matter or circumstance has arisen since the end of the financial period that significantly affected, or may significantly affect, the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity in future financial years.

DIRECTORS' DECLARATION

In accordance with a resolution of the directors of Strike Resources Limited made pursuant to sub-section 303(5) of the Corporations Act 2001, we state that:

In the opinion of the directors:

(a) The financial statements and notes of the Consolidated Entity are in accordance with the Corporations Act 2001, including:
- (i) giving a true and fair view of the Consolidated Entity's financial position as at 31 December 2007 and of its performance for the half year ended on that date; and
- (ii) complying with Accounting Standards AASB 134 "Interim Financial Reporting" and Corporations Regulations 2001; and
(b) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

On behalf of the Board,

John Stephenson Victor Ho Chairman Director

Perth, Western Australia

14 March 2008

BDO Kendalls Audit & Assurance (WA) Pty Ltd 128 Hay Street SUBIACO WA 6008 PO Box 700 WEST PERTH WA 6872 Phone 61 8 9380 8400 Fax 61 8 9380 8499 [email protected] www.bdo.com.au

ABN 79 112 284 787

INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF STRIKE RESOURCES LIMITED

We have reviewed the accompanying half-year financial report of Strike Resources Limited, which comprises the condensed balance sheet as at 31 December 2007, and the condensed income statement, condensed statement of changes in equity and condensed cash flow statement for the half-year ended on that date, a statement of accounting policies, other selected explanatory notes and the directors' declaration of the consolidated entity comprising the disclosing entity and the entities it controlled at the half-year end or from time to time during the half-year in order for the disclosing entity to lodge the half-year financial report with the Australian Securities and Investments Commission.

Directors' Responsibility for the Half-Year Financial Report

The directors of the disclosing entity are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the disclosing entity's financial position as at 31 December 2007 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Strike Resources Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Strike Resources Limited is not in accordance with the Corporations Act 2001 including:

(a) giving a true and fair view of the consolidated entity's financial position as at 31 December 2007 and of its performance for the half-year ended on that date; and
(b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

BDO Kendalls Audit & Assurance (WA) Pty Ltd

BG McVeigh Director

Perth, Western Australia Dated this 14th day of March 2008

INFORMATION ON SECURITIES

as at 31 December 2007

ISSUED SECURITIES

		Quoted on ASX	Not Quoted	Total
Fully paid ordinary shares		86,312,419	-	86,312,419
$0.178 (30 June 2008) Options		3,106,748	-	3,106,748
$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 (21 July 2011) Directors' Options		-	4,600,000	4,600,000
$0.938 (13 September 2011) Unlisted Director Options			500,000	500,000
$1.178 (6 October 2011) Unlisted Employee Options			150,000	150,000
$2.078 (7 March 2012) Unlisted Director Options			500,000	500,000
$2.788 (7 March 2012) Unlisted Directors' Options			3,300,000	3,300,000
$2.878 (1 May 2012) Unlisted Employees' Options			133,000	133,000
$2.878 (5 September 2012) Unlisted Employee Options			200,000	200,000
$2.878 (17 November 2012) Unlisted Employee Options			250,000	250,000
$3.978 (3 December 2012) Unlisted Directors' Options			4,000,000	4,000,000
	Total	89,419,167	17,133,000	106,552,167

SUMMARY OF UNLISTED DIRECTORS' AND EMPLOYEE OPTIONS

Date of Issue	Description of UnlistedOptions	ExercisePrice	Expiry Date	Vesting Criteria8	No. ofOptions
21 July 2006	$0. 938 (21 July 2011)Directors' Options9	$0.938	21 July 2011	30% on grant, 30% on 21 July 2007 and 40%on 21 July 2008 months	4,600,000
13 September2006	$0. 938 (13 September 2011)Director Options10	$0.938	13 September2011	30% on grant, 30% on 13 September 2007 and40% on 13 September 2008	500,000
6 October 2006	$1.178 (6 October 2011)Employee Options11	$1.178	6 October2011	1/3rd on 6 March 2007, 1/3rd on 6 March 2008and 1/3rd on 6 March 2009	150,000
7 March 2007	$2.078 (7 March 2012)Director Options12	$2.078	7 March 2012	30% on grant, 30% on 7 March 2008 and 40%on 7 March 2009	500,000
7 March 2007	$2.788 (7 March 2012)Directors' Options13	$2.788	7 March 2012	30% on grant, 30% on 7 March 2008 and 40%on 7 March 2009	3,300,000
1 May 2007	$2.878 (1 May 2012)Employee Options14	$2.878	1 May 2012	1/3rd on 1 November 2007, 1/3rd on 1November 2008 and 1/3rd on 1 November2009	100,000
5 June 2007	$2.878 (1 May 2012)Employee Options15	$2.878	1 May 2012	1/3rd on 1 November 2007, 1/3rd on 1November 2008 and 1/3rd on 1 November2009	33,000
5 September 2007	$2.878 (5 September 2012)Unlisted Employee Options	$2.878	5 September2012	1/3rd on completion of probation, 1/3rd 6months thereafter and 1/3rd 6 monthsthereafter again	200,000
17 November2007	$2.878 (17 November 2012)Unlisted Employee Options	$2.878	17 November2012	1/3rd on completion of probation, 1/3rd 6months thereafter and 1/3rd 6 monthsthereafter again	250,000
3 December 2007	$3.978 (3 December 2012)Unlisted Directors' Options	$3.978	3 December2012	50% on grant and 50% on 3 December 2009	4,000,000
5 March 2008	$2.878 (5 March 2013)Unlisted Employee Options	$2.878	5 March 2013	1/3rd on completion of probation, 1/3rd 6months thereafter and 1/3rd 6 monthsthereafter again	250,000

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

9 Terms and conditions of issue are set out in a Notice of Meeting and Explanatory Statement dated 31 May 2006 for a General Meeting held on 14 July 2006

10 Terms and conditions of issue are set out in a Notice of Annual General Meeting and Explanatory Statement dated 1 August 2006 for an Annual General Meeting held on 13 September 2006

11 Terms and conditions of issue are set out in an ASX Appendix 3B New Issue Announcement dated 13 October 2006 and in a Notice of Meeting and Explanatory Statement dated 24 January 2007 for a General Meeting held on 6 March 2007

12 Terms and conditions of issue are set out in a Notice of Meeting and Explanatory Statement dated 24 January 2007 for a General Meeting held on 6 March 2007

13 Refer footnote 12

14 Terms and conditions of issue are set out in an ASX Appendix 3B New Issue Announcement dated 11 May 2007

15 Terms and conditions of issue are set out in an ASX Appendix 3B New Issue Announcement dated 11 June 2007

INFORMATION ON SECURITIES as at 31 December 2007

DISTRIBUTION OF ORDINARY FULLY PAID SHARES

Spread	of	Holdings	Number of Holders	Number of Units	% of Total Issue Capital
1	-	1,000	455	236,088	0.274
1,001	-	5,000	1,432	4,791,005	5.516
5,001	-	10,000	566	4,517,396	5.234
10,001	-	100,000	774	23,268,577	26.959
100,001	-	and over	95	53,529,353	62.018
Total			3,322	86,312,419	100.00%

TOP 20 ORDINARY FULLY PAID SHAREHOLDERS

	Rank Shareholders	Total Shares	% Issued Capital
1	DATABASE SYSTEMS LIMITED *	9,377,090	10.864
2	ANZ NOMINEES LIMITED	5,505,618	6.379
3	CITICORP NOMINEES PTY LIMITED	4,410,819	5.110
4	NATIONAL NOMINEES LIMITED	4,284,717	4.964
5	ORION EQUITIES LIMITED	3,490,802	4.044
6	HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED	3,050,173	3.534
7	CLASSIC CAPITAL PTY LTD	1,550,000	1.796
8	IRREWARRA INVESTMENTS PTY LTD	1,302,255	1.509
9	NEFCO NOMINEES PTY LTD	1,032,692	1.196
10	PATER INVESTMENTS PTY LTD	1,000,000	1.159
11	BLUE CRYSTAL PTY LTD	700,000	0.811
12	MR GEORGE BRYANT MACFIE	634,846	0.736
13	CITYSIDE INVESTMENTS PTY LTD	550,000	0.637
14	FAROOQ KHAN	530,010	0.614
15	DR SALIM CASSIM	500,000	0.579
16	MR SHANKER MADAN & MRS ANU MADAN	500,000	0.579
17	SURPION PTY LTD <m &="" a="" c="" co="" suhr="" w="">	490,000	0.568
18	RENMUIR HOLDING LIMITED	487,428	0.565
19	KATANA CAPITAL LIMITED	450,000	0.521
20	MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED	405,015	0.469
Total		40,251,465	46.635%

* Substantial shareholder of the Company

INFORMATION ON SECURITIES as at 31 December 2007

DISTRIBUTION OF LISTED $0.178 (30 JUNE 2008) OPTIONS

Spread	of	Holdings	Number of Holders	Number of Units	% of Total Issue Capital
1	-	1,000	19	9,127	0.294
1,001	-	5,000	43	144,425	4.649
5,001	-	10,000	19	157,800	5.079
10,001	-	100,000	28	926,896	29.835
100,001	-	and over	6	1,868,500	60.143
Total			115	3,106,748	100.00%

TOP 20 LISTED $0.178 (30 JUNE 2008) OPTIONS

	Rank Optionholder	Total Options	% Total Options On Issue
1	MR DENIS IVAN RAKICH	594,000	19.120
2	EMPIRE HOLDINGS PTY LTD	500,000	16.094
3	MR TROY VALENTINE	300,000	9.656
4	HSBC CUSTODY NOMINEES	269,500	8.675
5	WILLBURY HOLDINGS PTY LTD	205,000	6.599
6	NEFCO NOMINEES PTY LTD	100,000	3.219
7	MR PHILLIP NICOLAOU & MRS NATALIE LUCIANA NICOLAOU<p &="" a="" c="" family="" n="" nicolaou="">	100,000	3.219
8	MR RODNEY MALCOLM JONES & MRS CAROL ROBIN JONES	80,000	2.575
9	BRISPOT NOMINEES PTY LTD <house 1="" a="" c="" head="" no="" nominee="">	78,000	2.511
10	ELMSDALE HOLDINGS PTY LTD	50,000	1.609
11	ANZ NOMINEES LIMITED	50,000	1.609
12	MR HAROLD DAVID LUXTON	37,500	1.207
13	DIPLOMAT HOLDINGS PTY LTD	35,000	1.127
14	STORM PAVICIC	32,500	1.046
15	MR MATTHEW NORMAN BULL	30,400	0.979
16	MR GUIDO PADULA	30,000	0.966
17	CG SUPER PTY LTD	28,000	0.901
18	MS SUSAN MARIE RAKICH	25,000	0.805
19	MACHELL PTY LTD	20,000	0.644
20	KIRRIEMUIR NOMINEES PTY LTD	20,000	0.644
Total		2,584,900	83.205

AI assistant

STRIKE RESOURCES LIMITED — Interim / Quarterly Report 2008

65855_rns_2008-03-13_8cbe7755-d024-4ff1-9a39-fc6529a3f643.pdf

HALF YEAR REPORT

31 December 2007

THIS DOCUMENT SHOULD BE READ IN CONJUNCTION WITH THE 2007 ANNUAL REPORT OF THE COMPANY

CONTENTS CORPORATE DIRECTORY

ASX HALF YEAR REPORT

RESULTS FOR ANNOUNCEMENT TO THE MARKET

Consolidated

ASX HALF YEAR REPORT

Dividends

Controlled Entities

Associates and Joint Venture Entities

HALF YEAR HIGHLIGHTS

COMPANY PROJECTS

OPERATING RESULTS

LOSS PER SHARE

FINANCIAL POSITION

DIVIDENDS

REVIEW OF OPERATIONS

1. Apurimac Iron Ore Project (Peru)

1.1 Concessions

1.2 Resource Development

1.3 Metallurgical Testwork

1.4 Pipeline

1.5 Port

1.6 Environmental Approvals and Community Relations

2. Cuzco Iron Ore Project (Peru)

2.1 MOU with Peru Rail

2.2 Resource Development

3. Paulsens East Iron Ore Project (Western Australia)

4. King Sound Mineral Sands Project (Western Australia)

5. Berau Coal Project (Indonesia)

6. Banten Copper/Gold Project (Indonesia)

CORPORATE

1. In Specie Distribution of 16 Million Alara Uranium Limited (AUQ) Shares To Strike Shareholders

2. Reduction in Exercise Price of Options

SECURITIES IN THE COMPANY

1. Issued Securities

2. Summary of Share Capital Changes

3. Options

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

(b) Directors' and Employees' Options

DIRECTORS AND COMPANY SECRETARY

AUDITOR'S INDEPENDENCE DECLARATION

DECLARATION OF INDEPENDENCE BY BRAD MCVEIGH TO THE DIRECTORS OF STRIKE RESOURCES LIMITED

CONDENSED INCOME STATEMENT

CONDENSED BALANCE SHEET

CONDENSED STATEMENT OF CHANGES IN EQUITY

CASH FLOW STATEMENT

1. SIGNIFICANT ACCOUNTING POLICIES

Statement of compliance

Basis of preparation

2. LOSS FOR THE PERIOD

for the period ended 31 December 2007

3. CORRECTION OF ERROR IN CALCULATION OF SHARE BASED PAYMENTS

for the period ended 31 December 2007

(a) Disclosure of Non-Cash Financing and Investing Activities

Options Remuneration

7. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (continued)

9. RESERVES (continued)

Equity based remuneration

10. RELATED PARTY DISCLOSURES

for the period ended 31 December 2007

11. SEGMENT REPORTING

Secondary reporting - Geographical segments

for the period ended 31 December 2007

12. COMMITMENTS (continued)

(b) Mineral Tenement/Concession/Mining Rights - Commitments for Expenditure

Australian tenements

Peruvian concessions

(c) Australian Heritage Protection Agreements

(d) Agreements with Peruvian Landowners and Community Groups

for the period ended 31 December 2007

13. CONTINGENT ASSETS AND LIABILITIES

for the period ended 31 December 2007

14. EVENTS AFTER BALANCE DATE

DIRECTORS' DECLARATION

INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF STRIKE RESOURCES LIMITED

STRIKE RESOURCES LIMITED Interim / Quarterly Report 2008